LONDON/BRUSSELS: A $2 trillion group of traders on Monday urged the European Fee to be extra bold in its deliberate overhaul of the bloc’s big farming subsidy programme to battle local weather change and defend biodiversity.
Forward of a gathering of agriculture ministers from European Union international locations on Monday, the group stated proposed reforms to the Frequent Agricultural Coverage wanted to go a lot additional to align with the EU goal to achieve internet zero greenhouse gasoline emissions by 2050.
Led by Authorized & Common Funding Administration and think-tank Chatham Home, the group made 4 suggestions, together with lowering direct assist for commodities with excessive emissions, equivalent to purple meat and dairy.
Monetary assist needs to be linked to the price of efforts that defend the environmental, and incentives needs to be redesigned to place a worth on sustainable agriculture, fairly than boosting manufacturing on the expense of local weather considerations.
Farmers must also be eligible for EU funds to assist them transition away from high-emitting actions, the group stated.
“As long-term traders, and stewards of our purchasers’ property, we interact with companies throughout the meals and agriculture sector to assist them transition in direction of a net-zero economic system,” stated Alexander Burr, ESG Coverage Lead at Authorized & Common Funding Administration.
“Nevertheless, to really impact change we search stronger motion from policymakers,” he stated.
Agriculture accounts for round 10% of EU emissions.
A European Fee consultant stated it’s dedicated to negotiating a farming coverage that may assist EU inexperienced targets, and its proposals would improve funding for sustainable schemes like carbon farming or natural manufacturing.
“The Fee helps a brand new CAP that features robust environmental and local weather ambition,” the consultant stated.
The investor group additionally consists of Aviva Buyers, Robeco and the FAIRR Initiative, an investor group centered on the meals sector. FAIRR stated it could seek the advice of its members, who handle a collective $30 trillion, on additional areas of engagement on the difficulty.
(Extra reporting by Nigel Hunt. Modifying by Mark Potter)
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