Lead charge on climate change
ambition would be required as part of the CAP Strategic Plan which will be developed in the course of the coming year, depending on how quickly the Commission’s proposal is processed through the EU legislative system.
Tackling emissions by improving carbon efficiency and reducing the carbon intensity per kg of output is attractive to farmers because the measures taken often reduce unit costs and improve profitability at the same time.
But this is also the limitation of this approach. Improved profitability has a rebound effect in that it encourages an expansion of output, thereby offsetting either partly or wholly the reduction in emissions due to improved efficiency. If agricultural emissions are to reduce in absolute terms and not just f latten out, more will be required.
This is why it is important not just to look at the potential to reduce emissions in individual sectors but also to consider land use in a more holistic sense. What uses of land will be compatible in 2030 or 2050 with a commitment to approach carbon neutrality in the agriculture and land use sectors?
Some parts of the answer are known. They include a greater area under forestry, some re-wetting of peatlands, more use of energy crops and agro-forestry, as well as greater attention to the provision of ecosystem services including biodiversity and f lood management. The extent of the changes we need to make should be clearly spelled out in the forthcoming climate plan.
Then there is the question of how to move from our current land use structure to one that is compatible with our climate targets. Farmers respond to incentives, whether these are the result of market signals or public policy in the form of regulations and subsidies. Public policy needs to be consistent with the transformation required. This applies particularly to the design of CAP payments, given the hugely important role they play in maintaining farm income in Ireland.
The Commission’s draft CAP proposal would give member states such as Ireland much greater f lexibility to design their own interventions, including potentially a new ecoscheme in Pillar 1. If the new Climate Action Minister’s words about making Ireland a leader in responding to climate change are to mean anything, this must become the priority in designing Ireland’s national CAP plan.
FARMERS RESPOND TO INCENTIVES, WHETHER THESE ARE THE RESULT OF MARKET SIGNALS OR PUBLIC POLICY