The future CAP Dilution of greening and remaining opportunities

Presentation for CEEweb workshop

Budapest, Hungary July 4th-5th 2013

Faustine Defossez EEB agriculture and bioenergy Senior Policy officer

Outline

• The reform: a necessity not a fancy idea

• The response from the European Commission

• A move away from greening

• Risk of going backwards?

• How to reverse the trends – remaining

opportunities

The EEB in short

• Created in 1974

• Europe's largest federation of environmental organisations with 140+ member organisations in the EU and in some accession Countries

The greening: a necessity

• Legitimacy of the policy: 77% of all europeans ask for stricter environmental conditions in Europe’s agricultural policy

• Unfair distribution of the funds: 80% of the money going to 20% of the farmers

• Depletion of our natural resources…

The greening: a necessity

• 13 factsheets about environmental issues and agriculture:

– Wildlife

– Climate Change

– Functional Biodiversity

– Food Consumption

– Genetic Resources

– Organic Agriculture

– Grasslands

– High Nature Value farming

– Pesticides

– Global Impact of EU Agriculture

– Soil

– Water Quality

– Water Scarcity

• The CAP and Wildlife

- 2010: EU failed to meet its target of halting biodiversity decline in Europe.

- Only 7% agricultural habitats in Natura 2000 are under favourable condition.

- Example: Distorted subsidies work against public goods in olive groves

• The CAP and Functional Biodiversity

- Annual economic value of insect pollination is +/-

€14.2 billion in the EU25 and €153 billion

worldwide.

- At least 56% of European crop production

depends on insect pollination.

+ Example: Environmental set-aside: a refuge for

functional biodiversity

The greening: a necessity

• http://www.youtube.com/watch?v=XP5xah72YDI

The greening: a necessity

Commission’s answers

• Back in 2011: Commission’s proposal

• Timid steps in the right direction (greening of direct payments 30%: three agronomic practices, inclusion of WFD and Sustainable Use of Pesticides in cross compliance, GAEC 7)

• But no minimum spending for the environment compulsory – risk management measures in Pillar 2

• Needed improvements to unlock greening potential

Co Decision

• For the first time ever: Co decision

• Full involvment of Council AND Parliament

Co Decision

Dilution of greening

• Council:

- Very bad position (in favour of equivalence for greening, deletion of SUPD and WFD in cross compliance… no minimum spending for the environment in pillar 2)

Dilution of greening • Parliament:

- The Committee responsible in the European Parliament (AGRI Committee) fully annihilated the greening + allowed double funding, emptied half of cross compliance…

- The ENVI Committee had very good opinions (only on Direct Payments and Rural Development)- but ignored by COMAGRI

- The Plenary reversed the trend but could

not do much

A Move away from greening?

• Deal reached in June 26th (Political agreement)

• Vote in COMAGRI: July? In plenary : autumn?

• Vote in Council: Autumn?

A Move away from greening?

• Content of greening measures weakened -EFAs: 5% (7% only after a legislative proposal and

codecision)- nitrogen fixing crops included with no pesticides requirement- Permanent crops exempted + Weighting factors for elements!

-Permanent grasslands: Definition improved but protection at national/regional/ farm level. N2000 grasslands protected but not the ones outside!

-Crop diversification: Reduced from 3 crops to 2 crops for

farmland between 10 and 30 ha

A Move away from greening?

• Raising of the threshold:

- EFAs: No EFAs under 15 ha! = 35,5% of UAA exempted from it. If 75% is grasslands= exemption from EFAs. Special exemptions for forest countries

- Crop diversification: no crop diversification below 10 ha

A Move away from greening?

Below 10 ha

arable land

Below 20 ha

arable land

Below 30 ha

arable land

% of UAA 2010 that

would be exempted

from crop

diversification

33%

(87% of all

holdings)

41%

(92% of all

holdings)

46%

(94% of all

holdings)

A Move away from greening?

Below 10 ha

agricultural land

excluding PG

Below 15 ha

agricultural land

excluding PG

Below 20 ha

agricultural land

excluding PG

% of UAA 2010 that

would be exempted

from EFA

31%

(86% of all

holdings)

35,5%

(89% of all

holdings)

39%

(91% of all

holdings)

A Move away from greening?

• Equivalence mechanisms (via Agri Environmental Schemes- and certification)

- List of equivalent measures annexed

- Soil cover and catch crops equivalent to diversification!

Risks of going backward?

• Weak/meaningless greening combined with

- Weaker cross compliance + removal of GAEC7, SUPD and WFD!

- Smaller Pillar 2 (budget)

- 30% Minimum spending for the environment BUT includes investment measures and former LFAs

- Reverse modulation (Pillar 2 to Pillar 1)

- Risks of double funding

Some remaining « opportunities »?

• Delegated acts (e.g: for EFAs.. For list of equivalent measures to greening)

• Taking place NOW!

Some remaining « opportunities »?

• Rural Development planning:

- Avoid: reverse modulation; use of risk management (especially income stabilization tool)

Some remaining « opportunities »?

- Ensure: Modulation from Pillar 1 to Pillar 2 (up to 15%); minimum spending in Pillar 2 goes to true environmental NOT investments

-Thematic sub programs: Use them for the best

- Use of European Innovation Partnership

• Participate in EEB/ BirdLife factsheets/report on greening in view of Plenary (October)

• Evaluation/monitoring to come

Some remaining « opportunities »?

Thanks for your attention!

questions?