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Box 6.4: The EU Common Agricultural Policy<br />

(CAP) and its impacts on biodiversity<br />

The CAP has stimulated important structural shifts<br />

in farming, investments and technological developments,<br />

which has led to resulted in widespread<br />

agricultural intensification in the EU. This intensification<br />

has had well-documented impacts on<br />

biodiversity, including birds, since the 1970s.<br />

According to the Pan-European Common Bird<br />

Monitoring Scheme (2007), the farmland bird<br />

index (an indicator of the health of European farmland<br />

ecosystems) has declined by almost 50%<br />

in the last 25 years. Non-crop plants and invertebrates<br />

have also declined massively, mainly due<br />

to fertiliser and pesticide use.<br />

Many of the remaining species-rich agricultural<br />

habitats are rare or much reduced. A high proportion<br />

of rare and vulnerable species of EU importance<br />

are associated with these threatened<br />

semi-natural habitats and agricultural landscapes.<br />

Many of these habitats and high nature value<br />

farming systems, if not threatened by intensification,<br />

are at risk of abandonment as they are<br />

typically of marginal economic value. These<br />

depend on CAP payments designed to support<br />

farming in disadvantaged areas or to support<br />

environmentally beneficial practices (see also Box<br />

6.5).<br />

Extensive farming systems with high agricultural biodiversity<br />

are often located on marginal land (i.e. land that<br />

would be taken out of production first when production-inducing<br />

subsidies were removed). Stopping<br />

production would have negative effects on biodiversity<br />

with subsequent losses of related ecosystem services<br />

(OECD 2000c).<br />

The close links between biodiversity and extensive farming<br />

on marginal land raises a twofold policy challenge:<br />

• to keep these marginal lands under production and<br />

preserve traditional practices;<br />

• to take out of production those infra-marginal<br />

lands that could deliver significant positive impacts<br />

for biodiversity if converted into natural habitats.<br />

REFORMING SUBSIDIES<br />

This observation does not imply support for productioninducing<br />

support in general. It simply recognises<br />

the fact that subsidy reduction or removal is not<br />

enough, in isolation, to meet the challenge of<br />

maintaining biodiversity-rich extensive farming<br />

systems (see Chapters 5, 7 and 8 for additional policy<br />

tools which can be used to preserve ecosystems and<br />

biodiversity associated with agriculture).<br />

As with other subsidies, production-increasing support<br />

is more environmentally harmful than support<br />

which is ‘decoupled’ from production. Since the<br />

1990s, spurred on by the Uruguay Agreement on<br />

Agriculture, many OECD countries have increasingly<br />

re-designed their support policies in favour of more<br />

decoupled measures which are exempt from the<br />

Agreement’s disciplines under the so-called ‘Green<br />

Box’ (see example in Box 6.5).<br />

<strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 6: PAGE 14<br />

Copyright: André Künzelmann / UFZ

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