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The report<\/a>, published on Thursday (18 January) by ESABCC \u2013 the climate advisory group established by the 2021 European Climate Law \u2013 examined the main gaps in the EU\u2019s green policies and found that farmers lack adequate financial incentives to reduce the sector emissions.<\/p>\n\n\n\n The sector\u2019s \u201cremained largely unchanged since 2005\u201d, with two-thirds of them coming from livestock production.<\/p>\n\n\n\n To revert the trend, a carbon pricing system should be introduced \u201cby 2031 at the latest\u201d, the experts recommended.<\/p>\n\n\n\n The report comes as the EU aims to cut greenhouse gas emissions by 55% from 1990 levels by 2030 and achieve climate neutrality by 2050. <\/p>\n\n\n\n ESABCC published their recommendations while the EU executive is preparing a new document that will set an interim target for emission reduction 2040, Commission spokesperson for climate and energy Tim McPhie, told a press briefing after the publication of the report.<\/p>\n\n\n\n According to ESABCC, the EU\u2019s Common Agricultural Policy (CAP) \u2013 the bloc\u2019s farming subsidies programme \u2013 is not sufficient to deliver additional climate action.<\/p>\n\n\n\n \u201c[The CAP] is primarily based on voluntary efforts, which are unlikely to be effective,\u201d reads the report, adding that most of its climate targets are qualitative rather than quantitative. <\/p>\n\n\n\n The EU\u2019s framework for agricultural subsidies, climate experts add, gives member states \u201clittle incentive to be ambitious\u201d by allowing them a high degree of flexibility and broad exemptions. <\/p>\n\n\n\n The advisory board also said the CAP is \u201cbiased towards larger farms\u201d through direct payments \u2013 which are paid to farmers based on the farm area. <\/p>\n\n\n\n The ESABCC panel called for a carbon pricing system that applies the \u201cpolluter pays\u201d principle to agriculture, to incentivise farmers to reduce emissions, mirroring the Emissions Trading System which covers mainly the energy and manufacturing industry.<\/p>\n\n\n\n Putting a price on agricultural emissions is something the European Commission is already looking at. EU institutions are currently negotiating criteria for establishing certificated and reliable \u201ccarbon farming\u201d schemes, to remunerate farmers for their contribution to CO2 sink in crops and forests. <\/p>\n\n\n\n A real market for agricultural emissions, however, is a step further. It requires an obligation to use allowances to emit. The most difficult issue is that the EU would have to decide where to place the \u201cpoints of obligation\u201d \u2013 identifying who pays for polluting. <\/p>\n\n\n\n For example, it could be all types of farms, or only livestock farms, food industry, or input producers \u2013 which would include fertilisers and feed producers and importers. <\/p>\n\n\n\n The chairman of the European Parliament\u2019s Environment Committee, Pascal Canfin, and the MEP J\u00e9r\u00e9my Decerle (both of the centrist Renew group) proposed<\/a> an ETS for the food system involving farmers and processors.<\/p>\n\n\n\nShortcomings of the CAP<\/strong><\/h3>\n\n\n\n
The \u2018polluter pays\u2019 principle<\/strong><\/h3>\n\n\n\n