Point 6 - CAP reform elements for discussion Expert Group on WFD & agriculture Warsaw, 13 September 2011 Nicolas ROUYER European Commission DG Environment Water unit

Overview presentation: 1. CAP reform: where we are now 2. WFD in cross compliance 3. The green component of the CAP Slide 2 / 13

1. CAP reform: where we are now 18 November 2010: Communication on CAP reform 1 September 2011: start of the interservice consultation 12 October 2011: adoption of the legal proposal by the European Commission Discussions at the Council and Parliament in view of adoption by co-decision (no timetable available). Slide 3 / 13 3

1. CAP reform: where we are now Water protection issues was clearly identified in the Communication COM(2010)672: • Water quantity • Water quality • Ecosystems (hydromorphology) • Extreme events (droughts, floods) Different CAP mentioned tools to address water: • cross compliance • the green component • the rural development regulation Slide 4 / 13 4

The Common Agricultural Policy Structural adjustment Pillar I Direct payments Green component Income Markets Cross compliance Public goods Structural adjustment To figure out the debate, let’s introduce to the CAP. Rural development. The various policy measures are organised into three axes with each axis targeting one of the three main domains (objectives) of intervention (European Commission, DG Agriculture, 2006) and a fourth axis called LEADER. MS are required to allocate a minimum proportion of the EAFRD budget to each of the domains,. The RDR has several objectives and the improvement and protection of the environment is only one out of several. MS have the flexibility to select the most appropriate measures to address the specific needs of their territory and decide (up to a certain amount) how to spend their budgets among the four axes. This leads to important differences in the rural development programs (RDPs) of the different MS and especially in the priority they give to environmental and particularly water related issues. Pillar II measures: It provides financial support to water under the framework of 37 measures. Two measures most prominent as regards budget, water and geographic distribution. They are: Agri-environmental measures (Art 39 - code 214) Modernisation of agricultural holdings (Art 26 - code 121) Pillar II Rural development

2. WFD in cross compliance (1) Are WFD provisions relevant for cross compl.? • Water protection is identified as a major concern for the European citizens (Flash Eurobarometer) • Pressures by agriculture on the water resources are very high (review of the draft RBMP in 2010, on-going assessment of the RBMP) Slide 6 / 13 6

2. WFD in cross compliance (2) Do WFD provisions have a direct link with the agricultural activity? WFD provisions regulate: • how & how much water is used • the conditions to discharge used water • the activities that may give rise to diffuse pollution • the hydro-morphological aspects such as the conservation of the riparian areas.  Major implications for the agricultural sector Slide 7 / 13 7

2. WFD in cross compliance (3) Do the WFD provisions relate to actions attributable to individual farmers? Examples of failures by farmers to follow the rules: abstraction of water without a permit (WFD art. 11.3.e) • discharging waste water directly to water courses without a permit (WFD art. 11.3.g & j) • application of pesticides not in accordance with the rules (WFD art. 11.3.h) • modification of a riparian area of a water body without authorisation (WFD art. 11.3.i) Slide 8 / 13 8

2. WFD in cross compliance (4) Are the WFD provisions controllable at reasonable costs and quantifiable? • Water policy is not new in the EU: in every MS, well developed system of water management (with controls, inspections & sanctions) on which the WFD implementation builds • Cross compliance could make full use of the existing control mechanisms without implying significant additional costs Slide 9 / 13 9

2. WFD in cross compliance (5) Does the WFD create undue discrepancies between farmers, beyond what is required to take into account local needs? • The environment is very diverse, as well as the characteristics & intensity of the activities that put pressures on it. • There is a strong baseline that has to be complied with in all cases, and the flexibility to define additional measures taking into account local circumstances. Slide 10 / 13 10

2. WFD in cross compliance (6) Does the timeline of the WFD implementation match with the 2014 CAP reform? • All the RBMP are expected to be in place in 2012 (currently 89% of the EU covered by RBMP) • Many important mandatory WFD measures are already in place at farm level • The other obligations will be specified by the end of 2012 (WFD art. 11.7), before the CAP reform Slide 11 / 13 11

3. The green component of the CAP Structural adjustment Pillar I Direct payments Green component Income Markets Cross compliance Public goods Structural adjustment To figure out the debate, let’s introduce to the CAP. Rural development. The various policy measures are organised into three axes with each axis targeting one of the three main domains (objectives) of intervention (European Commission, DG Agriculture, 2006) and a fourth axis called LEADER. MS are required to allocate a minimum proportion of the EAFRD budget to each of the domains,. The RDR has several objectives and the improvement and protection of the environment is only one out of several. MS have the flexibility to select the most appropriate measures to address the specific needs of their territory and decide (up to a certain amount) how to spend their budgets among the four axes. This leads to important differences in the rural development programs (RDPs) of the different MS and especially in the priority they give to environmental and particularly water related issues. Pillar II measures: It provides financial support to water under the framework of 37 measures. Two measures most prominent as regards budget, water and geographic distribution. They are: Agri-environmental measures (Art 39 - code 214) Modernisation of agricultural holdings (Art 26 - code 121) Pillar II Rural development

3. The green component of the CAP Different technical measures are considered: • permanent pasture • crop rotation • ecological set-aside • green cover All can be relevant for water protection, with specifications implying a real impact Source: DG ENV/B1 Slide 13 / 13 13