Green Agriculture

in the EUDilyana Slavova

EESC member

Green Economy

� 'Green' economy is a fast growing new economic development model in contrast to the existing 'black' economic model based on fossil fuels, such as coal, petroleum, and natural gas1. So it is defined as the economic activity that is environmentally sustainable and socially responsible. Green economy has grown in substantial importance in the recent times

because of the realization of the

interdependence between the natural

ecosystem and human economies.

Investing in Green Sectors� Renewable energy

� Industry: material & energy efficiency

� Low carbon cities

� Green buildings

� Transport

� Agriculture

� Waste management

� Forests

� Water

The greening of agricultureThe greening of agriculture refers to the increasing use of farming practices and

technologies that simultaneously:� maintain and increase farm productivity and profitability while ensuring the provision

of food on a sustainable basis;� reduce negative externalities and gradually lead to positive ones; and� rebuild ecological resources (i.e. soil, water, air and biodiversity “natural capital” assets)

by reducing pollution and using resources more efficiently. A diverse, locally adaptable set of agricultural techniques, practices and market branding certifications such as Good Agricultural Practices (GAP), Organic/Biodynamic Agriculture, Fair Trade, Ecological Agriculture, Conservation Agriculture and related techniques and food supply protocols exemplify the varying shades of “green” agriculture.

Farming practices and technologies that are instrumental in greening agriculture include:� restoring and enhancing soil fertility through the increased use of naturally and

sustainably produced nutrient inputs; diversified crop rotations; and livestock and crop integration;

� reducing soil erosion and improving the efficiency of water use by apply in minimum tillage and cover crop cultivation techniques;

� reducing chemical pesticide and herbicide use by implementing integrated biological pest and weed management practices; and

� reducing food spoilage and loss by expanding the use of post-harvest storage and processing facilities.

Challenges

� Agriculture is facing a multitude of challenges on both the demand and supply side.

� On the demand side, these include food security, population growth, changing pattern of demand driven by increased income, and the growing pressure from bio-fuels.

� On the supply side, these challenges include limited availability of land, water, mineral inputs and rural labour as well as the increasing vulnerability of agriculture to climate change and pre-harvest and post-harvest losses.

The EU Situation

� Around half the EU's land is farmed. Farming is important for the EU's natural environment.

� The Common Agricultural Policy (CAP) has identified three priority areas for action to protect and enhance the EU's rural heritage:

- biodiversity and the preservation and development of 'natural' farming and forestry systems, and traditional agricultural landscapes;

- water management and use;

- dealing with climate change.

CAP measures

contributing to environmental integrationSince 1992, the CAP has progressively been adapted to better serving the aims of sustainability, including environmental protection. This development became manifest in a reform process designed to moving from price and production support to a policy of direct income aid and rural development measures.

Today making the CAP compatible with market requirements goes hand in hand with environmental integration with the latter being reflected via four types of measures:

� Measures targeted towards objectives such as market stability or income support having positive secondary effects on the environment or contributing to maintaining environmentally beneficial structures or types of farming (e.g. LFA payments).

� Measures targeted towards objectives such as income support, designed to contribute to the enforcement of mandatory environmental requirements and the polluter pays principle (e.g., decoupled payments in combination with cross-compliance).

� Measures targeted towards encouraging the provision of environmental services on a voluntary basis (agri-environment measures).

� Measures targeted towards facilitating compliance with compulsory environmental requirements (e.g., "meeting standards" measure) or compensate the relative economic disadvantage resulting from a region-specific pattern of environmental requirements (e.g. Natura 2000 and Water Framework Directive)

Agri-environment measures� Agri-environment measures are a key element for the integration of

environmental concerns into the Common Agricultural Policy. They are designed to encourage farmers to protect and enhance the environment on their farmland by paying them for the provision of environmental services.

� Farmers commit themselves, for a minimum period of at least fiveyears, to adopt environmentally-friendly farming techniques that go beyond legal obligations. In return, farmers receive payments that provide compensation for additional costs and income foregone resulting from applying those environmentally friendly farming practices in line with the stipulations of agri-environment contracts.

� Agri-environment measures are co-financed by Member States. EU expenditure on agri-environment measures amounts for 2007 - 2013 to nearly 20 billion EUR or 22 % of the expenditure for rural development.

Examples of commitments covered by

national/regional agri-environmental schemes are:

� environmentally favourable extensification of farming;

� management of low-intensity pasture systems;

� integrated farm management and organic agriculture;

� preservation of landscape and historical features such as hedgerows, ditches and woods;

� conservation of high-value habitats and their associated biodiversity

The legal obligations that form the reference level for the agri-environment measures are indicated in article 39.3 of RegulationNo 1698/2005

Landscape� Across the EU, agricultural land management has

created a rich landscape diversity, including a mosaic of woodlands, wetlands, and extensive tracts of an open countryside.

� The CAP stresses the importance of preserving the farmed landscape as

- traditional agricultural landscapes form part of the cultural and natural heritage,

- the ecological integrity and the scenic value of landscapes make rural areas attractive for the establishment of enterprises, for places to live, for tourism, and recreation businesses.

Biodiversity� Biodiversity' refers to the variety of life and its processes. The concept is

closely associated with 'ecosystems' and 'habitats'. Agricultural biodiversity includes

- all components of biological diversity of relevance for food andagriculture, and

- all components of biological diversity that constitutes the agro-ecosystem.

� A specific Community programme which finances measures to promote the conservation, characterisation, collection and utilisation of genetic resources in agriculture has been launched in April 2004 and is in progress.

� At EU level, the implementation of the Birds and Habitats Directivesform the cornerstone of Europe's nature conservation policy.

� In addition, the adoption of an EU Biodiversity Strategy and sectoral Biodiversity Action Plans are central elements for the preservation of biodiversity.

� 44 % of total water abstraction in Europe is used for agriculture. Southern European countries use the largest percentages of abstracted water for agriculture. This generally accounts for more than two-thirds of total abstraction. In northern Member States, levels of water use in agriculture are much lower, with irrigation being less important but still accounting for more than 30 % in some areas.

� The amount of water used for irrigation depends on factors such as: climate,crop type, soil characteristics, water quality, cultivation practices.

� The main CAP instruments promoting sustainable water management are the following:

- Certain rural development measures support investments for improving the state of irrigation infrastructures or irrigation techniques that require the abstraction of lower volumes of water, as well as actions to improve water quality.

- At EU level, the Water Framework Directive plays a vital role in protecting water quality and quantity. This Directive requires Member States to establish river basin management plans (at the latest by end 2009), and to ensure that water pricing policies provide adequate incentives for users to use water resources efficiently (at the latest by end 2010).

Water

WaterThe EU also regulates to protect water quality with

respect to nitrates and pesticides.

In addition, there is a range of initiatives of EU environmental policy that will contribute to promoting the protection of waters, including

� the Thematic Strategy on Soil Protection,

� the EU action against climate change,

� the White Paper on adaptation to climate change

� and the Communication on water scarcity and droughts

Soil The European Commission adopted in 2006 a soil

protection thematic strategy, including a proposal for a Soil Framework Directive , that aimed at:

� the preservation of soil functions,

� the prevention of soil degradation

� the restoration of degraded soils.

On the request of the European Parliament the European Commission carried out a pilot project on "Sustainable Agriculture and Soil Conservation through simplified cultivation techniques".

Nitrates� In terms of environmental legislation, the EU's Nitrates

Directive was introduced in 1991 with two main objectives:

- To reduce water pollution by nitrates from agricultural sources.

-To prevent further pollution.

� The directive is managed by Member States and involves:

- Monitoring water quality in relation to agriculture.

- Designation of Nitrate Vulnerable Zones.

- Establishment of (voluntary) codes of good agricultural practice and of (obligatory) measures to be implemented in action programmes for nitrate vulnerable zones.

Pesticides � In 2006, the Commission adopted two proposals to

strengthen the legislative framework concerning pesticides:

- a proposal to review the current legislationconcerning the placing of plant protection products on the market,

- a proposal for a Framework Directive on the sustainable use of pesticides , which will cover the use phase of pesticides. Detailed information on the EU thematic strategy on the sustainable use of pesticides can be found on the Sustainable use of plant protection products website

Green Economy and Green Jobs

� EU 27, existing “environment related” jobs

� Core definition: organic farming, sustainable forestry, renewable energy, water supply and environment-related tourism

- 8.67 million total jobs

- Equivalent to 6% of total jobs in EU 27

Green Economy and Green Jobs

EU 27, policy scenarios

Substitutions (10%) Jobs

� Steel production, more recycled material 3,641

� Agricultural production, more organic 43,834

� Transport, more bio-fuels 139,525

� Electricity generation, more renewable energy 58,212

Thank you!

Dilyana Slavova

EESC member