The European Scientific Advisory Board on Climate Change has recommended carbon pricing combined with other policy instruments on agricultural food to reduce emissions in the sector.
The advisory board has listed a series of actions to put the EU on track towards climate neutrality in its latest report: Towards EU climate neutrality: progress, policy gaps and opportunities.
The advisors found that carbon emissions from agriculture remain largely unchanged since 2005, with 11% of the EU’s total net greenhouse gases sourced in the sector.
The report recommended better aligning the EU’s common agricultural policy with climate ambitions.
This would include shifting support away from emission intensive agricultural practices, such as livestock production, and towards lower-emitting products and activities.
It stated that emissions pricing in the agricultural and land use sectors should be implemented by 2031 at the latest.
This would be consistent with the EU approach for other sectors, according to the report.
Carbon pricing would be combined with other policy instruments such as “minimum performance standards and subsidies”.
The report stated that emissions are not decreasing, mainly due to a lack of adequate financial incentives for farmers.
While agricultural emissions remain the same across Europe, the report stated that forests are also absorbing less and less carbon, as trees are getting older and face worsening impacts from climate change.
The report stated that current incentives for biomass use risk adding further pressure on forests, as the climate cost of wood harvesting is “insufficiently reflected in its price”.
Carbon pricing impact
The report also stated that the impact on small farms and farms in vulnerable regions should be assessed.
“Adverse economic, social and environmental impacts should be addressed to ensure a just and fair transition,” it stated.
To address the issues, it recommended the common agricultural policy (CAP) budget or other mechanisms could be used to finance measures, and to support climate mitigation and adaptation efforts.
It added that the EU carbon removal certification framework (CRCF), which is currently being developed could serve as a first step towards a robust monitoring, reporting and verification system for such instruments.