Overview of CAP Reform 2014-2020

Launched in 1962, the EU’s common agricultural policy (CAP) aims to:
Support farmers and improve agricultural productivity, ensuring a stable supply of affordable food;
Safeguard European Union farmers to make a reasonable living;
Help tackle climate change and the sustainable management of natural resources;
Maintain rural areas and landscapes across the EU;
Promote jobs in farming, agri-food industries and associated sectors.

The first reforms to introduce climate considerations into the CAP took place in 2013. The CAP is a common policy for all EU countries. It is managed and funded at European level from the resources of the EU’s budget.

Common Agricultural Policy

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Laws and Policies

CCLW

CCLW national policies

Information on the Common Agricultural Policy

The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future (European Parliament Resolution of 23 June 2011)

2023-2027 farm policy adopted by Parliament

The CAP 2014-2020 has been reformed by strengthening its greening aspects. Climate mitigation and adaptation are explicitly among the key objectives of the CAP, which accounts for about 30% of the overall EU budget/ MFF 2014-2020. The greening measures in the CAP 2014-2020 particularly increase the carbon sink by encouraging more grassland, the protection of forest cover and address the challenges of soil quality. It makes direct payments to farmers conditional upon compliance with greening measures, which account for 30% of the overall direct payments (pillar I). These measures include crop diversification, conserving 5% (and later 7%) of areas of ecological interest and maintaining permanent grassland. 30% of the budget within the rural development programmes (pillar II) is to be dedicated to agri-environmental measures, projects related to environmentally friendly investment or innovation measures as well as to support for organic farming. It further improves agri-environmental measures via higher environmental protection targets.On November 23, 2021, the EU Parliament agreed on a broad reform of the PAC, that needs to be approved by the Council. The new framework will enter into force on January 1, 2023.

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Actions or measures to adapt terrestrial systems to climate change.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A drought is an extended period of unusually dry weather marked by a significant and sustained lack of precipitation, falling below a specific threshold over a large area for more than a month

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Overview of CAP Reform 2014-2020

Policy instrument

Risk

Just transition

Economic sector

Adaptation/resilience

Finance