In the two past months the European Commission has proposed two legislative initiative packages, notably the Carbon farming initiative and the Soil strategy. The former is about creating a remunerative system for farmers to incentivise the stock of carbon into soil, borrowing the logic of the ETS system already into place; while the former is the legislative package proposed to improve the health of EU soils and management. 

Also, on the side of animal welfare the European Parliament has been active in voting its conclusions on the transportation of animals (ANIT Committee) and proposing resolutions, namely on the introduction of temperature, humidity, and ammonia recording devices in lorries and the set of journey limits. The Commission renewed its commitment on this dossier, with Commissioner Kyriakides reminding the institution’s action plan during an on-line even on the wider topic of animal welfare. 

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During the last reunion of the year of the Environmental Council of the EU, Ministers showed to be more resistant to modification of the current GMO legislation, notably in a note advanced by the Austrian delegation calling on the precautionary principle to be applied. At the same time, the Commission still reiterates its commitment to use these technologies -New Genomic Techniques- as one of the tool to put into practice the Farm to Fork and increase the sustainability of the EU agri sector. 

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The E3 modelling firm has updated the PRIMES model, regularly used by the European Commission for its impact assessments, taking into account the current conditions of biofuel production, which are very different from those of 10 or 20 years ago. This update assessment shows clearly that the 1G of today have nothing to do with the 1G of yesterday ! Investments and new measures have been made to make it effective and sustainable. 

At the heart of the Impact Assessments for the Renewable Energy Directive and Europe’s other key energy and climate legislation, the PRIMES model simulates EU energy systems and markets on a country-by-country basis, and for the Union as a whole. It covers energy demand, CO2 emissions, investment, and energy technology penetration, prices and costs.

PROTEIN.

The growing demand for proteins to achieve food sovereignty in the EU, which is currently dependent on soybeans imported from Latin America – a source of deforestation – makes 1G produced in Europe a major lever for the production of “Made in Europe” proteins. In addition this highlight that in the context of circular economy, the concept of food-based biofuels is unfounded since biofuels when operated the right way can be part of a supply chain strengthening food security – proteins, oils or fibers, valued on the market – and a source of stability and investment for farmers. 

PRICE. 

In view of the challenges of the Green Deal, biofuels sourced in Europe are not only a locomotive for the production of non GM proteins, free of deforestation on which for example the non GM milk market rely. They also represent an affordable, credible and available lever to achieve the EU’s climate ambitions. The PRIMES model updated by E3 shows that  renewables from EU biomass are the most attractive solution for decarbonising the transport sector, even by 2030, from a price perspective. A tone of carbon not emitted through the use of biofuels will remain 2-3 times cheaper, compared to the tone of carbon not emitted through the use of electric vehicles. It’s a major asset in order to achieve a Green Deal that work for all, and not only for an elite. 

=> EU biofuels are key to achieving the Green Deal ambition, complementary to other decarbonisation option. The scale of the challenge calls for mobilising all options in a sustainable way, and now at EU level, the framework is well established to mobilise biomass in an efficient and sustainable way. 

See the full report here.

Germany sets course for digital progress, animal welfare, organic farming and the post-2027 CAP

Following trilateral negotiations between the Socialists, the Greens and the Liberals (FDP), a 178-pages coalition agreement has been presented, paving the way for a new German government led by the red/green/yellow coalition.

An important part of this programme is devoted to the ecological transition, food and energy issues, as well as the strategy that will be carried forward by Berlin at European level. The digitisation of the society is one of the major cross-cutting projects supported by the agreement, a project that impact the entire programme of the coalition, which has the ambition of a “global digital revival” for Germany.

In agriculture, two major priorities clearly stand out: the in-depth transformation of the livestock sector, with sources of funding to help the industry adaptation, and the development of organic farming.

It is also announced that the Common Agricultural Policy will be reviewed with a view to “adequately replacing direct payments ” by 2027.

The overall objective of the new coalition is to move towards “sustainable and viable agriculture, in which farmers can carry out an economically viable activity that respects the environment, animals and the climate”. This should be based on “regional value chains and contribute to the maintenance of rural structures”.

Animal welfare.

Animal welfare is the central project of the German coalition for the next few years in the field of agriculture, with important implications on a European scale, the ambition being to have binding standards at EU level.

It is planned to introduce “as early as 2022” mandatory labelling for livestock farming that also covers transport and slaughter, and at a later stage full origin labelling. An ambitious investment plan is foreseen to improve animal welfare, involving all links in the chain in its financing. The plan should not generate administrative burdens, it is stressed.

A number of important control measures on the chain are announced, such as video surveillance of slaughterhouses, a limitation of live animal exports to animal welfare corridors, and an extension of the TRACES database.

Part of the Animal Welfare Act will be transferred to criminal law and accompanied by increased sanctions. A commissioner’s office for animal protection will be established.

Common Agricultural Policy.

Germany has stated its intention to move quickly with the reform of the Common Agricultural Policy, and to look to the future already with a reflection on the next CAP after 2027. A mid-term reform of the CAP architecture national plan is announced, which will be accompanied by reflections on the post-2027 CAP plans, which will focus on the « adequate replacement of direct payments to finance environmental and climate services”.

Nutrition. 

Reducing meat consumption is seen as a priority for the new coalition’s nutrition policy, as well as the establishment of a nutrition policy for children, aiming to limit excess sugar, fat and salt. Alternative proteins will be promoted.

In 2023, a nutrition strategy will be adopted in consultation with stakeholders.

At the European level, Germany is in favour of a scientifically based and understandable Nutriscore and a reinforcement of the labelling of the ecological footprint of products.

Agriculture.

The orientation of German agriculture towards sustainable and organic farming is widely stated, with a target of 30% organic farming by 2030, the end of glyphosate in 2023, and the limitation of pesticides to the strict minimum, while stressing the need to develop solutions and preserve rapid decision-making. The paragraph on plant protection is balanced in its wording, with mention of the need to reform the authorisation process at European level, and to increase transparency.  

The selection of climate change resistant seeds is highlighted, as well as the desire for transparency in breeding methods, strengthening research on risks and detection.

The digitalisation of agriculture is also mentioned as a fundamental orientation, with in particular the development of open source data, under the authority of the public authorities.

A protein strategy is also announced.

Energy and climate.

With regard to the energy transition, the focus is on electrification and green hydrogen, and the implementation of decarbonised electricity production using gas and renewable gas in the short and medium term to ensure the transition.

A new start for the sustainable use of biomass is announced, without further details at this stage.

Clear support is given to the “Fit for 55” package presented by the European Commission, with instruments that are as technology neutral as possible. Support is given to the ETS mechanism, including in transport, and to the principle that « what is bad for the climate should cost more ».

Europe.

On the European institutions, the new coalition takes the opposite view to the previous government, showing ambitious support for the process of institutional reform of the European Union launched by President Macron through the Conference on the Future of Europe, with a view to greater federalism.

Germany is now in favour of the principle of a convention that would pave the way for a reform of the treaties, and defends the idea of challenging the exclusivity of the right of initiative currently in the hands of the Commission and opening it up to the European Parliament, as well as the development of transnational lists and a candidate of European parties for the future president of the Commission.

Germany takes up the principle stated by France that it will go as far as possible with 27 member states, but will not hesitate to develop a deeper relationship with a group of member states that wishes to go further. Reforms in view of the 2024 elections are envisaged, aiming at strengthening the European Parliament (right of initiative) and the transnational dimension of the European debate (European parties, Spizenkandidat, etc.).

In November the negotiations talks on the new government coalition in Germany brought their fruits and a new German agriculture minister from the Green Party, Cem Özdemir, has been confirmed. In the coalitions’ agreement the topic of genetic engineering does not seem to be a priority. 

On the other side of the Atlantic, the US Congress discussed in what it seemed to be a very favourable environment to adopt new technologies such as gene editing tool, and thus increase public investment, to face sustainability challenge. 

At the same time, the pressure is mounting from civil society organisations to re-discuss the patent on seeds. 

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On November 17, 2021, the European Commission published the EU Soil Strategy for 2030, a non-legislative document that addresses the issue of soil health. It is a document that outlines a framework and voluntary or legally binding actions that the Commission intends to undertake to protect, restore and sustainably use European soil. The strategy concretely translates some of the objectives of the European Green Deal and integrates with a series of strategies and policies already decided by the European Commission: from Farm to Fork to the Zero Pollution Action Plan, from the Biodiversity Strategy to the new CAP.

The Strategy is preparatory to a legislative proposal on soil health that the Commission will table by 2023 which will enable the objectives of this strategy to be met and good soil health to be achieved across the EU by 2050, together with the upcoming Commission proposal for a Nature Restoration Law aims at restoring ecosystems to good condition by 2050. 

Given the lack of EU soil policy so far, the Communication has the ambition to address this gap and proposes an overall strategy on all aspects of a healthy soil having an impact on climate change, biodiversity, circular economy, food security and water protection and all policies to be adopted to overcome its degradation.

Of all the actions the Commission is committed to taking, the most significant are:

• proposing legally binding objectives in the context of the Nature Restoration Law, to limit drainage of wetlands and organic soils and to restore managed and drained peatlands, in order to maintain and increase soil carbon stocks, minimise flooding and drought risks, and enhance biodiversity ;
• present the EU carbon farming initiative and a legislative proposal on carbon removal certification in 2022 to promote a new green business model rewarding land managers, such as farmers and foresters, for climate–friendly practices ; 
• as part of the Soil Health Law, assess the need for legally binding provisions for a ‘passport for excavated soil’ and consider options for proposing legally binding provisions to: a) identify contaminated sites, b) set up an inventory and register of those sites and c) remediate the sites that pose a significant risk to human health and the environment by 2050 ; 
• assess the feasibility of the introduction of a soil health certificate for land transaction to provide land buyers with information on the key characteristics and health of the soils in the site they intend to purchase ; 
• provide a definition of net land take in the Soil Health Law and consider options for monitoring and reporting on progress towards the no net land take targets ;
• prepare, in consultation with Member States and stakeholders, a set of ‘sustainable soil management’ practices, including regenerative farming in line with agro- ecological principles, adapted to the wide variability of soil ecosystems and types, and identify unsustainable soil management practices ;
• provide assistance to Member States to put in place through national funds the ‘TEST YOUR SOIL FOR FREE’ ;
• continue support to key initiatives such as the Great Green Wall initiative, Regreening Africa, and aid on land/soil issues in development cooperation to prevent desertification; 
• revise the Directive on the Sustainable Use of Pesticides and evaluate the Sewage Sludge Directive by 2022 ; 
• restrict intentionally used micro-plastics under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation and develop measures on the unintentional release of microplastics by 2022 ;
• adopt biodegradability criteria for certain polymers, such as coating agents and agricultural mulch films under the EU Fertilising Products Regulation by July 2024. 

Moreover, the Commission will show its global leading role in building knowledge on soil biodiversity by publishing by 2022 the first assessment of EU soil biodiversity and antimicrobial resistance genes in agricultural soils under different management regimes (through the LUCAS (Land Use and Coverage Area frame Survey) ).

In the context of the CAP and in close cooperation with the Member States, Commission will continue the dissemination of successful sustainable soil and nutrient management solutions, including through the national rural networks of the rural development programme, farm advisory services and AKIS, and the European Innovation Partnership for Agricultural Productivity and Sustainability (EIP-AGRI). 

The initiatives that make up this Soil Strategy are themselves at very different stages of maturation: 

– the preparation of the revision of the directive on the sustainable use of pesticides is well underway, 

– in contrast, the issue of plastics in soils is at the research stage with Horizon 2020 projects selected for launch in mid-2021, where the fundamental work has only just begun and will last four years, 

– regarding the Carbon farming initiative, which should be the subject of a communication from the Commission next week, it seems that the Commission is more concerned with developing their methodology and collecting data. On grasslands, the most advanced point, the question of the capacity of soils to increase their storage or the fact that a ceiling is reached at some point is not clear. The methodology for estimating soil storage, for assessing the impact of changes in production techniques, for evaluating the contribution of those who are already better off, seem to be works in progress on which it seems important that we invest. 

– finally, the commission endorses the objective of accelerating the deployment of the Great Green Wall in Africa with a shared objective of progress to be made on this file during the first half of 2022

November 2021 was characterized by a strong increase in the price of fine wines, with several records broken. The trends already observed in previous months: rising sales prices, rising costs, and falling production volumes are confirmed. Political issues, both external with several forms of protectionism, and internal with a shifting legislative framework remain important to monitor.

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October has marked the first step in the opening of the revision of the European legislation on GMOs, with the European Commission’s feedback period opened to receive the opinion of the European stakeholders on the matter. More than 70 000 feedbacks have reached the Commission offices, mainly for German and French citizens. 

Also, the European Parliament approved the Farm to Fork Strategy (agricultural branch of the Green Deal) with a paragraph on NGTs.  

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