Efficiently managing subsidies for Natura 2000 compliance

Introduction

The Danish EPA implemented the F2 Platform to automate Natura 2000 subsidy management, ensuring efficient application processing, fund allocation, and compliance tracking for improved biodiversity conservation

Case metrics

Key statistics

18.6%

of the Denmark's land area is covered

9%

of the EU's marine territory is covered

27

countries

The challenge

Streamlining Natura 2000 habitat protection with a digital subsidy management solution

Natura 2000 is the largest coordinated network of protected areas in the world, covering over 18% of the EU’s land area and approximately 9% of its marine territory. Established under the EU Birds and Habitats Directives, its purpose is to preserve biodiversity by protecting threatened species and habitats while allowing sustainable human activities such as agriculture, forestry, and fisheries. Unlike strictly protected nature reserves, Natura 2000 sites can remain in private ownership, provided land-use does not harm protected ecosystems. Denmark has committed to protecting 9% of its land area and 28% of its marine territory under the initiative.

In Denmark’s implementation of Natura 2000, landowners can receive subsidies to convert intensively farmed land into less intrusive land use to support habitat preservation. Managing these subsidies requires a transparent and efficient grant system to ensure proper application processing, case handling, fund allocation, and compliance monitoring.

The Danish Environmental Protection Agency (EPA) needed a digital solution to handle the entire subsidy lifecycle, including receiving applications, prioritizing projects, ensuring proper fund disbursement, and verifying compliance with land-use requirements. Without automation, manual processing would be time-consuming and inefficient.

The solution

Efficient and transparent management of Natura 2000 grants

To streamline Natura 2000 subsidy management, the Danish EPA implemented the F2 Platform, a fully digital grant management system that automates applications, case processing, and compliance monitoring while ensuring proper fund allocation. The solution integrates financial tracking and GIS-based land registration, providing a comprehensive and structured process for managing habitat subsidies.

At the start of an application round, the system creates a master case to track prioritization, fund allocation, and payouts. Applicants submit requests via a self-service platform, marking project areas using GIS tools. The system automatically screens and prioritizes applications, approving those with the greatest environmental impact while rejecting ineligible ones. Rejection notifications are auto-generated, reducing administrative work.

Approved applicants request payouts through the same platform, creating a payout case. The F2 system integrates all relevant data, including GIS mapping, land registration, and compliance documentation. Payout approval follows registration, surveys, de minimis checks, and land-use verification in the National Cadaster System, ensuring compliance.

Funds are transferred directly to applicants following a four-eye governance principle for oversight. Integration with Navision, Danish EPA's financial system, ensures accurate real-time tracking of all transactions. This automated process guarantees efficient, fair, and transparent fund distribution.

The result

Enhancing efficiency, compliance, and transparency with F2

The F2 Platform has transformed Natura 2000 grant management by reducing case handling time, automating compliance checks, and enhancing financial oversight. The system simplifies the application and payout process, ensuring that landowners receive subsidies efficiently while meeting environmental requirements.

Automated prioritization and fund reservation eliminate delays and ensure transparent case handling. Real-time financial tracking at both individual and program levels improves budget control and conservation planning.

With a Navision integration, financial reconciliation remains accurate and reliable, while fraud prevention mechanisms protect fund distribution. The system's GIS-based project selection and compliance verification creates a structured and scalable approach, ensuring that subsidies are allocated to high-impact conservation efforts.

By replacing a manual grant process with a fully digital system, the Danish EPA has increased efficiency, strengthened compliance oversight, and ensured effective allocation of Natura 2000 funds for biodiversity conservation.

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