Meeting with the minister on income compensation

We have just been to a meeting with the Minister for the Green Transition, Jeppe Bruus. At the meeting, we presented one of the biggest challenges for afforestation in Denmark right now: That private landowners should have the opportunity to receive income compensation, as well as supplements for leaving the forest untouched when they choose other subsidy schemes than provided by the Ministry of Green Transition itself and the Climate Forest Foundation.

Right now, this uncertainty has the consequence that many landowners are hesitant to enter into agreements with us and other private subsidy schemes. This means that a large part of the potential for afforestation financed by private funds will be lost.

The consequence is not only fewer new forests in Denmark, but also that Danish companies’ willingness to contribute is reduced because we cannot offer planting with private landowners. This creates unfair competition, where funds and commitment, which could otherwise have been in play in Denmark, risk being channeled to other types of projects, or completely out of the country.

And by opening for all landowners to have the opportunity to receive income compensation, as well as supplements for untouched forest, the Ministry of Green Transition saves DKK 46,000 per hectare of new forest that is established. In this way, the tax-financed pool set aside by the ministry for afforestation goes even further.

At the meeting, the minister expressed gratitude for our efforts, understanding of the specific issue and the fact that lack of access to income compensation and the supplement for untouched forest can create unequal conditions of competition.

We look forward to the political process ahead, so that we can ensure that landowners are free to choose the subsidy scheme that best matches their values and at the same time get the same opportunities – regardless of which scheme they choose. Only in this way can we ensure that companies’ investments in nature and climate remain here in Denmark and create as much value as possible locally.

Read more about the issue of income compensation at the Danish Forest Association (in Danish) or in previous news posts.