Call out to the Ministry of Green Transition

The Ministry of Green Transition plans to grant landowners a subsidy of DKK 75,500 per hectare for afforestation, of which income compensation will amount to approx. DKK 29,500.

It is fundamentally fantastic that we can look forward to getting 250,000 hectares of new forest in Denmark financed by the Ministry of Green Transition. And with an additional DKK 194 million for the Danish Climate Forest Fund, as well as a bill that they should also be able to provide income compensation on top of their subsidies for afforestation, it can only contribute to even more afforestation.

BUT BUT BUT, if it is not possible for all landowners, regardless of the choice of subsidy scheme they choose, to be able to apply for income compensation, then a duopoly-like market situation will arise in Denmark, where the Ministry of Green Transition themselves and the Climate Forest Foundation are the only players.

Growing Trees Network is currently the non-public organization in Denmark that has provided grants for, and carried out, the most afforestation projects. 95% of all our projects are financed by grants from Danish and foreign companies. The last 5% is donation coming from private citizens. Most of the forests are planted over important aquifers, as the Growing Trees Network was started with groundwater protection in mind.

So far, we have had a competitive subsidy of DKK 51,200 + VAT per hectare. (roughly the same as the Danish Climate Forest Fund provides on average per project) and has provided grants for more than 160 afforestation projects on land owned by the Danish Nature Agency, more than 30 municipalities, churches, waterworks and private landowners. The Ministry of Green Transition is up to a minimum subsidy of DKK 75,500 per hectare, of which the income compensation amounts to approx. DKK 29,500. If the landowners who want subsidies from us in the future cannot apply for the income compensation, in addition to our subsidies for the afforestation itself, then we are no longer competitive. The landowners will then choose the subsidy from either the Ministry of Green Transition or from the Danish Climate Forest Fund, as the latter is expected to be able to pay income compensation via a change in the law.

This means that Denmark potentially misses out on the many millions of DKK for afforestation that our sponsors send to us every year, quarter after quarter, because they want to contribute to combat climate change, protect our clean drinking water, or do something for public health, nature and biodiversity. And they don’t do it to reduce their carbon emissions – it’s a pure ESG efforts and a desire to make a difference.

We have therefore contacted the Minister for Green Transition, Jeppe Bruus, and asked for a meeting to ensure equal conditions of competition on the Danish market for subsidies for afforestation projects.

This will ensure, that:

• Landowners are free to choose the subsidy provider that suits their needs best and cooperate with those they want to work with.
• More people can get subsidies faster.
• We can more quickly protect the fjords and the irreplaceable aquifers and ensure further contributions to the biodiversity efforts.
• Private individuals and companies (including foreign companies) will have the opportunity to contribute… without having to pay extra for voluntary carbon credits they do not want or need.
• The local anchoring is increased, and more good stories and experiences are told to inspire others.

We look forward to a dialogue with Minister Jeppe Bruus about this challenge.