In a general context of decreasing subsidies, the EU commission has outlined three contrasting scenarios for the post 2013 CAP. These scenarios variously mix direct payments, market-instruments and rural development schemes. Whichever scenario finally unfolds, direct payments will be (totally or in part) justified on the basis of environmental public goods (together with stronger eco-conditionality). This is the greening of the CAP!
Christian Deverre and Christine de Sainte Marie analysed this greening in a very interesting article (which is unfortunately only available in French). Although they refer a lot to current agricultural policy in Switzerland, their insight is very relevant to the EU.
C. Deverre and C. de Sainte Marie recognize that the greening of the CAP is only nascent and that the institutions that govern the farming sector are still built around 1960s modernization goals. They also anticipate two important consequences to further greening of the CAP:
In Nagoya, Europe agreed to end, reduce or reform economic incentives that negatively impact biodiversity (including farming subsidies). The CAP reform is an important tool for facing up to this challenge. In this context, it appears clearly necessary to better characterize the effects of farming practices on ecosystem services, at different scales of analysis: from the parcel to the landscape, both in Europe and beyond.