Environmental impact assessment of CAP greening measures using CAPRI model

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Environmental impact assessment of CAP greening measures using CAPRI model JM Terres, C. Bulgheroni, A. Leip, ML Paracchini 19 th MARS conference Vilnius Plenary session: Environmental aspects of the CAP 1

Content CAPRI as an impact assessment tool Greening measures: effect on crops / livestock Greening measures environmental impacts, indicators Conclusions 2

Integrated economic and agri-environment modelling CAPRI for agri-environmental assessment: why? Provides input data to bio-physical models or to indicators (e.g crop shares, animal stocking densities, yields, input use (N,P,K; energy; feed...) These data (e.g. production, consumption, trade flows, prices, crop shares, yield, N-fertilizer input per crop ) are based on EU official data sources (FSS, FADN ) are consistent across scales: farm type / region / MS / EU / trade blocks are used in economic modules and passed to environmental models / indicators The CAPRI baseline is in line with DG-AGRI projections, provides benchmark for counterfactual scenarios Therefore consistent modelling chain for economic (farm income, trade flows ) and environmental assessment is ensured 3

CAPRI for agri-environmental assessment CAPRI CAPRI NUTS2 data Crops / Livestock Inputs Commodities Prices Income Agri-env indicators N balance GHG emission Biodiversity

CAP greening measures Modelisation of CAP greening measures (as proposed by EC in Oct 2011) Permanent grasslands: maintenance of grassland area to prevent its conversion to arable land. Ecological focus area (5% fallow and/or set-aside land of total eligible area, landscape features) Crop diversity: minimum 3 crops on arable land minimum and maximum thresholds for each crop set at 5% and 70% of the arable land, respectively. 6

Environmental impact of CAP greening Method: difference between greening scenario and no policy change Greening 2020 Baseline 2020 = net impact Greening 2020 Net impact Baseline 2020 Greening - Baseline

CAP Greening measures: effect on crops area, yield 1 General trends UAA stable Cereals decrease (-890.000 ha or -1.6%) Shift to Set aside & Fallow (+816,000 ha or +7,7%) (ecological focus area effect) Fodder increase (grassland +1.2M ha, 2.1%) (maintenance of pasture effect) Increase yield for cereal (+2.2%) (net effect) => Increased productivity

CAP Greening measures: effect on crops area Baseline (ha) Greening (% change) < 25.000 ha < 95.000 ha < 230.000 ha < 435.000 ha < 2.090.000 ha Cereal area -28% -- -12% -12% -- -5% -5 -- 0% 0 -- 3% > 3%

CAP Greening measures: effect on crops area Baseline (ha) Greening (abs change) < 3.000 ha < 10.300 ha < 28.500 ha < 75.500 ha < 1.200.000 ha Set-aside and Fallow 1000 ha -10 < -10 -- -2-2 -- 2 2 -- 10 > 10

CAP Greening measures: effect on EU livestock 0-100 Absolute change (1000 head) All cattle activities Beef meat activities Other animals Sheep & Goat -200-300 -400-500 General trends -600-700 decrease in livestock number(-0,45%) Larger for sheep and goat (absolute); Beef Meat (-1.1%) Increase yield for livestock (+1,6%) (net effect) => Increased productivity

Overall effects on land-use, cattle, productivity, income Net effect of greening measures: Decrease of cereal area Increase area of grassland (maintenance of pasture) Higher Set-aside and fallow (used for the Ecological Focus Area) Decrease number of beef meat animals, sheep and goat Cereal yield: +2.2% Cattle activities yield: +1.6% Importation of cereal (+1.040.000t), mainly from Europe (non-eu) and North America Increased productivity Leakage effect of environmental impact Agricultural income: +0.87% Cost of CAP for tax payer: -0.06%

CAP greening measures environmental impact Nitrogen budget Input Mineral fertiliser Manure Biological fixation Crop residue Atmospheric deposition 11500 11000 10500 N budget - EU27 (1000t) Output Exported Crop 10000 9500 Baseline Greening 9000 8500 N Surplus total N mineral fertilizers N Manure

CAP greening measures environmental impact Nitrogen budget Baseline 2020 Greening (% change) (kg ha -1 ) < 23 23-37 37-48 48-67 -3.2 -- -1.5% -1.5 -- -0.5% -0.5 0.5% 0.5 1.5% > 1,5% 67-267 Very limited impact (-0.2 kg ha -1 for EU27)

CAP greening measures environmental impact Nitrogen budget Modest improvements for greening scenario in intensive cropping areas (lower cereal area) and in livestock farming regions (reduced number of animals) Smaller area for crops with high N fertilisation rate (wheat, maize) Larger area for ecological focus area (with no or lower fertiliser application) Smaller number of animal (=> less N manure produced), beef meat activities (-190.000 heads, -1.1%), pig (- 680.000 heads, -0.25%), sheep and goat (-587.000 heads, -0.5%) and larger grassland area (+1.2m ha, +2.1%) where manure is spread. Baseline 2020 Greening 2020 Mineral N (kg ha -1 ) Manure N (kg ha -1 ) Mineral N (kg ha -1 ) Manure N (kg ha -1 ) EU 27 63,25 53,23 62,59 53,01 Greening (% change) -3.2 -- -1.5% -1.5 -- -0.5% -0.5 0.5% 0.5 1.5% < 123%

CAP greening measures environmental impact Global Warming Potential (CH 4, N 2 O) Greening scenario with slightly lower GWP (-0.5% for EU27) Higher decrease in BE, DE, NL, IE Methodology: IPCC for agricultural sector Baseline Greening (kg CO 2 eq ha -1 ) (kg CO 2 eq ha -1 ) Abs diff Percent diff Belgium 6835 6768-67 -1,0 Denmark 4090 4101 11 0,3 Germany 3567 3535-32 -0,9 Austria 2385 2376-9 -0,4 Netherlands 9867 9795-72 -0,7 France 2257 2240-18 -0,8 Portugal 1522 1520-2 -0,2 Spain 1366 1365-1 -0,1 Greece 1304 1297-7 -0,5 Italy 1889 1883-6 -0,3 Ireland 4542 4507-35 -0,8 Finland 3006 3010 4 0,1 Sweden 1965 1964-1 -0,1 United Kingdom 2505 2492-13 -0,5 Czech Republic 1670 1660-10 -0,6 Estonia 1448 1424-24 -1,6 Hungary 1274 1262-12 -0,9 Lithuania 1199 1184-15 -1,2 Latvia 1089 1093 3 0,3 Poland 1686 1690 4 0,2 Slovenia 2854 2862 9 0,3 Slovak Republic 1059 1041-19 -1,8 Cyprus 2555 2558 2 0,1 Malta 7781 7795 15 0,2 Bulgaria 770 771 2 0,2 Romania 909 910 1 0,1 European Union 27 2140 2129-10 -0,5

CAP greening measures environmental impact Soil erosion Baseline (average t ha -1 year -1 ) Greening (abs change t ha -1 yr -1 ) 0 0,5 0,5-2 2 -- 5 5 -- 10 >10-150 -- -5-5 -- -2-2 2 2 5 > 5

Soil CAP erosion greening - Spain measures environmental impact Soil erosion - Spain Baseline (t ha -1 year -1 ) Greening (abs change) (t ha -1 year -1 ) Cereal Fodder on arable Pasture 0 0,5 0,5-2 2 -- 5 5 -- 10 >10 Permanent crops Pasture -150 -- -5-5 -- -2-2 2 2 5 > 5

CAP Greening measures: Results (with CAPRI) Decrease (small) in cereal area Decrease (small) nb beef animals, sheep & goat Cereal yield: +2.2% Cattle activities yield: +1.6% => increased productivity Import cereal (+1.040.000t), from Europe (non-eu) and North America Leakage (limited) effect outside EU on environment Overall, no (big) environmental changes between Greening and no policy change : N balance: limited positive impact (-0.2 kg ha -1 for EU27) Global Warming Potential: slightly lower GWP (-0.5% for EU27) Soil Erosion: no impact Agricultural income: +0.87% Cost of CAP for tax payer: -0.06% 23