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Agriculture

Climate change has complex effects on the bio-physical processes that underpin agricultural systems, with both negative and positive consequences in different EU regions. Rising atmospheric CO2 concentration, higher temperatures, changes in precipitation patterns and in frequency of extreme events both affect the natural environment as well as the quantity, quality and stability of food production. Climatic variations impact on water resources, soils, pests and diseases, leading to significant changes in agriculture and livestock production.

Farmers have to adapt to challenges stemming from climate change, and have to pursue mitigation and adaptation actions.

A new Common Agriculture Policy (CAP) for 2014-2020 focuses on competitiveness and sustainability in response to the economic, environmental and territorial challenges facing the sector. Sustainable management of natural resources and climate action represent one of the three main objectives of the CAP.

 

Policy framework

The CAP 2014-2020 consists of two pillars: Direct Payments and market-related expenditure (Pillar 1) and Rural Development (Pillar 2), and increases the links between them and offers a number of instruments to find adequate answers to the challenges of climate change and a more sustainable EU agriculture.

Improved sustainability will be achieved by combined complementary effects of various instruments:

  • A simplified and more targeted cross-compliance mechanism, representing the basic layer of environmental requirements and obligations to be met in order to receive full CAP funding.
  • From 2015, the CAP introduced a new instrument in Pillar 1, the green payment, granted for implementing three compulsory practices, namely, crop diversification, ecological focus areas and permanent grassland. It represents 30% of the direct payment budget. As the green direct payment is compulsory, it has the advantage of introducing practices that are beneficial for the environment and climate change on large parts of the utilised agricultural area. 
  • Building on these compulsory elements, rural development continues to play a pivotal role in achieving the environmental objectives of the CAP and combating climate change. The rural development policy objectives are translated into priorities at EU-level and two of these objectives directly concern environment and climate change: 1) Restoring, preserving and enhancing ecosystems dependent on agriculture and forestry and 2) Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in the agriculture, food and forestry sectors. On top of this, innovation and environment as well as climate change are cross-cutting objectives within the EU's rural development policy, meaning that these three objectives should be integrated and reflected in Member State's strategies and instrument choice.

Farmers are rewarded for the services they deliver to the wider public even though they have no market value (e.g. landscapes, farmland biodiversity, climate change mitigation, etc.).

Wide flexibility is offered to Member States to implement these payments, which allows adapting the scheme to the specific national environmental and socioeconomic needs.

Within the second pillar (rural development), at least 30% of the budget of each Rural Development programme must be reserved for voluntary measures beneficial for the environment and climate change. These include agro–environmental-climate measures, organic farming, Areas of Natural Constraints (ANC), Natura 2000 areas, and investments, which are beneficial for the environment or climate. All these measures are adapted to local needs.

The whole set of complementary policy instruments is accompanied by related training measures and other support from the Farm Advisory System, insight gained from the Innovation Partnership and applied research, which would help farmers to implement appropriate solutions for their specific situations.

The EU strategy on adaptation to climate change includes a Staff Working Document that provides principles and recommendations for integrating climate change adaptation considerations under the 2014-2020 rural development programmes.

Further information on climate change adaptation in the agricultural sector and the CAP's role can be found here.

Adaptation of the EU agriculture to the effects of climate change will be better achieved through measures addressing the specific needs of farms. The flexibility mechanisms of the CAP policy instruments allow to tackle the specific needs of farmers and national farming systems.

Adaptation options have been identified for the farming sector. Measures that encourage a better management of soils and water resources can provide co-benefits, helping adaptation, mitigation and other environmental and social objectives. Drought management plans, land use planning or fostering behavioural change constitute other options.

Helping farmers to access risk management tools, such as insurance schemes, can enable them to cope with losses from weather-related disasters increased in frequency and magnitude.

 

Improving the knowledge base

Informed decision making is one of the priorities of the EU Adaptation Strategy to climate change. Reinforcing the knowledge base on the impacts and adaptation, including their costs and benefits for the agriculture sector, is a priority.

The Commission's climate change policy in the agriculture sector is supported by significant research efforts to address outstanding needs. The Joint Research Centre (JRC) is supporting DG CLIMA and DG AGRI in modelling the economic impact of climate change on the agricultural sector, as well as the evaluation of adaptation and mitigation policies. This includes the European research projects such as the set of PESETA projects (Projection of Economic impacts of climate change in Sectors of the European Union based on bottom-up Analysis, part I and II) and AVEMAC (Assessing Agriculture Vulnerabilities for the design of Effective Measures for Adaptation to Climate Change).

The Commission's Research and Innovation funding programmes are also improving research and knowledge for adaptation to climate change in agriculture. Key recent projects are mainly related to sustainable use of water and nutrient resources in agriculture, by improving water management and increasing water use efficiency (e. g., MOSES, BINGO, REC, etc.) and implementing of precision farming techniques (e.g., Flourish, EO-FARM, FATIMA, etc.). As for the livestock sector, the AnimalChange project is about integration of mitigation and adaptation options for sustainable livestock production under climate change. ECONADAPT project has the purpose to support adaptation planning through building the knowledge base on the economics of adaptation to climate change and concerting this into practical information for decision makers.

The aim of the Joint Programming Initiative on Agriculture, Food Security and Climate Change (FACCE-JPI) between 21 countries is to identify and promote measures providing the co-benefits of reducing emissions and increasing the resilience of farming, forestry and biodiversity to climate change.

 

Supporting funding and investment 

EU funding of adaptation covering the agriculture sector is available through the LIFE Climate Action Sub-programme, which co-finances actions to support the development or implementation of adaptation strategies, encouraging projects with a high innovation, demonstration, and transferability potential.

Funding is available through the European Agricultural Fund for Rural Development (EAFRD), which is one of the five European Structural and Investment Funds (ESIF). The main aims of EAFRD are the improvement of agricultural competitiveness, the sustainable management of natural resources, the increase of climate action, and the balanced territorial development of rural areas. The INTERREG Europe Programme aims to help regional and local governments across Europe to develop and build better policy in the categories of low-carbon economy, environment and resource efficiency, SME competitiveness and research and innovation.

Moreover, the EU´s Research and Innovation programme HORIZON 2020 for the period from 2014 to 2020 includes climate-related action in the agriculture sector, mainly targeted in the Societal Challenge 2 'Food security, sustainable agriculture and forestry, marine, maritime and inland water research, and the bio-economy'

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