Implications of climate and energy policy on the agricultural and forestry sectors
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1 Implications of climate and energy policy on the agricultural and forestry sectors Edit Konya DG Agriculture and Rural Development, Unit H4 Environment, Forestry and Climate Change European Commission Public Hearing, 10 March, 2015 Latvia University of Agriculture, Jelgava, Latvia
2 Outline Changing climate and impacts on agriculture and forestry CAP and its potential to contribute to reduce the impacts of climate change Rural development programmes of Conclusion, studies, on-going research projects 2
3 Consequences of climate change in general Raising average temperature and frequency of extreme weather events; Shifts in suitable areas for crop production Climate change impacts will be substantial, especially for developing countries because of limited adaptation potential; Trends show regionally varying changes in temperatures and rainfall (climate change may increase agricultural production potential in some regions) and impacts vary depending on climate, geographic and socioeconomic conditions but all countries of the EU are exposed to climate change. 3
4 4
5 Impact on agricultural production Climatic changes will have complex effects on the biophysical processes Both negative and positive consequences in different EU regions (some examples): On the volume, yields Quality and stability of food production and On the natural environment On the availability of water resources, pests, diseases, soil Frequency and intensity of extreme weather events Significant changes in the conditions for agriculture and livestock production 5
6 Impacts of climate change on forests in the EU Climate change will bring many and complex effects for forests significant effects on trees growth Associated consequences: - Biotic disturbances frequency and consequences of pests and disease outbreaks - Abiotic disturbances fire occurrence, wind-storm frequency and intensity With regional variability Keep in mind: Adaptation measures for forestry need to be planned well in advance! 6
7 JRC European Forest Data Centre (example: Q. petraea, ) Source: 7
8 Role of the CAP and our initiatives The new Common Agricultural Policy (CAP) offers a number of instruments to find adequate answers to the challenges Improving its environmental performance through more sustainable production methods - Will be achieved by layers: combined and complementary effects of various instruments» Simplified and more targeted cross-compliance mechanism (Compulsory basic layer)» From 2015 onwards the Green Direct Payment (granted for implementing three compulsory practices) it represents 30% of the direct payment budget» Rural development - will continue to play a pivotal role in achieving the environmental objectives of the CAP and combatting climate change 8
9 The new greening architecture of the CAP Implementation mechanism Cumulative environmental benefits Greening Cross compliance Rural development Agricultural area (eligible for direct payments) Voluntary with compensation for cost incurred and income forgone Mandatory with financial support (decoupled green payment per hectare) Regulatory (Statutory Management Requirements and Good Agricultural Environmental Conditions) 9
10 Strategic programming Rural development priorities 1. Knowledge transfer and Innovation 2. Farm viability, competitiveness, innovative farm technologies, sustainable forest management 3. Food chain organisation, incl. processing/marketing, animal welfare and risk management 4. Restoring, preserving and enhancing ecosystems 5. Resource efficiency and shift towards a low carbon and climate resilient economy 6. Social inclusion, poverty reduction and economic development in rural areas Focus areas (a) innovation, cooperation, and the development of the knowledge base; (b) links between agriculture, food production and forestry and research and innovation; (c) lifelong learning and vocational training. (a) economic performance of all farms and farm restructuring and modernisation, notably to increase market participation/orientation and diversification; (b) facilitating entry of adequately skilled farmers and generational renewal. (a) integration of primary producers into the agri-food chain: quality schemes, adding value, promotion in local markets and short supply circuits, producer groups/ organisations; (b) farm risk prevention and management. (a) biodiversity, including in Natura 2000 areas, areas facing natural or other specific constraints and high nature value farming, and the state of European landscapes; (b) water management, including fertiliser and pesticide management; (c) prevention of soil erosion and soil management. (a) efficiency in water use (b) efficiency in energy use (c) renewable sources of energy, by products, wastes and non-food raw material for the bio-economy (d) reduction of greenhouse gas and ammonia emissions (e) carbon conservation and sequestration (a) diversification, creation and development of small enterprises and job creation (b) local development in rural areas (c) information and communication technologies (ICT) in rural areas Cross-cutting objectives Innovation, Climate Change and Environment 10
11 Strategic programming and Climate Mainstreaming Climate mainstreaming is an integral part of the programming process All the priorities have potential for climate action, they will make a contribution to the cross-cutting objective of climate change mitigation and adaptation - Climate action potentials are the highest in Priority 4 and 5 SWOT analysis (the SWOT defines the climate 'hotspots' by using indicators) frames the identification of needs they are structured around the priorities and cross-cutting objectives Ex-ante evaluation consider the coherence of the RDP with national and regional climate strategies and action plans - Assessing to what extent a specific RDP is climate mainstreamed Minimum spending - 30% of EAFRD on certain measures related to land management and the fight against climate change 11
12 Article RD Regulation Rural Development Measure Water efficiency Energy efficiency Climate mitigation (incl. renewable energy) Climate adaptation Art 14 Knowledge transfer and information actions X X X X Art 15 Advisory services, farm management and farm relief services X X X X Art 17 Investments in physical assets X X X X Art 19 Farm and business development X X Art 20 Basic services and village renewal in rural areas X X X Art 21 Forest area development and improvement of forest viability X X Art 22 Afforestation and creation of woodland X X Art 23 Establishment of agroforestry systems X X Art 24 Prevention and restoration of damage to forests from forest fires and natural disasters 12 X X Art 25 Improving the resilience and environmental value of forest ecosystems X X Art 26 New forestry technologies; processing, mobilising and marketing of forest products X X X Art 27 Setting up of producer groups and organisations X X Art 28 Agri-environment climate X X X X Art 29 Organic farming X X Art 31 Areas facing natural or other specific constraints X Art 34 Forest-environmental and climate services and forest conservation X X Art 35 Co-operation X X X
13 Implementation tools for forestry Main EU instrument: Rural Development Policy Forestry toolbox: 5 types of forestry-specific measures - Afforestration; Set up of agroforestry systems; prevention and restoration of damage; Investments for resilience/environmental value; Investments in forestry technologies/processing/marketing Other relevant rural development measures (infrastructure) Further possibilities under the EIP New EU Forest Strategy Other sources Horizon 2020 (Research and innovation actions, including PPP on bio-based industries) Life + (information and protection) Structural Funds (cohesion projects) Development and climate change policies (REDD+ and FLEGT) EIB and EBRD 13
14 Rural Development programmes in the EU per country situation as at 13/02/2015 Adoption of 118 RDPs Dec Feb May May
15 Share of funds per RD priority Technical Assistance Knowledge Transfer and Innovation (cross cutting) Farm viability competitiveness, sustainable forest management indicative Food chain organisation, animal welfare, risk management Ecosystems in agriculture and forestry Resource efficiency, low carbon and climate resilience 18 Focus Areas 15 Social inclusion, poverty reduction, economic development
16 Allocation of funds per measure % of Total Public Expenditure Fulfilment of minimum spending requirements: Environment/climate: 43% LEADER: 6.1% indicative Restoring ag. potential CNDP for HR 16
17 Targets linked to Climate Change FA5d: reducing greenhouse gases and ammonia emissions from agriculture Key facts and figures: 5.4% of total agricultural land under management contracts targeting reduction of GHG and/or ammonia emissions 2.4 % of total LU concerned by investments in live-stock management in view of reducing GHG and/or ammonia emissions indicative Figures show the targets set in the RDPs by Member States and regions 17
18 On-going research projects and studies (examples) Climate change adaptation and mitigation 18
19 Conclusion Structural changes Direct payments Pillar I Greening 1. Crop diversification 2. Permanent grassland 3. Ecological focus areas CAP policy objective Sustainable management of natural resources and climate action Improving the overall environmental performance Enhanced cross-compliance for climate change Climate change mitigation and adaptation is a cross-cutting objective Pillar II Rural Development Programme Flexibility to include adaptation and mitigation measures Forestry measures Behavioural change Cross compliance Young Farmers Scheme Areas with Natural Constraints Reducing direct emission Carbon sequestration (forests and soils) Renewable energy 19 Farm Advisory Service Potential for increasing voluntary uptake Contribution of CAP
20 Thank you very much for your attention! 20
21 Share of GHG from sectors "Agriculture", "Energy" and "LULUCF", EU-27, 2011 CH4- Manure management (storage); 8% CH4- Enteric Fermentation; 26% CO2- Energy; 7% CO2- Cropland, grassland; 12% N2O- Agricultural Soils (Fertilisers); 41% 80,3 Mt from croplands (source) and - 12,3 Mt (sinks) from grasslands N2O- Manure management (storage); 5% 21
22 New EU Forest Strategy Strategy for forests and the forest sector: holistic view of forests and all related policies, addressing also the value chain; Objective: to support sustainable forest management and strengthen the coordination with Member States as well as the coherence of EU policies affecting forests; Ensuring that forests play a positive socioeconomic and environmental role in the EU: rural development, added value products while delivering ecosystem services Conclusions from the Agriculture Council in May, 2014: the Strategy should be the key reference in EU forest-related policy development. 22
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