On 15 October, the Cabinet of Ministers approved an informative report prepared by the Ministry of Smart Administration and Regional Development (VARAM) on proposals for providing compensation for restrictions on economic activity in specially protected nature territories (ĪADT), including on the possible financial sources for covering that compensation.
Minister Inga Bērziņa: “As a result of intensive discussions with all interested parties, we have found a compromise that will allow us to move towards the necessary balance between nature protection requirements and opportunities for territorial development. We have affirmed our commitment to support landowners and to stand up for fair compensation for restrictions on economic activity in specially protected nature territories, and we have also put forward new solutions for preserving natural values and for sustainable development.”
The informative report includes proposals for improving compensation within the existing regulatory framework, as well as proposals for further action to establish new types of compensation, extending the improvement of the compensation system to micro-reserves as well, as set out in Section 1 of the Law on Compensation for Restrictions on Economic Activity in Protected Territories.
The informative report states that annual payments for restrictions on economic activity should be retained, while at the same time assessing the scope for increasing them. It is also proposed to widen the range of applicants eligible for land buy-back, extending it to a broader range of ĪADT categories and functional zones. As regards the introduction of new types of compensation, proposals have been put forward on land exchange, one-off payments for a forest stand, and the introduction of voluntary protection measures.
Introducing land exchange as a form of compensation would make it possible to reduce the funding required for annual payments and other types of compensation, while also preserving economic activity. Land exchange should therefore be considered not only in the case of forestry restrictions, but also in the case of restrictions on other economic activity. As regards one-off payments for a forest stand, the informative report states that, when assessing compensation for the value of a stand in the case of a restriction on final felling, the general requirements of the Forest Law should be taken into account. Compensation would be calculated only for stands that have reached the age of final felling.
In order to improve the types of compensation included in the informative report, amendments to the Compensation Law and to other regulatory enactments must be drawn up by 1 September 2025. The new types of compensation and the conditions for introducing them must likewise be agreed with the European Commission in order to ensure compliance with the rules on granting state aid payments.
ĪADT cover 1190.54 thousand ha, or 18.44% of the land territory (including inland waters). Micro-reserves established for the protection of specially protected species and biotopes, in turn, cover 49.52 thousand ha, or 0.77% of the land territory. The most significant restrictions on economic activity in ĪADT are set for forestry activity. In private ownership (natural persons, companies owned by natural persons, legal persons) there are 73895 ha of forest land within ĪADT to which various forestry restrictions apply.
The informative report “On proposals for providing compensation for restrictions on economic activity in protected territories and the possible financial sources for covering that compensation” was drawn up, and the proposals prepared were discussed, in a working group at VARAM in cooperation with the Ministry of Agriculture, the Ministry of Climate and Energy, the Ministry of Justice, the Ministry of Finance and industry representatives. During its preparation, account was also taken of what representatives of Latvian forest sector organisations had indicated regarding the changes needed in the regulatory framework in connection with restrictions on economic activity in ĪADT.