H2020 CONSOLE project: Contract solutions for the effective and sustainable delivery of agri-environment-climate public goods by EU agriculture and forestry
- Type Project
- Status Filled
- Execution 2019 -2022
- Assigned Budget 4.999.998,75 €
- Scope Europeo
- Main source of financing H2020
- Project website Proyecto CONSOLE
Agriculture and forestry are integral parts of the European economy and society. With approximately 70% of the EU's land area covered by forests or used for agriculture, primary production activities have a major impact on preserving natural capital and creating jobs.
However, there is a need to foster innovation in the sustainable provision of agri-environment-climate public goods (AECPs). The CONSOLE project will create a community of practice (CoP)—multidisciplinary teams from 13 countries—to co-create a contractual framework that will be tested in real-life decision-making contexts. The aim is to improve the implementation of innovative contractual solutions for the provision of AECPs under diverse conditions across the EU and prepare for the future of food and farming.
Several outcomes were achieved during the project. First, an operational framework was developed to support the design of contractual solutions for the voluntary provision of AECPG. The framework comprises four dimensions: context variables; contractual characteristics; contract performance variables; and process description. Contractual characteristics include: tenure-related prescriptions; reference parameter for payment; role of farmer/actor cooperation; connection to private goods; object of the contract; actors involved; other payment characteristics; contract duration; information for land managers; monitoring; sanctions and enforcement; adaptability; and conditions of participation. The framework was implemented in a web application (www.console-hub.eu) that takes the form of a knowledge hub that includes practical implementation examples and information on different types of contracts in a searchable format.
The second outcome is the result of analyzing approximately 120 case studies covering a wide range of contractual solutions from within and outside the EU. The analysis of the case studies showed that many real-life implementation cases combine different types of contracts. It became clear that collective implementation can be a prerequisite for environmental effectiveness, particularly for AECPGs. Outcome-based contracts are primarily targeted at specific AECPGs and can increase land manager involvement due to their flexible management options.
The recommendations for the design and implementation of contracts derived from the case studies are:
- Targeting contracts to specific regions allows for better addressing regional criticalities and improves interest and understanding of the measures among farmers and foresters.
- Involving land managers in setting goals and developing agri-environmental measures leads to greater compatibility with their businesses and can create win-win situations.
- Involving oversight authorities in the design of indicators in results-based schemes can ensure integrability into Rural Development Programs.
- Promoting bottom-up approaches and involving key regional actors as coordinating units improves commitment and motivation for collective approaches.
- Ensuring adequate levels of equity and fairness improves acceptance, especially in value chain-based solutions. Third, we provide an analysis of the preference and acceptance of new contractual solutions.
The acceptance of new contractual solutions to increase the provision of agri-environment-climate public goods (AECPG) was studied from the perspective of land managers and other stakeholders. The survey data included 2,721 responses from land managers and 486 from stakeholders, across 12 European countries. The results showed that land managers preferred outcome-based contractual solutions, followed by value-chain solutions. These contractual solutions were perceived as easier to understand and implement on their farms, as well as being more economically beneficial.
In contrast, land tenure solutions and collective contracts were considered less easy to understand and less economically beneficial for farms. Considering the specific characteristics of the contract, annual compensation, technical assistance, or training offered to land managers by the authority, as well as flexibility in determining the measures to be adopted within the contract, and the idea that better results lead to higher remuneration, were some of the most valued features. In contrast, shared payment within a group and its periodic nature were considered less desirable.
Fourth, CONSOLE assesses contract performance across Europe. Key scientific findings include the evaluation of efficiency and effectiveness under different scenarios, comparisons between types and with input-based schemes, and quantification of the value of information. Finally, CONSOLE provides clear policy messages, including in relation to the new CAP, and has established an active Community of Practice for the future promotion of AECPG contractual solutions.
The European Green Deal and follow-up initiatives launched by the European Commission (e.g., the Farm to Fork Strategy and the Biodiversity 2030 Strategy) place a strong focus on issues related to climate change, biodiversity, and environmental protection in general. For decades, EU agricultural policy has been partially reoriented toward the provision of public goods in rural areas, recognizing social demands.
The Common Agricultural Policy (CAP) 2023-2027 further strengthens the CAP's green architecture. Climate services, biodiversity conservation, and environmental protection are typically public goods, so the characteristics of non-excludability and non-rivalry prevent the market from functioning for these goods, generating the well-known free-riding problem. Furthermore, the difficulty in providing public goods is related to challenges such as trade-offs between environmental performance and farm profitability, the time lag between changes in practices and impact, and the potential mismatch between the scales of actions and outcomes. As a result, several Agri-Environment-Climate Public Goods (AECPs) are characterized by undersupply.
The overall objective of CONSOLE is to drive innovation in the sustainable provision of BCCs by EU agriculture and forestry. The contract types addressed are land-based contracts for environmental purposes; contracts with collective implementation/cooperation; results-based/outcome-oriented contracts; and value chain-based contracts.
The objective of CONSOLE is to drive innovation in the sustainable delivery of agri-environment-climate public goods (AECPG) by EU agriculture and forestry. To achieve this objective, CONSOLE builds a Community of Practice (CoP) to co-create an empirically validated contractual framework, design and test effective and efficient contract models, and support their multi-actor implementation. CONSOLE's multi-stakeholder and multidisciplinary team brings together 24 partners in 13 countries, covering representative typologies of actors involved in the design and implementation of AECPG contracts (farmer organizations, regional administrations, consulting firms, research institutions, and water and forest management bodies).
The CONSOLE framework will improve the design and facilitate the implementation of innovative contractual solutions for the supply of AECPG under various conditions across the EU. The CONSOLE framework includes:
- A catalog showcasing successful experiences and best practices in the AECPG's contracting and cooperation models.
- Best-in-class AECPG contract solutions and their evaluation for different governance levels.
- A comprehensive guide to the AECPG contract design process; d) documentation, training, and supporting materials.
CONSOLE includes a comprehensive analysis of at least 52 case studies of existing experiences covering land tenure arrangements, results-based approaches, collective implementation, and value chain-based remuneration, supported by surveys and models. Based on these experiences, improved contractual solutions will be developed in collaboration with the CoP.
The CONSOLE framework will be tested in real-world decision-making contexts and will become a support tool for actors in the field, enabling the delivery and sustainability of AECPGs. The insights will improve policy design aimed at achieving the Sustainable Development Goals, particularly through environmental policies and the post-2020 CAP.
CONSOLE surpassed the state of the art in three main areas:
- Framing the problem of innovative contractual solutions for the provision of AECPG within a single, consistent framework.
- Provide empirical insights into the preferences and performance of these contracts.
- Establishing a community of practice capable of utilizing new contractual solutions and further innovating in this field. CONSOLE achieved impact in five key areas:
- Showcasing cooperation models that enable the delivery of agri-environment and climate public goods and ensure their longevity: a compilation of 120 case studies from the EU and other countries.
- Development of innovative agro-environmental and climate contractual models based on the review of existing initiatives and the design of new ones.
- Improve the economic viability of agri-environment-climate initiatives through a revised and coherent agri-environment-climate contractual framework, incorporated into contract design guidelines (designed and tested jointly with the community of practice) and the viability of forward-looking solutions.
- Supporting policymakers and stakeholders through the exchange of good practices at the national and regional levels: 37 CoP events were organized, with over 740 participants, and complemented by 21 training activities, 12 roadshows, and 24 multiplier events for a total of over 1,200 participants. While these have already been incorporated into policymaking in the 13 participating countries, most of the implications for policy design are expected to be relevant for the next programming period.
- Strengthening transdisciplinary research and integrated scientific support to achieve coherent approaches between agricultural and environmental and climate priorities, through participatory agenda-setting activities and two-way exchange with stakeholders, laying the groundwork for collaborations that extend well beyond the project's duration.
- ALMA MATER STUDIORUM - UNIVERSITA DI BOLOGNA (UNIBO)
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