There can be no more intertwined but seemingly unrelated topics in the EU currently than electric vehicles (EV) and cows.
While cars that plug in might seem a world away from the green grass of our farms the reality is at a policy level, both nationally and at EU level, they are essentially linked.
Why? Because carbon budgets set in Ireland to meet the legally binding 51% greenhouse gas reduction target by 2030 requires a 50% reduction in transport emissions and this is simply not happening.
Instead transport emissions increased by 2.3% in 2023 versus 2022 – but agriculture reduced by 4.6%.
While the unexpected over performance of agriculture on meeting its targets is to be welcomed, unfortunately it could unfairly also lead to a potential threat if the failing transport sector misses its targets.
EV sales
We are currently hurtling towards a sectoral review in 2025 with the ending of one carbon budget and we will need strong farmer representatives to ensure a recalculation is not forced on farming for the next one.
The crash in EV sales and increased purchases of inefficient SUVs powered by diesel and petrol further threatens the credibility of reaching this target.
At EU level these topics are even more interlinked.
While it been clear for some time that the interests of the motoring industry are at odds with European farmers and agriculture on climate there is another forum in which the sectors are at odds: trade.
The EU-Mercosur trade deal is seen as a golden goose for car makers and it will also open up the EU market to goods from Mercosur – including Brazilian and other South American beef which prompts questions about food traceability concerns and deforestation.
Mercosur is widely considered by many to be the product of German car makers in particular to expand their sales in South America.
Subsidies
On top of this the next major concern for EU farmers, and in particular EU dairy and pork farmers, is the investigation opened by Chinese authorities into subsidies provided by the EU under the Common Agricultural Policy (CAP) – this includes 20 countries including Ireland, France and Finland.
It could be said that Ireland is uniquely exposed on this front if Chinese officials decide that the evidence is sufficient for sanctions as we exported €416 million worth of dairy products last year.
However, many of our key products such as milk powder are not covered by this investigation as it is focusing on products such as creams, milks and various types of cheese, a move suspected to be calculated to impact France the most heavily.
This may be because France is considered to be the a key driver behind the calls to impose tariffs on Chinese made EVs.
European Commission
According to the EU Commission spokesperson on Trade and Agriculture, Olof Gill, the commission will “firmly defend the interests of the EU dairy industry and CAP and intervene as appropriate to ensure that the investigation fully complies with relevant WTO rules”.
Claims against the CAP as a source of unfair competition have also appeared before World Trade Organisation (WTO) previously and have not been found to impact on trade or provide an unfair advantage, in no small part due to decoupling of payments.
However while the argument continues that China is artificially subsidising its manufacturers, this may only be half the story – because some also could argue that EU car manufacturers were slow to adopt EV and battery tech.
Behind closed doors some of these manufacturers who proudly trumpeted less than two years ago their support for the EU Green Deal are privately lobbying to delay the EU ban on sale of internal combustion vehicles to extend the lifetime of their factories.
This week the CEO of BMW, Oliver Zipse, appealed for the cancellation of the planned ban on fossil fuel cars by 2035.
Climate
Leaving aside the impact on climate if this were to materialise it would simply delay the inevitable.
Just as failing to adopt modern plant breeding tech left EU agriculture struggling and ultimately unable to compete, EV technology is superseding old fashioned fossil fueled powered cars.
As a dairy farmer I am proud that Chinese citizens have access to my product without unfair tariffs and protectionism from their government.
So I can see no reason why next time I am in the market for something not meant for towing or fieldwork why I should not enjoy the best of technological leap in better and lower emissions cars, be that European or Chinese.