Germany's bold €20B plan to rewet peatlands and slash farm emissions
Germany is planning a major shift in how it manages peatlands to cut agricultural emissions. The move involves rewetting drained peat soils, which currently release vast amounts of greenhouse gases. Farmers will receive subsidies to help cover costs during the transition to sustainable wetland farming. Peatlands make up around 7% of Germany’s farmland but produce 40% of its agricultural emissions. Drained peat soils alone release about 48 million tons of CO₂ equivalents each year. Conventional farming on these soils is seen as unsustainable in the long term.
The government’s Paludi Directive will provide €1.75 billion by 2029 to support farmers in rewetting peatlands. This funding is part of a broader €20 billion plan needed to fully transition to paludiculture—a method of wetland farming that keeps peat intact while allowing limited agricultural use.
Around 80% of farmed peatlands are expected to be rewetted by 2045, requiring €8 billion in subsidies. However, extending the directive at current funding levels until then would only cover €9 billion, leaving an €11 billion shortfall. The highest demand for subsidies is in Lower Saxony and Schleswig-Holstein, where arable farming dominates. Brandenburg, with its extensive suckler cow farming, needs less financial support.
Rewetting peatlands initially reduces crop yields and increases costs. Subsidies will bridge this gap until new, sustainable value chains are established. The transition to paludiculture aims to drastically cut emissions from peatland farming. With €20 billion needed overall, the government’s current funding falls short by €11 billion. Farmers will rely on subsidies to adapt, particularly in regions with the most drained peat soils.
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