Climate Change and the Rural Economy Managing land in the face of climate change The European Landowners’ perspectives on the: • Implications of climate change • Land management actions • Policy considerations The ELO represents the collective voice of landowners, managers and farmers across Europe. Their business and private properties are the core for a sustainable and prosperous countryside. Foreword The ELO addresses issues that affect European rural areas, which represent over 77% of the EU’s territory (47% farm land and 30% forest) and is home to around half its population (consisting of farming communities and other residents). The agricultural sector has 12 million full-time farmers, with another 3 million jobs created through Europe’s forests. Agriculture, forestry and the agri-food industry - which is heavily dependent on agriculture for its supplies - account for 6% of the EU’s GDP, comprise 15 million businesses and provide 49 million jobs. Acknowledgements This paper is the result of collaboration between ELO’s staff (directed by Ana Rocha) and its members and supporters, in particular the policy team at CLA and Michael Sayer. We are mainly grateful to Dr David Viner (Mott MacDonald) and Corrado Pirzio-Biroli (RISE foundation) for their expert input. Land is the basic resource for the production of food and fibre, for biodiversity, and for ecosystem management in the widest sense. Adaptation and climate mitigation are therefore central to the future of sustainable land management. The negative consequences of global temperature rises are well known. As greenhouse gas emissions continue to rise, pressure increases on global leaders to be ambitious and take measures to limit warming to below two degrees Celsius over pre-industrial levels. As the European Commission advances on its climate initiatives domestically it is timely to reflect on the contribution of the European countryside to the climate discussions. Agriculture and forestry are among the sectors most directly affected by climate and are important emitters and sequesters of emissions. Janez Potočnik Chairman of the RISE Foundation and EU Commissioner for Environment (2010-2014) 3 Contents 4 Executive summary I. Climate Change in context 6 II. Implications for land managers 8 1. Water resources 2. Soils 3. Pests and diseases 4. Plant growth and yields 5. Ecosystems and biodiversity 6. Rural businesses 9 10 10 11 11 12 III. Land management actions 14 1. Reducing GHG emissions 2. Managing carbon stocks 3. Replacing fossil fuels 4. Managing water resources 5. Managing ecosystems 6. Adapting rural businesses and infrastructure 15 15 16 18 18 19 IV. Policy considerations 20 1. Consider a global approach 2. Consider a local approach 3. Promote the provision of environmental goods and services 4. Promote a sustainable bioeconomy 5. Promote Innovation 6. Capacity building 21 21 21 22 22 23 V. Conclusions 24 Select bibliography 26 www.elo.org This paper examines climate change from the perspective of the owners and managers of rural land and businesses in Europe. It reflects on the implications for food security and for land management and it focuses on climate friendly practices by landowners and managers, rather than and consumption habits. Several multipurpose actions are listed in chapter III that contribute to climate change adaptation and mitigation, namely by: › › › › › › Reducing greenhouse gas emissions; Managing carbon stocks efficiently; Replacing fossil fuels; Managing water resources to face climate challenges, like storms and droughts; Managing ecosystems to increase their resilience and the provision of public goods; Adapting businesses and infrastructures in rural, and often disadvantageous, areas. The paper finishes with policy considerations that could boost adaptation and mitigation actions in rural areas by: › › › › › › Considering a global approach, taking into account the links with other nations and with different sectors; Considering a local approach; Promoting the provision of environmental goods and services; Promoting a sustainable bioeconomy; Promoting innovation; Increasing capacity building. 5 I. Climate Change in context The evidence is clear (IPCC. 2015). Climate change is real, and it is largely caused by human activities, primarily through greenhouse gas (GHG) emissions from fossil fuel burning, but also from other activities such as agriculture and land use changes. Land based activities emit GHGs, principally carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). The first is emitted mostly through negative changes of carbon stock in soils and by agricultural inputs that require fossil energy (mineral fertilizers, animal feed, pesticides). Methane is released by anaerobic fermentation (in ruminants, during the handling and storage of animal manure, in flooded rice fields) and while more short-lived, it is a more powerful GHG than CO2. Nitrous oxide is generated by mineral and organic nitrogen fertilizers and manure management. Water vapour in the air can also trap heat and so act as a greenhouse gas and to a lesser extent, agriculture also produces fine particles in the form of salts that reflect the sun in the atmosphere, such as ammonium nitrate (NH4NO3) and sulphates. Atmospheric concentrations of greenhouse gases have increased, causing the Earth to warm. For instance, carbon dioxide concentrations have increased by about 40% since pre-industrial times, with most of the increase since the 1970s. Consequently the past decade was globally the warmest since global temperature records became available, and annual average land temperatures over Europe are projected to continue increasing by more than the global average temperature. The largest temperature increases are projected over eastern and northern Europe in winter and over southern Europe in summer. As temperature increases, it is very likely that the number and intensity of temperature extremes and heat waves will increase globally. Rises in sea levels are projected to accelerate significantly and storm and tidal surges will become more severe because of the higher base sea level. In individual events, this may be exacerbated by associated river flooding. On the other hand, changes in precipitation may vary significantly between regions; it is likely to decrease further in such regions as the Mediterranean and North Africa. In contrast, more intense and frequent extreme precipitation events are very likely in most mid-latitude regions, in, for example, Europe and North America, and wet tropical regions. Figure 1. Projected changes in average temperature, 2081-2100 relative to 1986-2005 for low emission (left: RPC2.6) and high-emission (right: RCP 8.5) scenarios. Source: IPCC, 2013. 7 II. Implications for land managers Climate change is one of the most serious challenges facing the world, notably influencing migration flows and the way we manage land resources. Generally, key risks include floods, droughts, other weather extremes and fires that damage ecosystems, biodiversity and harvests, as well as infrastructure and human well-being. As climatic conditions directly impact on land based activities, rural businesses are particularly sensitive to climate change. In short, climatic changes will increase the challenges for land managers mainly in terms of availability of water resources (1), quality of soils (2), spread of pests and diseases (3) and consequently plant growth and yields (4), ecosystems (5) and rural businesses (6), leading to significant changes in the conditions for land managers. 1. Water resources Rainfall patterns will change across Europe. Annual precipitation is generally projected to increase in northern Europe and to decrease in southern Europe, thereby enhancing the differences between currently wet regions and currently dry regions. In northern Europe and at higher altitudes this can result in increased growth rates and yields, while in southern Europe there is a greater risk of drought, fire and desertification. The differences are not only geographical but also seasonal, as spring and summer droughts are expected to increase, while wetter autumns and winters will hinder cultivation on heavier soils. Generally the global groundwater recharge is expected to decrease, increasing the exposure of already vulnerable regions in Europe. Even in northern Europe, increased rainfall is not likely to be reflected fully in groundwater levels due to the greater intensity of rainfall events and higher evapotranspiration. Although catchment areas will not respond uniformly, the availability of water to maintain base flows in rivers and for irrigation is likely to become less certain, exacerbated by competition from the public water supply and industry. River-fed farm reservoirs will become vulnerable to abstraction restrictions in dry winters, and in some catchments increased irrigation may not be an option. Changes in river flows and run-off patterns are also of concern, both for maintaining base flows in dry periods and for increased flood risk in wet spells. These changes will also affect the seasonal water availability for hydropower. At the same time, the increased incidence and severity of river and coastal flooding, combined with inadequate commitment to river management, results in Figure 2. Projected changes are for 2071-2100, compared to 1971-2000, based on the average of a multi-model ensemble forced with the RCP8.5 high emissions scenario. Source: EEA, 2015. 9 physical risk to livestock and loss of pasture. Threats like salt-water intrusion and eutrophication should also be considered. The first is exacerbated by rising sea levels and the second is more frequent in periods of low rainfall. Some of the gases that cause climate change are also acidifying and eutrophying pollutants. (Eurostat), approximately 11.4 % of the European Union territory is estimated to be affected by a moderate to high level soil erosion (more than 5 tonnes per hectare per year). About 0.4 % of EU land suffers from extreme erosion (more than 50 tonnes per hectare per year). Temperature increases can lead to higher biological activity in soils, creating more mineralisation of the organic matter in soil and thus more carbon losses. While the magnitude of this effect could be reduced by lack of water during summer droughts, generally changes lead to a loss of soil fertility. To sum up, higher temperatures and increasingly extreme weather events contribute to the process of desertification in Europe, which is likely to become worse in future, particularly in the southern countries. 3. Pests and diseases Figure 3. Figure 3 Projected change of global mean sea level rise (21st century). Source: IPCC, 2013. More stress on fresh water availability will likely result in a greater need for irrigation and resource alternatives, such as desalinisation, thus being more expensive for society. It also pressures water users, including farmers, to be extra careful with management practices that affect both quantity and the quality of the water resources. 2. Soils Our soils partially regulate the drainage, flow and storage of water and solubles; any threats posed by climate change can result in significant degradation in water quality and capacity. Soils are likely to be affected principally by drying out (peat soils), waterlogging (clay soils in wet autumns and winters), increased run-off and erosion in wet periods (sandy and chalky soils), and summer flooding in river valleys. Whilst droughts can remove or weaken protective plant cover and leave soils more exposed to erosion, very heavy rain storms directly wash away topsoil. The Mediterranean region is particularly susceptible because it experiences long dry periods followed by spells of heavy rain. In northern Europe, water erosion is less visible because, in general, there are higher levels of vegetation cover. According to recent statistics 10 Combined with global trade, climate change is likely to increase the threat from pests and diseases, which have important implications for the plant protection and animal health sectors. Forests are expected to suffer from increasing populations of insect pests such as Spruce Bark Beetle (Ips typographus) and Pine Sawfly (Neodiprion sertifer). Climate stress is likely to exacerbate existing disease in Pedunculate Oak (Quercus robur) and Ash (Fraxinus excelsior) and problems of shallow-rooted species like Beech (Fagus sylvatica). Bluetongue disease, which reached livestock farms in the UK in 2007, is an early example of what is expected to become a more common problem in the future. One of these concerns is how plant and animal diseases will shift in range and intensity, including the prospect of diseases previously unknown in individual Member States becoming a threat. There is evidence of Lyme disease and tick-borne encephalitis occurring at higher altitudes and latitudes due to a higher incidence of vectors such as Sheep Tick (Ixodes ricinus) and Culicoides spp; while sub-tropical animal diseases are also expected to migrate northwards as their insect vectors move. At the same time, heat-induced stress affects animal welfare, making them more susceptible to disease. Fewer hard frosts mean more pests will overwinter www.elo.org successfully, which is likely to require changes in pest management regimes. Increases in winter root and stem infections in oilseed rape and wheat are to be expected. 4. Plant growth and yields Although an increase in CO2 on its own would enhance plant growth as it can increase plant photosynthesis, there is a general scientific expectation of a decline in yields and quality through an inhibition of nitrogen uptake due to changing climates. Droughts, and the increasing incidence of extreme events, are seen as the principal factors involved (Olesen et al. 2011). Temperatures of 40° C were recorded in Madrid in May 2015, causing severe damage to flowering in wheat. High temperatures severely inhibit meiosis and seed set is reduced from 57 grains per ear to 23 by 24 hours at 30°C. The Russian drought and heat wave of 2010 led to the loss of 60 to 65 million tonnes or a third of the grain crop, while in 2012 the wheat crop was 39% below the five-year average. In France, 2011 was the hottest and driest spring since 1880 and there was an 8% decrease in wheat yield. In the US drought of 2012, the most extensive since the 1950s, 80% of the agricultural area was affected. Northern parts of Europe could expect some positive effects on agriculture through the expansion of suitable areas for crop cultivation, longer crop seasons and more frost-free periods, though with late frosts. However, projections suggest increasingly negative impacts on global agricultural production throughout this century. Agricultural productivity is particularly threatened in semi-arid regions where rising temperatures can make agriculture impossible or wholly unprofitable. Consequently, shifts in the location of production of some crops are expected. For instance, long term models suggest that northern Europe will have a global role as a source of grain, especially wheat, to help meet growing global demand. This will be particularly so if production in the Mediterranean and lower Danube is compromised. Forest growth is projected to decrease in southern Europe, including in the Iberian cork forests, and to increase in northern Europe. Across Europe, there is an expectation that the increased frequency and severity of extreme climatic events will cause more production losses in Europe than will mean temperature rises. To sum up: global temperature increases combined with increased food demand, pose significant risks for global food security, particularly as yield growths for major food crops stagnate and (price) volatility increases. If we do not tackle waste and improve yield growth, it will be difficult to keep up with population growth and resulting demand. Should such demand not be met, additional land will need to be converted to agriculture, which could further exacerbate climate pressures. Figure 4. World population in 1950 and 2010 and projected to 2050 and 2100. Source: UN, 2013. 5. Ecosystems and biodiversity Changes in climate will cause the migration of some new species within Europe, which are likely to extend their range northward, but would also lead to losses for any at the edge of their range. For each +1°C increase in mean temperature, climate moves pole-wards by about 150/200 km or uphill by 100/150m (Feehan et al. 2009). Since many species are unable to migrate at this speed, this leads to huge ecosystem shifts. For forestry, rising temperatures will result in movement of the natural ranges of some tree species northwards and to higher altitudes. These changes are already happening faster than the trees’ ability to keep up without assisted migration. Uneven-aged and mixed forests are likely to be more resilient to disease, drought and wind-throw. Mediterranean, montane and wetland systems are considered most at risk, with up to 50% loss of biodiversity (IPCC. 2014). Climate change has the potential, over a period of a few decades, to undermine the conservation and sustainable use of biodiversity. It is made worse by the increasing risk of storms and fires. An increase in the frequency and severity of storm force winds will make woodland more vulnerable to wind damage. In Germany, it is estimated that storm damage may increase by 8% (A1B scenario) to 19% (B2 scenario) for the period 2060-2100, especially in mountainous regions (IPCC. 2014). 11 Fire risk is mainly associated with the Mediterranean, but the area at risk is getting bigger and the risk period, the fire season, is lengthening. Projections show the spread of very high fire risk areas across much of west France for 2041-2070, and to a lesser extent central Europe and Scandinavia. The ability of the land to supply ecosystem services will undoubtedly vary with climate change. Because climate changes in the future are difficult to predict the way ecosystems respond is also uncertain. Storm damage in France, Germany and Switzerland from Windstorm Lothar in December 1999 amounted to 300 million cubic metres of timber, and from Erwin in January 2005 to 85 million cubic metres. Over one million cubic metres of timber has been lost from storm damage in the UK on five occasions in the last 50 years, and in upland regions wind throw is the major determining factor in rotation length as well as the principal constraint on thinning. Eight countries in central Europe suffered serious flooding in the summer of 2010, Poland being the worst affected, with 23,000 people having to be evacuated and the economic costs totalling around €2.5 billion. Recent droughts in Europe, such as those in 2003 and 2008, have highlighted the impact of desertification and the large economic costs it brings. The drought of 2003 in central and Western Europe alone caused estimated economic damage of more than €12 billion. Europe for tourism is projected to decline markedly during the key summer months but improve in other seasons. Central Europe is projected to increase its tourism appeal throughout the year. Projected reductions in snow cover will negatively affect the winter sports industry in many regions. Infrastructure and buildings can be damaged or rendered unfit for use by any changing climatic condition or extreme weather event. Climate change will also affect supply and demand patterns for food, energy and raw materials, which can go in opposite directions in cases of different extreme weather events. Arctic Temperature rise much larger than global average Decrease in Arctic sea ice coverage Decrease in Greenland ice sheet Decrease in permafrost areas Increasing risk of biodiversity loss Intensified shipping and exploitation of oil and gas resources Figure 5. Projected increase of fire risk in Europe on A1B Emissions Scenario (2041-2070). Source: IPCC, 2014. 6. Rural businesses Climate change will have a range of impacts on businesses. While there may be cases when new business opportunities can arise, most of the impacts are expected to be disrupting and are expected to fall disproportionately on SMEs. The damage caused to economic activities and private property, as well as communities and individuals, by such weather-related disasters can be considerable. Areas affected by weather related business disruption include tourism, property and infrastructure damage leading to increased costs of maintenance and materials 12 and disruption of supply chains, both raising costs for the producer and prices for the consumer. In the short term, climate change can lead to jumps in insurance premium prices. Over the longer term, particularly in the most vulnerable sectors, climate change could indirectly increase social disparities as insurance premiums become unaffordable for a fringe of the population. Disruptions to annual harvest and livestock patterns could further lead to lower or irregular harvests which could threaten the long-term viability of rural economies. The economic consequences for regions where tourism is important may be substantial. The suitability of southern www.elo.org Coastal zones and regional seas Sea-level rise Increase in sea surface temperatures Increase in ocean acidity Northward expansion of fish and plankton species Changes in phytoplankton communities Increasing risk for fish stocks Mediterranean region Temperature rise larger than European average Decrease in annual precipitation Decrease in annual river flow Increasing risk of biodiversity loss Increasing risk of desertification Increasing water demand for agriculture Decrease in crop yields Increasing risk of forest fire Increase in mortality from heat waves Expansion of habitats for southern disease vectors Decrease in hydropower potential Decrease in summer tourism and potential increase in other seasons Northern Europe Temperature rise much larger than global average Decrease in snow, lake and river ice cover Increase in river flows Nortward movement of species Increase in crop yields Decrease in energy demand for heating Increase in hydropower potential Increasing damage risk from winter storms Increase in summer tourism Mountain areas Temperature rise larger than European average Decrease in glacier extent and volume Decrease in mountain permafrost areas Upward shift of plant and animal species High risk of species extinction in Alpine regions Increasing risk of soil erosion Decrease in ski tourism Central and eastern Europe Increase in warm temperature extremes Decrease in summer precipitation Increase in water temperature Increasing risk of forest fire Decrease in economic value of forests North-western Europe Increase in winter precipitation Increase in river flow Northward movement of species Decrease in energy demand for heating Increasing risk of river and coastal flooding Figure 6. Key observed and projected impacts from climate change for the main regions in Europe. Source: EEA, 2012. 13 III. Land management actions As they become aware that climate change related risks to rural areas are expected to increase, landowners and land managers tend to scale up mitigation efforts, mainly by reducing Greenhouse Gas emissions (1) and conserving and increasing carbon stocks both in soils and in biomass (2), which can be used as a substitute material and for bioenergy (3) purposes. As resource holders, land managers are in a key position to manage water resources (4) and to provide ecosystem services (5). While they have to adapt their businesses (6) to climate change pressures, farmers also have to continue to do their job by providing sufficient quality food, fuel and other land based marketed goods. 1. Reducing GHG emissions More than other sectors, GHG emissions in agriculture involve complex and wide-ranging biological processes including, for example, enteric fermentation in ruminants which is difficult to reduce. Nonetheless, increasing agricultural productivity can be achieved with reduced emissions in a sustainable way. Thus, between 1990 and 2014, agricultural production in the developed world was maintained or even slightly increased, while the sector’s CO2 and non-CO2 emissions were cut back. This trend must be kept and strengthened. › › › › › › › › › Overall reduction of external inputs, particularly fertilisers the manufacturing of which is GHG-intensive; Use of precision farming; Crop rotation with N-fixating legumes. Legume crops can advantageously replace imported soybeans in animals’ diets; Selection of breeds; Improvements in the nutrition of livestock, as diet and the level of food intake influence methane releases from ruminants and manure; Use of natural pasture for livestock rearing; Improvements in manure storage (e.g. appropriate installations for different types of animal manure and slurry) and promotion of rapid coverage of manure storages; Improvements in manure spreading by immediate incorporation into soils and by a better accounting of nitrogen content (both for lower ammonia emissions and lower leaching of nitrogen to groundwater and superficial water bodies); The use of anaerobic digestion to treat farm and other organic waste allowing the recovery of valuable nutrients and the production of energy, notably through small scale co-digestion biogas plants. These technical and management options vary in costeffectiveness and practicality and would benefit from substantial additional research and stronger advisory services. 2. Managing carbon stocks Agriculture and forestry fix carbon in large quantities and are the main economic sectors that store it in vegetation and soils through photosynthesis. Figure 7. Non-CO2 emissions and the volume of production in the agriculture sector, 1990-2012. Source: FAO and EEA. In fact, there are a number of farm management options that have the potential to reduce GHGs, mainly in the areas of fertiliser use (nitrates and ammonia) and the livestock sector (methane). These include: The mitigation potential in agriculture and forestry depends on many factors such as soil type, climatic conditions and land use. Nevertheless, a wide range of farming and forestry practices and land use changes help enhance carbon sequestration: › Protection of organic matter in the soil and restoration of carbon in degraded soils; › Conservation agriculture (reduced or no tillage) which avoids or reduces soil disturbance, while providing significant energy savings; › Maintenance of soil cover throughout the year, use of catch crops, incorporation of organic material in a sustainable manner (animal manure, sewage sludge, cereal straw, compost), green cover of bare soil in permanent cropland; › Integrated farming; › Diversified crop rotations, including leguminous crops; › Changes in the farming calendar and shifts in the distribution and spectrum of pests and diseases; 15 › › › › Preservation of carbon hotspot areas, i.e. land with high carbon stocks, such as grasslands, peatland and wetlands is of particular importance as in such areas potential carbon losses due to disturbance of the land are the highest; Afforestation, as trees hold considerably more carbon than most agricultural crops on a more permanent basis and over time significantly enhancing soil carbon; Adjusting silvicultural systems and rotation lengths; Decennial forest inventories recording standing volumes according to species and age class. It is estimated that in the EU soils contain 73-79 gigatonnes of organic carbon (equivalent to 275 Gt CO2). This represents more than fifty times the annual GHG emissions from the EU1. 3. Replacing fossil fuels There are further possibilities to maintain and sequester carbon through the supply of biomass for the production of bioenergy (renewable energy) and renewable materials (biomaterials, plant-based chemistry), thus replacing fossil fuels. Bioenergy is a broad category for describing energy produced from organic materials. It can be used to produce heat, power, gas or transport fuels through a variety of processes. It can also be more easily stored and used to release energy as required, unlike some other forms of energy. Currently, most bioenergy comes from forest resources, accounting for two thirds of the total renewable energies. It provides around 150 million tonnes of CO2 equivalent of GHG savings, without taking into account emissions caused by possible indirect land use change related to biomass production. In addition, there are other renewable energy services that land managers are able to contribute, by investing in hydro, wind and solar sources, which also contribute towards reducing dependence on fossil energy sources. The scope for solar power is demonstrated by the Gemasolar plant, occupying 195 ha of the Monclova estate at Fuentes de Andalucia, which generates 19.9 MW electricity per annum, capable of supplying 110 GW hours and saving an estimated 30 Mt CO2 in emissions. Carbon is also stored in timber and other forest products, which can be an alternative to more energy intense products such as brick and heavy concrete (whose manufacture is estimated at 4,000 kg CO2 and 2,000 kg CO2 per cubic metre respectively). In fact, Europe’s forests are producing an increasing amount of renewable, reliable raw material for building, energy, paper, furniture and other everyday uses. The amount of timber in Europe’s forests is growing by more than 760 million cubic metres per year and two-thirds of this increase is harvested at present. For renewables, the main legislative issues revolve around a revised Renewable Energy package to set out the support framework for bioenergy after 2020 as well as how to take account of the impact of bioenergy on the environment, land use and food production. It will include best practices in renewable energy self-consumption and support schemes; and a new policy for sustainable biomass. Measures to enhance the use of renewable energy and materials include: › Use of energy crops, forest biomass, bio-residues and manure for the production of biofuels as well as biogas for heating and electricity; › Opting for higher generations biofuels; › Sustainable management of the forests to increase forest growth. Generally European forests follow the principles of Sustainable Forest Management and are often part of certification schemes such as FCS and PEFC; › Considering other renewable energy options; › Use of commodities from agriculture and forestry in the production of industrial materials can help reduce the need for petrochemical-based products, such as polymers and fibres. Figure 9. Contribution of renewable energy sources to gross inland energy consumption. Source: EEA, 2014. Figure 8. Global potential for mitigation by activity (AFOLU). Source: IPCC 2014. Figure 10. Global total material use by resource type, 1900 –2009. Source EEA, 2015 16 www.elo.org 17 4. Managing water resources 5. Managing ecosystems As water availability becomes more challenging, sustainable management of water resources becomes more pressing. Landowners and land managers are already making efforts to deal with the challenges and to ease tensions between different users, tensions often made worse by increasing costs of managing water and tightening of abstraction licensing regimes. Carbon stocks can be lost through land use change or through exceptional climate events, such as storms and fires, leading to rapid release of the stocked carbon to the atmosphere as CO2. Adaptation responses are based on the importance of good water, soil and vegetation management, such as: › Use of crop varieties better suited to new weather conditions (e.g. more resilient to heat and drought); › Adjusting sowing dates according to temperature and rainfall patterns; › Adapting crop rotation to make the best use of available water; › Installation and management of buffer strips and field margins on arable land that reduce water run-off; › Use of water efficient technology and efficient scheduling; › Investment in farm water storage, looking at opportunities to retain water in on-farm reservoirs and other constructed wetlands (consider collaborating with neighbours and authorities); › Use of more effective methods of irrigation, such as drop irrigation systems; › Consider sources alternative to groundwater, such as rainwater harvesting and reuse of grey waters; › Use of sustainable drainage systems to prevent runoff and flooding, such as infiltration trenched, filter drains, pounds and wetlands, grass buffers. The West Reservoir built at Holkham in Norfolk, England, cost £700,000 for a capacity of 62 million gallons in 2011-2012. By using the water for vegetables and potatoes, the payback period is expected to be eight years. Use for cereals remains a future potential, but is not currently justified in economic terms. Ecosystems are an important carbon stock. Currently, terrestrial and marine ecosystems absorb roughly half the CO2 emissions human activity generates. Terrestrial ecosystems store about 2,100 Gt of carbon in living organisms, litter and soil organic matter. Some 350-550Gt carbon is currently sequestered in peat lands, which hold between 20 and 25% of global soil carbon. The management of ecosystems for resilience can thus minimise climate change impacts, for instance, by absorbing excess flood water or buffering against coastal erosion or extreme weather events. Land managers have a key role to play in maintaining resilient ecosystems, for instance by: › Improving the balance of species and age classes in relation to site; › Enhancing genetic change and therefore ability for geographic migration; › Including migration corridors and site management; › Monitoring and controlling alien species. › Conserving grassland; › Maintaining, restoring or creating wetlands, ponds and water meadows to help provide additional water sources and benefit wildlife. › Appling the principles of Sustainable Forest Management, keeping in mind that uneven-aged mixed forests appear to be more resistant to wind throw and more resilient in the face of disease and other stresses. 6. Adapting rural businesses and infrastructure Climate change will have an adverse effect on a range of business ventures, and adaptation steps will be advisable. These include: › Increased support for on-farm and off-farm diversification under rural development plans; › Development of insurance with respect to future climate risks; › Use of integrated greenhouse gas accounting systems to enable a business to audit its own emissions and sequestration at landscape scale. Weather related: ‘Speculative’ planting to minimise yield variability, infrastructure investments, shelter belts for protection of crops and livestock and building maintenance e.g. improving drainage capacity, avoiding livestock on flood prone areas and collecting excess rainwater for use in periods of drought; › Improved building standards to provide greater resilience in extreme events; › Increasing use of weather stations. › Rural businesses will need to make the most of the opportunities deriving from climate change. It will often be a case of businesses mitigating the adverse impact of climate change while also seeking to exploit any new opportunities that arise. On the Ore/Alde estuary on the Suffolk coast in the UK, a partnership has been formed which aims to maintain 44 km of river wall protecting 3,878 ha of land and 556 houses to the standard of an event with a return period of one in 200 years. The partnership is currently seeking to raise between £5M and £7M and has been offered 39 development sites (mostly plots for from one to five houses) by landowners to raise the money. Currently, half the UK defences are maintained only to minimal level (National Audit Office). Energy related: › Savings in own energy use (equipment, buildings, machinery for field operations); › Diversification of energy supply; › Better insulation of buildings. Infrastructure related: › Infrastructure measures, such as more efficient irrigation systems or water storage, and water transfer grids; › Soft engineering solutions to limit coast erosion. Flood related: Soil management practices to increase the waterholding capacity of the soil and assist in flood control; › Creation of inter-tidal habitats (coasts and estuaries) and freshwater habitats (inland) to encourage habitat re-creation for environmental benefit; › Integrated soil and water practices in the uplands to reduce soil and habitat degradation as well as reducing and slowing runoff; › Offshore reefs to stabilise shorelines and beaches; › Tree and shelterbelts on contours to remove runoff and increase infiltration. › Tourism related: Diversified rural tourism activity; Environmental land management to maintain and enhance essential rural tourism; › Visitor management plans, including transport links and car parking schemes. › › 18 www.elo.org 19 IV. Policy considerations Policies must help optimise countryside actions to maintain food security while fully exploiting the mitigation potential of different land uses. Policies must be designed to support this general objective as they drive the markets, which, in turn, drive patterns of behaviour, be it that of farmers and landowners or consumers and investors. Nonetheless, it is important to recognise that land is a finite resource and policies must not disadvantage the landowner or put at risk the capacity of the land for food production or damage the natural environment. While taking into account both global (1) and local approaches (2), climate change mitigation and adaptation can be achieved by encouraging the provision of environmental goods and services (3), by promoting the Sustainable Intensification of food production and a Sustainable Bioeconomy (4), by incentivising research and innovation (5), and by enhancing the capacity of landowners and managers (6) to adapt and mitigate against climate change. 1. Consider a global approach Maintaining a vibrant countryside and a resilient food chain in the face of climate change will require complementary adaptations in other sectors – transport, built environment and energy systems among others – and should encourage greater integration and cooperation. Some climate change mitigation measures may have trade-offs, which need to be managed by appropriately designing mitigation measures, and by assessing their local suitability. For example, under certain conditions, afforestation of high nature value land can damage biodiversity, and zero tillage regimes can result in increased herbicide use. The impacts on soil carbon content should be fully considered if, for example, crop and wood residues are massively used to generate power instead of integrating them in the soil. Moreover, certain policies can lead to a displacement of emissions, including to third countries. The contribution of agriculture to mitigation should be considered not only in terms of the reduction of GHG emissions in the EU, but also within the wider perspective of global GHG emissions. In some cases, there is a risk of displacing food production, e.g. to countries outside the EU, leading to emissions there from transport, the production itself and from land use change, such as deforestation. For instance, bioenergy has been a controversial issue since it has potential consequences in terms of land use giving rise to potential conflicts between food production and energy. 2. Consider a local approach Because of the different trade-offs and large regional differences in mitigation and adaptation potential of different options, it is necessary to tailor policy measures to site and farming-specific conditions. Differences are influenced by a number of factors such as farm characteristics (size, location, yields, level of inputs), climatic and environmental conditions (land and soil characteristics, water availability), the degree to which mitigation measures compete with traditional agricultural practices and profitability (e.g., extensive grazing systems or fertilization), and the incentives in place such as financial support. The varied mix of land cover and use types (landscape composition), their spatial arrangement (landscape structure) implies the need for an integrated landscape management system that encompasses the implications and solutions mentioned in previous chapters. Landowners and land managers must be encouraged to seek complementary solutions to common problems, including the ones arising from climate change1. 3. Promote the provision of environmental goods and services Landowners and land managers are in the best position to mitigate against climate change, not only through contributing to sequestration of carbon in soils and biomass but also by providing habitats, biodiversity and other environmental benefits that society wants, either because they are the only ones who can do this or because they can do it at lowest cost. Emissions are a real cost, however. There is no credit / debit system in place to account for emissions in most land-based sectors. Also, at present, important resources such as a clean atmosphere, biodiversity and the aesthetic beauty of Europe’s landscapes are undervalued or not valued at all, and thus subject to market failure. The aim should be to assign values so these public goods are fully taken into account. 1 The relationship between climate change and land is complex. The HERCULES project develops tools to deal with such complexity through landscape approaches. Read more at http://www.hercules-landscapes.eu 2 The RISE’s study on Public Goods focuses on the nature and scale of public goods and services which land managers (farmers and foresters) currently provide. Read more here: http://www.risefoundation.eu/images/pdf/report_public_goods_uk_%28full_report%29.pdf 21 Placing a value on environmental goods and services2, like carbon, is important to ensure incentives are in place to tackle challenges such as climate change. There is a need to explore the potential for market-based solutions such as tax credits, incentives and direct payment for ecosystem services, particularly as conservation management to tackle climate change and other environmental problems is often longer-term and rewarding when done by voluntary initiatives and activities from private land managers. Examples are the agri-environment and forest environment schemes, which represent an important part of EU rural policy and that pay land managers to deliver public environmental benefits. Other examples, while still not perfect, are the systems of habitat banking and biodiversity offsetting, whereby developers are required to provide offsets to replace the loss of biodiversity as a condition of obtaining planning permission. food, fibre and other bio-based products, including agro-materials, bioplastics and bio-chemicals, with fewer inputs, reduced environmental impact and reduced greenhouse gas emissions. Intensifying the sustainable production of renewable resources from land, fisheries and aquaculture environments and their conversion into food, feed, fibre bio-based products and bio-energy as well as related public goods is contributing to the bio-economy. Promoting a bio-economy means relying more heavily on renewable biological resources, thus contributing to a more resilient rural economy which is vital if we are to deal with future uncertainties, such as climate change. 5. Promote innovation The mitigation potential linked to further productivity increases in the EU is likely to be limited so the declining trend in agriculture emissions cannot be expected to continue without further research on ways to achieve optimal land use. 4. Promote a sustainable bioeconomy Globally, climate impacts on agriculture will take place against a backdrop of increasing global demand for food, farmers will be asked to feed nine billion people by 2050 with fewer resources, resulting in more land coming into production and expectations of higher prices for inputs, such as energy and fertiliser. The challenges of producing more with less are not to be understated. A way of using resources more efficiently is by moving towards a circular economy rather than a traditional linear economy; by keeping resources in use for as long as possible and recovering them whenever possible3. For instance, bio-waste, including food waste, is estimated at up to 138 million tons per year in the EU (of which up to 40% goes to land-fill) and has high potential added value as a feedstock for other productive processes. 4 The concept of sustainable intensification must be promoted as it integrates the idea of increasing food production while optimising the sector’s contribution to greenhouse gas mitigation and sequestration. We must move towards sustainable primary production and processing systems that can produce more Environmentally friendly production practices require a better understanding of the long-term effects of agriculture and forestry on the environment. Agriculture and forestry have become know-how and capital intensive and require more research and development and more innovative capital investment. Further improvements in productivity are possible, based on continuous research in plant and animal varieties (namely drought-resistant and disease resistant varieties), progress in farming techniques, and the development of new fertilizers. The bioenergy sector is still developing and there is a need for continuous research on this front, including the storage of energy. Apart from the transfer of knowledge and best practice, European policies should facilitate the gathering, analysis and use of data. Rural areas must be part of the digital era, making the most of smartphones, drones or satellite sensors. There is also a need to streamline the approval, authorisation and commercialisation of biotechnologies. Such technology often remains too costly and its broad accessibility is still an issue that needs to be addressed. There are huge potential upsides for European society in nutrition, in productivity and in biodiversity, even if the climate worsens. 6. Capacity building Policies must be followed by proper incentives. For instance, enabling landowners to enter on carbon markets would be an important step. Currently, most of the “land sector” is not included in international efforts in this area but its contribution should not be disregarded. The investment costs for adaptation and mitigation often fall on landowners and land managers disproportionally or are too high for them to act on their own, for instance when dealing with investments in water infrastructure systems. Such systems may be important not only for farmers planning to use irrigation technologies, but also because of their effects on other parts of the economy and local communities through, for example, providing extra benefits such as additional sources of drinking water and recreational areas. CAP policy instruments post 2014 Pillar 1 greening measures: › Require crop diversification on larger tillage farms › Require Ecological Focus Areas on larger tillage farms › Maintain permanent pasture area at national level › Cross compliance GAEC 4-6 address soil carbon maintenance Pillar 2: › Three cross-cutting objectives: Innovation, Environment, climate change › Six priorities, including knowledge transfer and innovation, enhancing ecosystems and resource efficiency. The CAP remains a major tool, but as the challenges increase and the budgets decrease, alternative ways of supporting rural businesses should be considered. While adaptation to gradual change is manageable, adaptation to unpredictable catastrophic events is much more difficult. Providing accurate and detailed information allows private agents to make timely, well informed and efficient adaptation decisions. Public and semi-public research and development programmes should provide tools for farmers to assess and manage their risks. For instance weather forecasting or early warning systems would allow farmers to undertake early action to minimise the negative effects of extreme events. Training, education and extension services also have the potential to increase the resilience of rural areas to future climate change, particularly as GHG emissions are invisible and climate change is global and often perceived as far-away and, for many, difficult to comprehend. 3 The RISE’s project on Nutrient recovery and reuse reviews the issues, opportunities, actions and policies related to nutrient use and nutrient recovery and reuse in European Agriculture. Read it here: http://www.risefoundation.eu/projects/nutrient-recycling-and-recovery 4 Sustainable Intensification is defined as a simultaneous improvement in productivity and environmental management of agricultural land in the RISE’s report with the same name. The report highlighted the importance of devising measurement tools for environmental farming performance and encouraging farmers and private actors to implement changes in practices in addition to a better enforcement of existing environmental regulations. Read more here: http://www.risefoundation.eu/images/pdf/si%202014_%20full%20report.pdf 22 www.elo.org 23 V. Conclusions Conclusions 1. Climate change is a very serious challenge for society and impacts on rural areas and land-based sectors. 2. European agriculture must continue to contribute to food security while improving its overall environmental performance, including reducing its impact on the climate. 3. The development of EU agriculture over past decades has been characterised by a steady increase in productivity, in both crop and animal production, while the EU agricultural GHG emissions have declined. However, without additional efforts, this trend is not likely to continue. 4. There is unused potential for cost-effective climate mitigation activities in EU agriculture and forestry. Policies will need to encourage and facilitate the changes necessary for a more efficient use of natural resources to achieve better agricultural and environmental outputs. Concepts such as Sustainable Intensification and a more encouraging attitude to innovation would certainly contribute to these goals. 5. Landowners must retain the flexibility to implement climate adaptation and mitigation strategies to address changing circumstances. Although the optimal land use mix for any given area will depend on local conditions, its success is also dependent on information, education, advice and training. 6. Landowners and land managers are already undertaking climate adaptation work and often do so without government intervention. However, when such work provides both private and public benefits, the public sector need to play to better align privately profitable actions with socially desirable outcomes. 7. The viability of farms is a necessary basis for climate-friendly farming practices to become more widespread. There is also a need to improve awareness and technical knowledge among landowners and managers on climate change mitigation so that, in their daily decisions, they can build such knowledge into their economic decision making. 25 Select bibliography › › › › › › Annual European Union greenhouse gas inventory 1990-2012 and inventory report 2014 (European Environment Agency) Cannell, M.G.R., Growing trees to sequester carbon in the UK: answers to some common questions, Forestry, 72, 1999. Climate Change 2013, I, The Physical Science Basis; Climate Change 2014: II, Impacts, Adaptation and Vulnerability, III, Mitigation of Climate Change, (Fifth Assessment Report of the Intergovernmental Panel on Climate Change, C.U.P. for I.P.C.C., 2013-14), cited as IPCC. Climate Change Act (UK, 2008) Climate Change and Insurance. Chartered Institute of Insurers 2001. Doorslaer, Benjamin Van, Peter Witzke, Ingo Huck, Franz Weiss, Thomas Fellmann, Guna Salputra, Torbjörn Jansson, Dusan Drabik and Adrian Leip (ed. T. Fellmann), An economic assessment of GHG mitigation policy options for European agriculture [2014] › EEA, 2015, The European environment state and outlook 2015: synthesis report, European Environmental Agency, Copenhagen. › › › › Eurostat. 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Verkerk, Katja Gunia, Paola Deda, Roman Michalak and Giacomo Grassi, ‘First signs of carbon sink saturation in European forest biomass’, Nature Climate Change (2013). › Olesen, J E., M. Trnka, K. C. Kersebaum, A. O. Skjelvåg, B. Seguin, P. Peltonen-Sainio, F. Rossi, J. Kozyra and K. Micale, ‘Impacts and adaptation of European crop production systems to climate change’, European Journal of Agronomy (2011). › Optimal Stable Bay Design: Morphological Modelling (Country Land and Business Association and Halcrow Group, 2010) › › › › › Paris 2015: Securing our prosperity through a global climate change agreement (UK government, 2014) For more information on the paper “Climate Change and the Rural Economy” contact: European Landowners’ Organization - ELO Rue de Trèves 67; B - 1040 Brussels T: + 32 (0) 2 234 30 00 F: + 32 (0) 2 234 30 09 E: [email protected] www.elo.org The Paris Protocol: A blueprint for tackling global climate change beyond 2020 (EU, 2015) www.facebook.com/europeanlandowners UKCP09: The climate of the United Kingdom and recent trends (UK Climate Impacts Programme, 2009) www.twitter.com/EULandownersOrg UN Framework Convention on Climate Change (1992) Viner, David, Michael Sayer, Maria Calvo Uyarra and Nikki Hodgson, Climate Change and the European Countryside (University of East Anglia, Country Land and Business Association, and European Landowners’ Organisation, 2006). © European Landowners’ Organization Registered in Belgium No. 458036374 at the above address. All rights reserved. Edition November 2015 26 www.elo.org 27 www.elo.org
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