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The integration of environmental objectives and measures into the Common Agricultural Policy (CAP) has been a long and slow process, with successive reforms proceeding in an incremental manner. Following the CAP ‘Health Check’ in 2008, it is widely anticipated that the 2013 reform will be significant. Part of the impetus for a wide-ranging reform in 2013 comes from competing demands on the EU Budget, including the need for funding to address the climate change challenge and to meet the sustainable growth and competitiveness objectives set out in the EU2020 Strategy.

For the last couple of years there has been a lively and robust debate amongst the broader stakeholder community on agriculture’s role, and the justification for a CAP. IEEP has played a leading role in stimulating this debate through our dedicated website on CAP reform, CAP2020. A more technical debate is now underway on the future policy’s objectives, architecture, measures as well as the contentious issue of the size of the CAP budget. The Commission will publish a Communication on a Future CAP in November 2010, followed by formal legislative proposals in 2011 that will then be debated in the Council and the European Parliament, in parallel to the debate on the 2014-20 Financial Perspective.

Amidst the rhetoric, there continues to be a need for robust concepts, a sound evidence base and clear policy thinking. The long-term legitimacy of the CAP will ultimately come from its relevance to society’s needs, its effectiveness and efficiency during a period of economic austerity, and its defensibility in the eyes of Europe’s citizens.

IEEP has produced a number of recent papers to contribute to the debate of CAP Reform and the EU Budget Review:

A series of papers for LUPG that examine some of the issues surrounding a reorientation of the CAP towards one based on a rationale more focused on the provision of environmental goods and services.

Paper 1: Achieving a transition away from CAP direct payments
This paper examines a range of transitional arrangements that could facilitate a shift in the basis of CAP payments away from the current system of support, towards one based more on the provision of environmental goods and services. The paper considers the advantages and disadvantages, opportunities and risks associated with a range of transitional options.

Paper 2: Scoping the Development of the Environmentally Sustainable Production Agenda This paper explores some of the issues surrounding the need for European agriculture and forestry to play a positive role in managing and enhancing the natural environment as well as delivering sufficient food, fibre and raw materials for human consumption in the future.

Paper 3: The Case for EU Intervention in the Environment This paper discusses the need for state intervention to meet environmental objectives and targets, and the rationale for intervening at the European level.

The Single Payment Scheme After 2013

Understanding and Influencing the EU Budget Review This report sets out the budget review debate so far, as well as the key issues of reference to the environment which are likely to be on the agenda during future stages of debate and subsequent budget negotiations. The report focuses on EU spending which has implications for the Environment Agency. It concentrates on spending on climate change (mainly within the Structural and Cohesion Funds but also through funding for Research and Development), ‘sustainable land use management’ (within the Common Agricultural Policy), and the implementation of EU environmental legislation in general (also mainly through the Structural and Cohesion Funds but also through LIFE+). The revenue side of the EU Budget, which is also part of the review agenda, is not considered here. The paper aims to assist the Environment Agency in developing a detailed understanding of the EU budget review process.

Funding for Farmland Biodiversity in the EU. Gaining Evidence for the EU Budget review This report aims to initiate a transparent debate on the purpose, intensity and spatial distribution of expenditure on the EU’s Common Agricultural Policy (CAP) from the perspective of the protection and enhancement of farmland biodiversity. It does this through a detailed analysis of the CAP budget and the presentation of a number of maps showing the regional variation in the distribution and intensity of both Pillar 1 and Pillar 2 payments.

More about our work in this area...

Latest in Future of the CAP

A greener CAP: still within reach?

The greening of the CAP hangs in the balance in the final negotiations; a synthesis of key issues and requirements.
How to climate-proof CAP and Cohesion spending

The Commission has published two key technical guidance documents on climate proofing of Cohesion Policy and CAP expenditure as part of the Adaptation Strategy Package. Guidance builds on work carried out by a consortium led by IEEP.
Greening the CAP - how ‘equivalent’ are alternative approaches?

A contentious issue in the negotiations on the future of the CAP is how to implement the proposed new green direct payments to farmers. However, proposals to increase flexibility for Member States will not necessarily be administratively any simpler and may risk weakening environmental outcomes.
Press release - Mixed news for the EU’s environment from the MFF deal

8 February - 'There is mixed news for the EU’s environment and the green economy from today’s MFF deal’ says David Baldock, Director of IEEP.
Principles of Double Funding

This briefing explores the issue of double funding in relation to the CAP reform debate and considers the implications for delivering added value for the environment.
EP vote must not undermine a greener CAP

A decade’s progress in improving the Common Agricultural Policy’s environmental credentials risks being lost if the EP vote to water down the Commission’s ambitious proposals to green the CAP.
Land Stewardship in England post 2013: CAP greening and agri-environment

What will the introduction of environmental measures in Pillar 1 mean for agri-environment schemes in the future? A topic of much debate as part of the CAP reform negotiations, this new report explores the potential impacts of greening Pillar 1 on England’s entry-level agri-environment scheme and how a future scheme could be designed to deliver more for the environment and ensure the long term sustainability of farming.
Greener or greyer: what's next for the future EU budget?

This Policy Brief analyses the outcomes of the Special Summit on the future EU budget, which took place on 22-23 November 2012.
Designing RDPs fit for the environment

Substantial changes to rural development regulation have been proposed which provide significant opportunities for Member States to deliver more for the environment. This report highlights some of these opportunities and sets out a series of principles and environmental priorities to help guide Member States in designing their future rural development programmes.
Systemic approach to adaptation to climate change and renewable energy harnessing (Biomass and Mini-hydro)

Biochar has the potential to both mitigate greenhouse gases, and to act as an adaptation measure in terms of responding to the impacts of climate change. Based on its compatibility with the appropriate soil properties, it could increase the resilience of soil to erosion.
Maximising environmental benefits through Ecological Focus Areas

Of the three measures proposed to 'green' Pillar 1 direct payments, Ecological Focus Areas have the greatest potential to address a range of environmental concerns. How much of this potential is realised depends on a number of key factors discussed in this new IEEP report prepared at the request of the Land Use Policy Group.
Mobilising Cereal Straw in the EU to Feed Advanced Biofuel Production

This IEEP report, commissioned by Novozymes, considers the existing barriers, environmental risks and opportunities and the potential agricultural policy stimuli needed in order to mobilise cereal straw for advanced biofuel production in the EU.
Addressing the EU’s biodiversity goals through the CAP

What is the relationship between the management of agricultural land and biodiversity? To what extent are the EU’s biodiversity goals addressed through the CAP?
Unfolding the green ‘elements’ of the Commission’s Common Strategic Framework 2014-2020

This policy brief analyses the Commission’s staff working document on the Common Strategic Framework for the 2014-2020 EU cohesion, rural development and fisheries funds. It discusses both the opportunities and weaknesses to advance the mainstreaming of climate change and the environment into the funds.
Delivering environmental benefits through entry-level agri-environment schemes in the EU

A new study of the 2007-13 agri-environment schemes across the whole of EU-27 provides the first typology of ‘entry-level’ agri-environment management and environmental objectives, plus a detailed insight into the design of entry-level agri-environment schemes and calculation of payment rates in seven Member States.
Delivering Environmental Benefits through Ecological Focus Areas

IEEP workshop on 6 March brought together a range of stakeholders to discuss possible environmental benefits through Ecological Focus Areas.
The CAP Proposals: Green in more than name?

The proposals from the Commission on the future CAP, announced on 12 October, could have represented a major step towards improved environmental management across the EU, but in practice they leave major doubts over how much really will be delivered.
National Assembly for Wales briefed by IEEP

IEEP's Indrani Lutchman and Kaley Hart were called on to brief the National Assembly for Wales on the CFP and CAP reforms.
2014-2020 EU Multi-annual Financial Framework: Opportunities and Challenges for Climate Change and the Environment

This presentation analyses the Commission proposals on the 2014-2020 Multi-annual Financial Framework unveiled on 29 June 2011. More specifically, it identifies opportunities and challenges for the financing of climate change and the environment in the future EU budget.
Redesigning the CAP to deliver public goods

As a contribution to the CAP reform debate, this report considers options for redesigning the Common Agricultural Policy (CAP) to maximise the delivery of public goods, particularly in relation to the environment and rural vitality.

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Debating the Future of The Common Agricultural Policy

The IEEP's platform to share thoughtful commentary and analysis on the future development of European agriculture and rural development policy.

Highlights

Maximising environmental benefits through Ecological Focus Areas

Of the three measures proposed to 'green' Pillar 1 direct payments, Ecological Focus Areas have the greatest potential to address a range of environmental concerns. How much of this potential is realised depends on a number of key factors discussed in this new IEEP report prepared at the request of the Land Use Policy Group.
Costs of delivering environmental benefits through agriculture and forestry management

For the first time, this report provides an estimate of the scale of funding needed to achieve environmental outcomes through agricultural and forestry management in the EU to 2020.
Public Goods and Public Intervention in Agriculture
Reflecting Environmental Land Use Needs into EU Policy: Preserving and Enhancing the Environmental Benefits of 'Land Services' - Executive Summary
Towards the CAP Health Check and the European Budget Review