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IPC Conference Dinner 2007 The Role of Sustainability in Europe’s Common Agricultural Policy
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Transcript of IPC Conference Dinner 2007 The Role of Sustainability in Europe’s Common Agricultural Policy
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
IPC Conference Dinner 2007 5
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
IPC Conference Dinner 2007 6
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
IPC Conference Dinner 2007 7
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
IPC Conference Dinner 2007 8
Sustainable Energy Production
IPC Conference Dinner 2007 9
Biofuel
European Goals:
2010: 5.75 % of total consumption
2020: 10.0 % of total consumption
IPC Conference Dinner 2007 10
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
IPC Conference Dinner 2007 11
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
IPC Conference Dinner 2007 12
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
IPC Conference Dinner 2007 13
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 -
IPC Conference Dinner 2007 14
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
IPC Conference Dinner 2007 15
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
IPC Conference Dinner 2007 16
Thank you for your attention!