Implications ofclimate and energypolicy on theagricultural andforestry sectors

Edit KonyaDG Agriculture and Rural Development, Unit H4 –Environment, Forestry and Climate Change

European Commission

Public Hearing, 10 March, 2015 – Latvia University of Agriculture, Jelgava, Latvia

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Outline

• Changing climate and impacts on agriculture andforestry

• CAP and its potential to contribute to reduce theimpacts of climate change

• Rural development programmes of 2014-2020

• Conclusion, studies, on-going research projects

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Consequences of climate change in general

�Raising average temperature and frequency of extremeweather events;

�Shifts in suitable areas for crop production

• Climate change impacts will be substantial, especially fordeveloping countries because of limited adaptation potential;

• Trends show regionally varying changes in temperatures andrainfall (climate change may increase agricultural productionpotential in some regions) and impacts vary depending onclimate, geographic and socioeconomic conditions but allcountries of the EU are exposed to climate change.

4

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Impact on agricultural production

• Climatic changes will have complex effects on the bio-physical 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

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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 !

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JRC – European Forest Data Centre (example: Q. petraea, 2000 – 2050 – 2080)

Source: http://forest.jrc.ec.europa.eu/efdac/

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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

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The new greening architecture of the CAP

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Agricultural area(eligible for direct payments)

Cross compliance

Greening

Ruraldevelopment

Cu

mu

lati

ve

en

vir

on

men

tal

ben

efi

ts

Regulatory(Statutory

ManagementRequirements andGood Agricultural

EnvironmentalConditions)

Mandatorywith financial

support(decoupled “green”

payment per hectare)

Voluntarywith compensation

for cost incurredand income forgone

Implementation mechanism

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6. Social inclusion, poverty reduction

and economic development in rural areas

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 efficiencyand shift towards a

low carbon and climate resilient

economy

1. Knowledge transfer and Innovation

In

no

vatio

n, C

limate

Ch

an

ge

and

En

vir

on

men

tRural development priorities

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

Strategic programming

Cross-cuttingobjectives

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Strategic programming and Climate Mainstreaming

• Climate mainstreaming is an integral part of theprogramming process

• All the priorities have potential for climate action, theywill make a contribution to the cross-cutting objective ofclimate change mitigation and adaptation

- Climate action potentials are the highest in Priority 4 and 5

• SWOT analysis (the SWOT defines the climate 'hotspots' byusing indicators) – frames the identification of needs – they arestructured around the priorities and cross-cutting objectives

• Ex-ante evaluation consider the coherence of the RDP withnational and regional climate strategies and action plans

- Assessing to what extent a specific RDP is climate mainstreamed

• Minimum spending - 30% of EAFRD on certain measuresrelated to land management and the fight against climatechange

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Article RD

RegulationRural 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 disastersX 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

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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

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Rural Development programmes in the EU per countrysituation as at 13/02/2015

Adoption of 118 RDPs

Dec. 2014 9

Feb. 2015 18���� May 2015 34May 2015 ���� 57

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Food chain organisation, animalwelfare, risk management

Farm viability competitiveness,sustainable forest management

Ecosystems in agriculture and forestry

Resource efficiency, low carbonand climate resilience

Social inclusion, povertyreduction, economic development

18 F

ocus A

reas

18 F

ocus A

reas

Knowledge Transfer and Innovation (cross cutting)

Technical Assistance

Share of funds per RD priority

indicative

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Fulfilment of minimum spending requirements:Environment/climate: 43%

LEADER: 6.1%

Allocation of funds per measure% of Total Public Expenditure

Resto

ring a

g.

pote

ntial

CN

DP f

or

HR

indicative

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Targets linked to Climate Change

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

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FA5d: reducing greenhouse gases and ammonia emissions from agriculture

Figures show the targets set in the RDPs by Member States and regions

indicative

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On-going research projects and studies (examples)

Climate change adaptation and

mitigation

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Conclusion

� Reducing direct emission

� Carbon sequestration (forests and soils) Contribution of CAP

� Renewable energy

Pillar I

Direct payments

Greening1. Crop diversification2. Permanent grassland3. Ecological focus areas

Young Farmers SchemeAreas with Natural Constraints

Pillar II

Rural Development Programme

Cross compliance

Farm Advisory Service

Flexibility to include

mitigation measures

Flexibility to include adaptation and

mitigation measures

Climate change mitigation and

objective

Climate change mitigation and adaptation is a cross-cutting

objective

Forestry measures

Potential for increasing voluntary uptake

Behavioural change

Behavioural change

Structural changes

Enhanced cross-compliance for climate change

CAP policy objective – Sustainable management of natural resources and

climate action

Improving the overall

environmental performance

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Thank you very much for your attention!

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CH4- Manure management

(storage); 8%

CH4- Enteric Fermentation; 26%

N2O- Agricultural Soils (Fertilisers);

41%

N2O- Manure management

(storage); 5%

CO2- Cropland, grassland; 12%

CO2- Energy; 7%

Share of GHG from sectors "Agriculture", "Energy" and "LULUCF", EU-27, 2011

80,3 Mt from croplands (source) and -12,3 Mt (sinks) from grasslands

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New EU Forest Strategy• Strategy for forests and the forest sector:

holistic view of forests and all relatedpolicies, addressing also the value chain;

• Objective: to support sustainable forestmanagement and strengthen thecoordination with Member States as wellas the coherence of EU policies affectingforests;

• Ensuring that forests play a positive socio-economic and environmental role in theEU: rural development, added valueproducts while delivering ecosystemservices

• Conclusions from the Agriculture Council inMay, 2014: the Strategy should be the keyreference in EU forest-related policydevelopment.