Aid for afforestation and the creation of woodland
Article 41
1. Aid for afforestation and the creation of woodland shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation. 2. Aid for afforestation and the creation of woodland shall cover the costs of establishment and an annual premium per hectare. The aid for afforestation and the creation of woodland may cover investment operations. 3. Aid for afforestation and the creation of woodland related to investment operations shall cover the following eligible costs: (a) the construction, acquisition, including leasing, or improvement of immovable property, with purchase of land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned with the exception of land purchase if the aid is granted in the framework of a CAP Strategic Plan; (b) the purchase or lease purchase of machinery and equipment up to the market value of the asset; (c) general costs linked to the expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on the results of those studies, no expenditure under points (a) and (b) is incurred; (d) the acquisition, development or usage fees of computer software, cloud and similar solutions, and the acquisitions of patents, licences, copyrights, trademarks; (e) the costs of establishing forest management plans or equivalent instruments. Aid which is granted in the framework of a CAP Strategic Plan and which is provided in the form of financial instruments may cover eligible costs other than those referred to in the first subparagraph, provided that the costs are fully eligible under the relevant CAP Strategic Plan and that the aid is put into effect after the approval of the relevant Strategic Plan by the Commission. Save where support is provided in the framework of a CAP Strategic Plan in the form of financial instruments, working capital shall not be considered to be an eligible cost. 4. For investment operations requiring an environmental impact assessment under Directive 2011/92/EU the aid shall be subject to the condition that such assessment has been carried out and the development consent has been granted for the investment project concerned before the date of granting the individual aid. 5. The following costs of establishment shall be eligible: (a) the costs of the plantation and propagation material; (b) the plantation costs and the costs directly linked to the plantation; (c) the costs of other related operations such as storing and treatment of seedlings with the necessary prevention and protection materials; (d) the costs of replacement of die-off during the first year and the replacement of small-scale die-off during the first years following plantation. The costs of the replacement of large-scale die-off may only be supported under Article 43. 6. The annual premium per hectare shall cover the costs for the income foregone and the costs of maintenance, including early and late cleanings, for a maximum period of 12 years from the date of granting the aid. 7. Aid shall not be granted for planting the following trees: (a) trees for short rotation coppicing; (b) Christmas trees; (c) fast growing trees for energy production; (d) species non-native to the area, save where support is provided in the framework of the CAP Strategic Plan; (e) investments in afforestation which are not consistent with climate and environmental objectives in accordance with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation ( 46 ) . 8. The species planted shall be adapted to the environmental and climatic conditions of the area and comply with minimum environmental requirements referred to in point (12). 9. In areas where afforestation is difficult due to severe pedo-climatic conditions, aid may be provided for planting perennial woody species such as shrubs or bushes suitable to the local conditions. 10. Aid for large enterprises shall be conditional on the presentation of relevant information from a forest management plan or equivalent instrument in accordance with the General Guidelines for the Sustainable Management of Forests in Europe ( 47 ) . This requirement does not apply to municipalities that are autonomous local authorities with an annual budget of less than EUR 10 million and fewer than 5 000 inhabitants. 11. The aid intensity shall be limited to 100 % of the eligible costs. 12. The following minimum environmental requirements shall apply in the context of aid for afforestation and the creation of woodland: (a) the selection of species to be planted, of areas and of methods to be used shall avoid the inappropriate afforestation of sensitive habitats such as peat lands and wetlands and negative effects on areas of high ecological value including areas under high natural value farming. Pursuant to Directive 92/43/EEC and Directive 2009/147/EC on sites designated as Natura 2000 only afforestation consistent with the management objectives of the sites concerned and agreed with the Member State’s authority in charge of implementing Natura 2000 shall be allowed; (b) the selection of species, varieties, ecotypes and provenances of trees shall take account of the need for resilience to climate change and to natural disasters and the pedologic and hydrologic condition of the area concerned, as well as of the potential invasive character of the species under local conditions as defined by Member States. The beneficiary shall be required to protect and care for the forest at least during the period for which the premium for agricultural income foregone and maintenance is paid. This shall include tending, thinning or grazing, as appropriate, in the interest of the future development of the forest and regulating competition with herbaceous vegetation and avoiding the building up of fire prone undergrowth material. As regards fast-growing species, Member States shall define the minimum and maximum time before felling. The minimum time shall not be less than 8 years and the maximum shall not exceed 20 years; (c) in cases where, due to difficult soil, environmental or climatic conditions, including environmental degradation, the planting of perennial woody species cannot be expected to lead to the establishment of forest cover as defined in accordance with the applicable national legislation, the Member State concerned may allow the beneficiary to establish other woody vegetation cover such as shrubs or bushes suited to the local conditions. The beneficiary shall ensure the same level of care and protection as applicable to forests; (d) in the case of afforestation operations leading to the creation of forests of a size exceeding a certain threshold, to be defined by Member States, the operation shall consist of either of the following: (i) the planting of ecologically adapted species or species resilient to climate change in the bio-geographical area concerned, which have been found, through an assessment of impacts, not to threaten biodiversity and ecosystem services, or to have a negative impact on human health; (ii) a mix of tree species which includes either at least 10 % of broadleaved trees by area, or a minimum of three tree species or varieties, with the least abundant making up at least 10 % of the area.