CAP should be replaced by a sustainable land-use policy

Wheat harvest by Jim Choate

Whatever your thoughts about Brexit, one thing most agree on is that it offers an opportunity to rethink how we in the UK look after our agricultural land.  The Common Agricultural Policy (CAP) has long been a source of resentment. It accounts for 40% of the EU budget yet has systematically failed to address, in some cases even exacerbated, the biggest concerns in European agriculture. Unlike most transnational sectoral market correction schemes, even much of the general public are aware of its shortcomings.

CAP is formed of 2 pillars. Pillar 1, which accounts for the 70% money spent, is simply a payment for land owned. The more land you own, the more money you get. This promotes large-scale mono-cropping, and acts as a rigid barrier to entry for young would-be farmers. Pillar 2 makes up the rest of CAP’s budget and consists of agri-environment schemes. Whilst well intentioned, Pillar 2 promotes an agricultural divide, where some land is responsibly stewarded while other land is intensively farmed. It is not the most efficient or effective means of improving the state of our land.

Public money for public goods

Michael Gove made a lot of enemies whilst at the Department for Education. However, since being appointed Minister for the Environment, he appears to have bucked the trend of expert-bashing. The government’s 25 Year Green Plan talks a very good talk – it’s a re-affirmation of the government’s laudable aim of leaving the environment in a better state than they found it, following on from the Lawton principles – but fails to walk the walk. There is much rhetoric, but very little explanation as to how goals will be met.

One consistent theme is that of spending public money on public goods. What this means is that tax-payers money should only be used to pay for the goods and services which are ‘consumed’ but for which there is currently not market. It is a way of addressing the tragedy of the commons argument, whereby, in pursuit of personal gain, individuals neglect that which they rely on for that gain, to the detriment of all.

Lake District by Les Haines

The Lake District as we know it has been shaped by generations of upland sheep farming. This practise offers extremely marginal returns, but many would agree there is a huge (but hard to quantify) value to the landscape of the Lake District. Public money should be spent to support such farmers.

In a post-Brexit landscape, there will be many competing demands on the public purse. The challenge, then, is to find alternative sources with which to finance the provision of these services provided by natural ecosystems.

Payments for Ecosystem Services

It is exceptionally difficult to put a value on nature. A market is needed through which farmers can ‘sell’ the services the land they own is able to provide, and beneficiaries of these services can purchase them. In many cases, one service may be provided by many land-owners, a single piece of land may provide many services, and there may be many consumers of each of these services. Clearly, this represents a complicated market structure.

But we can’t shy away from the task. The West of England Nature Partnership, as well as Green Alliance and the National Trust, have conceptualised a system through which such transactions can take place. Functioning as a sort of Green Investment Bank, an institution will package the suggested provision of a consortium of land-owners (for instance, the planting of woodland) for sale to a consortium of buyers. This might include water companies who benefit from cleaner water, Wildlife Trusts with a remit of improving the local access to nature, and developers with a requirement to offset/mitigate the impacts of their development.

In a similar light, Wessex Water have an online platform via which farmers can bid for money in return for adopting more sustainable farming practices. This system directly reduces the cost of water purification for the Water Company, acts as an incentive for good practice to the landowner, and provides landscape and wildlife benefits for the local population – a win-win-win.
Clearly its easier to pay farmers per hectare of land owner. But with the growing demands placed on our environment, and an increasing understanding of our reliance on it, such a system as described here could radically alter the terminal decline of Britain’s natural capital.

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This blog was written by Matthew Whitney who is currently studying an MSc in Environmental Policy and Management at the University of Bristol.

Matthew Whitney

 

Brexit: A climactic decision?

In the lead up to the Brexit vote, we are posting some blogs from our Cabot Institute members outlining their thoughts on Brexit and potential implications for environmental research, environmental law and the environment.  
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With barely a week to go to the Referendum, the Environment has singularly failed to make itself an issue in the BREXIT debate. Yet it is impossible to explore any aspect of environmental law in the UK without encountering European Law.  It is therefore no surprise that environmental lawyers and environmental groups have been queuing up to express concerns about the implications of BREXIT – Margherita Piericcini’s Cabot Institute blog on the impact on wildlife and habitats is an example.

So why has the environment not become a key issue?  I attended the All-Party Parliamentary Climate Change Group’s event ‘A Climactic Decision: Brexit’s impact on the UK’s climate and environment’ at the Houses of Parliament earlier this month in the hope of finding out why.

Chaired by Mark Mardell, Mary Creagh MP Chair of the Environmental Audit Committee and Professor Michael Grubb (UCL) spoke for remaining. Roger Helmer MEP UKIP European Parliament Industry, Research and Energy Committee  and Lee Upcroft spoke for exit on the topic of Staying in the EU is the best way to protect the UK’s climate and environment.

The first problem that was manifest is that those strongly engaged in climate change and the environment more generally, are convinced of the role of the EU: in the opening vote at the debate all but one person in the audience were voting remain. Equally for those voting leave, climate change may not be a concern to them: Professor Michael Grubb speaking in the debate referred to the ‘twin horns’ of climate change and EU membership to argue that remaining in the EU and climate change action have much in common. Both require an acceptance of expert evidence, acceptance of uncertainty and a willingness to work collaboratively across cultures, surrendering some individual independence in the wider good.

The environment is the one place where BREXIT campaigners do not argue that most things from Brussels are awful. Put simply the environmental case for remaining is that just about all of the environmental law that benefits the UK stems from the EU.  Few countries or regional groupings in the world have the sort of comprehensive environmental laws the EU has, or has had them so long.

The BREXIT speakers in the debate sought to argue that the sorts of environmental action that the EU has adopted were ‘in the air globally’ and the UK would probably have done it anyway.  If that is so, the remain speakers countered, why has the UK ended up in the European Courts so often for not implementing EU environmental law ? All too often when the EU has agreed new laws to protect the environment the UK has had to be taken to the European Court of Justice to secure compliance – for example when the Bathing Waters Directive was adopted, the UK Initially registered fewer bathing beaches than Luxembourg (don’t dive for a map it is landlocked, but it registered each cove round its lakes). It took the European Court of Justice to sort that one, and bring the UK into compliance. The same with urban waste water (sewage) where it took the European Court to force the UK to stop discharging untreated sewage into the sea. And the list goes on. So this does not look as if  the UK ‘would have introduced all these environmental laws anyway’.

The second BREXIT argument was that as the UK leads the EU on climate change, it does not need the EU.  Climate change and pollution do not respect EU borders, so we need global action not regional action, Remain speakers countered by arguing that it is easier to convince 27 other states of our concerns, and then take joint action. Once the EU takes action it has a strong voice on the global stage. Outside the EU the UK would be but one voice in nearly 200 states, a much harder task to convince 200 than just 27. Michael Grubb put it bluntly – the UK has more influence to achieve action on climate change in than out.

A third argument was about free trade. Here the BREXIT speakers argued that the UK would be free to create whatever environmental rules it wanted on its own or in multilateral partnerships of its choice and to scrap those (unspecified) that count as unacceptable burdens.  But as an expert from the floor who had been involved in UK / USA trade negotiations explained, in his experience the UK alone makes little progress in getting decent terms from the USA, until the EU as a whole throws its weight behind the negotiations. When asked about the impact of World Trade Organisation obligations on this argument, BREXIT speakers claimed nobody had raised this with them before. Put simply, the nostalgic world of a UK free to create whatever rules it wants does not exist, in or out of the EU. The WTO Treaty obligations mean states cannot unilaterally impose what can be seen as trade barriers by setting national rules, without ending up in the WTO courts. Only regional treaty commitments protect environmental rules in restraint of free trade from the WTO court. The EU is the strongest example of that sort of trade treaty.

When it came to energy, the BREXIT argument was that EU membership had kept energy prices high,  particularly through VAT and the Combustion Plant Directive closing our coal fired power stations. Yet energy prices across the rest of the EU are 40% below the UK, because of their longstanding commitment to renewables, and Germany in particular continues to use coal by investing in compliant technology.  UK government decisions were identified as the problem. The harmonisation of the energy market will produce £500m a year energy cost savings to the UK by 2020 – quite apart from energy security and the capacity for us to export surplus energy.  The EU’s global muscle has led to reductions in the cost of renewables technical – solar power costs have fallen by 30% as a result for example.

So, after two hours of debate, the remain speakers felt the gains from the EU should be retained, the BREXIT debaters felt that all the good things that have come from the EU would have come anyway, and that there is a world outside of the EU in which the UK will be free to have whatever environmental protections it wants, in a nostalgic world of free nation states. The WTO will have something to say about that – or perhaps the UK will simply scrap so much of its environmental protections in pursuit of deregulation and free trade that we will not trouble the WTO.

You can download a summary of this discussion on the APPCCG website.

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This blog is written by Cabot Institute member Chris Willmore, Senior Academic Fellow in Environmental Law at the University of Bristol.  Chris is also the University lead academic for Technology Enhanced Learning and currently leads the University Green Academy team which is developing education for sustainable development across the University curriculum.

Read other blogs in the Brexit series:

The EU, Brexit and nature conservation law

In the lead up to the sold out Brexit debate at the University of Bristol on Friday 29 April 2016, we are posting some blogs from our Cabot Institute members outlining their thoughts on Brexit and potential implications for environmental research, environmental law and the environment.  

The EU plays a fundamental role in shaping the environmental law regimes of its Member States and that of the UK is no exception. A significant proportion of current domestic environmental law derives from EU Regulations (that automatically become part of English law) and EU Directives (that are implemented through national legislation).

Nature conservation law, i.e. the legal regime used to protect environmentally significant habitats and species, is a case in point and the focus of this blog. Conserving nature is key not only from a purely biodiversity standpoint but also from an ‘ecosystem services’ perspective. Ecosystem services are the benefits nature brings to the environment and to people, including supporting services (e.g. nutrient cycling), provisioning services (e.g. food), regulating services (e.g. carbon capture) and cultural services (e.g. recreation)

Site designation and management is a favoured technique of nature conservation law. The well-known Natura 2000 network, would not be there if it were not for EU Directives, namely the Habitats (92/43/EEC) and Wild Birds Directives (2009/147/EC), implemented in the UK by the Conservation of Habitats and Species Regulations 2010. Under Article 3 of the Habitats Directive, Member States are indeed required to set up the Natura network composed of Special Areas of Conservation (sites hosting the natural habitat types listed in Annex I and habitats of the species listed in Annex II of the Habitats Directive) and Special Protection Areas (sites for the protection of rare and vulnerable birds as listed in Annex I of the Wild Birds Directive and for regularly occurring migratory species). 

Greenfinch by Mschulenburg – Own work, CC BY-SA 4.0

In the UK, there are a substantial number of European protected sites: 652 Special Areas of Conservation (including candidate Special Areas of Conservation[1] and Sites of Community Importance[2]) and 270 Special Protection Areas, covering a total of 8,013,467 ha (JNCC statistics as of 28 January 2016). 

Has the establishment of Natura 2000 made a difference to biodiversity protection?

As part of its Smart Regulation Policy, the Commission has initiated a fitness check of the Habitats and Wild Birds Directives to evaluate their effectiveness, efficiency, coherence, relevance and added value. Though the final Commission report on the results of the fitness check will be available only later this year, the draft emerging findings prepared by a consortium of experts do suggest that the Habitats and Wild Birds Directives have substantially contributed to the conservation of nature and to meeting the EU’s biodiversity target.  

It is fair to note that, prior to the EU Directives on nature conservation, the UK did have its own system for habitat protection, most notably based on the designation of Sites of Special Scientific Interest (SSSIs). Introduced in the post-war period by the National Parks and Access to the Countryside Act 1949, the law governing SSSIs has been strengthened over the decades by the Wildlife and Countryside Act 1981, amended by Schedule 9 of the Countryside and Rights of Way Act 2000. However, the management measures in place for SSSIs are not as stringent as those for the protection of Special Areas of Conservation and Special Protection Areas. 

Sites of Special Scientific Interest (SSSI) were introduced in the post-war period in the UK to help manage habitat protection.

It is also fair to note that in the marine environment, the UK has taken important steps domestically: the passing of the Marine and Coastal Access Act 2009 in England and Wales (and similar Acts in the devolved administrations) has brought in new domestic marine conservation zones that contribute to the establishment of an ecologically coherent network in UK waters. But the building of such a network is not so disentangled from EU law, considering Art 13(4) of the EU Marine Strategic Framework Directive (2008/56/EC) requires the formation of marine protected areas’ networks in the marine environments of Member States.

Clearly therefore, EU law has contributed much to the development of nature conservation in the UK. Moreover, being part of the EU means that the Commission can exercise its power to bring infringement proceedings against Member States for incomplete or ineffective implementation of EU law, thereby exercising an external check on implementation (for nature conservation, see Commission v UK, Case C-06/04 [2005]  ECR I-9017).

What would Brexit mean for the future of nature conservation law?

What is unknown however is what would Brexit mean for the future of nature conservation law in the UK because much depends on the type of post-Brexit EU-UK relationship and the agreement that will be negotiated. However, it could be argued that compared to other environmental sectors (such as waste and water) nature conservation may be more at risk.  

Indeed, even in the not-too-radical scenario in which the UK chooses to stay within the EEA, the future of nature conservation law will depend on whether there is political willingness to continue to abide by existing commitments, rather than legal obligations stemming from the EEA agreement. This is because, though the EEA agreement does contain many environmental provisions, nature conservation is excluded (Annex XX of the EEA agreement excludes the Habitats and Wild Birds Directive). Consequently, the future of nature conservation law is very uncertain in a post-Brexit world, even in the event of EEA membership.

 


 

[1] Candidate Special Areas of Conservation are sites that have been submitted to the European Commission, but not yet formally adopted.
[2] Sites of Community Importance are sites that have been adopted by the European Commission but not yet formally designated by the government of each country.
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This blog has been written by Cabot Institute member Dr Margherita Pieraccini, a Lecturer in Law at the University of Bristol. 
Margherita Pieraccini

The carbon mountain: Dealing with the EU allowance surplus

It’s not news that the EU emissions trading system (EU-ETS) is in trouble. A build-up of surplus emission allowances has caused dangerous instability in the carbon market and a plunge in prices since the economic slump in 2008 began (See Figure 1, courtesy of David Hone).

Figure 1, courtesy of David Hone

The discussion at the All Party Parliamentary Climate Change Group’s (APPCCG) meeting on the 28th of January centred on the causes and consequences of the EU-ETS allowance surplus. The majority of speakers at this session had a background in the discipline of economics, so inevitably the exchange of views was… frank.  The panel were in agreement that EU-ETS is in crisis; but can and should it be saved?

Emissions trading schemes, of which EU-ETS is a canonical example, are an attempt to allow market forces to correct the so-called ‘market failure’ that is carbon emission. From the point of view of a classical economist, the participants in carbon emitting industries do not naturally feel the negative effects their activities cause to the environment. Emissions trading forces carbon emitters to ‘purchase’ the right to pollute on a market. In effect, they pay to receive permits (or allowances) to emit a certain level of emissions. If they do not reach this level of emission, the excess can be sold back onto the market, allowing others to make use of it. The prices of permits are determined by market forces, so cannot be fixed by the EU. The quantity of permits is within the control of the EU, and this is where the problem lies.

In the aftermath of the 2008 slump, a surplus of allowances began to build up, leading to a crash in the price of allowances. Many commentators blame EU economic forecasting for this problem, as the recession and consequent reduction in economic activity was not factored in to the EU-ETS control mechanism. Criticism has been forthcoming for the economic models used, and some go as far as to liken the mismanagement of EU-ETS to the ‘wine-lake and butter-mountain’ days of the 1980s, where the Common Agricultural policy was allowed to consume over 70% of the EU’s budget. Perhaps the models are too simple – James Cameron, a speaker at the APPCCG event, spoke of the ‘premium on simplicity’ that exists in creating policy. Maybe that approach has extended itself into the mathematical models used to predict the performance of EU-ETS, rendering them over-simplistic?

Personally, I see things a little differently. It’s clear that economic models are often far from perfect; however, I’m not sure that’s where the problem lies. In the implementation of policy, decision makers have to draw on the implications of many separate models; for instance, they must consider the GDP growth of EU member states, their adoption rate of new energy efficiency standards and the relative industrialisation of their economies. To my mind, the greatest source of error is in the gaps and interfaces between these economic models. Policy makers must make decisions on how to interpret the way economic predictions will interact with one another, and these interpretations are always subject to value judgements. What we need is a more joined-up approach.

Climate science has long used ‘macro-models’ to incorporate a variety of physical processes into their predictions, an approach that could be adopted by economists as well. While the first economic macro-models may not achieve even a fraction of the accuracy of climate models, that is not to say they cannot be improved through collaboration and quantitative criticism. Perhaps now is the time to make a start?

This blog is written by Neeraj Oak, Cabot Institute.

 

 

Neeraj Oak