What are the CAP and the Low Carbon Label?
The Common Agricultural Policy (CAP) is a set of regulations and a financial support program established by the European Union. The CAP provides various forms of assistance to farmers, such as direct payments, investment grants, and agri-environmental measures.
History of the CAP: From Its Beginnings to the Present Day
The Low-Carbon Field Crops Label (LBC GC)
The Low-Carbon Field Crops Label (LBC GC) is a methodological framework established by a consortium of French technical institutes. It is intended for farms engaged in field crop production that wish to undertake projects to reduce their carbon footprint.
It encourages farmers to assess their carbon footprint through a carbon assessment. This assessment takes into account all operations carried out on the farm over the past three harvest years.
The farmer can then implement an action plan based on the agroecological levers of the LBC GC that he intends to put in place over the next five years. This will enable him to generate carbon credits, which will then be sold on the voluntary carbon market. This is one of the methods for financing their ecological transition.
Their differences and similarities
The CAP and the LBC GC both aim to promote sustainable and environmentally friendly agricultural practices.
The CAP encourages farmers to begin transitioning toward more sustainable agriculture, particularly through the implementation of the eco-scheme.
The Low Carbon Label specifically encourages farms to reduce their greenhouse gas emissions and enhance the carbon sink capacity of their soils.
Can the CAP and the Low Carbon Label be combined?
This is a common question among farmers.
The answer is reassuring: committing to a low-carbon project does not prevent you from receiving CAP subsidies. In fact, there are synergies between the two initiatives.
One of the key changes introduced by the recent CAP reform is the introduction of eco-schemes.
These are CAP measures that provide financial incentives to farmers for their sustainable practices and their contribution to environmental conservation. There are three categories of eco-schemes, each with two different payment levels depending on the level of commitment.
History of the CAP: From Its Beginnings to the Present Day
A parallel can thus be drawn between the adoption of low-carbon practices and achieving Level 2 of the environmental certification for farms. A farmer can therefore qualify for the first payment tier of the eco-scheme through certification.
To be more specific:
If a farmer activates lever 16 of the LBC GC, which promotes the use of organic fertilizers, this helps meet BCAE 6, the maintenance of soil organic matter.
Another example: if the farmer activates lever 18, which relates to cover crops, this addresses the requirement of BCAE 4, minimum soil cover.
Thus, certain practices under the Low Carbon Label can fully meet the requirements of the CAP’s eco-scheme.
In addition, the Agri-Environmental and Climate Measures (AECM) are CAP schemes that offer financial incentives to farmers for implementing sustainable practices.
These measures can also be used to develop a low-carbon project that requires external funding, whether public or private.
This allows farmers to combine CAP subsidies with external funding from the sale of carbon credits to carry out their low-carbon projects.
Sources
The Common Agricultural Policy at a Glance
History of the CAP
CAP Reforms
Common Agricultural Policy: How Does It Work?
The Common Agricultural Policy: 2023–2027
Cross-compliance for CAP Subsidies
