Economists from the OECD say that European agricultural subsidies have hardly contributed to reduced air and soil pollution. According to a new OECD report, the fundamental problem is that climate spending in agricultural policy is not linked to clear reduction targets.
According to the OECD researchers, voluntary subsidy conditions, such as the eco schemes that will come into effect next year, are not sufficient. This applies not only to the EU but also to the agricultural and food policies of dozens of other countries.
To ensure that the agricultural sector contributes to the EU's climate package "Fit for 55," EU payments must be "linked to emission reduction targets in agriculture at the national and EU levels," the report recommends. It is also stated that agricultural polluters will have to start paying.
“For me, the fundamental problem remains that we have offered voluntary [sustainability] measures in Europe,” said professor emeritus of European agricultural policy Alan Matthews during the report's presentation.
“Public agricultural support has reached record levels worldwide, but the portion used to promote sustainable production has declined,” explained Marion Jansen, head of the OECD Directorate for Trade and Agriculture.
According to her, sustainable agriculture must be significantly expanded to meet future food demand and to achieve the climate goals of the Paris Agreement.
The OECD believes far more emphasis must be placed on innovation. “To feed a growing world population, agriculture will have to increase productivity in an environmentally friendly way,” Ms. Jansen stressed.
Meanwhile, the report also warns that some measures in response to the war in Ukraine could be “counterproductive.” “Relaxing environmental standards to boost domestic production could have procyclical effects and come at the expense of sustainability,” the researchers warn.