Sustainable Agriculture for a Healthy Environment

1. A CAP for small-scale farmers and citizens23rd of May European Parliament – Brussels Claudia Olazábal Head of Unit – Land use and management DG Environment European Commission

2. Structure • Environmental elements of the Communication on the Future of Food and Farming • Environmentalelements of the CAP included in the MFF proposal

3. The Future of food and farmingThe pressures of unsustainable agriculture on the environment Many unsustainable farming practices put pressure on the environment, leading to loss of biodiversity, soil depletion, water shortages and pollution. Climatechange will make these pressures worse.

4. The biggest problem remains the unfavourable conservation status of Habitats and Species associated with agricultural habitats and forests and the constant decline of biodiversity on farmland. Only 11% of habitats of Community interest associated with agricultural ecosystems are in favorable conservation status and 39% have deteriorated in comparison to the previous reporting period. • Farmland birds populations have decreased by 30% since 1990, pollination services are in steep decline and the number of grassland butterflies is dropping very severely as their population have decreased by 50% since 1990. • Around 9% of wild bees and butterflies are threatened with extinction, primarily due to intensive agriculture practices, including the use of pesticides and fertilizers. Account must be taken also that for many species, the conservation status is still unknown. • The decline of insects has reached alarming levels, e.g. in a recent study in Germany showed that the total abundance of insects has fallen by more than 75% in 27 years, in protected areas. Such declines may have detrimental consequences for ecosystem functioning and food production as those insects are important pollinators and natural pest enemies.

5. In regards to water, the main problemis the degradation of the water status due to different causes: over abstraction, hydro morphological changes (e.g. reservoirs, channelling of water bodies) , drainage and pollution by inputs (nutrients, pesticides, etc). Evidence shows thatonly 43% surface waterbodieswere in good ecologicalstatus and thattherewouldbe a 10% improvement to 53% of waterbodies in good status by the end of the first planning periodin 2015. • Diffuse pollution significantly affects 90% of river basin districts and the agricultural sectoris the primary source (nutrients and pesticides). This leads to problems of eutrophication as well the need for costly water treatmentbefore water canbedrunk. • Hotspots, whereimprovements in water quality are not yetforthcoming, remain a challenge. • Looking at water consumption by the farmingsector, while on average 24% of water used in the EU is for agriculture, in Southern MS the figures ismuchhigher, rising to 80%. • Prevention to avoid unsustainable levels of abstraction is therefore needed.

6. Regardingsoil, over half the agricultural area of the EU has averageerosionlevelshigherthanwhatcanbenaturallyreplaced. On soilorganicmatter, the majority of EU arable soils are suffering net carbonlosseachyear, contributing to climate change. Additionallysalinizationaffects around 3.8 million hectares in Europe. Finally, att least 30 % of soils have high susceptibility to compaction. • In relation to air quality, agriculture is the biggest contributor to ammonia emissions (almost 95 %) in Europe which contribute to the formation of particulate matter in the air and contributes significantly to premature deaths in the EU.

7. Contribution of the CAP- opportunities COMMUNICATION "THE FUTURE OF FOOD AND FARMING"(COM(2017)713 final, of 29.11.2017) Recognition of the strong link between agriculture and environment, including the negative effects of certain types of agriculture on environment • "The EU's farmers are also the first stewards of the natural environment, as they care for the natural resources of soil, water, air and biodiversity on 48% of the EU's land… ". "… They also depend directly on these natural resources" (page 3) • "At the same time pressure on natural resources is still clearly present partly as a result of some farming activities" (page 4) • "Land-based measures are pivotal to achieving the environmental and climate-related goals of the EU, and farmers are the primary economic agents in delivering these important societal goals" (page 5) • "… farmers and foresters are not only users of natural resources, but also, indispensable managers of ecosystems, habitats and landscapes" (page 18)

8. A more result-based CAP • "This also includes for the CAP to streamline its governance and improve its delivery on the EU objectives, and to significantly decrease bureaucracy and administrative burden". (page 9) • "This means the CAP and the Member States plans should focus above all on the objectives and expected results while leaving sufficient room for Member States and regions to address their specificities". (page 10) • "To this end the assurance process would need to be adapted to the requirements of a result-driven policy design including the development and application of solid and measurable indicators and of a credible performance monitoring and reporting" (page 10) • "Any new CAP should reflect higher ambition and focus more on results as regards resource efficiency, environmental care and climate action." (page 18) • "Member States will need to define quantified targets which will ensure that the agreed environmental and climate objectives defined at EU level are achieved. Member States will have the flexibility to formulate strategic plans allowing for addressing climate and environmental needs at local level". (page 19) • "The overall performance of the new green architecture should encourage the promotion of co-operative/collective approaches, involving Farmers and Stakeholders in a result-oriented delivery of environmental and climate public goods and developing schemes that integrate the provision of knowledge and environmental investments." (page 20)

9. Transition to more sustainable agriculture "The Common Agricultural Policy (CAP) should therefore lead a transition towards a more sustainable agriculture" (page 4) Enhanced level of environmental ambition • "The implementation of “greening [Footnote 6]” is qualified as sometimes less ambitious than intended" (page 6) • "There are lessons to be learned from the public consultation … This covers also environmental and climate challenges, where a majority of farmers and other stakeholders consider that the CAP should do more" (page 5) • "This is why a modernised CAP should enhance its EU added value by reflecting a higher level of environmental and climate ambition, and address citizens' concerns regarding sustainable agricultural production." (page 7) • "Emerging sustainable rural value chains in areas such as bio-based industries, bio-energy and circular economy, as well as ecotourism offer opportunities for farmers and rural businesses to diversify their businesses, hedge risks and provide additional income: the policy should increasingly focus on supporting such efforts". (page 16) • "Any new CAP should reflect higher ambition and focus more on results as regards resource efficiency, environmental care and climate action." (page 18) • "Member States will need to define quantified targets which will ensure that the agreed environmental and climate objectives defined at EU level are achieved. Member States will have the flexibility to formulate strategic plans allowing for addressing climate and environmental needs at local level". (page 19) • "Greater subsidiarity will remove "the one size fit all" approach and ensure a clear environmental link for actions taken ". (page 19)

10. Policy coherence: CAP to contribute to environmental objectives • "The CAP must continue stepping up its response to these challenges and it also shall play an essential role in realising the Juncker priorities in full coherence with other policies, especially: • ….. • harnessing the potential of the Energy Union, the circular economy and the bio-economy while bolstering environmental care and fighting and adapting to climate change; (page 7)" • "European farming also needs to step up its contribution towards the EU environmental objectives". (page 7) • "The CAP objectives would fulfil the EU Treaty obligations but also the already agreed objectives and targets on for instance the environment, climate change (COP 21), and a number of the SDGs ". (page 8) • "….CAP strategic plan, which would cover interventions in both pillar I and pillar II, thus ensuring policy coherence across the future CAP and with other policies". (page 10) • "This is important to ensure the maintenance of a common approach to the delivery of environment and climate objectives across Member States. Increased ambition is the only viable policy option in this regard." (page 10) • "The section below sets out the main objectives of the future CAP: to foster a smart and resilient agricultural sector; to bolster environmental care and climate action and to contribute to the environmental and climate objectives of the EU; to strengthening the socio-economic fabric of rural areas." (page 11) • "However, to ensure coherence with the overarching EU objectives, all actions and targets put forward by the Member State will be approved by the Commission within an EU framework agreed as part of the CAP strategic plan" (page 19)

11. CAP to sharpen its environmental measures (including taking into account EU environmental planning tools and exploring new measures yielding high EU environmental added value) • "When preparing CAP strategic plans, the Member States will take into account their planning tools adopted emanating from EU environmental and climate legislation and policies.[Footnote 9] "(page 9) • [Footnote 9: Such as the Management Plans and Prioritised Action Frameworks for Natura 2000, River Basin Management Plan, Air Quality and Air Pollution Programmes, Biodiversity Strategies.] • "Innovations in various fields (agronomy such as nature based solutions, breeding, vertical farming, zootechnics, biological, technological, digital, organisational and product related) are within reach and can serve the multi-functionality of EU agricultural and food systems". (page 12) "Technological development and digitisation make possible big leaps in resource efficiency enhancing an environment and climate smart agriculture, which reduces the environment-/climate impact of farming, increase resilience and soil health and decrease costs for farmers " (page 12) • "Schemes that aim at enhancing economic or environmental performance as well as climate change adaptation and mitigation will be linked to the advisory services providing knowledge, advice, skills and innovation." (page 13)

12. New delivery model • "…cross compliance, green direct payments and voluntary agri-environmental and climate measures will be replaced and all operations integrated into a more targeted, more ambitious yet flexible approach" (page 19) • "The Commission will explore inter alia how to cater for measures that yield high EU environmental added value, such as conservation of permanent pastures, maintenance and creation landscape features, agriculture in areas with natural constraints, organic farming, as well as individual or collective schemes aimed at soil health, biodiversity and /river basin stewardship." (page 19) • "The new conditionality (for income support) will rely on the implementation of a streamlined set of environmental and climate conditions, providing environmental and climate public goods (page 19) • "Additional environmental / climate benefits will be achieved through voluntary entry level schemes and more ambitious agro-environment-climate schemes that will allow Member States/Regions to target their specific concerns." (page 19) • "The overall performance of the new green architecture should encourage the promotion of co-operative/collective approaches, involving Farmers and Stakeholders in a result-oriented delivery of environmental and climate public goods and developing schemes that integrate the provision of knowledge and environmental investments." (page 20)

13. Contribution of the CAP- risks to be managed • To secure sufficient level of scrutiny for the Commission to ensure the EU added value • To ensure that the results to be achieved decided by MS are ambitious and deliver sufficiently for the environment • To secure the level playing field

14. A modern budget for a Union that Protects, Empowers and Defends

15. A modern budget for a Union that Protects, Empowers and Defends

16. A modern budget for a Union that Protects, Empowers and Defends

17. A modern budget for a Union that Protects, Empowers and Defends

18. Thank you for your attention! Claudia.Olazabal@ec.europa.eu