Key View: This article is the second of three articles looking at the impact of the Europe Green Deal on EU agriculture, starting with a summary of the EU's Farm to Fork strategy. The second article will examine the EU 2030 Biodiversity strategy, especially as it relates to agribusiness, and the third article will discuss key issues and impacts.
On May 20 2020, the EU released the outlines of its Farm to Fork (F2F) Strategy and EU Biodiversity strategy. The two mutually reinforcing strategies are meant to be at the heart of the European Green Deal and will strive to make the European food system fair, healthy and environmentally friendly while helping the EU recover from the coronavirus outbreak. In particular, the Biodiversity Strategy For 2030 tackles biodiversity loss, such as the unsustainable use of land and sea, overdevelopment of natural resources, pollution, and invasive alien species. Meanwhile, the F2F strategy aims to reduce the environmental and climate footprint of the EU food system while proposing measures to ensure that the healthy option is the easiest for EU citizens. To achieve these goals, the EU says farmers will get support from the Common Agricultural Policy and the Common Fisheries Policy through new streams of funding and eco-schemes to take up sustainable practices. We discuss the Biodiversity strategy in more detail below.
In broad strokes, the Biodiversity strategy, adopted during Q120 is part of the EU's recovery plan, aims to make biodiversity considerations an integral part of EU's overall economic growth strategy in line with the 2030 Agenda for Sustainable Development and Paris Agreement on Climate Change. The strategy proposes to, among other things, establish binding targets to restore ecosystems and rivers, improve the health of EU protected habitats and species, bring back pollinators to agricultural land, reduce pollution, enhance organic farming and improve the health of European forests by 2030. The plan has three main components:
- Two key frameworks: widening the network of protected areas and establishing an EU Nature Restoration Plan (EUNRP)
- Creating A New Sustainability Governance Framework;
- Building A Biodiversity Global Agenda
Key Goals For The Future
EU - Biodiversity Strategy Goals
Source: European Commission
A: Two Key Frameworks To Prioritise EU Nature
To execute the Biodiversity strategy, the EU is setting up two frameworks, the Trans-European Nature Network and the EUNRP. According to the European Commission (EC), the current network of legally protected areas, including those under strict protection, is not sufficiently large to safeguard biodiversity. Consequently, the EU is proposing to build a more coherent Trans-European Nature Network. As part of this, the EU says that at least 30% of land and sea respectively should be protected in the EU. This is at least 4% more land and 19% more sea areas as compared with today. As part of this measure, at least one third of protected areas – representing 10% of EU land and sea – should be strictly protected.
As part of the focus on strict protection, the network will endeavour to define, map, monitor and protect all remaining primary and old growth EU forests while setting up ecological corridors to prevent genetic isolation. Particular focus will also be placed on protecting and restoring the tropical and sub-tropical marine and terrestrial ecosystems in the EU’s peripheral areas, given their exceptionally high biodiversity value. Member states using EU guidance will be responsible for designating the additional protected and strictly protected areas by the end of 2021, and will have to demonstrate significant progress by the end of 2023 to demonstrate progress in designating these areas.
In summary, the Trans-European Nature Network has three key commitments:
- Legally protect a minimum of 30% of the EU’s land area and 30% of the EU’s sea area and integrate ecological corridors.
- Strictly protect at least a third of the EU’s protected areas, including all remaining EU primary and old-growth forests.
- Effectively manage all protected areas, defining clear conservation objectives and measures, and monitoring them appropriately.
Greater Protection To Come For Forests
EU Forest Cover
Source: European Environment Agency
The second aspect of the legal framework is the EUNRP. According to the EU, nature restoration is already partially required from the member states in existing EU legislation. However, significant implementation and regulatory gaps hinder progress insofar as there are unclear or non-binding targets and timelines and no definition or criteria on restoration or sustainable use of ecosystems. To correct this, the Plan contains two features: first, subject to an impact assessment, the EC will put forward a proposal for legally binding ecosystem restoration targets in 2021, emphasising areas with the most potential to capture and store carbon and prevent or reduce the impact of natural disasters; second, the EU will request that (after providing them with prioritisation guidance) member states raise the level of implementation of existing legislation within clear deadlines.
An important aspect of the Restorative Plan is improving nature conservation on agricultural land, with the aim of work with farmers to support and incentivise the transition to fully sustainable farming practices. The Plan, in connection with the F2F strategy and new Common Agricultural Policy (CAP) will promote eco-schemes and result-based payment schemes with the aim of accelerating precision agriculture, organic farming, agro-ecology, agro-forestry stricter animal welfare standards. It will also entail reduced pesticide usage and a significant increase in organic farming, as we discussed in our F2F summary, in order to mitigate the loss of farmland birds and insects, especially pollinators.
Next, the Plan also discusses the importance of soil, forests, bioenergy and marine ecosystems:
- Soil: The EU is highly concerned about the environmental and economic impacts of its degradation, especially due to poor land management (ie, deforestation, overgrazing, unsustainable farming and forestry practices, construction activities and land sealing). Therefore, the EC is stepping up efforts to protect soil fertility, reduce soil erosion and increase soil organic matter via sustainable soil practices, including as part of the CAP. This will be achieved through and updated EU Soil Thematic Strategy and The Zero Pollution Action Plan for Air, Water and Soil (both in 2021). Horizon Europe, discussed in Part One, will also assist in these efforts.
- Forests: The EUNRP has provisions to increase the size, quality and resilience of EU forests, notably against fires, droughts, pests, diseases and other threats likely to intensify due to climate change. To do this, the EC will propose a dedicated EU Forest Strategy in 2021, which will include a roadmap for planting at least 3bn additional trees in the EU by 2030. Afforestation, reforestation and tree planting will be promoted through the CAP Strategic Plans, and the Cohesion Policy funds. Finally, the EC will work with data providers to further develop the Forest Information System for Europe to track forest conditions.
- Bioenergy: To mitigate climate and environmental risks created by the increasing use of certain sources for bioenergy, the revised Renewable Energy Directive will promote the shift to advanced biofuels based on residues and non-reusable and non-recyclable waste. The plan also states that of whole trees and food and feed crops for energy production – whether produced in the EU or imported – should be minimised. The EC will publish the results of work on the use of forest biomass for energy production by the end of 2020, and develop operational guidance in 2021 for sustainability criteria on forecast biomass use for energy. Finally, data on biofuels with high indirect land-use change risk will be reviewed ahead of their gradual phase out by 2030.
- Marine Ecosystems: The EU is prioritising the restoration and protection of carbon-rich ecosystems as well as important fish spawning and nursery areas. The EC also emphasises sustainable harvesting and zero-tolerance for illegal practices. To support these goals, member states will have to deliver national maritime spatial plans by 2021, covering all maritime sectors and activities, as well as area-based conservation-management measures. The EC will also propose a new action plan to conserve fisheries resources and protect marine ecosystems by 2021. The European Maritime and Fisheries Fund will also support the transition to more selective and less damaging fishing techniques. Finally, regarding rivers, at least 25,000 km of rivers will be restored into free-flowing rivers by 2030 through the removal of primarily obsolete barriers and the restoration of floodplains and wetlands.
The EUNRP next focusses on improving biodiversity through pollution reduction, especially, the release of nutrients, chemical pesticides, pharmaceuticals, hazardous chemicals, urban and industrial wastewater, and other waste such as litter and plastics. As part of the EC’s Zero Pollution Ambition for a toxic-free environment, a new EU Chemicals Strategy for Sustainability will be put forward along with a Zero Pollution Action Plan for Air, Water and Soil. The EC will also promote the goal of zero pollution from nitrogen and phosphorus flows from fertilisers (while ensuring no deterioration of soil fertility, which will reduce fertiliser usage overall by at least 20%. Finally, the EU will set up indicators to aid the reduction of pollution.
Finally, the EU will implement the EU Invasive Alien Species Regulation with the goal to minimise, and where possible eliminate, the introduction and establishment of alien species in the EU environment.
In summary, the EUNRP has 12 key commitments for agriculture:
- Legally binding EU nature restoration targets to be proposed in 2021, subject to impact assessment.
- The decline in pollinators reversed.
- Risk and use of chemical pesticides is reduced by 50% and the use of more hazardous pesticides reduced by 50%.
- At least 10% of agricultural area under high-diversity landscape features.
- At least 25% of agricultural land under organic farming management, and the uptake of agro-ecological practices significantly increased.
- 3bn new trees are planted in the EU.
- Significant progress made in remediation of contaminated soil sites.
- At least 25,000 km of free-flowing rivers restored.
- 50% reduction in the number of Red List species threatened by invasive alien species.
- The losses of nutrients from fertilisers are reduced by 50%, resulting in the reduction of the use of fertilisers by at least 20%.
- Cities with at least 20,000 inhabitants have an ambitious Urban Greening Plan.
- No chemical pesticides used in sensitive areas such as EU urban green areas.
- Negative impacts on sensitive species and habitats, including on the seabed through fishing and extraction activities, substantially reduced.
- By-catch of species eliminated or reduced to a level that allows recovery and conservation.
B: New Stakeholder Governance Frameworks To Steer Sustainability
As of May 2020, there was no comprehensive governance framework to steer the implementation of biodiversity commitments agreed at national, European or international levels. To address, the EC will put in place a new European biodiversity governance framework. This will include a clear set of agreed indicators and will enable regular progress assessment, and the suitability of this framework will be assessed in 2023 to determine whether it should legally binding. The EC will strive to improve compliance assurance.
The EC mentions two specific actions in this respect: In 2020, the EC launched a review of the reporting obligations of businesses under the Non-Financial Reporting Directive to improve the quality and scope of non-financial disclosures, including on environmental aspects such as biodiversity. Moreover, the EC will put forward a new initiative in 2021 on sustainable corporate governance. A potential legislative proposal, this will address human rights and environmental duty of care and due diligence across economic value chains in a proportionate way according to different size companies.
Investments And Taxes To Feature
The EC recognises that tackling biodiversity loss and restoring ecosystems will require significant public and private investments. Consequently, along with 'biodiversity proofing' of the EU budget (where a significant proportion of the 25% of the EU budget dedicated to climate action will be spent on biodiversity), at least EUR20bn annually will be unlocked for spending on nature. Moreover, under Invest EU, a dedicated natural-capital and circular-economy initiative will be established to mobilise at least EUR10bn over the next 10 years, based on public/private blended finance. In 2021, the EC will adopt a Taxonomy Regulation to establish a common classification of economic activities that substantially contribute to protecting and restoring biodiversity and ecosystems, which will be further supported by a Renewed Sustainable Finance Strategy later in 2020.
The EC will further promote tax systems and pricing that reflect environmental costs and shift the tax burden from labour to pollution and other environmental externalities under the ‘user pays’ and ‘polluter pays’ principles. As well, the EC will develop methods, criteria and standards to describe the essential features of biodiversity and use it to measure the environmental footprint of products and organisations on the environment.
In terms of knowledge and education, the future Horizon Europe programme will include a long-term strategic research agenda for biodiversity, including a science policy mechanism for research-based options. In parallel, the EC will promote and facilitate partnerships, including a dedicated Biodiversity Partnership a new Knowledge Centre for Biodiversity to underpin policy development and track progress.
C: A Global Biodiversity Agenda
The EC considers biodiversity a priority for the EU’s external actions and an integral part of its goal to meet the UN Sustainable Development Goals. Consequently, biodiversity will be mainstreamed throughout bilateral and multilateral engagements, through the EU’s ‘Green Deal diplomacy’, and forthcoming green alliances. As part of this, the EU will lead efforts towards a new global framework at the upcoming 15th Conference of the Parties to the Convention on Biological Diversity. The EC will push for the framework to contain the following elements:
- Overarching global goals for biodiversity for 2050, in line with the UN 2030 Agenda for Sustainable Development.
- By 2050, all of the world’s ecosystems are restored, resilient, and adequately protected.
- Global 2030 targets in line with EU commitments.
- A much stronger implementation, monitoring and review process.
- Fair and equitable sharing of genetic resources of biodiversity and a principle of equality and inclusion of all peoples.
The EU will also use all of its diplomatic leverage and outreach capacities in the areas of ocean governance and trade. Regarding oceans, the EU will support a legally binding agreement on marine biological diversity of areas beyond national jurisdiction by the end of 2020 and will apply zero tolerance towards illegal, unreported and unregulated fishing while working to ban harmful fisheries subsidies. Trade policy will actively support the ecological transition. In particular, the EC will also present a legislative proposal to avoid or minimise the placing of products associated with deforestation or forest degradation on the EU market. It will consider strengthening the capacities of the European Anti-Fraud Office to work with member states and non-EU countries to prevent illicit trade and the entry of illicit products into the bloc. Finally, the EU will step up support to partner countries across the world to achieve the new global targets and tackle biodiversity loss. For example, in Africa, the EU will launch the NaturAfrica initiative to protect wildlife and key ecosystems.
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