Agriculture, forestry and food in EU climate policy towards 2040

Agriculture and forestry – the land use sectors – play a crucial role in relation to the EU climate framework. They can act as both sources of greenhouse gas emissions and providers of carbon removals. They supply sustainable biomass that can replace fossil-based materials and fuels across the wider economy. This triple function makes the land use sectors indispensable partners in Europe's path to climate neutrality.

• The agricultural sector can play a major role in achieving the EU’s climate objectives. Greenhouse gas emissions could be reduced by 60% by mid-century, and by at least one third by 2040. 
• To maintain a shared mitigation commitment, the EU’s 2040 climate target must be fully translated into national targets. Setting national climate targets for agriculture and agricultural land use (AALU) will provide greater planning certainty for farming businesses and clearer guidance for policymakers.
• Natural disturbances influence the strength of the forest carbon sink. Future climate policy needs to incentivise increased carbon sequestration in forests and wood products, while ensuring that natural forest dynamics do not compromise the targets in other sectors.
• Introducing additional flexibilities for member states can present both risks and opportunities for attaining climate targets. International credits need to meet high standards and primarily address shortfalls in forest sinks caused by unforeseen natural disturbances. Any additional flexibilities must be limited, support member states in meeting their climate commitments, and be contingent on targeted performance indicators.
• Targets need accompanying policies to incentivise tangible improvements in the land use sectors. These include better-targeted public funds under the Common Agricultural Policy (CAP), a credible system of voluntary carbon farming incentives that can help build the foundations for a future compliance system, and demand-side measures that promote a shift towards healthier and more sustainable diets.