The Common Agricultural Policy of the European Union and its possible future effects on the reduction of greenhouse gases of the agricultural industry

Premio extraordinario de Trabajo Fin de Máster curso 2019/2020. Máster en Comercio Exterior e Internacionalización de EmpresasThe aim of this thesis is to inform the reader about the climate mitigation potential in the European agricultural policy. Political stakeholder from different spectrums agree that climate change is one of the pressing topics of our societies in the 21st century and that future policies should reflect this. Therefore, the thesis chiefly analyzes the current Common Agricultural Policy (CAP) of the European Union in order to identify advantageous and disadvantageous schemes and measures regarding this issue. Furthermore, it accesses whether it is possible to precisely measure the greenhouse gas reduction potential for each of these instruments. This is done to predict whether the industry, with the help of the CAP incentives, can fulfil the 2030 reduction targets set out in the European Green New Deal. Since climate change is a crosscutting issue, relevant external developments such as the Farm-to-Fork Strategy will be consulted to provide a full picture of the climate regulations and initiatives concerning the agricultural industry. Based on literature research, an expert interview as well as a budgetary analysis of the CAP, a detailed analysis of all the relevant policy instruments, schemes and subsidies forms the basis of the recommendations for the future CAP post-2020. In these recommendations, it is e.g. suggested to integrate key CAP Pillar II measures in a long-term intervention logic that facilitates the change to and the maintenance of beneficial practices at farm level. Another key finding concerns the Pillar I Voluntary Coupled Support which can be granted to highly polluting sectors such as the meat and dairy sector. For this scheme, it is advised to strengthen the obligations regarding, for instance, fodder sources or manure management that holdings have to fulfill. This is paired with attractive Pillar II measures to finance the conversion to beneficial practices. Perhaps most importantly, a concrete budget proposal is elaborated, bolstering the qualitative recommendations mentioned. Additionally, the reader gains insight into the trade-offs between ecological and economic factors as well as the administrative burden expected when implementing the recommendations