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IPC Conference Dinner 2007
The Role of Sustainability in Europe’s Common Agricultural Policy
F. Fischler
Stratford-upon-Avon, October 2007
IPC Conference Dinner 2007 2
Outline
• The European Economic Model
• A Sustainable CAP– Market Orientation
– Environmental Protection
– Social Responsibility
• Sustainable Energy Production
• Agriculture versus Farming
The Union shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance.
Article I-3 (3) first part (Treaty establishing a Constitution for Europe)
Added value of the market
Maintenance of social freedom
Basis for life natural resources
Market EconomyMarket
Economy
EcologicalEcological SocialSocial
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CAP-Market Orientation
• Intervention abolished or reduced to a minimum safety net
• Phasing out of export subsidies
• Phasing out dairy quotas
• Abolition of set a side and energy crop support programs
• Decoupling of farm support
• Farmers exposed to price volatility
• Growing market segmentation
• Modernizing and restructuring of farms
• Strict financial discipline
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CAP-Environmental Protection
• Extensification of farming practices through reduced production incentives
• Direct support (SFP) conditioned with obligatory food standards, environmental and animal welfare rules
• Public private partnership to deal with public services
• Allowances to maintain the cultural landscapes in less favored areas and valuable biotopes
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CAP-Social Responsibility
• Income support via decoupled aid
• Education and training programs
• Young farmer start up support
• Strengthening infrastructure on the countryside
• Dealing with the aging and migration problems of the rural population
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Sustainable Energy Production
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Biofuel
European Goals:
2010: 5.75 % of total consumption
2020: 10.0 % of total consumption
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Bioethanol and Biodiesel
Production Capacity 2007 (in mill. t):
(Source: Ch. Bickert, DLG-News)
Bioethanol Biodiesel
global 35 9
thereof: Brasil 14,5 0,7
USA 14,5 1,9
EU-27 3,0 6,1
thereof: GER 0,6 3,0
FRA 0,5 0,6
ITA - 0,5
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Bioethanol and Biodiesel
Land Resource for the Production of Biofuels:
(Source: St. Tangermann, M. Lampe)
Brasil USA EU15
Share of Biofuels 2004 21,6 % 1,6 % 0,8 %
Land needed in % of Cereals-, Oilseeds- & Sugararea 2004
8 5 4
Goals set for Biofuels 10 % 10 % 10 %
Land needed in % of Cereals-, Oilseeds- & Sugararea 2004
3 30 52
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Oilseeds: Production Costs1) 2002
Source: Parkhomenko (2003). 1) without land costs
€ /
t R
apes
eed
equ
ival
ent
Rapeseed Soyabeans
CA
-121
4
CA
-243
0
CA
-121
4
CA
-202
4
DE
-700
DE
-150
0
DE
-560
DE
-130
0
CN
-0.3
4
AR
-250
AR
-350
AR
-150
0
BR
-500
BR
-100
0
US
A-7
13
US
A-1
903
US
A-1
012
US
A-1
943
US
A-4
05
US
A-8
10
CN
-4.3
CN
-1.2
ID-2
ID-2
500
MY
-230
0
MY
-430
0
SEAGermanyCanada South-Amerika
China USA China
Direct Costs
Operating Costs
Fixed Costs
Interests
Setup Costs
Conversion Costs
Palmoil(FFB)
0
100
200
300
250
150
50
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Biofuels
Land- and CO2-Efficiencyavoidance of Biofuels:
(Source: L. Langbehn; Y. Zimmer)
Biofuels Liter Fuel per ha € per tonne CO2
Equivalent
Biodiesel from Rapeseeds 1.408 150
Rapeoil 1.420 80
Ethanol from Cereals 4.054 290
Biogas from Cereals 1.660 250
Biogas from Silo Maize 4.977 -
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Consequences for the Biofuel Politicsuntil 2020
• 10 % Biofuels is very ambitious and can only be reached with the help of the 2nd generation and partly with imports
• Cereal- and Oilseeds Politics must be adjusted to the development of the Biofuel Production (Closedown, Subsidies, Intervention, Quality, GMOs, External Protection)
• Optimization of the Production should be based on the
CO2-Avoidanceefficiency
• Sustainability-Standards for Production and Imports?
• Intensification of Research for the 2nd Generation of Biofuels
• Food Production must stay Priority
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Agriculture vs. Farming
A specific sector with An industry like
a cultural dimension any other industry
Pragmatism bridges the tensions
Concentration on demand of food, services and renewables
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Thank you for your attention!
