Contribution of the EU agricultural policy to climate change mitigation

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1 Contribution of the EU agricultural policy to climate change mitigation Hilkka Summa, European Commission, DG Agriculture and Rural development UNFCC-SBTA Bonn, 23 May 2006

2 Outline Contribution of agricultural sector to GHG emissions and the role of the CAP Recent trends Projected trends Integration of climate change dimension into the CAP: CAP reform new rural development policy UNFCC, SBTA, Bonn, 23 May

3 Agriculture: share of GHG emissions (EU-15) Total GHG Other agricultural sources 0,5% CH 4 Other 17,8% Energy Industries 28,2% Manure management 19,0% Enteric fermentation 38,5% Agriculture 58.1% Other sectors 41.9% Waste 2,4% Agriculture 10,1% 10% Industry 20,4% N 2 O Other agricultural sources 0,1% Manure management 5,6% Transport 21,1% Agriculture 64.5% Other sectors 35.5% Agricultural soil management 58,8% UNFCC, SBTA, Bonn, 23 May

4 Share of total national GHG emissions 30% 27% 25% 20% 18% 15% 15% 13% 10% 11% 10% 9,8% 9,4% 9,1% 8,7% 8,6% 8,2% 7,3% 7,2% 7,0% 5% 3,1% 0% IE FR DK SE ES EU- 15 PT GR FI AT DE BE UK IT NL LU UNFCC, SBTA, Bonn, 23 May

5 Recent trends in CH 4 & N 2 O emissions (EU-15) Decline of emissions by 10% ( ) Main drivers: CAP reforms and water protection policy Resulting in: decreased livestock numbers and fertiliser use, and improved manure management Index (1990 = 100) Methane emissions Nitrous oxide emissions UNFCC, SBTA, Bonn, 23 May

6 National trends CH 4 & N 2 O emissions GR ES IE IT FR PT SE EU-15 BE AT UK NL DE DK FI LU -40% -30% -20% -10% 0% 10% 20% 30% % change : Aggregated CH4 and N2O emissions Source: EEA, IRENA project UNFCC, SBTA, Bonn, 23 May

7 Trends in EU-15 livestock units Decrease by 10 % of cattle between Decrease of dairy cattle by 26% and non-dairy cattle by 7% Number of head of cattle (1990 = 100) UNFCC, SBTA, Bonn, 23 May

8 Trends in N use IT IE ES FR EU-15 DE GB PT BE SE AT NL FI GR DK -50% -40% -30% -20% -10% 0% 10% % change in N applications (EU 15 Member States) UNFCC, SBTA, Bonn, 23 May

9 Actual and projected EU-15 GHG emissions Agricultural GHG emissions are projected to further decrease by 13 % below 1990 levels by 2010 with existing measures by 15 % with additional measures CAP 2003 reform: the main driver for a further decline in emissions GHG e missions (1990 = 100) Source: EEA EU-15 trends EU-15 trends with existing measures projections EU-15 trends with additional measures projections UNFCC, SBTA, Bonn, 23 May

10 Integration of climate change dimension into the CAP UNFCC, SBTA, Bonn, 23 May

11 Environmental integration into CAP Market and income Policy (EAGF) Modulation Rural Development (EAFRD) Decoupling Set-aside Support for energy crops Cross-compliance Environmental Legislation Negative Incentive (penalty) Good Agricultural and Environmental Conditions Agrienvironment measures Positive Incentive (contractual) Meeting standards Investments Farm advisory Training Afforestatio UNFCC, SBTA, Bonn, 23 May

12 CAP 2003 reform (i) Measure Decoupling: Single Farm Payment decoupled from production Expected effect Reduction of incentives towards intensive production (e.g., extensification, livestock, reduced fertiliser use) Modulation: Reduction in direct payments. Amounts transferred to rural developmennt Increased budget for rural development Stimulate the adoption of environmentally friendly production techniques UNFCC, SBTA, Bonn, 23 May

13 CAP 2003 reform (ii) Measure Cross-compliance: Direct payments conditional to the respect of : Statutory requirements from 19 Community Acts, including 5 environmental Directives Maintenance of agricultural land in Good agricultural and environmental conditions (GAEC) Maintenance of permanent pastures. Expected effect Incentive to comply with statutory environmental requirements, e.g. Nitrate Directive (reduced fertilizer use + improved practices) GAEC soil conservation, e.g. improved management of soil organic matter (crop rotation, reduced tillage) reduced soil erosion UNFCC, SBTA, Bonn, 23 May

14 CAP 2003 reform Measure Set aside: Maintenance of individual historical set-aside obligation (10 %) Maintenance in GAEC Non-food (energy) crops can be grown on set-aside land Energy crops support: 45 /ha for energy crops Expected effect Less fertilizer use Potentially increased carbon sequestration, in particular long term non-rotational set aside Carbon substitution potential: promotion of biofuels UNFCC, SBTA, Bonn, 23 May

15 Rural Development Policy New European rural development policy for the period Three core objectives: 1) Increasing the competitiveness of the farm and forestry sector through support for restructuring. 2) Improving the environment and the countryside through support for sustainable land management. 3) Improving the quality of life and promoting diversification of economic activities in rural areas. UNFCC, SBTA, Bonn, 23 May

16 Climate change dimension Rural Development Council Regulation 1698/2005 (September 2005) (recital 31) ( ) Key issues to be addressed include ( ), climate change mitigation including the reduction of greenhouse gas emissions, (...). Community Strategic Guidelines for Rural Development (COM(2005)304) (chapter 3.2) The resources devoted ( ) should contribute to three EU level priority areas: biodiversity ( ), water, and climate change. The measures available should be used to integrate these environmental objectives and contribute to ( ) the Kyoto Protocol targets for climate change mitigation. UNFCC, SBTA, Bonn, 23 May

17 Rural Development : axis 1 (competitiveness) Measure Modernisation of farms (farm investments) Adding value to agricultural and forestry products (processing industry) Cooperation for development new products, processes & technologies Improving and developing infrastructure Potential Potential for energy savings (e.g. energy-efficient equipment and buildings) and fertilizer use & management (spreader, storage) Investments linked to processing and marketing products, development of new products, processes, technologies (e.g., renewable energies) Cooperation between farmers and the industry for promoting introduction of new technologies & innovation (e.g., renewable energies) Support for operations related to land improvement, energy supply systems UNFCC, SBTA, Bonn, 23 May

18 Rural Development : axis 1 (competitiveness) Measure Training Set-up and use of farm advisory services Set-up of farm management and relief services Meeting standards: support to help farmers to adapt to new mandatory standards based on Community legislation Potential Targeted training to environmental issues Better knowledge about environmental aspects of farm management (statutory management requirements and GAEC) Potential for energy savings (e.g. access of farmers to modern machinery) Proper implementation of environmental legislation and compliance, e.g., Nitrates Directive UNFCC, SBTA, Bonn, 23 May

19 Rural Development : axis 2 (environment) Measure Agri-environmental measures Payments cover commitments for farm practices beyond the baseline Baseline = cross-compliance + additional minimum requirements for fertilizer and pesticide use + other national mandatory requirements Afforestation Potential Core instrument to stimulate adoption of measures with a mitigation potential: e.g. Reduction of fertilizers extensive livestock soil conservation techniques planting of hedgerows conversion of arable land to permanent pastures Increase in forest cover UNFCC, SBTA, Bonn, 23 May

20 Rural Development : axis 3 (diversification) Measure Diversification into nonagricultural activities (beneficiary: farms) Potential Possibilities for supporting biogas installations on the farm, biomass plants for local production of renewable energy (biofuels, electricity and heating) Support for the creation and development of microenterprises (beneficiary non-agricultural sector) Building renewable energy infrastructure (e.g. wind parks) UNFCC, SBTA, Bonn, 23 May

21 Mitigation options for agriculture Cost-effective measures with highest emissions reduction potential: Set-aside Efficient fertilizer application (e.g., spreader maintenance, precision farming) Better manure management and storage Bio-energy production: Biofuels Biogas UNFCC, SBTA, Bonn, 23 May

22 Biomass for energy Reasons for extending biomass use: GHG emissions EU targets for renewable energy: 12% of gross energy consumption, 21% of electricity from renewable energy and 5.75% of bio-fuels, by 2010 Security of fuel supply 70 Benefits for rural areas 60 EU-25 Biomass for Energy Use : Biofuels Policy instruments enhancing biomass use are : CAP reform 2003 Biomass Action Plan Strategy for Biofuels Mtoe Other wood & wood waste MSW Biogas Wood & wood waste in households UNFCC, SBTA, Bonn, 23 May

23 Concluding remarks Agriculture has opportunities to further reduce its GHG emissions, and produce renewable energies GHG emissions from agriculture will continue to decrease, mainly due to the 2003 CAP reform The new rural development policy ( ): combating climate change is one of the priorities UNFCC, SBTA, Bonn, 23 May

24 Adaptation challenge Climate change impacts are a real concern for sustainable development of agriculture and forestry EU Council and Commission have recognised the need to prepare for and adapt to climate change, to complement mitigation policies Positive effects, but mostly adverse impacts Potential loss of production potential in certain areas, benefits in others Impacts of extreme weather events important income losses Significant structural changes and investments needed: adaptive measures UNFCC, SBTA, Bonn, 23 May

25 Contribution of the EU agricultural policy to climate change mitigation Hilkka Summa, European Commission, DG Agriculture and Rural development UNFCC-SBTA Bonn, 23 May 2006

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