March 23, 2021

European Commission urged by investors to prioritise climate in the bloc's farming subsidy programme

The European Commission has been urged by a US$2 trillion group of investors to prioritise climate change and protect biodiversity in a planned overhaul of the bloc's farming subsidy programme, Reuters reported.

The group said proposed reforms to the Common Agricultural Policy must align with the European Union target of net zero greenhouse gas emissions by 2050, ahead of a meeting between agriculture ministers from EU countries.

The investors, led by Legal & General Investment Management and think-tank Chatham House, and include Aviva Investors, Robeco, and the FAIRR Initiative, made four recommendations. These include reduced support for commodities such as red meat and dairy, which have high emissions.

Financial support should be provided in accordance with environmental protection efforts, with incentives redesigned to put a value on sustainable agriculture rather than increasing production at the cost of climate concerns.

The group also called on farmers to be eligible for EU funds to transition away from high-emission activities.

10% of emissions in the EU come from agriculture.

- Reuters