In its latest iteration, the Common Agricultural Policy (CAP) 2023-2027 pursues 10 overreaching objectives to ensure agricultural productivity and farmers’ income while encouraging environmentally friendly practices. The budget of the CAP 2023-2027 amounts to EUR 386.6 billion and is divided into two funds:
- The European Agricultural Guarantee Fund, which totals EUR 291.1 billion, provides direct support to farmers and funds market measures.
- The European Agricultural Fund for Rural Development, with a total allocation of EUR 95.5 billion, is dedicated to rural development.
Each country implements the CAP 2023-2027 at their national level through a CAP Strategic Plan. These plans operationalise the numerous targeted interventions each country undertakes while contributing to the ambitions set by the European Green Deal.
How much is available for carbon removal?
Direct payments to support farmers are granted on the condition that they implement ‘good agricultural and environmental conditions‘ (GAEC). Furthermore, 25% of direct payments are optional and require farmers to implement eco-schemes (specific to each country) rewarding environmentally-friendly farming. Some GAEC and eco-schemes relate to practices improving soil carbon sequestration and thus carbon removal.
On the horizon
The CAP 2023-2027 and the national CAP Strategic Plans entered into force on 1 January 2023. In 2024, countries will have to report to the EU Commission on their performances. In 2025, the national CAP Strategic Plans will be reviewed by the EU Commission.
A new obligation to protect wetlands and peatlands will be included in the CAP by 2025 at the latest. Wetlands and peatlands are considered conventional carbon removal methods.
The Commission will propose an improved methodology to ensure that the contribution of the CAP to climate action is correctly measured and accounted for by 2026 at the latest.
Technology readiness level support
The technology readiness level system is not relevant to the CAP.
Eligibility
Each member state has relative freedom to distribute funding between direct payments, market measures and rural development measures.
Funding rates
Each member state has relative freedom based on their national strategic plans.