The European Commission has approved a series of climate-focused state aid schemes, including a €1.3 billion initiative by Germany to reduce greenhouse gas emissions through peatland restoration, and a €3.7 billion program in Czechia to scale up sustainable biomethane production.
Peatlands—wetland ecosystems that naturally store carbon—currently contribute significantly to emissions when drained for agriculture and forestry, accounting for nearly 7% of annual greenhouse gas emissions. Germany’s scheme aims to address this by supporting the rewetting and restoration of peatlands, helping prevent carbon release and restoring their function as natural carbon sinks.
The program will fund:
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Advisory and preparatory services
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Investments for peatland rewetting
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Compensation for economic losses due to land-use changes
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Development of paludiculture (wetland-adapted agriculture)
Meanwhile, the Czech initiative focuses on expanding sustainable biomethane production for use in transport, heating, and industry. The scheme will:
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Support both new and converted biomethane facilities
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Be open to licensed producers across Czechia
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Primarily benefit small and medium-sized farms
The program is expected to run until 2030, supporting installations with a total output of 350 million cubic meters of biomethane.
Approval of the Czech scheme falls under the EU’s Clean Industrial Deal State Aid Framework, which enables Member States to accelerate investments in clean energy, industrial decarbonization, and climate technologies.
