The Prime Minister, Luís Montenegro, said today that the European package of 250 million euros in state aid to the forestry sector will make the country “even more resilient and prepared for the future.”
In a post on his official X account, the head of government described this European aid to recover the forests as “good news.”
“A support to rebuild our common heritage and to make it even more resilient and prepared for the future! Portugal Calls. For you. For everyone,” he stated.
The European Commission approved today a package of 250 million euros in state aid to the forestry sector in Portugal to reforest affected areas and compensate owners, with subsidies and valid until 31 December 2029.
According to Brussels, “the regime will support investments destined to restore forests following natural disasters, severe weather phenomena, or catastrophic events, in accordance with Portugal’s Strategic Plan for the Common Agricultural Policy.”
It also aims to “compensate the income losses of landowners due to the reforestation of agricultural and non-agricultural soils,” it adds.
According to the Government, the Portuguese request was made in March 2025 to open the possibility of reforestation, “independently of disasters such as bad weather or fires.”
Direct subsidies in the form of fixed rewards paid over a period of 15 to 20 years are at stake, with the aim of encouraging new forest investments and compensating income losses for landowners.
According to Brussels, the supports include reforestation rewards for owners of agricultural and non-agricultural soils who abandon farming or commit to maintaining new forest areas, as well as restoration rewards for those who recover forest potential after fires, storms or other extreme situations.
In a statement, the Ministry of Agriculture and the Sea explains that “the regime now approved covers interventions related to the afforestation of agricultural and non-agricultural lands, as well as the restoration of forest potential after natural disasters.”
The regime is co-financed by the European Agricultural Fund for Rural Development up to 21.9 million euros and is part of Portugal’s Strategic Plan for the Common Agricultural Policy.
The measure, multi-annual in nature, will be in force until 31 December 2029.
The approval comes in a context of strong pressure on Portugal’s forests, after severe storms that hit the country at the end of January and in February, with strong winds, heavy rain and floods causing trees to fall, landslides and significant damage across vast rural areas.
