The grant is designed to cover 100% of the cost of woodland development projects.
The scheme will finance a range of tree planting projects, including those along rivers and water sources that aim to improve the environment.
Eligible projects include those designed to reduce the risk of flooding, provide access to the public and help species recover.
Environment Secretary George Eustice said: “Our ambition is not just to treble tree planting rates by the end of Parliament but to create diverse treescapes across the country which benefit wildlife, the environment and people.”
Forestry Commission Chair Sir William Worsley said: “This improved grant gives everyone the opportunity to see woodland creation as a financially and environmentally rewarding option. This will help with our journey to reach net zero by 2050.”