EU Common Agricultural Policy Reform

An alliance of investors, policy experts and business groups is calling upon the European Commission today to ensure its reforms of the Common Agricultural Policy (CAP) will enable it to meet its net–zero greenhouse gas emissions commitment by 2050. 

The group argues that current proposals to reform CAP do not go far enough, and risk undermining the EU’s own net-zero commitment. The Alliance says it wants to ensure that the reformed CAP goes further in its steps to prioritise climate and biodiversity protection. 

In a paper published today, four recommendations are made including a proposal to reduce direct support for high-emitting commodities such as red meat. The recommendations are: 

1. Encourage the use of enforceable performance-based conditions that link support to member states and farmers commensurate with the cost of delivering public goods or environmental services. 

2. Shift incentives that prioritise yields at the expense of the climate and environment and balance this with new monetary incentives that put a value on sustainable agriculture. 

3. Decouple support from production metrics for single commodity transfers with high associated greenhouse gas emissions (e.g. beef and dairy); and 

4. Apply the Just Transition Mechanism to support farmers social and economic wellbeing impacted by CAP reforms. 

The European agriculture sector accounts for around 10% of EU emissions, and CAP reform is to be discussed at the EU Agriculture and Fisheries Council today. The Alliance says it believes the recommendations would be broadly supported by both markets and regulators.