Final Report: General Assessment of Alternative Policy Scenarios
Transcription
Final Report: General Assessment of Alternative Policy Scenarios
Foresight analysis for world agricultural markets (2020) and Europe PRIORITY AREA 1: Sustainable management of Europe’s natural resources: 1.1. Modernisation and sustainability of agriculture and forestry, including their multifunctional role, in order to ensure the sustainable development and promotion of rural areas Contract no.: 44280-AG2020, STREP, January 2007 – December 2009 D5.6: Final Report: General Assessment of Alternative Policy Scenarios Giaoutzi M. and A. Stratigea - NTUA March 2010 Organisation name of lead contractor for this deliverable: National Technical University of Athens (NTUA) Partners involved: NTUA i Summary for a broader readership: The focus of the AG2020 is on the: - Development of a foresight methodology enabling the study of the various types of agricultural systems and their specific challenges and constraints in the EU countries; - Identification and analysis of trends and influential factors (drivers of change) by use of participatory approaches that may influence the possible future developments of EU agriculture in the various countries. This includes combination of both quantitative and qualitative data by way of scenario methods using indicators and stakeholder validation; - Development of strategic policy scenarios (backasting) based on the identified major drivers of change for the impact assessment of the probable and desirable future directions of agriculture, including multifunctionality of rural areas and emergence of new agricultural exporting regions for the effective enforcement of the proposed alternative sets of policies; - Development of indicators of EU sustainability targets in order to evaluate the different policies on a regular basis and to perform sensitivity analysis to policy scenarios on a regional basis (AG2020, Annex I). The present Final Report (D5.6) on the “General Assessment of Alternative Policy Scenarios” aims at presenting the process - backasting framework - and the results backasting policy scenarios – of the AG2020 Project that may support the process of developing appropriate policy instruments and paths for the EU agriculture in 2020. More precisely, Section 1 presents a broad introduction; Section 2 elaborates on the AG2020 backasting methodological approach; Section 3 on the process of identifying the AG2020 policy targets; Section 4 presents the Images of the Future in AG2020, but also the gap between the baseline projections and target achievements for each image; while Section 5 presents the process of selecting policy measures and structuring policy packages and paths for reaching the AG2020 targets in the Images of the Future. Finally Section 6 presents the validation approach used in the process of building the elements of the AG2020 backasting approach (external/internal elements, strategic elements, Images of the Future, policy measures, policy packages and paths); while in Section 7 are shortly presented the four AG2020 case studies employed for further elaborating on the policy framework at the regional level; and in Section 8 some comprehensive conclusions are drawn. Target group: As potential target groups of the D5.6 can be considered: - Groups interested in foresight methodologies (specialists, researchers, futurists, etc.). Such groups can get more insights into the methodological approach used for building backasting policy scenarios in AG2020; - Agricultural specialists who will benefit from the elaboration on the key elements driving agricultural developments at the EU level; - Stakeholders in the agricultural sector keeping track with decision making processes in the sector; - Policy making organizations at the EU, national and local levels; ii - Planning organizations at the EU, national and local levels; etc. Objectives: The present AG2020 Final Report (D5.6) on the “General Assessment of Alternative Policy Scenarios” aims at presenting both the process - backasting framework - and the results - backasting policy scenarios in AG2020. These aim at supporting the decision making process of developing appropriate policy instruments and paths for the EU agriculture in 2020. The present report recapitulates, in a concise way, the work presented in D5.3 on the “Definition of Policy Scenarios”, D5.4 on the “Stakeholders Validation of Policy Scenarios” and D5.5. on the “Assessment of Alternative Policy Scenarios on a Global Level”. Publications: - Stratigea, A., Grammatikogiannis, E. & Giaoutzi, M. (2010). How to Approach Narratives in Foresight Studies: Qualitative data analysis. International Journal of Sustainable Development (forthcoming). - Giaoutzi, M., Stratigea, A., van Leeuwen, E. & Nijkamp, P. (2010). Foresight in Agriculture: Scenario analysis in AG2020. International Journal of Sustainable Development (forthcoming). - Giaoutzi, M., Stratigea, A., van Leeuwen, E. & Nijkamp, P. (2010). Visioning in Backasting in Agriculture: The AG2020 project. International Journal of Sustainable Development (forthcoming). - Van Leeuwen, E., Giaoutzi, M. & Stratigea, A. (2010). The Role of Trend Tracing in Foresight: a Microsimulation Experiment. International Journal of Sustainable Development (forthcoming). - Stratigea, A. & Giaoutzi, M. (2010), Regional Foresight Analysis in Agriculture: The case of AG2020. Papers in Regional Science (forthcoming). - Stratigea, A. & Giaoutzi, M. (2010). Participatory Regional Foresight Analysis in Agriculture: the case of Kastelli-Crete, Regional Studies (forthcoming). - Stratigea, A. (2010). ICTs and rural development: a “Log-in” policy perspective. NETCOM (forthcoming). Results - The backasting policy scenario building framework, in AG2020. Methodological framework for the identification/selection of policy targets. The AG2020 Images of the Future. Methodological framework for the selection and assessment of policy measures. Pool of policy measures in AG2020. Methodological framework for the construction of policy packages and paths. The policy packages and paths in AG2020 Backasting policy scenarios in the EU agriculture for 2020. A Participatory Validation Methodology. Application of the validation methodology in AG2020. AG2020 Case Studies (short presentation, methodological approach and results iii of case studies). Deliverable number: D.5.6 (Final Report) Due date of deliverable: December 2009 Actual submission date: December 2010 Revision (draft, 1,2 …): Project co-funded by the European Commission within the Sixth Framework Programme (20022006) Dissemination level PU Public X PP Restricted to other programme participants (including the Commission Services RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) iv Title: Final Report: General Assessment of Alternative Policy Scenarios Authors Giaoutzi M. and A. Stratigea – NTUA Organization: National Technical University of Athens – NTUA v List of contents: The structure of the Final Report D5.6 has as follows: 0. EXECUTIVE SUMMARY .................................................................................1 0.1. Objectives and Targets in AG2020..............................................................1 0.2. The AG2020 Images of the Future ..............................................................2 0.3. Selection of Policy Measures.......................................................................3 0.4. Policy Packages ...........................................................................................5 0.5. Policy Paths..................................................................................................7 1. INTRODUCTION..............................................................................................11 2. THE BUILDING OF POLICY SCENARIOS IN AG2020 ............................13 2.1. Introduction................................................................................................13 2.2. The Backasting Approach in AG2020.......................................................15 2.3. Delimitation of the EU Agricultural Sector in AG2020 ............................16 3. DEFINING OBJECTIVES AND TARGETS IN AG2020 .............................18 3.1. Defining Objectives in a Foresight Context...............................................18 3.2. The Objectives in AG2020 ........................................................................19 3.3. Setting Policy Targets in a Backasting Framework...................................21 3.4. Selection of Policy Targets in AG2020 .....................................................24 3.4.1. First target – GHG Emissions (in CO2 equivalent)...............................25 3.4.2. Second target - Biodiversity ..................................................................29 3.4.3. Third target – Competitiveness / Efficiency..........................................31 3.4.4. Fourth target - Multifunctionality..........................................................33 3.4.5. Fifth target - Food traceability...............................................................34 3.4.6. Sixth target – Bio-based economy.........................................................37 4. IMAGES OF THE FUTURE IN AG2020 .......................................................38 4.1. Building Blocks of the AG2020 Images of the Future ..............................38 4.2. Contextual Elements ..................................................................................39 4.3. Strategic Elements .....................................................................................41 4.3.1. Technology ............................................................................................41 4.3.2. Decoupling ............................................................................................42 4.4. Images of the Future in AG2020 ...............................................................44 4.5. Comparison of the Images of the Future....................................................51 4.5.1. First step – Comparison among images ................................................51 4.5.2. Second step – Target achievement ........................................................54 4.6. Identification of the Gap between Baseline Scenario and the Images.......58 4.6.1. The baseline scenario ............................................................................58 4.6.2. Comparison between Image I to the baseline scenario .........................59 4.6.3. Comparison of Image II to the baseline scenario ..................................60 4.6.4. Comparison of Image III to the baseline scenario.................................61 4.7. Conclusions................................................................................................62 5. POLICY MEASURES, PACKAGES AND PATHS.......................................63 5.1. Critical Issues in AG2020..........................................................................64 vi 5.2. Key Elements in AG2020 ..........................................................................65 5.3. The Role of Different Policy Measures .....................................................66 5.4. Policy Measures .........................................................................................67 5.5. Policy Packages .........................................................................................68 5.5.1. Policy package 1: Knowledge-driven diversified rural economies.......69 5.5.2. Policy package 2: Green entrepreneurship ............................................72 5.5.3. Policy package 3: Environmental and resource stewardship ................74 5.5.4. Policy package 4: reduce, reuse, recycle ...............................................76 5.5.5. Policy package 5: Ecological tax reform...............................................78 5.5.6. Policy package 6: Log-in the information society.................................79 5.5.7. Policy package 7: Culture of “regionality” ...........................................80 5.5.8. Policy package 8: Social responsibility.................................................82 5.5.9. Policy package 9: Administrative innovations – e-Government...........84 5.5.10.Policy package 10: R&D – Bio-innovations.........................................85 5.5.11.Policy package 11: Public participation................................................86 5.5.12.Policy package 12: Knowledge-intensive farm management...............88 5.5.13.Policy package 13: Development of human resources .........................91 5.5.14.Policy package 14: Accessibility of rural regions to ICTs and transport infrastructure ...........................................................................................92 5.5.15. Policy package 15: Spatial planning ................................................93 5.6. Policy Paths in AG2020.............................................................................94 5.7. Policy Path 1 (Image I) ..............................................................................96 5.7.1. The context ............................................................................................96 5.7.2. Main policy packages / areas of change ................................................97 5.7.3. Priorities in policy orientations .............................................................97 5.7.4. Linkages and Synergies.......................................................................100 5.7.5. Indicative list of policy measures serving Path I.................................101 5.8. Policy Path 2 (Image II)...........................................................................103 5.8.1. The context ..........................................................................................103 5.8.2. Main policy packages / areas of change ..............................................103 5.8.3. Priorities in policy orientations ...........................................................104 5.8.4. Linkages and Synergies.......................................................................106 5.8.5. Indicative list of policy measures serving Path II ...............................108 5.9. Policy Path 3 (Image III)..........................................................................111 5.9.1. The context ..........................................................................................111 5.9.2. Main policy packages / areas of change ..............................................112 5.9.3. Priorities in policy orientations ...........................................................112 5.9.4. Linkages and Synergies.......................................................................115 5.9.5. Indicative list of policy measures ........................................................117 5.10. Backasting Policy Scenarios in AG2020 .................................................121 6. VALIDATION METHODOLOGY IN AG2020 ...........................................122 6.1. Validation in AG2020..............................................................................122 6.2. Validation Methodology ..........................................................................123 6.2.1. Define the purpose of the workshops ..................................................124 6.2.2. Selection of participatory method for each workshop.........................124 6.2.3. The selection process of stakeholders .................................................124 6.2.4. Validation of the structure and material for the workshops ................124 6.2.5. Running of the workshop ....................................................................125 6.2.6. Production of the report.......................................................................125 vii 6.2.7. Selection and Application of the Qualitative Data Analysis Model ATLAS-ti ..............................................................................................125 6.3. Validation Workshops in AG2020...........................................................125 6.4. Validation Results....................................................................................127 7. THE AG2020 CASE STUDIES ......................................................................128 7.1. Foresight Analysis on a Regional Basis – The AG2020 Case Studies ....128 7.2. The Rhodope Mountainous Region in Bulgaria (CS1)............................129 7.3. The Kastelli Region (Herakleion nomos) in Greece (CS2) .....................130 7.4. The Central Denmark Region in Denmark (CS3)....................................133 7.5. The Tuscany Region in Italy (CS4) .........................................................135 7.6. The AG2020 Methodological Approach in Case Studies........................138 7.7. Results from Case Studies .......................................................................140 7.7.1. The Rhodopes case study ....................................................................141 7.7.2. The Kastelli case study........................................................................147 7.7.3. The Central Denmark case study.........................................................159 7.7.4. The Tuscany case study.......................................................................163 7.8. Conclusions..............................................................................................168 8. CONCLUSIONS ..............................................................................................169 9. REFERENCES.................................................................................................170 LIST OF FIGURES Fig. 2-1: The conceptual framework............................................................................14 Fig. 2-2: The backasting process .................................................................................14 Fig. 2-3: Backasting Policy Scenarios: The AG2020 framework...............................15 Fig. 3-1: Views of the relationship between economic efficiency, regional development and environmental protection in a sustainable development context.....19 Fig. 3-2: Generation of Targets (after POSSUM, 1998)..............................................22 Fig. 3-3: Contribution of agriculture to N2O ...............................................................27 Fig. 3-4: Share of CH4 and NO2 in total GHG emissions by agriculture.....................28 Fig. 4-1: The backasting process .................................................................................38 Fig. 4-2: The three AG2020 Images of the Future.......................................................46 Fig. 5-1: The process of identifying policy measures, packages and paths in AG2020 ......................................................................................................................................64 Fig. 5-2: Policy packages in AG2020 ..........................................................................70 Fig. 5-3: Methodology for the construction of policy paths ........................................95 Fig. 5-4: Path to Image I (Path 1) ................................................................................99 Fig. 5-5: Path to Image II (Path 2) .............................................................................107 Fig. 5-6: Path to Image III (Path 3)............................................................................116 Fig. 5-7: Backasting policy scenarios in AG2020 .....................................................121 Fig. 6-1: Validation in the AG2020 backasting framework ......................................122 Fig. 6-2: Steps of the validation methodology in AG2020 ........................................123 Fig. 7-1: Key elements for the Tuscany region..........................................................136 Fig. 7-2: The WP6 case study methodological approach ..........................................139 viii LIST OF TABLES Table 0-1: AG2020 proposed targets.............................................................................2 Table 3-1: Key domains, issues and indicators............................................................23 Table 3-2: AG2020 proposed targets...........................................................................25 Table 3-3: Agricultural gas-emitting processes ...........................................................26 Table 3-4: N2O (1000 ton) ..........................................................................................27 Table 3-5: Projections 2020 .........................................................................................27 Table 3-6: N2O emissions projections .........................................................................28 Table 3-7: Biodiversity - typology of services ............................................................29 Table 4-1: Strategic and contextual elements for building blocks of images in AG2020 ......................................................................................................................................44 Table 4-2: Relative importance of objectives in each of the images ...........................45 Table 4-3: Three selected Images of the Future...........................................................47 Table 4-4: Comparison of the AG2020 Images of the Future .....................................52 Table 4-5: Summary of the performance of Images as to the targets’ achievement by 2020..............................................................................................................................54 Table 4-6: Assumptions on agricultural policy development in the baseline scenario58 Table 4-7: Gap identified between baseline scenario and Image I ..............................59 Table 4-8: Gap identified between baseline scenario and Image II.............................60 Table 4-9: Gap identified between baseline scenario and Image III ...........................61 Table 5-1: Critical issues in AG2020...........................................................................65 Table 5-2: Key elements as areas of change................................................................65 Table 5-3: Key Elements addressed by the AG2020 Policy Paths ..............................65 Table 5-4: Policy orientations in AG2020 ...................................................................66 Table 5-5: Policy paths in AG2020 .............................................................................96 Table 5-6: Policy Path 1...............................................................................................97 Table 5-7: Indicative list of policy measures serving Path 1 (Image I) .....................101 Table 5-8: Policy Path 2.............................................................................................105 Table 5-9: Indicative list of policy measures serving Path 2 (Image II)....................108 Table 5-10: Policy Path 3...........................................................................................113 Table 5-11: Indicative list of policy measures serving Path 3 (Image III) ................117 Table 7-1: Employment structure in the Kastelli region............................................131 Table 7-2: Scenario-specific policy measures for the Rhodopes region (CS1) .........143 Table 7-3: Pool of scenario-specific policies in the Kastelli case study (CS2) .........149 Table 7-4: Scenario-specific policy measures for the Central Denmark Region (CS3) ....................................................................................................................................161 Table 7-5: Scenario-specific policy measures for the Tuscany Region (CS4) ..........164 ix 0. EXECUTIVE SUMMARY The AG2020 project presents an innovative methodology for structuring backasting policy scenarios at the European level for the period 2007-2020. In this respect, AG2020 sets out objectives and targets for orienting the future of the EU Common Agricultural Policy towards desired ends. These targets were used as the basis for building the AG2020 “Images of the Future”. The backasting policy scenarios (images and related policies) for sustainable agriculture, in AG2020, represent possible alternative policy options towards the desired end (targets), illustrating the range of available measures; packages and paths; the scale of the required changes; as well as the principles for implementation, based on acceptability, lead-times, dynamic effects and adaptability, in support of the future Common Agricultural Policy making in the EU. The present AG2020 Final Report (D5.6) on the “General Assessment of Alternative Policy Scenarios” aims at presenting both the process - backasting framework - and the results - backasting policy scenarios in AG2020. These aim at supporting the decision making process of developing appropriate policy instruments and paths for the EU agriculture in 2020. The present report recapitulates, in a concise way, the work presented in D5.3 on the “Definition of Policy Scenarios”, D5.4 on the “Stakeholders Validation of Policy Scenarios” and D5.5. on the “Assessment of Alternative Policy Scenarios on a Global Level”. The structuring of the backasting policy instruments and paths in AG2020 was based on the following key elements: - Objectives and targets in AG2020 - The Images of the Future - Policy measures, packages and paths These are shortly described in the following: 0.1. Objectives and Targets in AG2020 The selected objectives in AG2020 are formulated as follows: - Environmental protection Economic efficiency Regional development Social cohesion Food safety and quality Energy More precisely, sustainability in the agricultural sector, from the point of view of AG2020, is encompassing (Giaoutzi and Stratigea, 2007b, 2007c): - Environmental aspects: preserving ecological balance of physical and biological systems, for present and future generations. 1 - Economic efficiency aspects: based on the concept of “… attaining the maximum - - - flow of income that can be created, while at least maintaining the renewable stocks or assets that yield these benefits” (Stimson et al, 2006, p.40). Regional development aspects: aiming at the reduction of disparities in rural areas and the equal access to employment, services, etc. Social cohesion aspects: aspiring towards maintaining stability in social and cultural systems, by pursuing a healthy and productive life in harmony with the environment. Food quality and safety aspects: aim to promote food safety and trust in agricultural qualitative products for consumers, a trend that remains in both industrialized and in less developed countries (Unnevehr, 2003). Energy aspects: contributing towards the reduction of GHG emissions (-20% compared to 1990 - EU climate change target of reducing 20%). Based on the above objectives, the targets to be reached by the EU agriculture in 2020 are presented in Table 0-1 below. This is the outcome of consortium discussions, literature review, stakeholders’ consultation etc. (see Chapter 4 that follows). Table 0-1: AG2020 proposed targets. Source: Giaoutzi et al, 2008f (D5.3) TARGETS EU Target Year 2020 AG2020 Targets Source GHG Emissions (in CO2 equiv.) 20% decrease of GHG emissions by 2020 compared to 1990 emissions N2O, CH4 and in CO2 equivalents EU Biodiversity Halt loss of biodiversity (Set in 2001 for 2010) Halting the loss of biodiversity by 2020 – High rate of halting EU Council of the European Union, 2004, EURURALIS Competitiveness / Efficiency Economically viable regions Multifunctionality Increase the level of multifunctionality of agricultural regions Food and Feed traceability Traceability of feed and food Food and feed traceability – High rate Biobased economy Blending targets: in transportation fuel 10% (2020) Blending targets: in - transportation fuel 10% (2020) - electricity 7% (2020) - chemicals 10% (2020) 0.2. Strong competitiveness / efficiency in the agri-food sector Multifunctionality of rural regions – High level EU – Lisbon Agenda EU EU EU The AG2020 Images of the Future The design of the Images of the Future is a central element in the backasting process, where the desired future situation is presented in the Images of the Future. As construction material for the building blocks of the Images are the main strategic elements (technology and decoupling), but also the contextual (external) and internal 2 elements affecting the AG2020 context. The AG2020 Images of the Future outline the characteristics of the economy, society, agriculture etc. at the target year (2020). The Images are structured in a way that enables them to meet the above selected AG2020 targets. Each Image should be plausible and discrete, but in some cases relatively extreme as well. Images should be clearly different from each other in order to reflect a range of possible futures. The process of building blocks of Images involves the contribution of validation workshops (stakeholders and experts groups) in order to reach a converging output. More precisely, all three images are designed to meet the AG2020 objectives - namely environmental protection, economic efficiency, regional development, social cohesion, food quality and safety, and energy. Since different developments in the society at large would require different policy approaches to the agri-sector, the Images have been designed to exhibit different combinations of potential policy alternatives pointing to different futures. Three contextual alternatives are distinguished in AG2020, corresponding to the three images of the future: - Bilateral and EU cooperation (“top-down”); - Local –Multilateral Cooperation (combined); and - Local, Regional, National and EU cooperation (“bottom-up” politics). The Images can be described as follows: Image I: “High-tech Europe: Global Cooperation for Sustainable Agriculture”, where science and technology is of utmost importance, together with a focus on “top-down” initiatives. Image II: ‘In search of Balance: Accord on Sustainability’ - a “combined approach” where the focus is on economy and energy. Image III: “Active Regions and Reflexive Lifestyles”, where emphasis is placed on behavioural changes, and involves strong public participation (“bottom-up approach”). 0.3. Selection of Policy Measures In order to select policy measures pursuing of AG2020 targets, the following issues need to be addressed: - A number of key elements (areas of change) that are considered of importance for driving changes towards the desired end, namely the: bio-based economy; regulated agricultural factor markets; rural development; integration into agri-food markets; energy production; food quality and safety; CAP 1st pillar and CAP 2nd pillar. - A number of critical issues that have been addressed in the design of the AG2020 Images of the Future, namely: global environmental issues; balance between agriculture and biodiversity; food quality and safety; integration into global agrifood markets; regulated agricultural factor markets; land use conflicts; and finally rural development issues. - The impact of technology and decoupling on each of the above presented key elements (areas of change). 3 In the next stage, a number of policy measures are selected that may affect key elements and critical issues. Moreover, are selected policy measures that are closely linked to technology and decoupling, together with other important issues that may influence key elements and critical issues. For a systematic presentation of the role of different policy measures in pursuing the target-driven AG2020 Images, four distinct policy orientations 1 are considered. Policy measures, in this respect, are falling within four broad categories (Giaoutzi and Stratigea, 2009b): - Lifestyle-oriented policy measures: policy interventions that are supporting ongoing changes of lifestyles. A basic element of such measures is the shift in the attitude of people towards a more qualitative lifestyle in general that strongly affects agri-food consumption, way of living, understanding of the role of agriculture as a nature safeguard, etc. - Market-oriented policy measures: policy interventions supporting a market system that promotes best environmental practices, by means of shedding light on the linkages between environmental sustainability, economic profitability and competitiveness. Such a policy orientation places emphasis on a number of market incentives that may prove more effective into the competitive environment, within which the agri-sector works. It can be basically considered as a top-down approach, but is has also to rely on the general acceptance in society. - Regulation-oriented policy measures: rely on both technical standards and norms (e.g. pesticides upper limits, traceability, GMO allowance); on innovative planning methodologies (e.g. participatory planning, land use planning); and government reform. The general approach is rationalistic, led by targets and criteria and top-down. - Public infrastructure/services-oriented policy measures: are strongly associated with the provision of infrastructure and services. The state provides built infrastructure such as roads, rail, telecommunication, irrigation infrastructure etc. serving the needs of rural areas; as well as services such as training, access to information, R&D services, technology systems and successful agri-practices etc. Important issues to policy implementation such as: time horizon of the impact of policy measures; and scale of impact are also addressed, as important components for building policy packages and paths. It becomes then possible to assess the role that each policy measure may have in achieving the targets’ set. This detailed set of procedures has been adopted to ensure consistency and comprehensiveness in the process of policy package formulation. Having identified the critical issues and key elements as well as the impact of technology and decoupling on the above issues, a comprehensive list of policy measures is constructed. For each of these policy measures is addressed its impact on the (Giaoutzi and Stratigea, 2009b): - agri-food sector, but also industry and service sectors, - critical issues in AG2020, and 1 Under policy orientation is meant the generic rationale, which can be found behind different policy measures. 4 - AG2020 targets (level of impact and time scale), This list contains potential groups of policy measures for inclusion in policy packages and paths in AG2020. Moreover, for each policy measure it is presented its link to technology and/or decoupling (strategic elements in AG2020), i.e. whether it is focused on the use of technological developments or decoupling. The above selected comprehensive list of policy measures form the basis for building policy packages and paths driving future developments towards the desired end. 0.4. Policy Packages In order to be able to reach the targets within the desired Images of the Future, key policy measures, packages and policy paths have been developed, in order to impact the: bio-based economy; regulated agricultural factor markets; rural development; integration into agri-food markets; energy production; food quality and safety; CAP 1st pillar; and CAP 2nd pillar. The AG2020 policy packages are developed, by properly combining sets of policy measures that are likely to work well together (i.e. create synergies). Each of the 15 policy packages is designed to serve a specific dimension of the Images of the Future. The policy packages in AG2020 have as follows (Giaoutzi and Stratigea, 2009b, D5.5): - PP 1 - Knowledge-driven diversified rural economies The package aims at increasing the knowledge stock of rural economies, based on a demand-driven development of knowledge and innovations, capable of serving the needs of a diversified pattern of rural businesses and population. - PP 2 - Green entrepreneurship The package is highly concerned with the environmental integrity of businesses, aiming at merging environmental protection, economic efficiency and business innovation objectives. - PP 3 - Environmental and Resource Stewardship The package is focusing on the role of the agri-food and forest sectors as safeguards of environmental resources. It pursues the environmental and resource stewardship of the agri-food and forest sectors, based on the sustainable use of natural resources. - PP 4 - Reduce, Reuse, Recycle (3Rs) At the core of this package stands a more effective and multiple-use of resources, based on the 3Rs, namely Reduce, Reuse and Recycle. - PP 5 - Ecological Tax Reform This package is based on the idea behind an ecological tax reform, that is the view that externalities of resource use and environmentally harmful activities are taxed too lightly, while labour is taxed too heavily. 5 - PP 6 - Log-in the Information Economy The idea behind the sixth policy package is based on the promotion of ICTs and their applications in rural regions that may support the interaction and knowledge exchange both at the intraregional (among various actors/sectors), and interregional level. - PP 7 - Culture of “regionality” The focus of this package is on a locally-driven perspective of rural development (localization), based on the endogenous potential of rural regions. This perspective is driven by behavioural patterns that place emphasis on quality and authenticity (quality of food, quality of life, quality of social interaction, quality of environment, etc.). - PP 8 - Social responsibility This package aims at mobilizing personal obligation/commitment of both citizens and businesses in rural regions to environmental and social progress. - PP 9 - Administrative innovations - e-government This policy package is built upon the need for improvement of services, provided by administrative institutions in rural areas. It addresses the use of administrative innovations that may support a more timely and cost-effective provision of services (e-government). - PP 10 - R&D – Bio-innovations As rural regions are phasing great challenges during the transition towards biobased economies, this policy package focus in on the development of all kinds of knowledge and innovations that may support this transition. - PP 11 - Public participation This policy package focus is on the strengthening of public participation in the decision making process, that may potentially build a broader consensus on the future development paths of rural regions. - PP 12 - Knowledge-intensive farm management The aim of this policy package is the promotion of a knowledge and technology intensive farm management approach, used to support the enhancement of profitability and environmental integrity in high-productivity systems. - PP 13 - Development of human resources This package aims at strengthening the knowledge base and skills of labour resources in rural regions (knowledge and technology driven production processes, ICTs skills etc.), in the agri-food sector but also in other sectors. - PP 14 - Accessibility to transport – ICTs infrastructure This package aims at increasing accessibility of rural regions to transport and ICTs infrastructure in order to support mobility of persons and goods, but also information exchange both at the intra and interregional level. 6 - PP 15 – Spatial planning The aim of this policy package relates to the development of the spatial patterns in rural regions. Planning is of outmost importance in this respect, for reaching balanced distribution of land use patterns, refraining competition among land uses. 0.5. Policy Paths This part presents the next stage of the policy making process, namely the construction of policy paths leading to the AG2020 Images of the Future. The construction of policy paths is based on a proper combination of policy packages, serving the achievement of the AG2020 objectives in each of the Images. The output of this process is three policy paths, each of them serving a specific AG2020 Image of the Future, together with the sets of policy packages and policy measures better serving them. The construction of policy paths is also taking into account the key states that describe the necessary rates of change that may lead to each of the specific Images. Therefore, key states are firstly presented, followed by the building of policy paths. The selection of policy measures in each path is based on their impact on the agri-food sector, the AG2020 targets, the key elements and the critical issues for the future of the EU agricultural sector. Policy Path to Image I - Path 1 In Image I, High-tech Europe: Global Cooperation for Sustainable Agriculture, science and technology is of utmost importance, together with a focus on “top-down” initiatives. The prevailing policy orientation of this path is the “Public infrastructure/services orientation”. Furthermore, also the market orientation is important (Giaoutzi and Stratigea, 2009b). At the core of this path is Policy Package 6 (Log-in the information society), provided that a proper network infrastructure (PP 14 – Access to ICTs and transport infrastructure) is already available in the rural regions. An important aspect is the creation of a communication platform to increase interaction among stakeholders in rural regions; and the establishment of links with R&D institutions, research centers, universities etc. Adoption and use of ICTs applications in rural regions may support the development of an e-culture, beneficial for rural areas, laying at the core of personal and business development (Stratigea, 2010). Additionally, PP6 is closely linked to PP1 (Knowledge-driven diversified rural communities) and PP12 (Knowledge-intensive farm management), establishing thus a ‘bridge’ for the diffusion of knowledge and information among the various stakeholders. PP6 also forms the backbone for the implementation of PP13 (Development of human resources). At the same time, fulfillment of PP13 will facilitate the pursuit of PP1 (Knowledge-driven diversified rural economies) and PP12 (Knowledge-intensive farm management), as it lays the ‘grounds’ for both adoption and use of technology and innovation. 7 Furthermore, PP6 is very important for the implementation of PP9 (administrative innovations - e-government), as e-government applications support all kinds of eservices, provided by public institutions. Adoption and use of ICTs and their applications supports trust to technology and skill acquisition, which in turn facilitates the development and use of e-government applications. Another important policy package, in this respect, is the upgrading of the quality of ICTs and transport infrastructure. PP14 (Accessibility to transport – ICTs infrastructure) promotes the deployment of the necessary transport and telecommunications infrastructure that may facilitate the in and out smooth flow of persons, goods, and information from rural regions to the outer world. This supports a better exploitation of local resources and the flourishing of a variety of economic activities, contributing to the diversification of rural economies (Giaoutzi and Stratigea, 2009b). Finally, PP15 (Spatial planning) is setting the rules for a balanced land use distribution in rural regions, serving as a tool for land management; protection of valuable natural resources in rural regions; control of competition among land uses; etc., contributing among others to the bettering of social and economic cohesion of rural population. Policy Path to Image II - Path 2 In Image II - In search of Balance: Accord on Sustainability - the focus is on the economy and energy. A certain balance of different policy orientations is necessary for the implementation of this path, although the public infrastructure/services orientation seems to be ranked higher in importance than the other three policy orientations (Giaoutzi and Stratigea, 2009b). For reaching Image II, is necessary to combine technology and decoupling elements. This requests improvement of the rates of adoption/use of technology, where an emphasis is placed on the support of R&D and knowledge-driven innovations (PP1 – Knowledge-driven diversified economies), but also on knowledge-intensive farm management innovations (PP12). In addition, PP3 on ‘environmental and resource stewardship’, dealing with the use of technological innovations for a more environmentally-friendly management of the agri-forest resources, is of great importance. Moreover, PP10 (R&D innovations – bio-innovations) places emphasis on all kinds of innovations relating to the bio-based economy. The application of the above PPs creates synergies, that motivate rural communities towards acquiring a broader knowledge base and available technologies for an effective rural resource management. Moreover, the upgrading of human resources (PP13 – development of human resources), combined with the adoption – use of ICTs and their applications (PP6 – Log-in the information society), create the appropriate conditions for unimpeded flow of information and knowledge among rural stakeholders, expected to positively impact entrepreneurship, job creation and support of local income. Finally, good access of rural regions to transport infrastructure (PP14 – access to transport and ICTs infrastructure) may support interaction and trade of agri-food and forest products (Giaoutzi and Stratigea, 2009b). 8 As to the decoupling element, in Image II a more conscious attitude towards preserving natural and environmental resources is adopted, with stakeholders taking active roles for the protection and preservation of these resources. PP2 (green entrepreneurship), PP3 (environmental and resource stewardship – Variant 2), and PP4 (reduce, reuse and recycle) are promoting a more conscious attitude towards consumption patterns of natural resources, which implies the development of a new culture of resource-saving and multiple use of natural resources in rural regions. These also introduce a new spirit of resource management at both the household and the business level that may also impact positively job creation and local income generation. Moreover, it forms the basis for the creation of agri- and non agri-based activities, supporting the levels of multifunctionality in rural regions (Giaoutzi and Stratigea, 2009b). Finally, spatial planning (PP15) sets the framework for a more effective spatial organization of rural regions (residential areas, spatial pattern of economic activities, infrastructure etc.), that aims at serving the needs of both population and activities, preserving at the same time local valuable ecosystems. Policy Path to Image III - Path 3 The focus of Image III - Active Regions and Reflexive Lifestyles - is on behavioural changes and involves strong public participation. Key policy orientation in this path is lifestyle orientation, for widening the already existing rigorism on green values, environmental responsibility, regionality, respect for local resources, culture etc., but also quality of life and the local environment, food, etc. This is followed by the market orientation, which adopts market policy measures motivating business to follow “green” behaviour and develop / adopt innovations accordingly (Giaoutzi and Stratigea, 2009b). In Path 3, where lifestyle orientation is important, participatory decision making (PP11 - Public participation) forms the platform for interaction among local stakeholders and the creation of a vision for the future development of rural regions, based on respect to social, cultural and natural resources. This is facilitated by the adoption and use of ICTs and the creation of an ICTs platform, supported by PP9 (Administrative innovations – e-government). Of importance is also the dedication to values, authenticity, cultural heritage, social interaction and demand for quality, expressed via PP7 (Culture of “regionality”) that drives behavioural patterns in rural regions; but also the taking of responsibility of both population and business in respect to the management of environmental, cultural and social resources, expressed by PP8 (Social responsibility). The above mobilize environmental and resource stewardship, based on: resource preservation and management (PP3); a reduction, multiple use of resources and recycling (PP4). Moreover, the spirit of e-culture, which is well established among local population, is a key driver for access to information and knowledge that supports decisions on sustainable resource management (Giaoutzi and Stratigea, 2009b). Of additional importance is the provision of incentives to business for gaining respect and competitiveness in the rural context. More precisely, PP2 (Green Entrepreneurship) promotes policy measures that motivate business innovations, capable of supporting the integration of an environmentally-friendly business 9 behaviour and competitiveness objectives; PP3 (Environmental and Resource Stewardship) promotes policy measures that motivate agri-food and forest business to adopt environmentally-friendly product and process practises that may support the decoupling of environmental quality from these activities; PP8 (Social Responsibility) motivates business behaviour that takes into local environmental and social resources; PP12 (Knowledge-intensive farm management) motivates business to adopt knowledge-intensive farm management techniques that may support the decoupling of agricultural production from environmental quality; finally PP10 (R&D innovations – Bio-innovations) motivates business to develop / adopt innovations that may support bio-material production. Of importance is the contribution of PP6 (Log-in the Information Society), which creates the potential for both intra-business and/or inter-business innovations (network cooperation) that may support firms’ competitiveness, efficiency, sharing of resources and risks, etc. (Giaoutzi and Stratigea, 2009b). Of importance are also investments on public infrastructure and services that may strengthen the economic base of rural regions, by improving accessibility of rural regions (PP14 - Access to ICTs and transport infrastructure), their knowledge base (PP6 - Log-in the Information Society), but also quality of local human resources (PP13 - Development of human resources). Finally, of importance is a certain regulatory framework for the spatial organization of rural settlements (PP15 – Spatial planning) that may form the basis for strengthening of linkages among activities, and an upgraded network infrastructure (PP14 – Access to transport and ICTs infrastructure). The protection of valuable natural systems (PP3 - Environmental and resource stewardship) is also of great importance. The above framework is setting the directions for a sustainable exploitation of resources (PP4 Reduce, Reuse, Recycle) and a set of financial measures as disincentives for developing resource-intensive activities (PP5 - Ecological tax reform) (Giaoutzi and Stratigea, 2009b). 10 1. INTRODUCTION The agricultural sector in one of the most important production sectors of the global economy, as it largely determines the population’s survival and quality of life. This holds for the quantity and quality as well as the safety of the agricultural products. Agriculture is also considered as a sector determining the development potential of a significant part of the European territory - namely the rural regions - and is largely associated with the economic prosperity, tradition, production systems, culture etc. of the European local regions’ population – the farmers. The increasing population growth rates, at a global scale, impose significant demand for increasing agricultural production. This stresses the importance of the environmental dimension in the agricultural sector, due to the pressure exerted by the agricultural production on the environment. Therefore, has become an imperative for future policies in agriculture to focus on sustainability targets namely environmental, social and economic, incorporating at the same time the quality-safety dimension in the agricultural production. This implies that drivers of today’s change - likely to be of policy relevance over the medium and long term - need to be identified and strategic decisions have to be made, in order to cope with the uncertainty involved in policy making. The AG2020 Project aims, among others, at developing a methodological framework for the structuring of backasting policy scenarios for the development of agriculture in Europe 2020. Reaching, though, the goal of sustainable agricultural development by 2020 requires a process of exploring the future, determining trends, key drivers and uncertainties, which could influence the future of sustainable agricultural development. The vision of AG2020 is to improve the decision-making process for reforms in common EU agricultural policy (CAP), by synthesising a range of policy scenarios for the year 2020, based on quantitative and qualitative analysis of the future. In order to fulfil this goal, the AG2020 project adopts an innovative methodology for structuring backasting policy scenarios at the European level for the period 20072020. In this respect, AG2020 sets out objectives and targets for orienting the future of the EU Common Agricultural Policy towards the desired ends. These targets are used as the basis for building the AG2020 “Images of the Future”. The backasting policy scenarios (images and related policies) for sustainable agriculture in AG2020, represent possible alternative policy options, illustrating: the range of available related measures; packages and paths; scale of the required changes; as well as principles for implementation, based on acceptability, lead-times, dynamic effects and adaptability, in support of the future Common Agricultural Policy making in the EU. Therefore, the structure of the present Final Report has as follows: 11 Section 2 elaborates on the AG2020 backasting methodological approach; Section 3 on the process of identifying the AG2020 policy targets; Section 4 presents the Images of the Future in AG2020, but also the gap between the baseline projections and target achievements for each image; while Section 5 presents the process of selecting policy measures and structuring policy packages and paths for reaching the AG2020 targets in the Images of the Future. Finally, Section 6 presents the validation approach used in the process of building the elements of the AG2020 backasting approach (external/internal elements, strategic elements, Images of the Future, policy measures, policy packages and paths); while in Section 7 are shortly presented the four AG2020 case studies employed for further elaborating on the policy framework at the regional level; and in Section 8 some comprehensive conclusions are drawn. 12 2. THE BUILDING OF POLICY SCENARIOS IN AG2020 Chapter 2 presents the methodological framework adopted in AG2020. Section 1 focuses on the concept of backasting scenarios; Section 2 on the AG2020 backasting policy scenario approach; while in Section 3 is presented the delimitation of the EU agricultural system. 2.1. Introduction The AG2020 scenario methodology adopted is based on backasting 2 . Backasting was first introduced by Robinson (1982) 3 to explore how desirable future energy futures could be attained. According to Robinson (1990), the main characteristic of backasting is: “…a concern not with what futures is likely to happen, but with how desirable futures can be attained. It is thus explicitly normative, involving working backwards from a particular desirable future end-point to the present in order to determine the physical feasibility of that future and what policy measures would be required to reach that point” 4 . A ‘backasting scenario’ is a description of desired plausible futures (Images of the Future), within a chosen time horizon, that provide a background for assessing preferred policy options, on the basis of certain criteria. There are numerous ways of building scenarios as a mean to clarify policy options (Dreborg, 1996). The backasting approach is of special interest when the task is to find long term solutions to major societal problems and/or when policy-making involves substantial changes. Figure 2-1 below shows the backasting conceptual framework. The backasting approach designs images of the future, representing desired solutions to societal problems. As part of the backasting methodology, possible paths are developed from the future back to the present for 15-20 years time. The term policy scenario covers both the Images of the Future and the trajectories leading back to the present (Banister et al, 2005, 2006). More precisely, the main components of the policy scenarios are (see Fig. 2-2 below): - The objectives and targets to be met by the end of the study period (2020); - The baseline scenarios; - A set of important contextual factors; - The main strategic elements associated with each scenario. - The Images of the Future, built on the basis of objectives/targets, contextual and strategic elements; - Policy measures, packages and paths that would promote the pursued objectives. 2 . The Backasting approach is analysed by Dreborg, K.H., ‘Essence of Backasting’, Futures, Vol. 28, No. 9, pp 813-828, 1996. 3 . Robinson, J:, ‘Energy backasting: a proposed method of policy analysis,’ Energy Policy, December 1982. 4 . Robinson, J., ‘Futures under glass: a recipe for people who hate to predict’, Futures, October 1990. 13 Fig. 2-1: The conceptual framework Source: Adapted from Banister and Hickman, 2005 Business as Usual Sustainable agriculture The building of backasting policy scenarios is based on the above components. A clear understanding, at this stage is needed of the differences between trends, internal, external factors, strategic elements and policies (measures, packages). In Figure 2-2 below can be clearly seen the relationship among the above elements of the backasting process. Fig. 2-2: The backasting process Source: After POSSUM, 1998 Objectives and Targets Key Elements Key States PRESENT IMAGES OF THE FUTURE Contextual elements Strategic Elements Policy Measures, Packages and Paths 14 2.2. The Backasting Approach in AG2020 The scope of the AG2020 project is twofold, namely to: - test the backasting methodology as a means to assess challenging new agricultural targets for EU agricultural policy – this is the methodological objective; and - produce a set of Images of the Future that represent different alternative visions for the year 2020, and determine alternative policy packages in order to achieve the AG2020 targets, together with the policy paths that highlight when change has to take place – this is the policy objective. There have been three main stages in AG2020: The first stage is to set targets for 2020 and to forecast the business as usual scenario in the EU agricultural system, so that the scale of changes can be assessed as to the AG2020 targets. The second stage is the description of the agricultural system in 2020 that may meet the AG2020 targets. This has taken the form of three alternative Images of the Future that push both the technological and the decoupling options, separately and in combination. The third stage is the backasting process per se, where alternative policy packages are assembled to drive developments towards to the Images of the Future, taking into account their time scale of enforcement. Fig. 2-3: Backasting Policy Scenarios: The AG2020 framework Source: After POSSUM 1998 Objectives/Targets - External Elements Environmental protection Economic efficiency Regional development Social cohesion Food safety and quality Energy Policy Orientations/Measures 1. Lifestyle oriented 2. Market oriented 3. Regulation oriented 4. Public infrastructure/services Case studies Strategic Elements Images of the Future Key Elements - Technology - Decoupling Policy Packages Key Issues Policy Paths The proposed policy framework should meet the AG2020 objectives, regarding environmental protection, economic efficiency, regional development, social cohesion, food safety and quality as well as energy. A set of case studies have been 15 introduced, in AG2020, to enrich the policy framework with the specificities present in each regional context. The backasting policy scenario framework in AG2020 is presented in Fig. 2-3 above, outlining the elements involved in the process. A thorough description of the elements involved in the backasting approach, namely objectives and targets, the AG2020 Images of the Future, as well as the AG2020 backasting policy framework (policy measures, packages and paths) is presented in the rest of this report (Chapters 3, 4 and 5 respectively). 2.3. Delimitation of the EU Agricultural Sector in AG2020 In this section is presented the delimitation of the EU-27 agricultural sector in order to enable the identification and mapping of the emerging patterns in the sector, but also the need for policy interventions at the various spatial scales. In AG2020, the focus of the agricultural sector is on (Giaoutzi et al, 2008f, D5.3): Production of food, feed, fiber and fuel; Interactions with the rest of the sectors; Use of local resources; Environmental impacts; Contribution to social and economic cohesion of the EU territory; Production of a wide range of important and socially valuable agri-environmental products and related services; and finally - The sector as part of a global agricultural production system. - In the following is presented the sectoral distribution of agriculture, the rest of the sectors, while in the last paragraph the agri-food processing sector in detail. The sector has been divided into the following sub-sectors namely: crops, livestock and forestry (see Banse et al, 2008, D3.1), where: The crop sector is distinguished into the following general types: - Cereals (wheat, maize etc.); - Oilseeds; and - Sugar The livestock sector, into: - Beef; - Pork; - Poultry; and - Fishery; (Cheese and milk are also classified within the livestock sector). The forestry sector. Industry and services are also considered as part of the EU economic structure. These are further divided as follows: The industrial sector includes all types of processing activities such as (see Banse et al, 2008, D3.1): 16 - Agri-food processing activities: includes also beverages and tobacco; - Manufacturing activities; - Chemical / Material industry: includes, among others, activities relating to the processing of agri-raw input for bio-material production; - Energy production industry: includes activities relating to energy production (see also energy production from agri-raw input processing - biofuels production); and - Food processing and service firms: these relate to both the processing of agri-food for the production of customized and innovative food ingredients; and the provision of these ingredients to global brand leaders for the production of foods and beverages, functional foods and bioactive constituents with validated health benefits. This is a fast moving sub-sector, rather innovative and continually adopting and improving the technologies used for the production, processing, distribution and preparation. A further classification of the agri-food processing sector is presented below, based on the type of food produced (see Petzoldt et al, 2008, D4.3): - Convenience food or tertiary processed food: implying commercially prepared - food designed for ease of consumption; Fast food: referring to food that can be prepared and served very quickly; Functional food: food claimed to have a health-promoting or disease-preventing property beyond the basic function of supplying nutrients; Organic food: produced without using conventional pesticides, fertilizers (no- or low-input fertilizers), etc.; and Food ingredients and additives that may add value to functional food. A classification in the service sector has as follows: Public services; R&D services - research institutions, universities, etc. Health services: Trade services; Tourism: both mass and alternative tourism activities that can be promoted in rural regions; - Environmental services: activities relating to the improvement of the environmental quality; and finally - Transport services: relating to the transportation of people and goods. - The above classification is used in AG2020 for policy making purposes. 17 3. DEFINING OBJECTIVES AND TARGETS IN AG2020 In this section is presented the process of defining objectives and targets in AG2020. More specifically, in section 1 is presented the process of defining objectives in a backasting framework, while in section 2 the definition of the AG2020 objectives. In section 3, on the other hand, is presented the setting of policy targets, while in section 4 the setting of policy targets in AG2020. 3.1. Defining Objectives in a Foresight Context The meeting of the European Union Agricultural Council in 1997 stated that “European agriculture as an economic sector should be versatile, sustainable, competitive and spread throughout Europe, including the less favoured and mountainous regions, contributing thus to their economic development. At the same time, it must be capable of maintaining the countryside, conserving nature and making a key contribution to the vitality of rural life. Furthermore, it should be able to respond to consumers’ concern and demand regarding food quality and safety, environmental protection and the safeguarding of animal welfare” (SCENAR 2020, 2007). The agricultural sector today should move along the present mainstream discourse on sustainable development, encompassing: - Economic aspects, based on the concept of maximizing flow of income, while maintaining the non-renewable stocks or assets that yield these benefits; - Social aspects, maintaining the stability of social and cultural systems where people lead a healthy and productive life in harmony with their environment, and - Ecological aspects, implying stability of physical and biological systems (Keiner, 2006). The objectives relating to the above three pillar model can be otherwise translated into, ‘produce more, distribute justly and preserve the nature’ (Keiner, 2006). Such “ideal solutions” though within closed systems are doubted, since sustained solutions for one dimension are often incompatible with the sustainability of the rest of the two (Stimson et al, 2006; Keiner, 2006). Opposing to that, some others state that a compromise among the objectives of the three pillar model could be accomplished in future development, mainly based on technological advances (Keiner, 2006). A complementary view of policy concern, among dimensions of the above presented three pillar model, first adopted in the POSSUM project, will also be the working framework for defining objectives in AG2020. This view will be tackled through the process of selecting policy objectives, where the extent to which objectives are conflicting or complementary is an issue at stake (POSSUM, 1998). Thus, a “trade-off approach” between the objectives of the three pillar model can be adopted, seeking for objectives which will ensure a complementary perspective of the 18 main aspects in agricultural policy. Schematically, part (b) of Fig. 3-1 below (POSSUM, 1998) represents such an approach, where a three-dimensional relationship illustrates the movement towards one objective, which does not necessarily imply movement away from the rest two. Fig. 3-1: Views of the relationship between economic efficiency, regional development and environmental protection in a sustainable development context. Source: POSSUM, 1998. Economic efficiency Environmental protection Environmental protection Economic efficiency Regional development Regional development (a) Conventional Conflicting View of Policy 3.2. (b) Complementary View of Policy The Objectives in AG2020 In this section are presented the objectives selected in AG2020, as a first step for the identification of policy targets. The AG2020 objectives have as follows: - Environmental protection Economic efficiency Regional development Social cohesion Food safety and quality Energy Sustainability in the agricultural sector, from the point of view of AG2020, is encompassing (Giaoutzi and Stratigea, 2007b; Giaoutzi et al, 2007a): - Environmental aspects: preserving ecological balance of physical and biological systems, for present and future generations. 19 - Economic efficiency aspects: based on the concept of “… attaining the maximum - - - flow of income that can be created, while at least maintaining the renewable stocks or assets that yield these benefits” (Stimson et al, 2006, p.40). Regional development aspects: aim at reducing disparities and providing equal access to employment, services, etc. Social cohesion aspects: aspire towards maintaining stability in social and cultural systems, by pursuing a healthy and productive life in harmony with the environment. Food quality and safety aspects: aim to promote food safety and trust in agricultural qualitative products for consumers, a trend that remains in both industrialized and in less developed countries (Unnevehr, 2003). Energy aspects: contributing towards the reduction of GHG emissions (-20% compared to 1990 - EU climate change target of reducing 20%). The objective of environmental protection associates with both: the long term survival of a society, in today’s times, characterized by considerable environmental degradation and high risks; and the long term survival of agriculture. Future sustainable agricultural development requires a new relationship between agriculture and the environment, building upon the preservation of an overall balance and value of the natural capital stock, based on a long-term view of the environmental costs and benefits of agricultural production [COM(2000)20 final]. It is also an objective, which may mobilize new solutions, involving structural changes and technological innovations in agricultural production. The objective of economic efficiency is based on the attainment of optimal and efficient use of scarce resources. Efficiency is of relevance for agriculture, since it contributes to the overall efficiency of the system, by acting as a driving force for the restructuring of activities; technology developments for a more efficient use of resources; changing life-styles, consumption patterns etc. (Stimson et al, 2006). Regional development is another very important objective, heading to the development of rural regions. It can be based on triggering the competitive advantages not only in agriculture but also in the other activities in the areas, by encouraging diversification of activities and innovation. These may largely contribute to the territorial, social and economic cohesion of the European rural regions. Rural development may result into a higher value added production and a stronger economic basis, by increasing competitiveness, growth and job creation, in line with the Lisbon Strategy. This concern is reflected in the last CAP reform through the second pillar for the adoption of a coherent integrated rural development policy [COM(1999)22 final]. The objective of health and food safety is of great concern, in the last decade. Food ‘scare’ has caused an increase in consumers’ awareness in terms of food health and safety, which in turn has strengthened demand for qualitative and safe food (Buller and Hoggart, 2001). Growing concern for health and well-being has influenced consumers’ demand patterns towards increasingly healthy food and “natural” products as well as “functional” 5 products. 5 Foods which are intended to be consumed as part of the normal diet and that contain biologically active components which offer the potential of enhanced health or reduced risk of disease. Examples 20 The above trend has specific impacts on production patterns in agriculture, e.g. organic production. As the share of well informed and aware consumers seeking for healthy and qualitative food grows, relevant adjustments of agricultural production in terms of agricultural practices adopted should be of increasing importance in Europe, driven by food scare, health and environmental concerns (EEA, 2005). As a result, it is proposed that AG2020, should place emphasis on environmental as well as food safety and quality issues, as there is a more straightforward relationship of these two domains with agricultural production systems. Moreover, rural development and economic efficiency of the agricultural sector can be based on these two objectives. The energy objective is also of importance in AG2020, considering the potential contribution of the agri-sector to energy production (biofuels, bioenergy) but also the EU policy towards the exploitation of renewable energy sources. 3.3. Setting Policy Targets in a Backasting Framework Targets are closely linked to goals and objectives. In attempting to define targets, it is useful to clarify the concepts of goal, objective and target as well as their interrelationships. In the international literature and in many national policy documents, a goal has been frequently used interchangeably with the term objective. A goal is a more general description of a desired direction, a long term aim of the society e.g. sustainable development, and can usually be further developed into several objectives. According to the meaning used by the United Nations, an objective is rather more specific than a goal and it is an aim which can be partly achieved during the planning period. Each objective refers to a certain dimension of the goal, while reaching objectives posed leads to the fulfilment of the goal. As to the concept of a target, World Health Organization (WHO) defines a target as ‘… an intermediate result towards the achievement of goals and objectives; it is more specific, has a time horizon and is frequently, though not always, quantified’, while ‘… a goal refers to the long-range aims of the society and is usually expressed in rather general terms’. Targets are also defined as ‘… explicit endpoints of public policy, expressed in terms of relevant indicators, to be pursued, within a given time with a systematic monitoring of progress towards their achievement’. Potential policy targets may be selected by means of a “top-down” approach combined with a “bottom up” approach used for convergence, validation and checking purposes. Policy targets, in this respect, are identified by means of the following complementary approaches (see POSSUM, 1998) (Fig. 3-2 below): 9 Top-down approach - Internal workshops: identifying important issues for future policy (hotspots), emerging or likely to emerge till the target year of the study. of functional foods include foods that contain specific minerals, vitamins, fatty acids or dietary fibre, foods with added biologically active substances such as phytochemicals or other antioxidants and probiotics that have live beneficial cultures (European Food Information Council - EUFIC, 2004). 21 - Stakeholders and Experts views: on strategic policy issues of relevance in building future policy scenarios; 9 Bottom-up approach: - Literature review: various important issues for future policy that can be found in literature; - Review of sustainability targets: relating to the study system at hand. Fig. 3-2: Generation of Targets (after POSSUM, 1998) Source: Giaoutzi & Stratigea, 2007b Experts / Internal Workshops Top-down Key issues Key indicators Convergence Validation Checking Literature review of sustainability targets Bottom-up Key issues Key indicators Selection Process Comprehensive set of key issues key indicators Comprehensive set of potential targets Comprehensive set of selected targets The above approaches usually contribute to the identification of potential policy targets, by both: direct elaboration, e.g. in the case of literature review or review of sustainability issues; and indirect, e.g. in the case of internal workshops or the stakeholders/experts opinions on strategic policy issues. The outcome of the “top-down” and “bottom-up” approaches leads to the selection of potential targets to be considered. The overall process is depicted in Figure 3-2 above. The “top-down” approach represents a deductive, comprehensive and systematic strategy using a framework, where targets are derived from principles, objectives, sectors, issues and causal relationships (POSSUM, 1998). Targets should be pursued for the three domains of sustainable development namely environment, economy and society. Defining targets, within each policy domain, presupposes that key issues and respective key indicators have been identified. Each domain comprises a set of potential key issues, along with potential key indicators to be used for the 22 development of targets (Table 3-1 below). Key issues and key indicators are expressing the basis for defining sustainability targets, in the key domains. Table 3-1: Key domains, issues and indicators Domains Key Issues Potential Indicators Social Economic Environmental etc. The impacts of key issues on the future developments are measured by key indicators. Several types of impacts can be included in more than one domain, expressing each time the perspective of the domain of their origin. The “bottom-up” approach, on the other hand, is an inductive, knowledge-based strategy, involving a review of the existing targets of sustainable development from the literature as well as a review of the sustainability targets in the study context. The combination of both the “top-down” and “bottom-up” approaches allows for convergence, validation and checking that all key issues have been considered. This leads to the selection of a comprehensive set of potential targets for further elaboration. Having identified the above set of potential targets, a selection process should follow in order to select a relevant and sound set of targets. Maclaren (1996) defines a commonly used list of eleven (11) criteria to support the evaluation process of potential targets, as follows: - Scientific validation: targets should be valid in scientific terms; - Representativeness of a broad range of conditions: targets should be relevant in various contexts e.g. different geographical areas; - Responsiveness to change: they should be capable of incorporating changes; - Relevance to the needs of potential users: targets should be of relevance to the specific needs of potential users; - Availability of accurate accessible data: reflects accuracy and accessibility of data; - Availability of historical data: several time series should be available, in order to discern trends, evolution patterns etc.; - Comprehensibility by potential users: targets should be easily and clearly grasped by users; - Comparability with indicators developed in other jurisdictions: targets developed within different jurisdictions should be comparable; - Cost-effectiveness to collection: collection of data on targets shouldn’t be a very costly process; - Attractiveness to the media: reflecting the power of the targets for communication purposes; and - Unambiguity: refers to the quite clear picture reflected by a target. 23 Apart from the above list of criteria for the evaluation of targets, another critical aspect is the identification of target and threshold values, relating to the desired and acceptable conditions for each target. If this is not the case, i.e. target and threshold values cannot be defined for a specific target, then the desired trend direction should be stated (Mitchell et al, 1995). Potential targets should be evaluated also on the basis of the following criteria [COM(2001)144 final]: - Policy-relevance: referring to the capability of addressing key environmental issues; - Responsiveness: stressing the need for sufficient changes in response to enforced actions; - Analytical soundness: reflecting scientific soundness; - Measurability: focusing on feasibility in terms of current or planned data availability; - Ease of interpretation: in terms of power to communicate essential information in a way that is unambiguous and easy to understand; - Cost effectiveness: focusing on costs in respect to the value of the information derived. 3.4. Selection of Policy Targets in AG2020 The focus of this section is on the identification of the AG2020 policy targets for sustainable agricultural development in Europe 2020. These will lay the grounds for the structuring of backasting policy scenarios, for the year 2020. The setting of targets in AG2020 had to deal with certain difficulties, such as: - Several targets set at the EU level, relevant for the AG2020 study, do not refer to the same end year. - Certain EU targets refer to a generalised objective (e.g. GHG 20% decrease for 2020, refers to all sources of GHG emissions). - Certain targets have not been defined, at the EU level, for the year 2020. - Almost all qualitative targets are presented on an undefined scale. Following the approach presented in the previous section, on the identification of policy targets, the process of setting policy targets in AG2020 involves two steps (for more details see Giaoutzi et al, 2008f, D5-3): - In the first step, a pool of key issues is defined, together with potential indicators, forming the basis for the creation of a comprehensive set of potential targets relating to the above issues. This set is also reflecting EU objectives. - In the second step, are selected the AG2020 policy targets, based on their importance for the goal and objectives of the study. As a result, the following targets 6 have been proposed (Table 3-2 below) (Giaoutzi and Stratigea, 2007b; Giaoutzi et al, 2007b; Giaoutzi et al, 2008d). 6 More detailed information on the pool of potential policy targets considered in AG2020 can be found in D5.3, Appendix I, Tables 10-1 and 10-2. 24 Table 3-2: AG2020 proposed targets Source: Giaoutzi et al, 2008f (D5.3) TARGETS EU Target Year 2020 GHG Emissions (in CO2 equiv.) 20% decrease of GHG emissions by 2020 compared to 1990 emissions Halt loss of biodiversity (Set in 2001 for 2010) N2O, CH4 and in CO2 equivalents EU Halting the loss of biodiversity by 2020 – High rate of halting Competitiveness / Efficiency Economically viable regions Multifunctionality Increase the level of multifunctionality of agricultural regions Traceability of feed and food Blending targets: in transportation fuel 10% (2020) Strong competitiveness / efficiency in the agri-food sector Multifunctionality of rural regions – High level EU Council of the European Union, 2004, EURURALIS EU – Lisbon Agenda Biodiversity Food and feed traceability Biobased economy AG2020 Targets Food and feed traceability – High rate Blending targets: in - transportation fuel 10% (2020) - electricity 7% (2020) - chemicals 10% (2020) Source EU EU EU The final set of the AG2020 policy targets has been the converging output of both consortium discussions and the Athens 2008 experts’ validation workshop 7 . The final description of the AG2020 policy targets has as follows: 3.4.1. First target – GHG Emissions (in CO2 equivalent) Agricultural land occupies over 50% of Europe’s land surface and fluxes from agriculture constitute the largest CO2 flux to the atmosphere of all land uses. The main GHG emissions from agriculture are carbon dioxide (CO2), nitrous oxide (N2O) and methane (CH4). Globally, agricultural CH4 and N2O emissions increased by nearly 17% from 1990 to 2005. Three sources together explain 88% of the CH4 and N2O increase: biomass burning (N2O and CH4), enteric fermentation (CH4) and soil N2O emissions (US-EPA, 2006a, IPCC, 2001). Agricultural activities currently generate the largest share (63 %) of the world’s anthropogenic non-CO2 emissions (84% of N2O and 52% CH4 in CO2 equivalent) and make up roughly 15% of all anthropogenic greenhouse gas emissions (U.S. Environmental Protection Agency - USEPA, 2006a; Prentice et al., 2001). Both the magnitude of the emissions and the relative importance of the different sources vary widely among the world regions. In Africa, North America, Europe and 7 Notice: Targets, at this stage, were refined in an “expert workshop” at the National Technical University of Athens, February, 2008. The experts were specialists in the agricultural sector (Professors, Public Servants and Senior Researchers). More information is provided in the context of the validation workshops at a latter stage. 25 most of the Asia continent (seven of the ten world regions as defined by US-EPA (2006a), N2O from soils was the main source of GHGs in the agricultural sector in 2005, mainly associated with N fertilizers and manure applied to soils. In Latin America and the Caribbean, the countries of Eastern Europe, the Caucasus and Central Asia, and OECD Pacific (the other three regions in US-EPA 2006) CH4 from enteric fermentation was the dominant source (US-EPA, 2006a; IPCC WGIII, 2007). The balance between the large fluxes of CO2 emissions and removals in agricultural land is uncertain. A study by US-EPA (2006) showed that some countries and regions have net emissions, while others have net removals of CO2. Except for the countries of Eastern Europe, the Caucasus and Central Asia, which had an annual emission of 0.026 Pg CO2 yr-1 in 2000, all other countries showed very low emissions or removals. Agricultural greenhouse gas emissions are projected to increase significantly over the next 20 years, especially in Asia, Latin America, and Africa, due to the increased demand for agricultural products as a result of population growth; rising per capita caloric intake; and changing diet preferences, such as an increased consumption of meat and dairy products over grains and vegetables (see Food and Agriculture Organization - FAO, 2003). Agricultural activities contribute directly to GHG emissions through five main different gas-emitting processes (Intergovernmental Panel on Climate Change, 2001): Table 3-3: Agricultural gas-emitting processes Source: IPCC, 2001 - N2O emissions from agricultural soils; N2O emissions from manure management; CH4 emissions from manure management; CH4 emissions from enteric fermentation in domestic livestock; CH4 emissions from rice cultivation. Agriculture is the most important N2O emission source (see Fig. 3-3 below). N2O is emitted as a result of microbial processes in the soil. Substantial emissions also come from drainage water and coastal waters, where nitrogen is converted to N2O through bacterial processes. However, the nitrogen converted in these processes originates mainly from the agricultural use of manure and fertilizers. Agricultural soil N2O emissions are projected to increase 37% by 2020 compared to 2000 levels, enteric livestock CH4 emissions are projected to increase 30%, manure CH4 and N2O to increase 24% and rice CH4 to increase 22 % (USEPA, 2006) (see Table 3-4 below). 26 Table 3-4: N2O (1000 ton) Years Energy Industrial Processes Agriculture Total 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1,37 1,57 1,56 1,63 1,76 1,86 2,13 2,14 2,16 2,22 2,20 2,25 2,31 2,40 2,40 3,36 3,08 2,72 2,56 2,60 2,92 2,69 2,74 2,60 3,07 3,24 2,86 2,50 2,89 1,71 29,15 28,64 27,68 27,01 26,31 25,64 24,54 24,28 24,18 22,75 21,92 21,47 20,64 20,03 20,19 33,89 33,29 31,96 31,21 30,67 30,42 29,36 29,15 28,95 28,03 27,35 26,58 25,44 25,32 24,30 Fig. 3-3: Contribution of agriculture to N2O Agricultural N2O emissions are projected to increase by 35-60% up to 2030 due to increased nitrogen fertilizer use and increased animal manure production (FAO, 2002). Similarly, Mosier and Kroeze (1999) and US-EPA (2006b) estimated that N2O emissions will increase by about 50% by 2020 (relative to 1990) (see Table 3-5 below). Table 3-5: Projections 2020 Source: USEPA, 2006 Type of emission Agricultural soil N2O emissions Enteric livestock CH4 emissions Manure CH4 and N2O Rice CH4 27 2000 - 2020 +37% +30% +24% +22 % Table 3-6: N2O emissions projections N2O emissions Projection Source N2O emissions due to increased nitrogen fertilizer use and increased animal manure production N2O emissions will increase by about 50% by 2020 (relative to 1990) +35-60 % by 2030 FAO, 2002 +50% by 2020 Mosier and Kroeze (1999) and US-EPA (2006a) Concerning the CH4 emissions, information from the UNFCCC database shows that clearly for most countries, methane emissions decreased slightly between 1990 and 2000, with an overall reduction of around 7% or 600 Million kg CH4 yr-1. In terms of CO2–C equivalents, the total EU-15 methane emissions for 1990 and 2000 were 54 and 50 Tg, respectively (UNFCCC database). The factors clearly identified by field experiments as being most important are: water regime with inorganic fertilizers (except sulphate-containing inorganic fertilizers, which inhibit CH4 production); organic fertilizer applications; soil type, and soil texture; cultivar; and agricultural practices such as direct seeding or transplanting. If demand for food increases and diets shift as projected, then annual emissions of GHGs from agriculture may escalate further. But improved management practices and emerging technologies may permit a reduction in emissions per unit of food (or protein) produced, and perhaps also a reduction in emissions per capita food consumption (Greenpeace, 2008). Fig. 3-4: Share of CH4 and NO2 in total GHG emissions by agriculture Source: Summa, 2006 In AG2020, among the non-CO2 GHGs (N20 and CH4), the focus will be on the N2O emissions, as the dominant and most powerful greenhouse gas emanating from agricultural systems (see D5.3). The proposed N2O target converted in CO2 equivalent for 2020 is: 28 CO2 2020 target: -20% 3.4.2. Second target - Biodiversity The protection and careful use of the world's finite resources is central to the idea of sustainable development. Biodiversity is part of those limited resources and, perhaps more than any other aspect, can inspire and motivate people to act for the environment (MEA, 2005). Biodiversity is defined by UN (1992) as: “the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems” (United Nations Convention on Biological Diversity, Article 2, 1992). Τhe Millennium Ecosystem Assessment (2005) defines biodiversity as “… the variability among living organisms from all sources, including terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are part”. Biodiversity underpins the delivery of a wide range of ecosystem 'services' by healthy ecosystems, from which humans benefit. The Millennium Ecosystem Assessment (MEA, 2005) classified such services as those presented in Table 3-7 below: Table 3-7: Biodiversity - typology of services Source: MEA, 2005 - Provisioning services, e.g. food; Regulating services, e.g. water purification; Cultural services, e.g. recreation; Supporting services, e.g. nutrient cycling; and Soil formation. Various pressures have been imposed on biodiversity such as the release of substances (emissions); physical and biological agents; the use of resources and the use of land. The pressures exerted by society are transported and transformed into a variety of natural processes, which manifest themselves in changes in environmental conditions (EEA, 2007). Principal pressures, in the AG2020 context, are habitat fragmentation, degradation and destruction due to land use changes, arising inter alias from (MEMO/06/212, Brussels 22 May 2006): - Land conversion (e.g. from non-use or agricultural use to more intensive developed land - urban areas and rural transportation land); - Intensification of production systems; - Abandonment of traditional practices (often biodiversity-friendly); - Construction works and catastrophic events including fire; - Over-exploitation; - The spread of invasive alien species; - Pollution; 29 - Demand for housing; and - Transport infrastructure. Various pressures are set to increase in the EU, as there are many threats to Europe’s biological diversity, which vary in intensity and relevance across regions, ecosystems and species. These threats include changing land uses, land fragmentation and degradation, freshwater shortages, watercourse modifications, invasive alien species, over-harvesting, pollution, stratospheric ozone depletion, and climate change. Many of these threats are inter-connected (EEA, 2004: State of Biological Diversity in the European Union, p.13). The relative importance of these pressures varies from place to place and very often several pressures act in concert. In order to clarify the concept of biodiversity and make it operational, an indicative set of indicators for the measurement of the loss of biodiversity is proposed in the following. The Convention on Biological Diversity (CBD) has agreed on a set of headline indicators for assessing progress towards biodiversity targets (UNEP, 2004). However, many of these indicators, such as ‘status and trends of linguistic diversity’, ‘numbers and costs of alien invasions’ and ‘trends in genetic diversity of domesticated animals’ are impossible to measure. Therefore, much attention is given to the development of measurable indicators (Biggs et al, 2008; Alkemade et al, 2006). From the EURURALIS-project (Eickhout and Prins, 2008) the development of the mean species abundance (MSA) is taken as an example. If the MSA indicator is 100%, the biodiversity is similar to the natural or low-impacted state. If the indicator is 50%, the average abundance of the original species is 50% of the natural or lowimpacted state and so on. To avoid masking, significantly increased populations of original species are truncated at 100%, although they should actually have a negative score. Exotic or invasive species are not part of the indicator, but their impact is represented by the decrease in the abundance of the original species they replace. The mean species abundance (MSA) at global and regional levels is the sum of the underlying biome values, in which each square kilometre of every biome is equally weighted (Alkemade et al, 2006). From a review of existing studies, it appears that an increasing pressure on biodiversity is expected in rural areas of Europe by 2025. Biodiversity projections exhibit a decrease in most of the EU-25 countries (SCAR Foresight – Agriculture and Environment, 2006). As part of the EURURALIS-I, Reidsma et al. (2006), show that the ecosystem quality supporting biodiversity drops, especially under conditions where global economy is a strong driver. Regionalization and the strengthening of regional markets, in this context, could provide the best potential for supporting biodiversity in agricultural landscapes. Within EURURALIS-2, all scenarios, excluding the protection Continental Markets scenario, show an EU27-wide increase of the biodiversity index, in comparison with the year 2000 situation. The main reason is the decline of the agricultural area in the EU. This area transforms slowly into a more natural environment. In the Continental Markets scenario, the biodiversity will decrease because of a strong pressure on land and little attention for environmentally friendly management. These biodiversity results refer to 2030 and provide an aggregated result 30 for the entire EU. Specific ecosystems like wetlands are not necessarily improving as well. Therefore, for conclusions on meeting the EU target of halting loss of biodiversity in 2010, additional analyses need to be performed (Eickhout and Prins, 2008). EU Heads of State or Government in 2001 have set the target to halt biodiversity loss in the EU by 2010 and restore habitats and natural systems. Recent EEA assessments show that, without significant additional policy efforts, it is unlikely that the target will be reached for all ecosystems. With farmers managing almost half of the EU land area, the agricultural sector is a major source of pressure on Europe's environment, as it is also responsible for a large share of the pollution of surface waters and seas by nutrients, the loss of biodiversity and pesticide residues in groundwater. Reforms of the CAP in the 1990s, and measures taken by the sector itself, have brought about some improvements, but more is needed to balance agricultural production, rural development, and the environment. (http://www.eea.europa.eu/themes/agriculture) The 2006 Biodiversity Communication on "Halting the loss of biodiversity by 2010 – and beyond; sustaining ecosystem services for human well-being" is proposing 10 priority objectives addressing most important habitats and species; actions in the wider countryside and marine environment; making regional development more compatible with nature; reducing impacts of invasive alien species; effective international governance; support to biodiversity in international development; reducing negative impacts of international trade; adaptation to climate change; and strengthening the knowledge base [COM(2006)216 final]. The Communication also recognizes the need for four supporting measures relating to adequate financing, strengthening EU decision-making, building partnerships and promoting public education, awareness and participation. In order to protect and enhance the EU’s natural resources and landscapes in rural areas, the resources devoted to axis 2 of EU rural policy should contribute to three EU level priority areas: biodiversity and preservation of high nature value farming and forestry systems, water and climate change [COM(2005)304 final]. The target set in AG2020, in the light of the above discussion, is: Target: Halting the loss of biodiversity by 2020 – High rate of halting 3.4.3. Third target – Competitiveness / Efficiency The issue of competitiveness has always been one of the top priorities for the motivation of the Common Agricultural Policy (CAP) of the European Union. In legal terms, the history of the CAP goes back to the Treaty of Rome – the founding document of what has become the European Union, signed in 1957 by France, West Germany, Italy, the Netherlands, Belgium and Luxembourg. Among other objectives, the Treaty sets out that agricultural policy in the signatory countries should aim at: - Increasing agricultural productivity; - Ensuring a secure food supply at reasonable prices; and 31 - Providing the agricultural community a fair income. These objectives would be met through a free internal market, with stable high domestic prices. The protection of the EU markets from world markets can only be achieved by restricting imports. In the past, the main instruments for achieving this goal were variable import levies that bridge the gap between fluctuating world prices and fixed domestic prices. In addition, export subsidies were used to enable excess supplies to be disposed on world markets, and intervention purchases to remove further excess supplies from the internal market. However, this system of high internal prices had led to overproduction and the associated level of public spending became a problem. The EU had to respond to these problems several times in the last two decades of the 20th century. In the eighties, production quotas for milk were established. The MacSharry reform in 1992 was the first reform that implemented a shift from market price support to direct payments in the CAP. This reform has been followed by the AGENDA 2000 (1997) and the Mid-term Reform [COM(2002)394 final], with further cuts in intervention prices for agricultural commodities, the introduction of set-aside regulation and the decoupling of direct payments. One of the key arguments in the political debate was to raise the competitiveness of European agriculture on domestic and international markets. The reform process since 1992 has shown an increasing reduction of support to production, in favour of less and minimal trade distortive forms of income support. European agriculture significantly improved its competitiveness vis-à-vis world markets in a number of products. In the course of the developments, the rural development policy gained importance. Similar objectives have also been defined for the rural policy in the EU such as the: - Reinforcement of the competitiveness of agriculture (and forestry); - Sustainable management of rural areas; - Diversification of agricultural activity and the rural economy; and - Improvement of the quality of life in rural areas. In order to clarify the meaning of competitiveness and efficiency in AG2020, it is presented below a set of indicators to measure competitiveness. There are several ways to measure competitiveness, which address the performance per sector within a country. The selected indicators to quantify the competitiveness of a sector, which will be used in this report, are: - Growth of real value added for a specific sector in the total economy. This reflects the competition for product factors between different sectors within a country; - Growth of Balassa index. This index reflects the export specialization level in one category of goods from one country; - Growth of the export share (absolute deviation) on the EU or world markets. This performance indicator reflects the outcome of the competitive process within different regions; - Growth of the real labour productivity. This affects the unit labour costs and thus the relative prices; - Growth of real value added reflects the sectoral dynamism. 32 In AG2020, the target pursued in respect to competitiveness/efficiency objective is: Target: Strong competitiveness/efficiency in the agri-food sector 3.4.4. Fourth target - Multifunctionality The diversification of local economic activities based on existing local competencies and resources is a critical issue for rural development, where the greater the diversification of the rural economy the more the alternative opportunities for local economic sectors. The cultivation of land creates not only private commodity goods (agricultural products), but also dispersed public goods. Perhaps the best-known example of this is the creation of valuable landscapes as a by-product of farming activity. The maintenance of valuable man-made landscapes is one of the key considerations of the multi-functionality of land use in Europe (AGRIBLUE, 2004). The concept of multifunctionality attempts to make explicit the different kinds of value created by agricultural activity. Although the production of agricultural commodities accounts for a declining share of economic activity in rural areas, it is understood that agricultural activities have also important positive indirect effects on other parts of the rural economy. This is most evident in the case of tourism and leisure. Many of the beautiful landscapes that are attractive to tourists are in fact farmed landscapes. Not all landscapes are of equal value from the point of view of the provision of public goods. Some countries have started to classify and monitor their landscapes in terms of their contribution to maintaining a high level of biodiversity as well as in terms of their cultural, recreational or other amenity values to society. The classification of landscapes is a first step towards the management of public goods created by activities such as agriculture (AGRIBLUE, 2004). The contribution of multifunctionality to the rural economy does not stop at landscapes with tourism amenity. Landscapes also support recreational activities, such as camping, biking, walking and hiking. They host archaeological sites and historic monuments and constitute a heritage resource. They may have educational, religious or other cultural significance for people. They are host to an important part of biodiversity. Certain landscapes such as reed-beds and salt marshes have an important environmental function related to the purification of water and the provision of natural barriers to control flooding and erosion. Other forms of intangible value provided by certain kinds of agricultural activity are animal health and food safety (AGRIBLUE, 2004). Multifunctionality is a way of making explicit the ways that agriculture creates value for society, with a view to ensure that these sources of value are not eroded or compromised by the competition to produce commodities for the lowest prices and in the most competitive way possible. It seems clear that multifunctionality will play an important role in the future of agriculture in Europe (AGRIBLUE, 2004). 33 Multifunctionality can be assessed from a sectoral but also from a spatial point of view. This refers to the multiple activities taking place in rural areas. This means that multifunctionality is not only a feature of agricultural activities, but also an essential feature of all economic activities in rural regions. Some rural regions have started to consider the implications of the multifunctionality of non-agricultural activities for development policy. In particular they have been looking at activities such as energy production, small scale industry and specialized production. Public services such as post-offices, schools and clinics also play a multi-functional role in the rural economy (AGRIBLUE, 2004). The concept of multifunctionality has created a new industry for the production of intangible public goods. Moreover, it has provided a basis for the diversification of revenues derived from agricultural activity that are compatible with WTO rules and enhance the viability of extensive farming (AGRIBLUE, 2004). The resources devoted to the diversification of the rural economy and quality of life in rural areas should contribute to the overarching priority of the creation of employment opportunities [COM (2005)304 final - axis 3]. Multifunctionality, based on diversification of rural activities (inside and outside agriculture), is necessary for growth, employment and sustainable development in rural areas and thereby contributes to a better territorial balance, both in economic and social terms. Tourism, crafts and the provision of rural amenities are growth sectors in many regions and offer opportunities for both on-farm diversification and the development of micro-businesses in the broader rural economy [COM(2005)304 final]. Multifunctionality in the AG2020 is subjected by the following conditions: - Constant share of rural population; and - Growth rate of rural employment similar to national average. Target: Multifunctionality of rural regions – Strong emphasis 3.4.5. Fifth target - Food traceability The food safety and quality objective is a high priority issue in the EU agenda, where the identification of the origins of feed and food ingredients and food sources is of prime importance for the protection of the consumer. Therefore, the EU has implemented the Regulation EC(2002)178 setting the general principles and requirements of food law, establishing both the European Food Safety Authority and the procedures in matters of food safety. The food law aims at ensuring a high level of protection of human life and health, taking into account the protection of animal health and welfare, plant health and the environment. This integrated "farm to fork" approach is now considered as a general principle for the EU food safety policy. 34 Food law, both at the national and EU level, establishes the rights of consumers to safe food and accurate and honest information. The EU food law aims at harmonising existing national requirements in order to ensure the free movement of food and feed in the EU. In the White Paper on Food Safety, the Commission outlined a radical revision of the Community's food safety hygiene rules, under which food operators’, right through the food chain, will bear primary responsibility for food safety. This is fixed in several EU regulations: - Regulation (EC) 852/2004 on the hygiene of foodstuffs, 29 April 2004. - Regulation (EC) 853/2004 laying down specific hygiene rules for food of animal origin, 29 April 2004. - Regulation (EC) 854/2004 laying down specific rules for the organisation of official controls on products of animal origin intended for human consumption, 29 April 2004. - Directive 2004/41/EC repealing certain Directives concerning food hygiene and health conditions for the production and placing on the market of certain products of animal origin intended for human consumption and amending Council Directives 89/662/EEC and 92/118/EEC and Council Decision 95/408/EC, 21 April 2004. At the heart of the issue of food safety and quality is traceability. The issue of food traceability has been considered of high importance for food safety and quality as it is closely related to both the supply – sustainable food production keeping health standards – and the demand side – consumers’ right to get access to clear and precise information on food characteristics (entire food supply chain from field to final consumers i.e. mode of production, processing, storage, etc.) ‘Traceability’ is referring to the “ability to trace and follow a food, feed, foodproducing animal or substance intended to be, or expected to be incorporated into a food or feed, through all stages of production, processing and distribution” (EC No 178/2002). Traceability facilitates the withdrawal of foods and enables consumers to be provided with targeted and accurate information concerning implicated products, based on the Regulation (EC) No 178/2002 (28 January 2002) laying down the general principles and requirements of food law. It is therefore necessary to establish general requirements for only safe food and feed to be placed in the market and to ensure that the internal market, in such products, functions effectively. Experience has shown that the functioning of the internal market in food or feed can be jeopardized in cases where it is impossible to trace food and feed. This also enhances the need to establish a comprehensive system of traceability within food and feed businesses, so that targeted and accurate withdrawals can be undertaken or information given to consumers or control officials, thereby avoiding the potential for unnecessary wider disruption in the event of food safety problems (EC Regulation, 2002). Food or feed, which is placed or is likely to be placed on the market in the Community, shall be adequately labeled or identified to facilitate its traceability, 35 through relevant documentation or information in accordance with the relevant requirements of more specific provisions (EC Regulation, 2002). Labelling is one on the most important tools to ensure traceability and quality. The EU has set different labelling systems for this purpose. - GMO products In order to deal with the opposition of EU consumers and to guarantee freedom of choice, food and feed, products have to be labeled to contain GMOs or GM material in case a tolerance threshold of 0.9 % is exceeded 8 . - Quality products Throughout Europe there is an enormous range of great foods. However, when a product acquires a reputation extending beyond national borders, it can find itself in competition with products which pass themselves off as the genuine article and take the same name. This unfair competition not only discourages producers but also misleads consumers. That is why, in 1992, the European Union created systems known as PDO (Protected Designation of Origin), PGI (Protected Geographical Indication) and TSG (Traditional Speciality Guaranteed) to promote and protect food products 9 . - Organic products Public awareness on the irreversible damage, by practices, on the environment, that lead to soil and water pollution, depletion of natural resources and destruction of delicate ecosystems has led to calls for a more responsible attitude towards our natural heritage. Against this background, organic farming, once seen merely as a fringe interest serving a niche market, has come to the fore as an agricultural approach that can not only produce safe food but is environmentally friendly too 10 . It must be emphasized however that unambiguous tracing of feed and food and their ingredients is a complex issue and must take into account the specificity of different sectors and commodities [COM (1999) 719 final]. In respect to the objective of food quality and safety, AG2020 sets the following target: Target: Food and feed traceability – High rate 8 See Regulation EC No 1829/2003 of the European Parliament and of the Council of 22 September 2003 on genetically modified food and feed; Regulation EC No 1830/2003 of the European Parliament and of the Council of 22 September 2003 concerning the traceability and labelling of genetically modified organism and the traceability of food and feed products produced from genetically modified organisms. 9 See Council Regulation EC No 509/2006 of 20 March 2006 on agricultural products and foodstuffs as traditional specialities guaranteed; Council Regulation EC No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products. 10 See Council Regulation EC No 834/2007 on organic production and labelling of organic products and repealing Regulation EEC No 2092/91. 36 3.4.6. Sixth target – Bio-based economy Natural gas and renewable energy forms are projected to remain the fastest growing energy forms in the EU-25 energy system (as was the case during the last decade), growing at rates 3 times faster than overall energy needs over the projection period (+1.7% pa in 2000-2030 for natural gas; and +1.9% pa for renewable energy forms). Primary energy demand for liquid fuels exhibits moderate growth over this projection period (+0.2% pa) though at a rate well below average (Mantzos et al., 2003). According to the EU Biofuels Directives, EU Member States aim to increase the use of renewable energy up to 12% by 2010 [EU COM (97) 599 final] and 20% by 2020. In 2001, total biomass used for energy purposes was 56 Mtoe. It was estimated that, to achieve the 2010 RES 12 % target, an additional 74 Mtoe biomass would be required, with the split between sectors as follows: electricity 32 Mtoe, heat 24 Mtoe, liquid biofuels 18 Mtoe. Total biomass used for energy production would therefore be 130 Mtoe by 2010. The use of biomass to reduce dependence on fossil energy is expected to contribute to reaching various key objectives, namely reducing greenhouse gas emissions, ensuring sustainable energy supply, increasing entrepreneurship, employment, and rural viability in agricultural areas (SCAR Foresight, 2006). This includes the utilization of biomass crops not only in the production of liquid fuels for transportation purposes, but also on the use of biomass as intermediate inputs in other sectors, e.g. the electricity or the chemical sectors. Active involvement of rural regions in biomass production by developing the provision and innovative use of renewable energy sources may contribute to creating new outlets for agricultural and forestry products, new job opportunities, provision of local services and the diversification of the rural economy, more sustainable local environments. In AG2020, the following target has been set: Strong Bio-based economy Target - 10% biofuels share in overall EU road transport fuel consumption by 2020 - 7% biomass use in electricity - 10% chemicals 37 4. IMAGES OF THE FUTURE IN AG2020 This chapter elaborates on the building of the AG2020 Images of the Future. More precisely, in the first part, are presented: the building blocks of the Images, with emphasis on contextual and strategic elements; and the Images of the Future. In the second part, the Images are compared as to their key characteristics and targets’ achievement; but also as to the baseline scenario, in order to identify the gap between the baseline projection and the target achievement for each image. 4.1. Building Blocks of the AG2020 Images of the Future At this stage, the AG2020 Images of the Future are built. These should meet the following criteria: - The images should fulfil the targets; - Each image should be plausible, but could also be relatively extreme; - The images should be clearly different from each other in order to indulge on a variety of possible futures; - The images should cover a sufficiently wide range of future possibilities; - To keep research manageable, a small number of images have to be selected. (POSSUM, 1998). Apart from the above criteria, the images should also aim clearly at the targets set inside the AG2020 framework (see chapter 3 above). The AG2020 Images should be both feasible and sufficiently different from each other, in order to illustrate different potential futures (Giaoutzi and Stratigea, 2007a; Giaoutzi et al, 2007c; Giaoutzi et al, 2008a, 2008c). In Fig. 4-1 below, the building blocks of the images in the backasting process are shown (see also Chapter 2). Objectives and targets to be attained by the Images in 2020 are already discussed in Chapter 3. In the following, the focus is on the contextual and strategic elements, which, together with objectives and targets, form the basis for building the AG2020 Images. Fig. 4-1: The backasting process Source: After POSSUM, 1998 Objectives and Targets Key Elements Key States PRESENT IMAGES OF THE FUTURE Contextual elements Strategic Elements Policy Measures, Packages and Paths 38 It should be noted that the backasting approach (Fig. 4-1 above), adopted in AG2020, goes further than most scenario building approaches, as it also examines the means (policy measures, packages and paths) that can drive from present state of the system at hand to the alternative futures. The description of the images covers issues referring to both the society at large but also the agricultural sector per se. Validation of Images by stakeholders is important, as visioning of the future cuts across many disciplines but also different views and expectations of groups of stakeholders. Expert-based stakeholders workshops were carried out in this respect, which have largely contributed to the refinement, enrichment and consistency of AG2020 Images. There are plenty of other “AG2020” worlds possible and probably plausible to imagine. In order to reduce complexity and to keep the project manageable, it was crucial to make a selection and keep the number of images as small as possible. In the following are presented the contextual and strategic elements as well as the rationale followed for building the Images of the Future. Finally the AG2020 Images coming out of this process are presented. 4.2. Contextual Elements The rationale for building the AG2020 images should be reflected, as a first step, in the terms of functioning (vis. hypothesis) of the contextual setting. These are the levels of ‘cooperation’ and/or ‘polarisation’, employed as core features for the structuring of the Images of the Future. The concepts of ‘cooperation’ and ‘polarisation’ essentially pertain to the way society copes with market failure and public “goods” and “bads”. Here agreements and common policies besides the market are often needed. The climate for ‘cooperation’ is then of crucial importance. Is there a spirit of ‘cooperation’ and social responsibility or is the dominant behaviour free-riding? Do people act like citizens or like self-interested profit maximisers? This will affect what policies are possible and suitable and what targets can be achieved. Many environmental problems are related to the so called social dilemmas. The attitudes to cooperation in such situations will be crucial to the possibilities of solving the problem at stake. Here, different assumptions are made in different Images of the Future. As contextual element, can also be listed the spreading of an international lifestyle, where people increasingly travel to exotic places. Simultaneously, however, some groups of people exhibit a more local lifestyle, with a taste for locally produced goods and services as well as for exploring one’s native district. The relative strength of these two lifestyles in the future will have a strong impact on the demand for agricultural products. Therefore in the images they appear two trends those of: - A widely spread ‘local’ lifestyle; and of - A dominant international lifestyle. 39 Another potentially important factor, in the description of the contextual elements, is the rates and levels of spreading of the green values. Is the emerging green consciousness more or less a fad or a profound shift in our view on man’s relation to nature and nature’s degree of resilience against perturbations? The following alternatives have been identified: - The case of a strong concern for the environment and future generations among broad groups in society. The preservation of the environment is seen as a necessary condition for the long term wealth of human-kind, or even for its survival; and - The case of a well informed but pragmatic and of shorter-term view on the environment. The relation to other societal goals is essentially perceived as a trade-off, where the environment does not take precedence over the others. In addition to the above aspects of the Images of the Future, there are also a series of other issues that have to be addressed in the design process. Such issues are for example: - Innovations and Niche Markets - The market uptake of new technologies and systems are often problematic, because of high costs compared to established technologies. Uptake of new technologies may, however, be facilitated by the creation of niche markets, where novel concepts can be introduced, start to grow and enter a learning curve, where costs step by step will decrease, making it possible to compete in other markets as well. - Regional Development and Innovation - The production style of flexible specialisation does not automatically lead to a convergence of economic development within Europe. The success conditions are regionally embedded and cannot easily be reproduced over the whole European territory. However, territorialized production styles offer new opportunities for formerly backwards regions, but there is no guarantee for regional convergence. - Economic Efficiency in the Agricultural Sector. - Critical issues in the Development of the European Agricultural Sector. These key issues will form the basis for the development of the policy measures that follow the building of the images in AG2020 (see backasting). Successful handling of many environmental problems requires agreements and cooperation outside the market, either by political intervention or by ‘grassroots’ initiatives by those affected, or some combination of both. Hence the attitudes towards cooperation in society will affect the possibilities of meeting the AG2020 targets. In AG2020, three contextual alternatives are distinguished, combining the various elements mentioned above: - Bilateral and EU cooperation (“top-down”); - Local –Multilateral Cooperation (combined); and - Local, Regional, National and EU cooperation (“bottom-up” politics). 40 More precisely in: - Bilateral and EU cooperation (“top-down” politics): cooperation among global players is important, with free trade and a striving for consensus on environmental issues. At the local and regional levels the attitudes towards cooperation are more passive, as the political agenda is mainly driven by national and EU politicians. The focus is more on high level problems. Politicians take the lead and try to influence opinions. - Local - Multilateral cooperation (“combined”): all regions and nations in the world are able to participate. It promotes an accord between local, regional and supranational initiatives and objectives - a kind of harmony between “bottom-up” and “top-down” politics. Green values are widespread, with both local and international lifestyles. - Local, Regional and EU cooperation (“bottom-up” politics): policies are mainly driven by local and regional initiatives. Local and regional aspects are high on the political agenda, while global environmental issues a little lower down. Green values are pushed by ‘grassroots’ movements rather than by national or EU politicians, who lag behind but try to meet the demand of the people. There is polarisation at the global level, where EU the US and Japan take different stands on questions such as global warming, and tend to protect their own markets against competition from outside. 4.3. Strategic Elements The present chapter elaborates on the strategic elements used in the AG2020 policy scenarios, namely technology and decoupling (Giaoutzi et al, 2008b). The role of strategic elements is considered as important in supporting changes in the key elements addressed in AG2020, namely (see section 5.2 of this Report and D5.5): - bio-based economy; - regulated agricultural factor markets; - rural development; - integration into agri-food markets; - energy production; - food quality and safety; - CAP 1st pillar; and - CAP 2nd pillar. A short description of the strategic elements is provided in the following (for more details see Deliverables D5.5 and D4.5). 4.3.1. Technology Technological developments are important for supporting sustainable European agriculture, which is facing a broad range of challenges like globalization, energy shortage and climate change (see D4.5). Moreover, they are also important for Europe’s farming, agri-food and forestry sectors (see D4.5), which, by means of 41 technological innovations, can further develop high quality and value added products that meet the diverse and growing demand of European consumers and world markets (COM, 2005). In AG2020, technologies are considered as to their relevance for both the agricultural sector, e.g. technologies relating to primary production and processing; but also for other fields in rural regions, e.g. firms’ organization, service sector. These technologies are presented in the following: Technologies relevant to the agricultural sector can be (see D4.5): 9 Generic technologies: based on the raw material (of biological/organic origin: Biotechnology); the methodology (Information and Communication Technology ICTs); and the scale (engineering materials and substances of size below 100 nm (= 107 m): Nanotechnology). More specifically they can be distinguished into: - Biotechnology - Information and Communication Technologies (ICTs) - Nanotechnology 9 Specific technologies, grouped into five categories of applications, namely: - primary agricultural production; - processing for consumption (food and feed); - processing for pharmaceuticals and biochemicals; - processing for materials; and - processing for bioenergy. For more detailed description on the above mentioned technologies, (see D4.5, D5.5 and Giaoutzi and Stratigea, 2009b). 4.3.2. Decoupling In this section is discussed the contribution of decoupling on each of the key elements (areas of change) considered in AG2020. More specifically it is presented the role of decoupling in supporting changes in key elements in AG2020. The nature of decoupling in each key element, as considered in AG2020, is presented in the following (Giaoutzi and Stratigea, 2009b; Van Leeuwen et al, 2009): 9 Bio-based economy Agriculture is at the core of the transformation of rural economies into bio-based economies by providing raw materials for commodity production but also food and feed that are even more nutritious and safe. Decoupling in the context of affecting bio-based economy can be expressed as (Giaoutzi and Stratigea, 2009b): - decoupling of agricultural production from environmental impact through (e.g. organic farming), as environmental quality plays a critical role in bio-based economies; and 42 - decoupling of rural development from agri-food production, as other important sectors are developed in bio-based economies (e.g. the energy sector, the tourism sector). 9 Regulated agricultural factor markets Key issue, in this respect, is considered the decoupling of agricultural production from intensive use of resources (land, water, energy etc.), supporting a less resourceintensive or more environmentally-friendly pattern of agri-food production (Giaoutzi and Stratigea, 2009b). 9 Rural development Rural development nowadays has a much broader meaning than agricultural development, especially in the developed countries (AGRIBLUE, 2004; OECD, 2005a, 2005b; OECD, 2006; Giaoutzi et al, 2006, Pizzoli and Gong, 2007; Bollman, 2007; Giaoutzi et al, 2008; Stratigea, 2010). According to Bruckmeier and Tovey (2009), rural development, has to be approached in a way integrating its social dimension, as a creator of sustainable livelihoods; its economic dimension as a redistributor of economic and other resources to enable a socially inclusive development process; and its environmental dimension, as a navigator of the link between society and ecosystems. In the present section, is used as (Giaoutzi and Stratigea, 2009b): - decoupling rural development from the agricultural sector, based on a multisectoral approach of rural development that aims at a sustainable use of all available resources; and - decoupling agricultural production from environmental degradation, supporting a more environmentally-friendly approach to the development of the agricultural sector. 9 Integration into agri-food markets In this part it is considered the role of decoupling on the integration of the sector into the agri-food markets. This can be grasped as decoupling integration into agri-food markets from subsidies (Giaoutzi and Stratigea, 2009b). 9 Energy production Energy production and more specifically biofuels’ production, is an issue at stake in many rural regions of the European territory and at the same time a very promising sector for the development of these regions. Biofuels’ production is based on various types of biomass sources namely (EC, 2006): food-type feedstock; residues or waste of current agriculture or forestry and industry; and dedicated energy crops, specifically grown for biofuels’ production. Decoupling in energy production can be used along the following lines, reflecting also the general skepticism on the issue (Giaoutzi and Stratigea, 2009b): - Decoupling agri-food production from biofuels’ production that involves competition for land between agri-food and biomass-biofuels’ production. 43 - Decoupling bio-energy production from environmental harm that deals with the environmental burden placed by dedicated energy crops. 9 Food quality and safety Decoupling for reaching food quality and safety is pursued by decoupling the production of qualitative and safe food from the environmental degradation. Of importance in this respect are organic farming, low-input agriculture and the promotion of agri-forestry systems (Giaoutzi and Stratigea, 2009b). 9 CAP 1st pillar Decoupling is used here as (Giaoutzi and Stratigea, 2009b): - decoupling direct payments to farmers from volume of agri-production; and - decoupling agri-food production from environmental harm. 9 CAP 2nd pillar In this context, decoupling is used as follows (Giaoutzi and Stratigea, 2009b): - Decoupling of rural development from the agricultural sector, and - Decoupling of agricultural production from environmental impacts (agrienvironmental measures supported under the CAP 2nd pillar). 4.4. Images of the Future in AG2020 The Images of the Future were constructed by combining contextual and strategic elements in the form of a matrix (see Table 4-1 below), which results in nine combinations of possible Images of the Future (Giaoutzi et al, 2008c; 2008e). Table 4-1: Strategic and contextual elements for building blocks of images in AG2020 Strategic Elements Contextual elements Technology +++ Decoupling + Technology ++ Decoupling ++ Technology + Decoupling +++ Top-down T1 TD1 D1 Combined T2 TD2 D2 Bottom-up T3 TD3 D3 The resulting Images had a great degree of overlapping. Among them, three were selected representing, as distinctly as possible, settings and futures of agricultural development in Europe for the year 2020. In order to identify the most desired and plausible options of Images, two types of assessments were carried out: 44 - In the first type was assessed the relative importance of each objective in each of the nine images (see Table 4-1 above); and - In the second, the combination of the strategic and contextual elements in each image. Table 4-2 below shows the values assigned, in a scale from one to three (3 is of highest importance), to each objective, for each possible Image of the Future. This is exhibiting the importance of each objective in each specific image. Each objective received 18 points in total and each set of images with the same strategic elements (T1-3, TD1-3 and D1-3) received 36 points. However a different number of points can be assigned for different policy contexts. Table 4-2: Relative importance of objectives in each of the images Images T1 T2 T3 TD1 TD2 TD3 D1 D2 D3 1 2 1 2 2 2 3 3 2 3 3 3 2 2 2 1 1 1 1 2 2 2 2 2 3 2 2 1 2 1 2 2 1 3 3 3 2 3 3 2 2 2 2 3 2 3 1 2 2 1 2 1 2 1 Sum Objectives Environment Economic efficiency Regional development Social cohesion Food quality and safety Energy 18 18 18 18 18 18 When the focus is on local and regional initiatives e.g. the ‘bottom-up’ context, it can be expected that objectives such as regional development are of higher importance. On the other hand, in a “top-down” context, the case of a bio-based economy will have an advantageous position, since measures developed on a comparative advantage base will be easily promoted, for example, for bio-mass production. The combined context (“bottom-up” vs “top-down”) had insights on both local and supranational levels. The food quality and safety objective, in this context, was best served, because they were present: the pressure from local organizations but also from the national and EU governments. In the case of a balanced strategy of fast technological development and a considerable degree of decoupling, great possibilities appeared for all the objectives. When there is emphasis on technological improvements and the level of decoupling is low, a strong focus on economic efficiency is assumed. As a result, it becomes relatively easy to increase food traceability and to monitor food quality. Bio-based economy could also develop for the same reasons. Figure 4-2 below visualizes the values of Table 4-2, according to the contextual alternatives: “top-down”, “combined” and “bottom-up” (Giaoutzi et al, 2008c). Figure 4-2 shows the relatively strong focus of the T images on economic efficiency, and to a lesser extent on energy and food quality. Also the clear focus of the D images is on the environment, social cohesion and to a lesser extent on regional development, while the emphasis of the TD images on energy becomes apparent. 45 In summary, three Images of the Future are selected for investigation, which are shown in Table 4-3 below. In the first column (Table 4-3), the emphasis is on technological improvement rather than on decoupling. The general strategy emphasises a fast technological evolution and dissemination, while the degree of decoupling is low. Option T1 seems to require global cooperation on such issues as regulation of CO2 emissions. Option T3 lacks international agreements in this area, and appears as not prevailing. Option T2 would be possible, but here the conditions are similar, as in scenario TD2 in column 2 therefore could be better handled in the TD2 context. Consequently, image T1 has been chosen as the most internally coherent case in the first column (Image I). Fig. 4-2: The three AG2020 Images of the Future In the second column (Table 4-3) all images exhibit a balanced strategy of fast technological development and a considerable degree of decoupling. However, in TD3 the conditions for really fast technological improvements are not so favourable, while in TD1 the popular engagement, which seems to be necessary for a far reaching decoupling, is not present. Both conditions are fulfilled best in the case TD2, and this is the choice from column 2 (Image II). 46 Table 4-3: Three selected Images of the Future Source: Giaoutzi et al, 2008c Strategic Elements Contextual elements Technology +++ Decoupling + Technology ++ Decoupling ++ Technology + Decoupling +++ Top-down T1 TD1 D1 Combined T2 TD2 D2 Bottom-up T3 TD3 D3 In the third column (Table 4-3), the emphasis is on decoupling rather than on technological improvement. Radical decoupling demands behavioural changes, which in turn requires ‘grassroots’ involvement and commitment. This is prevalent in D3, but not so much in D1. Whenever there is cooperation among all levels, a balanced strategy (TD2) would seem to be preferable to image D2. Hence, the choice from this column is D3 (Image III). As a next step appropriate titles were given to the above images. More precisely (Giaoutzi et al, 2008c): The title of the first selected T1 image is “High-tech Europe: Global Cooperation for Sustainable Agriculture”, where science and technology is of utmost importance, together with a focus on “top-down” initiatives. The title of the second selected TD2 image is ‘In search of Balance: Accord on Sustainability’, where a “combined approach” is related to medium technology and medium decoupling, and the focus is on economy and energy. The title of the third selected Image D3 is “Active Regions and Reflexive Lifestyles”, with a strong decoupling and a “bottom-up” approach. Here emphasis is placed on behavioural change, while involves strong public participation. In the following, a short description of the three AG2020 Images for the future is presented. 47 Image I: ‘High-tech Europe: Global Cooperation for Sustainable Agriculture’ (“Top-down” approach) Europe is politically and economically the strongest block in the world, playing a leading role in climate change policy. Europe is rich; its wealth is mainly based on its leading role in the High-Tech sector. The EU is a very strong and cohesive institution, while the national member states have lost part of their influence. EU has developed strong partnerships with other global players as India, Russia, China, Brazil, etc., while multilateral institutions (UNO, WTO) are rather weak, with a fragmentation in the rest of the world. GDP growth is high (around 2.3 % at EU average) and large investments in science and research activities are being realised. In particular, clean energy technologies are of utmost importance for the European wealth, with efficient and CO2-lean energy technologies being the basic pillar of economic growth. At the same time, EU policy strongly promotes energy efficiency and renewables for climate change, energy security and economic competition. The population is slightly growing. Standards of living are comparatively homogeneous throughout Europe at a high level. Lifestyles are consumption-oriented exhibiting a high degree of trust in technology. Cheap mass products are quite popular and there is a focus on status symbols and brands. The international lifestyle has gained strength. Prices are playing an important role in consumption patterns, while there is a preference for convenience, functional, ethno and fast food, with emphasis on out-of-home consumption. ICTs dominate in international relations. The development and adoption of ICTs has contributed to the strong networking and cooperation among EU businesses and citizens, which brings the various actors closer and diffuses knowledge and information throughout the whole EU territory. In this context, agri and food sectors are intensive users of high tech (precision farming, biotechnology, GMO, traceability – labelling), which results into an increased efficiency of the sector. Adoption of technological advances has remarkable consequences for food quality, meeting thus the increasing demand of customers for qualitative and nutritive products. Intensive use of technology has increased efficiency in the agricultural sector, with strong market orientation. As a result, support to farmers is phased-out. More precisely, CAP (1st pillar) places emphasis on efficiency in agricultural production, enforcing measures for phasing out support to farmers, while, in the second pillar of the CAP, the core of the EU measures focus on the support for investments in new technologies. The energy sector is setting high blending targets of biofuels, placing emphasis on the 2nd generation of biofuels and the enhanced use of biomass (energy crops or exploitation of agricultural waste), by means of technological advances, although no mandatory targets exist. There is a high degree of integration of agri-food systems in the international markets, where trade liberalisation is based on bilateral agreements. There is a low regulatory framework in agricultural factor markets. WTO is far less powerful and ineffective due to a fragmented world, where there is no enhancement of multilaterally agreed international rules. Green issues are not pushed by a broad support, while public participation is led by centralized initiatives (national and EU). It is rather the politicians trying to find solutions at the EU and global level. Nevertheless, there is some degree of green consciousness and an acceptance of policy measures intended to mitigate the environmental problems. Low emphasis is placed on regionally targeted policies to protect flora and fauna. 48 Image II: In Search of Balance: Accord on Sustainability (“Combined” approach) A balance of power has been reached between local, regional and supranational initiatives and objectives, a kind of harmony between “bottom-up” and “top-down” politics. The overarching political structures of Europe are powerful due to consensus among economic leading powers of the world on global issues, such as environment and energy. A kind of balance of power has evolved based on strong public involvement in local and regional affairs. Strong local identity and regional/national governments have emerged. A more passive support has also evolved for EU coordination and policies on high level issues. EU is a network of European nations closely cooperating and does not exert political enforcement. Strong multilateral institutions and governance (WTO, UNFCCC) with consensus on international regulations to combat climate change has also emerged. Finally there is strong public participation at all levels of governance and decision making. GDP growth is moderate (around 1.9 % at EU average). International division of labour is medium. Considerable technological progress is triggered by focussed technological developments. Energy production, with emphasis placed on the development of bio-based economy, creates a balanced supply. The population is slightly increasing due to regulated migration to and from other parts of the world, taking into account market and societal needs. A cooperation spirit permeates all levels of interaction among individuals, locally, regionally, at national and EU levels as well as globally. Though some political problems are still difficult to handle, there is a respect for other parties’ interests and a willingness to find win-win solutions. There is a strong support for the principle of subsidiarity due to the high level of interest and initiatives in societal matters by the general public. Social stratification is balanced, despite the continuing heterogeneity with very rich and very poor people living in Europe. Green values are widespread with both local and international lifestyles, while food preferences appear to be mixed, ranging from local to international. ICTs play an important role in everyday life and facilitate mobility. It also contributes to the quality in production, communication and mobility. The agri-food sector is exhibiting a continuous trend in technological cost-saving progress, traceability and monitored labelling. There is an enhanced use of biotechnology and GMO. There is a medium focus on food quality, expected throughout the whole range of preferred food products (regional, international food) and a strong belief in labelling. There is a sufficient mass of public investments in bioenergy and biomaterials (bio-based economies). Balance between regional and international agri-food markets. There is a continued CAP (1st pillar) reform process and an increase in modulation of direct payments. There is also a continuation of current policy in CAP 2nd pillar and an increase in transfer of funds from the 1st pillar. Agriculture regains importance for the development of rural regions due to the increasing production of renewable resources, e.g. biofuels, and rural development is supported by appropriate policy measures. There is a high mandatory blending target of biofuels, with special emphasis on the 2nd generation of biofuels. Main aim of WTO is the enhancement of international rules contributing to the exchange of knowledge and free trade. Therefore, strong WTO and other international organizations are enforcing international regulations on standards. There is a medium level of regulatory framework in the agriculture factor market, based on international rules. Finally, there is moderate emphasis on regionally targeted policies to maintain protected flora and fauna. 49 Image III: Active Regions and Reflexive Lifestyles (“Bottom-up” approach) Policies are mainly driven by local and regional initiatives. Local and regional aspects are high on the political agenda, while global environmental issues are more down on the list. Strong public participation, especially led by community initiatives and regional decision making has emerged. EU, China, Japan and other global players take different stands on key environmental issues and protect their markets against competition from outside. Strong regions/nations exist at the expense of strong multinational institutions. It’s more US or EU or Japan first to protect nature and markets but w/o multinational coordination. At the global level no agreement on harmonizing standards is achieved. GDP grows at a moderate pace (around 1.9 %), and has a high potential, but green GDP develops faster. There is a medium degree of international division of labour and a tendency to export knowledge instead of goods (dematerialization). A tax base reform (in line with the dematerialization strategy) has taken place in the EU countries, shifting taxation from labour to the use of natural resources and energy, with the aim to stimulate conservation of resources. This in parallel with green demand, have made producing firms to reduce their use of energy, materials and hazardous substances. Overall demand is affected and people are willing to pay for greener products as well as for locally produced goods. Production is more local and mainly serves local markets, but is based on licences and the know-how of the big international firms and networks (global production). There is also an increasing share of the service sector, with traditional manufacturing industry showing a declining share of total production. Population is slightly decreasing; people live longer; migration to and from other parts of the world is hampered by legal and social barriers. Settlement patterns and location of workplace and service functions are also affected. Many urban sub-centres have developed to a higher degree of self sufficiency and city centres are being re-urbanized People are pushing the politicians to adopt stricter environmental regulations and standards, especially at the local level (urban areas). There has been a trend towards more ‘local life-styles’ and widespread green values among the general public. People increasingly take responsibility for the common goods, and attitudes towards collective actions are positive, especially at the local and regional levels. Reflexive slow lifestyle; slow food; slow travelling are established. Green values are pushed by grassroots movements rather than by national or EU politicians, who lag behind but try to meet the demand of the people. A high awareness of consumers for regionally produced food is developing and organic farming – ethno food is important. There is strong focus on quality of life, health, well being, recreation, safety and on different routes to achieve these goals. Counter-movements emerge, relating to stress - dominated life styles in the beginning of the century. There is a critical view on technologies. There is strong networking and cooperation with emphasis on green activities. Increased accessibility in ICTs networks is pursued to reduce mobility, while there is a certain preference for cyber and virtual applications There appears a decreased need for transport of agricultural products and inputs. Technological progress is oriented towards food quality (e.g. nanotechnology) and improving regional products. There is a low use of biotechnology and no GMO is allowed. Low technological developments make it difficult to produce for example enough food and biomass at the same time. Local investments are directed in low-tech bio-energy and biomaterials (local bio-based economies). There is high focus on food quality, especially in terms of green and cultural values. Local and organic food is therefore preferred. 50 There is continuation of the current CAP, although payments are more coupled to land use and environmental issues. There is strong support to organic farming. There is an increase in support to rural development policies and also support to regional and local networking. Programmes are directed to small scale farmers to enhance social cohesion. The current mandatory blending of targets of biofuels continues, based on EU regional production. There is a low level of integration into the international markets with strong emphasis on quality criteria (tracing, labelling). Multilateral institutions are weak. Main aim of WTO is the watching of how consensus for multilateral rules can be reached. National regulations on food, health, environment and labour standards dominate in the international markets. There exists a strong regulation in agricultural factor markets, with quantitative restrictions (e.g. quota) and strong emphasis on regionally targeted policies to maintain flora and fauna. Rural population is working mainly on tourism, gastronomy, etc. Rural areas are specialized in “regionality” (e.g. providing offers for tourists looking for traditional landscape and regional events; producing regional food specialities). Rural areas are also serving as residential areas, as people like living in rural areas (recreation, safety, counter-movement to an otherwise stress-dominated lifestyle). Sustainable rural development is feasible due to a strong regional and “green” focus of consumers and producers. 4.5. Comparison of the Images of the Future In the present section, a comparison among the three AG2020 Images of the Future takes place, as follows (see Giaoutzi et al, 2008f, D5.3; and Giaoutzi and Stratigea, 2009b, D5.5): In the first step, the three Images are compared on the basis of different criteria, such as level of “cooperation”; type of approach (e.g. “top down” or “bottom up”) etc. (see Table 4-4 below). Through such a comparison can be seen the distinct differences among the three Images in respect to the selected criteria. In the second step, the three Images are compared as to their performance towards the targets’ achievement (see Table 4-5 below). More precisely, the above steps are described as follows (see Giaoutzi et al, 2008f, D5.3; Giaoutzi and Stratigea, 2009b, D5.5). 4.5.1. First step – Comparison among images In this step, the AG2020 Images of the Future are compared on the basis of a set of criteria, such as “level of cooperation”; importance of technology in target achievement; nature and extent of decoupling, etc. (see Table 4-4 below). In Table 4-4 below can be seen the output of comparisons among the images as to the above criteria (Giaoutzi and Stratigea, 2009b, D5.5): 51 Table 4-4: Comparison of the AG2020 Images of the Future Source: Giaoutzi and Stratigea, 2009b, D5.5 Three Images for 2020 Image I Image II Image III High-tech Europe: Global Cooperation for Sustainable Agriculture (Top-down Approach) In Search of Balance: Accord on Sustainability (Combined Approach) Active Regions and Reflexive Lifestyles Science and Technology Economics and Energy Behaviour Global (Top-down) +20 % compared to baseline Local – Global (combined) Same as baseline Local (Bottom-up) -20% compared to baseline (implies high growth in the sector) (Low growth) High level of biotechnology adoption/use (Medium growth focus technological costsaving progress) High level of biotechnology adoption/use GMO allowed Full liberalization until 2020 Same as baseline GDP growth rate 2.0% (same as baseline) GMO allowed Continuation of current policy trends Same as baseline GDP growth rate 1.7% (15% relative to baseline) GMO not allowed Constant in current terms Medium level High level High level Global orientation Mixed orientation (Global and Local) Local orientation International Emphasis on nutrition Mixed Emphasis on labeling No mandatory targets Very advanced energy production technologies High focus on efficiency High level of integration High mandatory blending targets Local Emphasis on green and regional food Current mandatory blending targets Balance between regional – global Low level of integration Constant in current terms Low WTO agreement on multilateral trade liberalization Medium Low Medium High Low Low Medium High High High Images Set of criteria Level of cooperation Level of technological advances Adoption/use of biotechnology (Bottom-up Approach) Low level of biotechnology adoption/use Allowance of GMO Level of CAP support Population growth Rate of GDP 11 Growth Level of environmental consciousness Market orientation of the EU agriproduction system Life-style patterns Food preferences Energy production Integration into global agri-food markets Trade policies Regulated factor markets (land, labour, water) Regionally targeted policies Rural development Public participation Bilateral trade agreements outside WTO Same as baseline GDP growth rate 1.7% (15% relative to baseline) 11 GDP annual growth rates 2007-20: EU27 +2.2%, EU15 +2.1%, EU12 +4.4% 52 High - Level of cooperation - Images range from global cooperation (top-down approach in Image I), to local (bottom-up approach in Image III), with Image II laying in the middle, with a mixed top-down and bottom-up approach. - Level of technological advances compared to the baseline (see D3.1), where Image I shows 20% more advanced, Image II same as in baseline scenario, while Image III 20% lower than baseline. - Adoption of biotechnology and allowance of GMO: shows a high level of adoption in Images I and II while GMOs are allowed. In Image III, on the other hand, there is a low level of biotechnology adoption, and GMOs are not allowed. - The level of CAP support: it is assumed, in Image I a full liberalization until 2020; in Image II a continuation of current policy trends, while in Image III CAP is considered as constant in current terms (baseline). - Population growth: is considered as being the same as in baseline for all Images. - Rate of GDP growth: is considered 2% in Image I (same as in baseline), and for Images II and III respectively, a growth rate of 1.7%. - Level of environmental consciousness in the population: in Image I is considered of medium level, while in Images II and III of high level. - The orientation of the EU agri-production system: it ranges from global, in Image I, to local in Image III, of a mixed orientation pattern (both global and local) in Image II. - Life-style patterns: they range from international in Image I to local in Image III, with Image II is standing in the middle i.e. both international and local life style patterns are present. - Food preferences (quality): these are different in the three Images, based on where the emphasis is placed. In Image I the emphasis is on nutrition, in Image II on safety of food and labeling, while in Image III on food quality (organic food at the forefront). - Energy production: Image I assumes no mandatory targets, but very advanced energy production technologies and high focus on energy efficiency; Image II high mandatory targets of biofuels; while Image III maintains the present mandatory targets of biofuels. - Integration of the EU agricultural production into the global agri-food markets: the Images range from high integration into the global markets – Image I – to low in Image III, while Image II keeps a balance between global and regional markets. - Trade policies: in Image I bilateral trade agreements outside WTO prevail; while in Image II a WTO agreement on multilateral trade liberalization; and finally in Image III policies are considered as remaining constant, following current terms (baseline). 53 - Regulation of factor markets (land, water): images range from a low regulation regime in Image I to a high regulation regime in Image III, with Image II standing in the middle i.e. medium regulation regime. - Regionally targeted policies: they range from low focus in Image I, medium in Image II and high in Image III. - Rural development: low pace of rural development in Image I, due to the increasing inequality between accessible and less accessible regions and the lack of appropriate regional policies; medium pace of rural development in Image II, based on increasing multifunctionality levels in rural regions (bio-based economy) and the enforcement of rural development policies; and high pace of rural development in Image III, based on the high level of multifunctionality (rural regions as hubs of high quality of living, recreation, culture, etc.). - Public participation: a low level of public participation is exhibited in Image I, while in Images II and III, public participation is further motivated. The above results (see Table 4-4 above) appear mostly on a qualitative scale. These need to be enriched with a number of quantitative variables provided by the baseline (D3.1). These outline a draft indication of the expected changes and the relative importance of a broad range of policy factors. It is worth noticing though that the range of options available, could potentially contribute directly but also indirectly to the achievement of sustainable agriculture. 4.5.2. Second step – Target achievement At this stage it is of importance to assess both the effectiveness of the proposed Images of the Future in reaching the AG2020 targets, but also the level of policy efforts that have to be undertaken for fulfilling these targets. In the following table (Table 4-5 below) can be seen the level of targets’ achievement in each of the three Images of the Future (Giaoutzi and Stratigea, 2009b, D5.5). Table 4-5: Summary of the performance of Images as to the targets’ achievement by 2020 Source: Giaoutzi and Stratigea, 2009b, D5.5 AG2020 Targets CO2 : -20% High rate of halting biodiversity by 2020 Strong competitiveness – efficiency in the agri-sector Strong emphasis in multifunctionality High rate in food and feed traceability Criterion Direction of criterion Image I Image II Image III Minimize N2O emissions (in CO2 equivalent) Cost (-) ++ ++ +++ Minimize the loss of biodiversity Benefit (+) + ++ +++ Increase productivity in the agri-sector Benefit (+) +++ ++ ++ Benefit (+) + ++ +++ Benefit (+) +++ ++ +++ Increase interaction between the different sectors Enhancement of integrated quality control 54 AG2020 Targets Criterion 10% biofuels share in EU road transport fuel consumption Maximize the rate of change for biofuels’ share 7% biomass use in electricity Maximize the rate of change for biomass use in electricity 10% bio-chemicals Maximize the rate of change for bio-chemicals Direction of criterion Image I Image II Image III Benefit (+) ++ +++ ++ Benefit (+) +++ +++ ++ Benefit (+) + +++ ++ Direction of criterion: (+): the higher the better (-): the less the better Qualitative grades refer to +: low level, ++: medium level and +++: high level of performance Note: the above estimations are the outcome of the 2nd Athens validation workshop Athens 25 February, 2009 (converging opinions among experts). In the following, a qualitative description of the performance of each Image in respect to the AG2020 targets is presented (Giaoutzi and Stratigea, 2009b, D5.5). - Target 1 - Minimize N2O emissions In respect to the first target (N2O emissions in CO2 equivalent), Image III seems to perform best (+++) than the other two Images [Image I (++) and Image II (++) respectively], namely: In Image III the emphasis is placed on crop and livestock management (AG2020, D4.2b), which has the largest performance in respect to the N2O emissions (less emissions) in combination with the restoration of native ecosystems on currently cultivated organic soils and the restoration of all degraded lands. Image I shows a medium performance (++), based on technological improvements of fertilizers (both mineral and organic), while the same holds for Image II (++) based on energy crops (D4.2b; Smith et al, 2007). - Target 2 - High rate of halting biodiversity by 2020 As to the second target, Image III performs best (+++), followed by Image II (++) and finally Image I (+). In Image III, the expansion of organic farming, as an environmentally friendly farming practise, has shown positive signs towards biodiversity protection. Moreover, mixed farming and livestock production of smaller scale that are supported in Image III, strengthen the presence of more species in the landscape compared to the intensive plant production with lower diversity structure (Di Giulio et al, 2001), favoring thus the protection of biodiversity. At the same time, environment in general has a high priority in Image III, implying a more thoughtful attitude and behaviour of both farmers and population that enhances the potential of protection of habitats and rare ecosystems. 55 Image I, on the other end, is characterized by the intensification of agricultural land, land use changes as well as partial farmland abandonment (less land more intensively used). Intensification of agricultural land based on the extensive use of fertilizers, pesticides, additives etc. as a farming practice presents severe harms to biodiversity. Moreover, large scale farming, seeking for increasing efficiency, limits the rural patchwork, which has proven to be vital for biodiversity protection. Even though the intensification of agriculture leaves more land for nature (through farmland abandonment), the impact of intensified production on overall biodiversity is generally negative. At the same time, land abandonment and change of land uses, in Image I, has further enhanced a considerable change of farmland and landscape, reinforcing thus biodiversity loss. This is mainly due to expanding infrastructure, urbanization etc. in the high-tech society of Image I, combined with the medium priority attached to the environmental issues, Finally, Image II is placed between Images I and III, based on the high value attached to the environment and the mixed orientation of agricultural production (global and local), which gives space for organic farming as well, and leaves more ‘room’ for biodiversity protection. - Target 3 - Strong competitiveness – efficiency in the agri-sector As to the competitiveness - efficiency target in the agricultural sector, Image I has the highest performance (+++) based on an industrialized, highly mechanized and technology-intensive agricultural sector; increasing inputs of chemical origin; fertilizers and pesticides; and more recently on the development of GMOs. All the above are driven by a permanent search for technological improvement and economic profitability. Image II rates second (++), based on a continuous progress in technological cost saving advancements, as well as the enhanced use of biotechnology and GMOs. Image III (++) performs at the same level as Image II (second) in terms of efficiency – competitiveness of the agri-sector, as the technology used is mostly food quality oriented. This aims at gaining the competitive advantage of qualitative production (differentiation), versus lower cost (cost competitive). Moreover, in Image III (++) the agri-sector gains in competitiveness due to the lower energy costs of shorter supply chains and local production over the high energy costs involved in industrialized longer agri-food chains (FFRAF Report, 2007). - Target 4 - Strong emphasis in multifunctionality The target of increasing multifunctionality finds Image III to perform best (+++), followed by Image II (++), while Image I (+) keeps the lowest place. Rural areas in Image III are developing as hubs of agricultural production, bioproduction of local scale, manufacturing, tourism, culture, traditional cuisine, worth living areas based on the quality of their assets etc. Image II keeps the second place as to the multifunctionality target, based on the development of the bio-based economy. A certain diversification of the use of 56 agricultural land is present, aiming at the production of a larger scale of bioenergy and biomaterials. Image I performs worst than Images II and III, focusing only on the intensive cultivation of land for biofuels’ production. - Target 5 - High rate in food and feed traceability In respect to the target of heightening the rate of food and feed traceability, Image I is rating first (+++), together with Image III (+++), while Image II follows (++). Technology and ICTs are of extreme support for introducing traceability in Image I (+++), providing the potential for various traceability applications, both at the farm level but also along the chain of agri-food processing. Image III is performing also very well (+++), based on traceability of the organic production, but also on other types of labelled food e.g. Products of Designated Origin (PDO), Protected Geographical Indication (PGI) and Traditional Speciality Guaranteed products (TSG) of rural regions. Moreover, in this Image is produced a range of environmentally-friendly products, including non-food products, labelled by the eco-label (EU, 1992) as products with a reduced environmental impact. Image II performs also well (++), mostly based on a strong belief in labeling, driving traceability activities of food and feed. Nevertheless, as progress in technology is rated lower than in Image I and focus on green values is also lower than Image III, Image II is rated lower than Images I and III. - Target 6 - Biofuels’ production Image II (+++) performs best than the rest, based on the focused technological developments on energy production and the development of a bio-based economy; the public investments in bioenergy and biomaterials that are supporting efforts in the field; and the high mandatory blending targets in force in this Image. Image I (++) performs quite well, based on the application of innovative biomass crop systems from dedicated bioenergy crops, agri-forestry residues and waste, and forest growth. Image III (++) performs also well, as high diversity of plant species, present in this Image (small scale diversified production), can be the best source of biomass for the production of biofuels (Tilman et al, 2006). - Target 7 - Maximize rate of change for biomass use in electricity Concerning this target, Image I (+++) is ranking highest in performance, as technology provides solutions to cost-effective forms of electricity generation from biomass, serving also environmental purposes, as biomass in electricity has the greatest greenhouse gas benefits. Moreover innovative biomass crop systems, waste management techniques, etc. are valuable tools in Image I by use of developments in technology. 57 Image II is ranking also at the highest rank (+++), as progress in this Image is triggered by technological developments placing emphasis on energy production and the development of the bio-based economy. On the other hand, public investments and policies implemented in Image II, together with lower labour costs in rural regions and high resource availability (biomass), support the production of biomass for use in electricity production. Finally, Image III (++) shows a relatively lower performance, motivated by green values driving this image and the increasing awareness of local population on the environmentally friendly production of electricity from biomass. - Target 8 - Maximize rate of change for bio-chemicals The present target refers to the production of bio-chemicals from biomass processing. Image II is best performing (+++) in respect to the rest of the two Images, due to the emphasis placed on public investments on bio-materials (bio-based economy). At a lower level rates Image III (++), where local investments are directed to the production of bio-materials (local bio-based economy), while Image I rates at the lowest level (+) in respect to the rest of the two images. 4.6. Identification of the Gap between Baseline Scenario and the Images At this level, the performance of the Images is compared to that of the baseline scenario, where the gap between the baseline projection and target achievement for each image is identified. This potentially may drive the selection of the appropriate policies that are needed to bridge this gap (Tables 9-7, 9-8 and 9-9 for Images I, II and III respectively) (Giaoutzi and Stratigea, 2009b, D5.5). 4.6.1. The baseline scenario In the following, a summary of the baseline assumptions is provided (Table 4-6 below). Table 4-6: Assumptions on agricultural policy development in the baseline scenario Source: Banse et al, 2008, D3.1 Topic Assumption Market Policies Intervention ‐ ‐ ‐ Regulations for quota products (milk, sugar) Changes in consumption subsidies (skimmed milk powder (SMP), butter) Changes in biofuels’ policies ‐ ‐ ‐ ‐ ‐ Current system of intervention prices Exclusion of maize from intervention in 2009 Adjustment of intervention prices to balance markets where necessary in order to comply with WTO restrictions on export subsidies Reform of the sugar MO Maintenance of quotas Withdrawal of consumption subsidies Withdrawal of SMP feed subsidy Extension of the area eligible for crop premium to 2 million ha (including the NMS) 58 ‐ Human demand shifters set such as to reach a biofuels’ share of 5.75% in total EU fuel consumption by 2010 ‐ ‐ ‐ No changes in current levels No changes in current levels Constant level of current TRQs, no new TRQ Trade Policies Tariffs Export subsidies TRQs Direct Payments Development of direct payments Modulation rate Distribution of funds from modulation Decoupling of direct payments Application of the Single Farm Payment in EU-12 Obligatory set aside rates ‐ ‐ ‐ ‐ ‐ ‐ ‐ SAPS and SFP per ha payments constant in nominal terms (deflated by EU inflation rate) 5% 80% within the MS 20% reallocation among MS Partially coupling of direct payments in various member states unchanged until 2020 Prolongation of the SAPS system until 2011 as recently decided by the Council Set-aside rate of 0% decided in 2008 is set back to 5% after 2008 and kept constant until 2020 4.6.2. Comparison between Image I to the baseline scenario In Table 4-7 below, it is presented the comparison between Image I and the baseline scenario. This may reveal the gap that needs to be bridged within Image I, for the period 2007-2020, as to the AG2020 targets (Giaoutzi and Stratigea, 2009b, D5.5). Table 4-7: Gap identified between baseline scenario and Image I Source: Further elaboration of D3.1 results AG2020 Targets Criterion CO2 : -20% Minimize N2O emissions (in CO2 equivalent) High rate of halting biodiversity by 2020 Loss of biodiversity Indicator Direction of Baseline criterion (2007-2020) Nitrate surplus per hectare Cost (-) Share of organic farming Benefit (+) Land use change – loss of agri-land Strong competitiveness – efficiency of the agrisector Volume of production in the agri-sector Productivity in / Employment the agri-sector Structure of agri-food value added (labour, capital, land) Strong emphasis in multifunctionality Interactions between different agrirural sectors Level of multifunctionality Cost (-) Benefit (+) Benefit (+) Benefit (+) 59 Slight decline in N2O emissions Constant share in organic farming Constant rate in decline of agric. land for non-agric. purposes Medium growth rate of agric. productivity Constant decline in agric. Employment No change in level of multifunctionality Image I Gap Lower N2O emissions Lower Slight increase in organic farming Higher rate in decline of agric. land for non-agric. purposes Lower Higher Strong growth rate of agric. productivity Lower Strong decline in agric. Employment Higher Decline in level of multifunctionality due to specialization in agric. Higher AG2020 Targets High rate in food and feed traceability Criterion Indicator Direction of Baseline criterion (2007-2020) Integrated quality control Share of products labelled with national or European quality labels No ‘additional‘ initiative to raise traceability Benefit (+) 10% biofuels share in EU Maximize rate road transport of change for fuel consum- biofuels’ share ption Share of agricultural area used for bio-fuel crops Benefit (+) 7% biomass use in electricity Optimize rate of change for biomass use in electricity Share of biomass used for bioelectricity Benefit (+) 10% chemicals Optimize rate of change for chemicals Share of biomass used for biochemicals Benefit (+) Image I Gap Improvement in traceability due to technical innovations Lower Strong increase due to Less land used implementatio for transportan of the EUtion fuel due to abolition of Renewable Energy binding mandates Directive (RED) Lower rate in land use for bio-electricity Increase due to due to RED abolition of binding mandates Slight increase in biomass Moderate increase due to utilization of biomass for development of bio-based chemicals due to technol. economy innovations Higher Higher Lower 4.6.3. Comparison of Image II to the baseline scenario Table 4-8 below presents the comparison between Image II and the baseline scenario. This may reveal the gap that needs to be bridged within Image II, for the period 20072020, as to the AG2020 targets (Table 4-8) (Giaoutzi and Stratigea, 2009b, D5.5). Table 4-8: Gap identified between baseline scenario and Image II Source: Further elaboration of D3.1 results AG2020 Targets CO2 : -20% High rate of halting biodiversity by 2020 Strong competitiveness – efficiency of the agri-sector Criterion Minimize N2O emissions (in CO2 equivalent) Loss of biodiversity Indicator Direction Baseline of criterion (2007-2020) Nitrate surplus per hectare Cost (-) Share of organic farming Benefit (+) Land use change – loss of agri-land Volume of production in the agri-sector Productivity in / Employment the agri-sector Structure of agri-food value added (labour, capital, land) Cost (-) Benefit (+) Benefit (+) 60 Slight decline in N2O emissions Constant share in organic farming Constant rate in decline of agric. land for nonagricultural purposes Medium growth rate of agricultural productivity Constant decline in agricultural employment Image II Gap Lower N2O emissions Lower Constant share in organic farming - Lower rate in decline of agric. land for non-agric. purposes Lower Same as in Baseline - Similar to baseline - Strong emphasis in multifunctionnality High rate in food and feed traceability Interactions between different agrirural sectors Level of multifunctionality Integrated quality control Share of products labelled with national or European quality labels Benefit (+) No change in level of multifunctionality Higher in level of multifunctionality Higher Benefit (+) No ‚additional‘ initiative to raise traceability Improvement in traceability due to stricter rules Lower Similar to baseline - Similar to baseline - 10% biofuels share in EU road transport fuel consumption Maximize rate of change for biofuels’ share Share of agricultural area used for bio-fuel crops Benefit (+) Strong increase due to implementatio n of the EURenewable Energy Directive (RED) 7% biomass use in electricity Optimize rate of change for biomass use in electricity Share of biomass used for bioelectricity Benefit (+) Increase due to RED Benefit (+) Slight increase in biomass Moderate utilization of increase due to biomass for development chemicals due of bio-based to economy technological innovations 10% chemicals Optimize rate of change for chemicals Share of biomass used for biochemicals Lower 4.6.4. Comparison of Image III to the baseline scenario In Table 4-9 below, it is presented the comparison between Image III and the baseline scenario. This may reveal the gap that needs to be bridged within Image III, for the period 2007-2020, as to the AG2020 targets (Table 4-9) (Giaoutzi and Stratigea, 2009b, D5.5). Table 4-9: Gap identified between baseline scenario and Image III Source: Further elaboration of D3.1 results AG2020 Targets CO2 : -20% High rate of halting biodiversity by 2020 Strong competitiveness – efficiency of the agri-sector Criterion Indicator Nitrate surplus Minimize N2O per hectare emissions (in CO2 Share of equivalent) organic farming Loss of biodiversity Land use change – loss of agri-land Volume of production in the agri-sector / Employment Productivity in Structure of the agri-sector agri-food value added (labour, capital, land) Direction Baseline of criterion (2007-2020) Image I Gap Cost (-) Slight decline in N2O emissions Higher N2O emissions Higher Benefit (+) Constant share in organic farming Strong increase in organic farming Lower Lower rate in the loss of biodiversity Lower Cost (-) Benefit (+) 61 Constant rate in decline of agric. land for non-agric. purposes Medium growth rate of agricultural productivity Constant decline in agric. Employment Lower growth rate of agricultural productivity Declining agricultural employment but lower Higher Lower AG2020 Targets Criterion Indicator Direction Baseline of criterion (2007-2020) Image I Gap comp. with baseline Strong emphasis in multifunctionnality High rate in food and feed traceability 10% biofuels share in EU road transport fuel consumption 7% biomass use in electricity Interactions between different agrirural sectors Integrated quality control Maximize rate of change for biofuels’ share Level of multifunctionnality Share of products labelled with national or European quality labels Share of agricultural area used for bio-fuel crops In crease in the level of multifunctionality Lower Benefit (+) No ‚additional‘ Improvement initiative to in traceability raise due to stronger traceability rules Lower Benefit (+) Strong increase due to implementatio n of the EURenewable Energy Directive (RED) Lower Benefit (+) Optimize rate of change for biomass use in electricity production Share of biomass used for bioelectricity Benefit (+) Optimize rate of change for biomass use in chemicals’ production Share of biomass used for biochemicals Benefit (+) 10% chemicals 4.7. No change in level of multifunctionality More land used for transp. fuel due to higher binding mandates More land use for bioIncrease due to electricity due to higher RED binding mandates Slight increase Moderate of biomass increase due to utilization of development biomass for chemicals due of bio-based economy to political rules Lower Lower Conclusions The above discussion, revealing the gap identified between the baseline scenario and the three AG2020 Images of the Future, aims at orienting the emphasis to be placed on policy interventions, by the most appropriate level of enforcement, towards the fulfilment of the targets set. More specifically, this will guide the selection of policy measures and the building of policy packages and paths that will drive developments towards the desired end, bridging the gap between baseline scenario and the desired Images. 62 5. POLICY MEASURES, PACKAGES AND PATHS This chapter presents the methodological approach adopted for identifying policy measures and building policy packages and paths, and its application in the AG2020 context. The adopted methodology has the following stages (see Fig. 5-1) (Giaoutzi and Stratigea, 2009b, D5.5): - First stage – identification of critical issues (‘hot spots’) for developing agricultural policy in AG2020. These are used to support the selection of policy measures that enable the structuring of the appropriate policy packages and paths designed to reach the AG2020 targets. - Second stage - the identification of policy measures and subsequent policy packages and paths requires the review of different types of policy measures and their potential contribution (ranking) to the achievement of the AG2020 targets. - Third stage - the construction of a comprehensive list of policy measures is carried out, following the above two stages. This list of policy measures is presented in the format of a matrix. - Fourth stage - policy packages are developed by combining sets of policy measures that are likely to work well together (i.e. create synergies). Each of the policy packages is designed to relate to a specific dimension of the Images of the Future. - Fifth stage - the development of policy paths is the stage where policy packages are grouped in Image-related combinations. - Sixth stage - finally, issues of acceptability and the implications of the selected Image are considered. The various stages of the process are illustrated in Figure 5-1 below. 63 Fig. 5-1: The process of identifying policy measures, packages and paths in AG2020 Source: POSSUM, 1998 Critical Issues and Key Elements (Sections 5.1 & 5.2) The Role of Different types of Policy measures (Section 5.3) Policy Measures (Section 5.4) Images of the Future (D5.3, D5.5 and Section 4 of this report) Policy Packages (Including synergies and impacts on stakeholders) (Section 5.5) Policy Paths (Including timing, roles, complementary measures and first steps) (Section 5.6) Discussion (Including acceptability and implications for selected Image) CONCLUSIONS (Including next steps) In the following is presented the application of the above steps in the AG2020 context. 5.1. Critical Issues in AG2020 At this stage, it is of importance to identify the critical issues and key elements that will enable the structuring of the policy scenario design process. As critical issues, are considered a number of issues that have been addressed in the design process of the Images of the Future (Fig. 5-1 above). In Table 5-1 below is presented an indicative set of these issues (Giaoutzi and Stratigea, 2009b, D5.5). An in depth description of critical issues in AG2020 can be found in Deliverable D5.5 (Giaoutzi and Stratigea, 2009b). 64 Table 5-1: Critical issues in AG2020 Critical Issues - Global Environmental Issues - Balance between agriculture and biodiversity at stake - Food quality and safety - Integration into global agri-food markets - Regulated agricultural factor markets (land, water etc.) - Land use conflicts - Rural development 5.2. Key Elements in AG2020 For the description and analysis of the changes required to take place for the achievement of the AG2020 targets by the year 2020, it is rather important to distinguish broad areas of change, namely key elements, motivating policy orientations. These key elements in AG2020 have as follows (Table 5-2) (Giaoutzi and Stratigea, 2009b, D5.5): Table 5-2: Key elements as areas of change Key Elements Source: Giaoutzi and Stratigea, 2009b, D5.5 Technological improvements Bio-economy Regulated agricultural factor markets Rural development Integration into agri-food markets Energy production Food quality and safety CAP 1st pillar CAP 2nd pillar The above key elements can be further diversified into a number of topics that are of interest for each key element (see Table 5-3 below). These represent important issues that should be influenced by policy measures, within each of the three AG2020 Images of the Future. These key elements could be used as a check list, for the identification and selection of policies (Giaoutzi and Stratigea, 2009b, D5.5). Table 5-3: Key Elements addressed by the AG2020 Policy Paths Source: Giaoutzi and Stratigea, 2009b, D5.5 KEY ELEMENTS Technological improvements (See Deliverable 4.5a) - TOPICS Primary agricultural technological applications Animal husbandry technological applications Food and feed processing applications Bio-energy production Heat and electricity Nanotechnologies - sensors Biotechnology Information and Communication Technology (ICTs) 65 KEY ELEMENTS Bio-based economy Regulated factor markets Rural development Global agri-food markets Energy production Food Quality and safety - TOPICS Food and feed production and processing Value added food processing Agri-environmental products and services Energy and bio-processing - Land Labour Water Consumption patterns Social cohesion Land use patterns Regionalization (regional specialization) Accessibility (Transport and ICTs) Food and beverage Health and nutrition Branding Science-based companies Large Research-Performing Companies vs High tech SMEs Niche markets Renewable Energy Bioenergy production Energy consumption patterns Energy efficiency Health and nutrition Packaging and process technologies – Logistics Traceability An in depth description of key elements considered in AG2020 can be found in Deliverable D5.5 (Giaoutzi and Stratigea, 2009b). 5.3. The Role of Different Policy Measures For a systematic presentation of the role of different policy measures in pursuing the AG2020 targets, four distinct policy orientations are considered. As policy orientation is meant the generic rationale, found behind the different policy measures (Giaoutzi and Stratigea, 2009b, D5.5). Policy Orientations Table 5-4: Policy orientations in AG2020 Source: Giaoutzi and Stratigea, 2009b, D5.5 - Lifestyle - Market - Regulation - Public infrastructure - services The policy orientations adopted in AG2020 are presented in Table 5-4 above, where (Giaoutzi and Stratigea, 2009b, D5.5): - Lifestyle-oriented policy measures: are policy interventions supporting ongoing changes of lifestyles. A basic element of such lifestyles is the shift in the attitude of people towards a more qualitative life style in general that strongly affects agrifood consumption, way of living, understanding of the role of agriculture as a 66 nature safeguard, etc. Quality of life aspects play a central role in this context. Part of this is an increasing understanding and acceptance of the claims that sustainable development has on lifestyles, which changes the balance between material consumption, resource use and environmental degradation. Public policy intervention may favour such post-material quality-oriented lifestyles. The dynamics might be basically bottom-up. Information diffusion policies are an important element of this policy approach. Knowledge of the effort placed for the production of a certain product in an environmentally friendly way, e.g. an organic product, but also the value of this product in searching for qualitative life-style consumption patterns, helps people to reconsider their consuming behaviour and reorient their attitude towards environmentally responsible production processes and products. - Market-oriented policy measures: are policy interventions supporting a market system that promotes best environmental practices, by means of shedding light on the linkages between environmental sustainability, economic profitability and competitiveness. Such a policy orientation places emphasis on a number of market incentives that may prove more effective into the competitive environment, within which the agri-sector works. It can be basically considered as a top-down approach, but is has also to rely on the general acceptance. - Regulation-oriented policy measures: are policy measures relying upon technical standards and norms (e.g. pesticides upper limits, traceability, GMO allowance), on innovative planning methodology (e.g. spatial planning, land use planning.) and government reform. The general approach is rationalistic, target and criteria led and top-down. - Public infrastructure/services-oriented policy measures: are strongly associated with policies relating to the provision/upgrading of infrastructure and services in rural regions, thus improving their accessibility. The state provides built infrastructure such as roads, rail, telecommunication – ICTs networks, irrigation infrastructure etc. serving the needs of rural areas; as well as services such as training, access to information, marketing tools, R&D services, technology systems and successful agri-practices etc. 5.4. Policy Measures Having identified the set of critical issues and key elements, which have been used to support the selection process of policy measures, it follows the assessment of the potential contribution of these policy measures to the achievement of the AG2020 targets, in order to construct a comprehensive list of policy measures. Indicative policy measures that may have an impact on the key elements (areas of change) are presented, in a systematic way, Moreover it is presented the impact of each policy measure on the key elements, based on the (Giaoutzi and Stratigea, 2009b, D5.5): - strategy(ies) - served by the policy measure; 67 - policy orientation - the generic rationale underlying each policy measure i.e. lifestyle, market, regulation and public infrastructure-services orientation (see section 6); - level of impact - on the AG2020 targets: small, medium and large effect; and - time-scale of impact – short, medium and long term. It is also explored the influence of strategic elements, namely technology and decoupling on the key elements of AG2020. Indicative policy measures are presented relating to technology and/or decoupling that may have an impact on the key elements (areas of change). Similarly, for each policy measure - relating to technology or decoupling strategic elements - is presented the impact of these policy measures on the key elements, based on the (Giaoutzi and Stratigea, 2009b, D5.5): - strategy(ies) - served by the policy measure; - policy orientation - the generic rationale underlying each policy measure (see section 6); - level of impact on the AG2020 targets - small, medium and large effect; and - time-scale of impact - short, medium and long term. Finally, it is explored the impact of the above presented indicative lists of policy measures on the: - agricultural sector; - critical issues (hot spots); and - AG2020 targets. Based on the above discussion, a pool of 257 policy measures is constructed. For each policy measure is assessed its (see Table I-1, APPENDIX I) (Giaoutzi and Stratigea, 2009b, D5.5): - impact on the proposed AG2020 targets (level of impact and time-scale); - policy orientation i.e. lifestyle, market, regulation and public infrastructureservices orientation; - impact on the agricultural sector; - impact on the critical issues (hot spots) considered in the AG2020 context; and - relationship to technology and/or decoupling i.e. the strategic elements in AG2020. It should be noted that all the impacts of policy measures on key elements, presented in the Table I-1 (APPENDIX I), were validated at the Athens AG2020 workshop on the 5th of July, 2010. For more details on the policy measures proposed in AG2020 see Deliverable D5.5 (Giaoutzi and Stratigea, 2009b). 5.5. Policy Packages Policy packages are developed by combining sets of policy measures that are likely to work well together (i.e. create synergies) in the context of the Images, already 68 constructed at an earlier stage of the backasting process. Each of the policy packages is designed to contribute to one or more Images of the Future. Policy packages are (Giaoutzi and Stratigea, 2009b, D5.5): - Sets of measures to be introduced for discussion in a decision center; - Addressing a specific issue; - Providing a convincing contribution to the solution of a problem; - Exhibiting a balanced impact on the various groups of concerned stakeholders - Well received combinations of measures, with foreseeable implications. For structuring a policy package, as in practical politics, it is useful to start from a triggering issue, to continue with a central measure and to add complementary measures, so as to form a balanced package, which is not too large and has an inner logic. New or modified types of measures are likely to be proposed in this process. The conceptual backasting framework (e.g. AG2020) can then be used for a more systematic appraisal of this package, which may again lead to adjustments. A policy package cannot be designed by simply following a schematic application of rules; it should be the output of a creative, iterative and preferably participatory process. The policy packages built in AG2020 are presented in Fig. 5-2 below (Giaoutzi and Stratigea, 2009b, D5.5). It should be noted though that this collection of packages is illustrative rather than comprehensive and could be extended or modified. Some of the packages appear in two different variants intended for different Policy Paths. The clustering of policy measures into packages presents some of the measures to create stronger synergies and have greater impact on decoupling rather than technology. These refer to policy measures, which go well beyond traditional agricultural policies and require a cautious balancing of different interests. The AG2020 policy packages presented in Fig. 5-2 below are combined, at a later stage, in order to structure the paths leading to the AG2020 Images of the Future. In the following are presented the AG2020 policy packages (Giaoutzi and Stratigea, 2009b, D5.5). 5.5.1. Policy package 1: Knowledge-driven diversified rural economies Construction logic This package (PP1) aims at increasing the knowledge stock of rural economies based on a demand-driven development of knowledge and innovations, capable of serving the needs of a diversified pattern of rural businesses and population. 69 Fig. 5-2: Policy packages in AG2020 Source: (Giaoutzi and Stratigea, 2009b, D5.5) PP 1 - Knowledge-driven diversified Rural Economies PP 2 - Green Entrepreneurship PP 3 - Environmental and Resource Stewardship PP 4 - Reduce, Reuse, Recycle (3Rs) PP 5 - Ecological Tax Reform PP 6 - Log-in the Information Economy PP 7 - Culture of “regionality” PP 8 - Social Responsibility (citizens and businesses) POLICY PACKAGES PP 9 - Administrative innovations - e-government PP 10 - R&D – Bio-innovations PP 11 - Public participation PP 12 - Knowledge-intensive farm management PP 13 ‐ Development of human resources PP 14 - Accessibility to transport – ICTs infrastructure PP 15 – Spatial planning In Policy Package 1, great emphasis is placed on the development of rural regions as hubs of knowledge and innovation, in the agri-food but also in other sectors as well, which drive innovation and competitiveness of local economies. Rural economies are characterized by strong links to R&D and knowledge sources (universities, research 70 institutions etc.), while high tech industries in the agri-food sector are creating clusters, fuelling the rest of the rural economies (secondary and tertiary sector supporting agri-food industry e.g. packaging industry, machinery, training activities, research laboratories). Policy orientations The ranking of policy orientations, serving Policy Package 1 on “Knowledge-driven diversified rural economies”, is presented below (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure / services orientation, supporting R&D, links to universities and research institutions, establishment of broadband connection in rural areas, life-long training to rural population, provision of specialized services, etc; ‐ Market orientation, supporting export initiatives of rural businesses and networking; ‐ Regulation orientation elaborates on the rules for cultivation, harvesting, processing and packaging of agri-food products (e.g. biotechnology and GMO). Main policy measures Key policy measures in this policy package may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Increased accessibility to knowledge infrastructure and R&D (Universities, research institutions, etc.); ‐ Provision of broadband connection in rural areas - increased accessibility to ICTs infrastructure; ‐ Skilled and ICTs experienced labour force - life-long training to rural population; ‐ Openness of the rural regions to the external world – strong trade orientation; ‐ Strong networking among businesses especially in the agri-food sector (agri-food chains); ‐ Diversification of local economic structure (agri-food, trade, services supporting the agri-food sector, other services); ‐ R&D support – development of new knowledge & technologies in the agri-food sector; ‐ Promotion of entrepreneurship in rural regions; etc. Impact on stakeholders The implementation of this policy package will be to the benefit of local businesses in rural regions as they get access to knowledge and information (re)sources that will enhance their potential to: innovate and grasp new opportunities (e.g. new products, new production processes, increase of market share); and increase competitiveness. Agricultural businesses can benefit as well from the increasing knowledge stock on agri-input, agri-food processes, plants etc. and accessibility to R&D through ICTs that will ensure the continuous updating of relevant information, driving competitiveness and market penetration (Giaoutzi and Stratigea, 2009b, D5.5). On the other hand, increasing accessibility to knowledge (re)sources may have a positive impact on the quality of local labour force. More precisely access to life-long training, may enable the upgrading of skills and capabilities, contributing thus to the 71 bettering of opportunities for rural population but also the increase of productivity in local firms. The above, combined with the increasing knowledge stock and accessibility to R&D through ICTs networks, makes the rural regions more attractive destinations for the location of knowledge-intensive firms, which reinforces the economic base and diversity of high added-value agri-food activities in rural regions (Giaoutzi and Stratigea, 2009b, D5.5). 5.5.2. Policy package 2: Green entrepreneurship Construction logic The Policy Package 2 (PP2) is concerned with the environmental integrity of firms, aiming at integrating environmental protection, economic efficiency and business innovation for achieving sustainable development objectives. PP2 aims at motivating a sense of personal commitment of firms to environmental objectives. It incorporates ideas from green technology and design, green and fair trade marketing, organic agriculture, environmentally responsible business (adopting an energy efficiency strategy), organizational management, etc. At the core of this package are environmental innovations that, apart from driving environmental responsibility of firms, are challenging efficiency objectives but also market penetration, based on the demand for products with reduced ecological footprint. Entrepreneurial behaviour is the engine of the package, driving the development or adoption of innovations in the production/processing process towards the successful integration of competitiveness and environmental objectives in the business agenda (Giaoutzi and Stratigea, 2009b, D5.5). Such a business attitude is gaining ground nowadays based on the: technological developments; devastating effects on the environment; increasing pressure from consumers for better quality and more environmentally responsible products; enhanced role of NGOs towards increasing awareness of societal actors in environmental threats; gradual weakening of the traditional role of the state and the increasing role attached to bottom-up approaches and public participation; increased contribution of the stakeholders to business ethics and corporate governance; etc. (Kotsani and Tsakos, 2009). The above developments have driven the rise of the new business concept of “green entrepreneurship”, as a business strategy in support of the environmental dimension of sustainability. The model of corporate responsibility, as a new approach to entrepreneurship, has become a competitive advantage of today's firms, sharing the society’s concerns and visions, by welding principles, values, social and environmental initiatives and cultural issues, constituting thus a conscious commitment to sustainable development. Policy orientations The ranking of policy orientations serving Policy Package 2 on “Green entrepreneurship” are (Giaoutzi and Stratigea, 2009b, D5.5): 72 ‐ Lifestyle-orientation, based on the increasing awareness and commitment of businesses and society on environmental protection and demand for environmentally responsible agri-food production; ‐ Market-orientation, based on incentives encouraging green entrepreneurship to invest and produce in an environmentally responsible way; and ‐ Public infrastructure / services orientation, supporting R&D and less resourceintensive technologies in the agri-food but also other sectors of rural economies; interaction and networking among businesses through ICTs for knowledge exchange, etc. Main policy measures Key policy measures in PP2 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Increase of environmental awareness; ‐ Support of green products - Eco-labelling of products; ‐ Waste management - Reduce, recycle and reuse of waste; ‐ Promote environmentally friendly agri-practices; ‐ Tax on agri-food products with high ecological footprint; ‐ Promotion of green entrepreneurship in rural regions; ‐ Promotion of innovations in the energy sector e.g. energy crops production, biomass processing technologies, smart energy networks, and biorefineries. Impact on stakeholders PP2 is expected to have positive impacts on the competitiveness of firms and market penetration, based on the increasing demand for environmentally responsible products. Moreover, it will contribute to the improvement of the image of entrepreneurs in local societies as stakeholders that share common values, visions and expectations in rural regions, strengthening the links between firms and the local society (Giaoutzi and Stratigea, 2009b, D5.5). A positive impact is also expected on the local employment and opportunities, based on the flourishing of green activities. But, as these activities are mostly technologyand innovation driven, they are expected to act as catalysts in rural regions, facilitating innovation adoption and diffusion in other fields as well. This in turn may improve the attraction of new firms, but also the strengthening of local entrepreneurship in rural regions to the benefit of new employment opportunities. Finally, environmental quality of rural regions is also expected to improve, based on the development of green initiatives in all sectors. This can form the base for the development of other activities e.g. alternative tourism activities, widening thus the economic base of rural regions and increasing the range of employment opportunities and income creation for the local population, while better exploiting local resources (Giaoutzi and Stratigea, 2009b, D5.5). 73 5.5.3. Policy package 3: Environmental and resource stewardship Construction logic The focus of Policy Package 3 (PP3) is on the role of agri-food and forest sectors as safeguards of environmental resources. In this context, it pursues the environmental and resource stewardship of the agri-food and forest sectors, based on the sustainable use of the natural resources. PP3 aims at reaching a long-term sustainable development of the agri-forest sector based on activities carried out along the lines of the ethics of a broad stewardship that recognizes the contribution of sector for the society as a whole (Giaoutzi and Stratigea, 2009b, D5.5). Improving the environmental performance of the agri-forest sector involves the conservation of resources and the consideration of the off-site effects on the environment, by refraining, among others, environmentally harmful production processes. Decreasing ecological footprint of agri-forest production is thus a key policy concern in this package. Policy orientations The ranking of policy orientations serving the objectives of PP3 on “Environmental and resource stewardship” fall into the following two variants (Giaoutzi and Stratigea, 2009b, D5.5): 9 Variant 1 In Variant 1, the focus is on the use of technology for the achievement of a more environmentally friendly management of agri-forest resources. Policy orientations serving this variant may have as follows: ‐ Public infrastructure / services orientation that promotes the development and promotion or adoption and use of technologies relevant to an environmentally friendly resource management; ‐ Market orientation, where emphasis is placed on labelling of the agri-forest products; ‐ Lifestyle orientation that focuses on increasing both environmental awareness and trust to technology of farmers and local societies; ‐ Regulation orientation, setting the rules for agri-forest farm management. 9 Variant 2 In Variant 2, the focus is on decoupling the development of the agri-forest sectors from environmental quality by use of environmentally sound agri- (organic and lowinput) and forest-practices that are less harmful to the environment. Policy orientations serving this variant may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): 74 ‐ Public infrastructure / services orientation that may support the upgrading of human resources on environmentally-responsible behaviour/practices in the agriforest sector; ‐ Market orientation, where emphasis is placed on eco-labelling of the agri-forest products and the support of environmentally responsible production; ‐ Lifestyle orientation that focuses on increasing environmental awareness of farmers and local societies. Main policy measures Key policy measures in PP3 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): 9 Variant 1: Technology ‐ Promotion of R&D and technologies for environmentally friendly resource management; ‐ Stimulation of innovation and technology transfer in the agri-forest sector; ‐ Increase in technology awareness for the agri-forest farmers’ community; ‐ Improvement of ICTs capabilities of the agri-forest farmers. 9 Variant 2: Decoupling ‐ Increase in ICTs capabilities of agri-forest farmers; ‐ Access of farmers to on-line information systems (access to knowledge and information); ‐ Life-long training for the agri-forest labour force; ‐ Setting up farm and forest management advisory services; ‐ Raising of awareness in the farmers’ community as to environmentally friendly agri-forest practices. Impact on stakeholders 9 Variant 1 In Variant 1, technology and its applications in the agri-forest sector have positive impacts on the environment. The adoption and wide use of technology for environmental management in rural regions may stimulate the attraction of new firms in this sector. This will support the development of demand-driven innovations, bettering the sustainable use of local resources, but also increase employment and broaden income opportunities in rural regions. As a result will be refrained, decline in the outflow of population, especially of the younger, highly educated groups. The adoption and use of technological developments may support the creation of a range of manufacturing and service activities in rural regions that improve further the employment opportunities and income generation in rural areas. Moreover, the diffusion of technologies for environmental protection promotes further technology trust in rural communities and facilitates the development of a ‘technology culture’ that increases the rates of technology adoption and use in other sectors as 75 well. This may accelerate even more technology adoption rates in rural regions that increase efficiency and competitive advantage in the market. 9 Variant 2 In Variant 2, decoupling is used as a strategy for the development of a less environmentally-harmful agri-forest sector. The impact of such an approach has definitely positive environmental effects. Farmers, through access to ICTs applications but also farm and forest management advisory services can get access to information and knowledge on environmentally friendly practises and successful experiences of other regions, building thus a step by step better understanding of agriforest processes that are to the benefit of production and environmental resources of rural regions. Moreover, their income is improved by agri-environmental policy measures but also the better place of eco-products in the market. Farmers’ attitude towards the protection of natural resources affects positively the rest of the productive sectors in rural regions and constitutes the “seed” for increasing environmental awareness in these regions. Based on the high quality of natural resources, but also on the ‘image’ of rural regions as environmentally responsible managers of natural resources, sustainable tourism is flourishing, enhancing diversification of local economy, interaction of sectors within rural economies and employment and income opportunities for the local population. 5.5.4. Policy package 4: reduce, reuse, recycle Construction logic Policy Package 4 (PP4) focus is on a more effective and multiple-use of resources. Such an approach is based on the 3Rs, namely Reduce, Reuse and Recycle. PP4 is based on a more conscious use of natural resources, based on: the attitude of both citizens and businesses towards the protection of natural resources, where a new culture of resource-saving and multiple use of resources is permeating the society as a whole; and the development of respective technologies that better serve this attitude, namely the 3Rs (Giaoutzi and Stratigea, 2009b, D5.5). The concept of “Reduce, reuse and recycle” is associated with the pattern of consumption of both primary e.g. land, water; but also secondary resources, e.g. energy and waste, at both the firm and individual level. For example, the agri-forest and the food sectors are considered as heavy consumers of resources. In this policy package are promoted policy measures that may serve the rational use of natural resources in various sectors e.g. the agri-food sector by use of technologies such as precise farming, modern water irrigation systems, sensor technology, energy efficiency technologies. Moreover, in the agri-food sector are promoted food packaging materials and technologies that better serve the reuse and recycle dimensions. Management of agri-forest, household and manufacturing waste are also 76 of importance in this respect, as these may also form the grounds for energy production. Policy orientations The ranking of policy orientations serving the objectives of PP4 on “Reduce, Reuse, and Recycle” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Lifestyle orientation, of key importance in this package, refers to a more conscious use of natural resources, based on the increasing awareness of global environmental challenges and the commitment for action at both the individual and the business level. ‐ Market orientation that supports investments on technologies serving reduction, reuse and recycling of resources (water, energy etc.), green activities, ecolabelling, etc. ‐ Regulation orientation, based on the pricing of the use of natural resources by both individuals and businesses e.g. energy, water. ‐ Public infrastructure / services orientation that supports knowledge and technology diffusion on resource-saving technological solutions. Main policy measures Key policy measures in PP4 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Increase awareness of both households and firms; ‐ Stimulate waste management (household, agri-forest and manufacturing); but also water management in the agri-sector – less water-intensive irrigation systems; ‐ Promotion of renewable energy production (biomass, wind energy, solar energy, etc.); ‐ Promotion of energy efficiency technologies in all economic sectors and households; ‐ Introduce farm and forest advisory services on rational resource use. Impact on stakeholders The impact of this policy package on a more effective and environmentally friendly management of resources is definitely positive. Its implementation, though, presupposes the consolidation of a new culture in rural regions, supporting a more conscious management of resources. Moreover, it is of importance the adoption and use of technologies that support the concept of “reduction, reuse and recycling” at both the household and the business level. Such an effort requires certain investments at the above levels (household and business), which may exert pressure on rural regions due to limited accessibility to respective financial resources. Certain policy support is necessary in this respect, taking the form of incentives, cost subsidization, tax relaxation etc. Diffusion of knowledge on potential technologies is also of great importance. This implies the need for advisory structures that have to be closely linked to the local pattern of production and consumption. 77 5.5.5. Policy package 5: Ecological tax reform Construction logic The logic behind an ecological tax reform is based on the view that externalities of resource use and environmentally harmful activities are taxed too lightly, while labour is taxed too heavily. An ecological tax reform aims at shifting the tax emphasis from labour to resource use and environmentally harmful activities in order to support a more environmentally thoughtful behaviour. A likely basis for increasing taxes is the charging on the use of energy and primary resources but also the emission of greenhouse gases (Giaoutzi and Stratigea, 2009b, D5.5). The way the concept of an ecological tax reform is used presumes that the outcome is fiscally neutral for the whole society. That is, labour taxes should be reduced correspondingly. However, this interpretation does not imply that an Ecological Tax Reform should be fiscally neutral for every sector of society. On the contrary, the part of agricultural sector, for example, which is rather resource intensive, would have to face substantially raised taxes, while labour intensive sectors would get lower taxes. Policy orientations The ranking of policy orientations serving the objectives of Policy Package 5 on “Ecological tax reform” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Market orientation that introduces incentives to resource-intensive activities for more environmentally responsible production-processing schemes. ‐ Regulation orientation, which sets the rules for tax reform as well as rules for restrictions on import- trade based on resource-intensive imported products. ‐ Public infrastructure/services promoting R&D on resource-saving technologies. Main policy measures Key policy measures in PP5 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Promotion of resource-saving technologies e.g. energy efficiency technologies, water saving technologies, sensor technologies. ‐ Imposing tariffs on imported food and feed with high carbon footprint. ‐ Tax reform measures. ‐ etc. Impact on stakeholders The impact of this policy package on rural regions as a whole is expected to be positive based on a more environmentally responsible use of resources that is enforced by the tax reform. The impact on rural population is also expected to be positive as they will enjoy a better and healthier environment. 78 As to the local firms, the ecological tax reform will place certain financial burden on their cost function, depending on the nature (e.g. resource-intensive) of each specific firm. This is expected to motivate firms to invest on technologies that may improve their environmental performance. Such investments, in the short run, may have quite an impact on the local economic base, while in the long run will compensate from the gains introduced by tax relief, and decreasing production costs, but also the returns for responsible behaviour. 5.5.6. Policy package 6: Log-in the information society Construction logic The rationale behind PP6 is the promotion of ICTs and their applications in rural regions in support of interaction and knowledge exchange within both intra and inter rural regions (among various actors/sectors) as well as the outer world. Despite the rich natural and cultural resources in rural regions, they are often seen as backward regions as to their knowledge capacity that constrains efficient exploitation of these resources. The emergence of the Information and Knowledge Society and its power in gathering, processing, storing, retrieving and transmitting knowledge and information at a distance, seems to create new promising perspectives towards the future development of rural regions (Stratigea, 2010). ICTs may contribute to the development of multiple aspects of the rural regions, such as: improvement of agricultural production and productivity, production of safer food, support of firms and entrepreneurship, upgrading of skills and competencies of local labour, strengthening of bonds in the local society, social equity in “logging-in” opportunities, increase of public participation, more effective and sustainable use of natural resources, etc. (Stratigea, 2010). In this respect, specific ICTs applications can be used as strategic tools for the development of rural regions, provided that they take into account the social context and offer tailored-made solutions to the community needs (Giaoutzi and Stratigea, 2009b, D5.5). The focus of PP6 is on promoting an e-inclusion strategy in rural regions that will introduce multiplier effects for all parts of rural societies (Stratigea, 2010). Policy orientations The ranking of policy orientations serving the objectives of PP6 on “Log-in the Information Society” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure / services orientation for the provision of network infrastructure to support accessibility of rural regions to ICTs as well as the upgrading of skills and capabilities of rural population as ICTs users. ‐ Lifestyle orientation that promotes an e-culture to the everyday individual and business transactions. ‐ Market orientation with focus on the development of ICTs applications and content, meeting the needs of rural regions. 79 ‐ Regulation orientation, on safety aspects of electronic transactions. Main policy measures Key policy measures in PP6 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Provision of broadband access to rural regions; ‐ Support of skill acquisition of rural population in ICTs; ‐ Creation of innovative public structures as pioneers of ICTs promotion in rural areas, serving effectively the needs of rural population (citizens and businesses) (e-government); ‐ Familiarization of rural population with ICTs and their applications in the everyday life; ‐ Promotion of tailor-made demand-driven ICTs applications and respective ‘content’ for rural regions e.g. e-learning platforms. Impact on stakeholders Adoption and use of ICTs applications are quite important for eliminating digital divide between rural and urban regions. Moreover, their power for personal and business development is widely recognized, based on successful experiences all over the world (OECD, 2006). Promotion of ICTs and their applications in rural regions will enhance opportunities for cooperation and networking both among local firms e.g. agri-food chains and between local firms and firms outside rural regions, which will further increase local knowledge resources. A quite positive impact can be recorded in the information technology sector, based on the demand for both hardware and software for ICTs applications. This will result to a certain increase in job creation, widening also the range of local employment opportunities (Stratigea, 2010). Moreover, the expected decrease of digital divide between rural and urban regions is considered as a rather important factor for making rural regions attractive locations for new investments, enhancing thus employment opportunities to the benefit of local labour force and the regions as a whole. 5.5.7. Policy package 7: Culture of “regionality” Construction logic PP7 focuses on a locally-driven rural development perspective (localization), based on the endogenous potential of rural regions. Such a perspective is driven by behavioural patterns that place emphasis on quality and authenticity (quality of food, quality of life, quality of social interaction, quality of environment, etc.). PP7 places emphasis on the value attached nowadays to rural amenities, local identity and traditions, qualitative and peaceful rural environments, etc. Rural regions remain 80 devoted to the above principles, adopting a rural development approach based on small-scale, traditional, green-oriented, value-adding production strategy, placing emphasis on an agri-food production/processing model of a lower ecological footprint, qualitative, locally produced green food, supporting food diversification, local identity, traditional and cultural aspects of rural regions - the perspective of “regionality”, food origin and organic farming (IFOAM, 2005). Such a strategy is usually less technology-intensive, focusing mainly on those technological advances serving environmental and quality aspects of agri-food production/processing (e.g. less resource-intensive and energy-intensive, green or low-input local products) (Giaoutzi and Stratigea, 2009b, D5.5). Moreover, small-scale tourist activities are promoted, based on the valuable, quite gently handled and preserved, natural and man-made resources, together with certain traditional manufacturing activities such as pottery, handicraft etc. The key concept of this policy package is to retain the local identity and uniqueness of each specific rural context. Policy orientations The ranking of policy orientations serving the objectives of PP7 on the “Culture of Regionality” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure / services orientation, that aims at reducing inequalities in access to opportunities / services between rural and urban regions. ‐ Lifestyle orientation, raising awareness of local population and businesses on the value of local resources and the need for their sustainable development. ‐ Regulation orientation, setting the rules for the protection of valuable ecosystems. ‐ Market orientation that may support local SMEs to develop and flourish. Main policy measures Key policy measures in PP7 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Improving accessibility in transport infrastructure, both intra- and inter-regional; ‐ Promote e-inclusion through the provision of broadband access; ‐ Development of ICTs applications and content that serves the local needs; ‐ Increase awareness of rural population as to the value of natural and cultural resources and the need for their preservation. ‐ Promotion of “green” lifestyle in agri-forest and food production but also in the rest of the local economic sectors; ‐ Promotion of incentives for the development of local ‘green’ entrepreneurship. Impact on stakeholders The present policy package (PP7) on the support of ‘Culture of Regionality’ is expected to have positive impacts on the preservation of the natural and cultural resources of rural regions. This will enhance their potential to generate income out of a sustainable use of these resources. As a result certain diversification of rural economy will be reached, placing emphasis on: green agri-food production, serving quality objectives; and exploitation of cultural but also natural resources. Moreover, the strong linkages among the various sectors (agri-food production, tourism and 81 cultural activities) is expected to have multiplier effects for the local economy, while a range of e-applications, such as e-commerce, e-learning, e-training, e-banking etc. may increase access to services and opportunities of these regions and improve their competitiveness, by reducing the rural-urban divide, rendering rural regions attractive destinations for the location of innovative ‘green’ entrepreneurial trials (Giaoutzi and Stratigea, 2009b, D5.5). 5.5.8. Policy package 8: Social responsibility Construction logic The scope of PP8 is to motivate a sense of personal commitment of both citizens and firms in rural regions to environmental and social progress. Unsustainable exploitation of land, water, energy and other natural and cultural resources in rural regions may pose threats on the resource base upon which economic and social development of these regions depends. Such threats can hamper the fulfillment of environmental, social and economic objectives and put at risk rural development in general (Giaoutzi and Stratigea, 2009b, D5.5). To cope with such risks, PP8 aims at strengthening responsibility and commitment of both citizens and businesses to environmental and social aspects in rural regions. Such an effort is strongly conditioned by the increase of awareness on the value of these aspects for rural development purposes. In PP8 action needs to be undertaken for increasing awareness both at the business and the community level in this respect (Giaoutzi and Stratigea, 2009b, D5.5). At the business level, there is a need for increasing awareness on the value added acquired from the integration of business competitiveness with the environmental agenda. Such a benefit is nowadays fully acknowledged by the entrepreneurial world, where modern entrepreneurs have fully realized that their future profitability depends on issues such as resource efficiency, public trust and the capability to develop technologies that meet the challenges of the future. At the community level, there is a need for citizens to realize their contribution to environmental deterioration or upgrading respectively, based on their every day decisions e.g. pattern of interacting, consuming, using energy resources, recycling. This trend is gradually taking shape, where citizens, as consumers, are exhibiting steadily increasing shifts towards environmentally friendly consumption patterns i.e. products that are distinguished for their environmental quality, being also willing to pay more in order to buy such kind of products. Policy orientations The ranking of policy orientations serving the objectives of PP8 on “Social responsibility” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): 82 ‐ Lifestyle orientation, raising awareness of local population and businesses on the value of local resources and the promotion of responsibility for sustainable use of these resources. ‐ Market orientation, supporting local investments on environmentally responsible exploitation of local resources in rural regions. ‐ Regulation orientation, setting the rules for the protection of valuable ecosystems. Main policy measures Key policy measures in PP8 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Promotion of e-inclusion through the provision of broadband access that may support increasing access of rural stakeholders to information and knowledge sources; ‐ Development of ICTs applications that may increase the knowledge stock in rural regions for the development of environmentally responsible behaviour, both at the individual/societal and the business level; ‐ Upgrade the skills and knowledge of rural population/businesses on natural and cultural resource management/preservation. ‐ Promotion of “green” lifestyle in agri-forest and food production, but also in the rest of the economic sectors - incentives for the development of local green entrepreneurship. ‐ Promotion of the ‘Reduce, Reuse and Recycle (3Rs)’ principle at the individual/societal and business levels. ‐ Promotion of green (organic) food consumption patterns. ‐ Promotion of efficiency in both production and use of energy. ‐ Promotion of renewable energy efficient solutions in rural regions. ‐ Setting up of agri-forest management advisory services. Impact on stakeholders The implementation of PP8 is expected to impact a more responsible use of resources in rural regions as a whole that will reduce the burden placed on their environmental and cultural resources. Benefits are also expected for local firms, as increasing awareness on the sustainable use of resources is expected to motivate innovation, driven by increasing knowledge stock and available technologies. This is expected to drive both competitiveness and environmental stewardship in the local entrepreneurial patterns. Moreover, respect and trust of local population for local firms is expected to increase, strengthening thus social cohesion and building of consensus in rural regions. Benefits are also expected from environmentally responsible behaviour of both population and businesses, enhancing the: quality of life, access to rural amenities of high quality, new employment opportunities based on rural amenities, etc. 83 5.5.9. Policy package 9: Administrative innovations – e-Government Construction logic PP9 addresses the issue of an improvement of the services provided by the administrative institutions in rural areas, considering the introduction of a range of innovations that will support a more timely and cost-effective provision of services (e-government). Rural regions exhibit limited accessibility of population and firms to public services. This implies cost and time constraints, as the most commonly appearing barriers that reduce accessibility to those services and have definite impacts on the development perspective of rural regions. The present policy package (PP9) aims at enhancing the potential of local administrative institutions with the provision of timely and cost-effective services by establishing on-line transactions through the development of one-stop e-Government portal (Stratigea, 2010) that enables a better performance of the socioeconomic base of the rural regions. Policy orientations The ranking of policy orientations serving the objectives of PP9 on “Administrative innovations – e-government” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure/services orientation that focuses on the development of both the ICTs infrastructure and the adoption of the administrative innovations needed for the provision of services. ‐ Lifestyle orientation that will support the promotion of an e-culture in rural regions, which will facilitate trust in technology and its applications. Main policy measures Key policy measures in PP9 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Provision of access to ICTs infrastructure. ‐ Upgrading human resources by providing skill acquisition opportunities in rural population / businesses. ‐ Restructuring of local administrative institutions. Impact on stakeholders The implementation of PP9 may have a positive impact on rural regions as a whole, as it may remove barriers to access public services, improve quality of services, transparency etc. making thus rural regions attractive locations for both population and businesses (Giaoutzi and Stratigea, 2009b, D5.5). 84 Such applications form the basis for the provision of a wider range of services that will enable, among others, involvement of the local actors in decision processes by increasing awareness of population and businesses on the local issues Moreover, public administrative units adopting ICTs can play a pioneering role for a broader adoption and use of ICTs in the population, promoting an e-culture within their territories. Gaining access to timely and cost-effective public services is also to the benefit of local firms contributing to cost reduction and competitiveness. Development of ICTs and their applications in the public sector, will create new jobs around the sector. 5.5.10. Policy package 10: R&D – Bio-innovations Construction logic The focus of PP10 is the transition of the economic structures in the rural regions into bio-based economies, relying on the development of regional knowledge and innovations, namely R&D and bio-innovations that will support this transition. A worldwide trend appears where consumers increasingly seek to acquire and use products that are more friendly to the environment. As a consequence industry, consumers and governments are increasingly paying attention to products that claim to be ‘green’, have a light environmental footprint, be biodegradable, and be biobased. The agricultural sector is at the ‘core’ of the transformations taking place in rural regions towards a bio-based economy, where. new types and uses of crops are appearing. A combination of aggressive facilitating of national policy, public and private investments and the development of science and technology, in context, is required to reach the desired end (Giaoutzi and Stratigea, 2009b, D5.5). Policy orientations The ranking of policy orientations serving the objectives of Policy Package 10 on “R&D – Bio-innovations” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): Public infrastructure/services orientation that will support R&D efforts and innovations capable of driving the transition of rural regions towards bio-based economies. ‐ Market orientation that will support businesses towards adopting a knowledgebased, competitive and sustainable model of production and processing, with emphasis placed on energy production, as the major commodity opportunity of the bio-based economy. ‐ Regulation orientation that will set the rules for e.g. food/feed traceability, blending shares of biofuels, land use etc. 85 ‐ Lifestyle orientation that aims at increasing awareness on the environmental footprint of the various products. Main policy measures Key policy measures in PP10 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Policy measures promoting a knowledge-based, innovative, competitive and sustainable model of production and processing (4fs i.e. food-feed-fiber-fuel production). ‐ Policy measures supporting R&D and innovation in the agri-food sector in fields such as health and nutrition, logistics, packaging and processing technologies, food-feed production, ‘green’ production etc., serving the production of new innovative products. ‐ Policy measures supporting rural development of agricultural regions (both in terms of environmental effectiveness and economic efficiency). ‐ Policy measures promoting the production of bio-energy and bio-materials in rural regions. Impact on stakeholders Implementation of PP10 contributes greatly to the rendering of rural regions as hubs of innovation and resource-stewardship. This makes them attractive places for the location of new business, with impacts on employment opportunities and income. Highly skilled labour force is attracted to these regions taking also advantage of business opportunities and quality of life offered, reinforcing thus the innovation potential of rural communities. The agri-food sector, being at the core of the bio-based activities, also provides opportunities for the less skilled labour force, usually met in these regions (Giaoutzi and Stratigea, 2009b, D5.5). Considerable upgrading can also be expected in the infrastructure of rural regions, both transport and ICTs, for serving the needs of the increasingly export-oriented activity of bio-based economy. 5.5.11. Policy package 11: Public participation Construction logic The focus of PP11 is on the strengthening of public participation in the decision making process, for building a broader consensus on the future development paths of rural regions. Stakeholders’ view is of great importance for the successful implementation of policies emerging from any planning exercise. Involving the public in the decision making process contributes to the (Giaoutzi and Stratigea, 2009b, D5.5): ‐ incorporation of a wider range of public interests, ‐ enrichment of the decision making process at all stages, ‐ better understanding of the different stakeholders’ views (learning process), 86 ‐ commitment to the decisions made and the policies supporting these decisions, ‐ building of consensus among stakeholders. Policy orientations The ranking of policy orientations serving the objectives of PP11 on “Public Participation” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Lifestyle orientation for increasing awareness of rural population on natural and cultural values, for building the feeling of responsibility and belonging among rural stakeholders as well as enhancing commitment towards common sustainable development objectives. ‐ Regulation orientation sets the framework for public participation in the decision making processes in rural communities. ‐ Public infrastructure/services promote supporting infrastructure and ICTs applications, facilitating participation of local population in the decision making processes e.g. e-government, social networks. Main policy measures Key policy measures in PP11 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Measures that increase public/business awareness on green values and environmental protection; ‐ Measures promoting quality-oriented lifestyles; ‐ Measures promoting Local Strategic Partnerships (LSP); ‐ Measures promoting social networking; ‐ Measures that support the deployment of network infrastructure; ‐ Measures promoting environmental responsibility e.g. energy efficiency, recycling, water saving; ‐ Measures promoting ICTs applications at the local level e.g. e-government; ‐ etc. Impact on stakeholders Strengthening of public participation in rural regions contributes to the development of a feeling of belonging in the community; sharing the same visions; respecting local natural and cultural resources; committing themselves to joint efforts for a common future (Giaoutzi and Stratigea, 2009b, D5.5; Stratigea, 2009). At the business level, public participation is a driving force for the development of a more responsible entrepreneurial behaviour on both environmental and social aspects. Finally, at the community level, joint efforts of both public and local stakeholders may drive visions towards the future development of rural regions, built on consensus and common efforts of all parts involved. 87 5.5.12. Policy package 12: Knowledge-intensive farm management Construction logic The focus of PP12 is on the promotion of a knowledge and technology intensive farm management approach, used to support the profitability and environmental integrity in high-productivity systems. Rural areas nowadays, all over Europe, are in a transition phase, marked by the transformation of farming from predominantly tradition-oriented family-run businesses to a professionally run, science-based competitive enterprise, driven by knowledge and linked to the markets of the world (AGRIBLUE, 2004). In this environment, new knowledge-based farming systems are required, profitable at the farm level, which produce competitive market-oriented food products; meet animal health and welfare requirements, including the growing demands for environmental and social sustainability and for regional/local ethically produced food products; are environmentally sustainable; can cope with emerging climate changes; and are energy efficient (Downey, 2006). Modern agri-food production is increasingly getting a more science and technology intensive sector. Access to specific knowledge is necessary in all stages of the agrifood production i.e. cultivation, harvesting, processing, packaging and distribution. A lot of new knowledge is produced on the input used in agriculture e.g. new seeds, new plants, pesticides; on the equipment used e.g. improvements in machinery; on the farm management practices e.g. GPS and RFID; on the processing technologies etc. The farmers of the future need to harvest knowledge just as they have to harvest crops (AGRIBLUE, 2004). Knowledge-intensive management focuses on bringing together segmented parts of information (e.g. cold weather, 10 days till harvest, 12 harmful insects per rice plant) in order to make intelligent decisions (e.g. the insects won't multiply before harvesttime due to cold weather therefore no need to spray) (AGRIBLUE, 2004). Policy orientations The ranking of policy orientations serving the objectives of PP12 on “Knowledgeintensive farm management” may fall into the following two variants (Giaoutzi and Stratigea, 2009b, D5.5): 9 Variant 1 In Variant 1, the focus of policy orientation is on the provision of access to farmers to all kinds of knowledge and technologies that may serve efficiency objectives of farm management. These may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure/services orientation that promotes R&D in the agri-food sector, with emphasis on GMO in order to increase field productivity; 88 ‐ Market orientation, that supports agri-food businesses for the development or adoption/use of cost-efficient technological innovations in the production process; ‐ Regulation orientation, setting the legal frame for cultivation, harvesting, processing and packaging of agri-food products (e.g. biotechnology and GMO). ‐ Lifestyle orientation, that promotes trust to technology and ICTs culture in the farmers’ community. 9 Variant 2 In Variant 2, the focus of policy orientation is on the provision of access to environmentally responsible agricultural practices and knowledge in support of decoupling of farm activities from environmental burden. These may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure/services orientation promoting R&D and innovations in the agri-food sector that facilitate decoupling agri-activities from environmental impact (e.g. new pesticides, new plants), and information diffusion on successful experiences (e.g. agricultural practices); ‐ Market orientation, motivating and rewarding innovative behaviour that drives environmentally responsible agri-food production; ‐ Regulation orientation that sets the rules for environmentally responsible agriproduction; ‐ Lifestyle orientation that focuses on increasing environmental awareness of farmers and local societies. Main policy measures Key policy measures in PP12 may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): 9 Variant 1 ‐ Measures promoting R&D in the agri-food sector (agri-food technological innovations e.g. novel pesticides, GMO-based less water-intensive crops, precise farming technology, satellite surveillance), with emphasis on GMO to increase field productivity; ‐ Measures increasing technology awareness e.g. new machinery, fertilizers, plants, seeds. ‐ Measures promoting the deployment of ICTs infrastructure in rural regions; ‐ Measures supporting life-long training for the upgrading of human resources; ‐ etc. 9 Variant 2 ‐ Measures diffusing knowledge and information on successful experiences; ‐ Measures providing access to training opportunities on environmentally responsible agricultural practices; ‐ Measures promoting the deployment of ICTs infrastructure in rural regions; ‐ Measures increasing awareness on the positive impacts of long term sustainability of agricultural production; 89 ‐ Access of farmers to information and knowledge systems supporting the acquisition of various kinds of farm-specific information, e.g. weather information for irrigation, seed options, information for field work purposes, which support decisions at the farm level and improve sustainable farm management. ‐ etc. Impact on stakeholders 9 Variant 1 Knowledge-intensive farm management greatly affects farm productivity and competitiveness. But not all farmers in rural regions are able to cope with the required investments in knowledge and technology. Therefore farmers should receive support in order to assure equal access to knowledge and technological advances needed for a more effective farm management. Such a farm management approach is more costeffective in the case of large scale farming, facilitating restructuring in farm size patterns in rural areas, leading though to a loss of biodiversity (Giaoutzi and Stratigea, 2009b, D5.5). Additionally, environmental aspects of knowledge intensive farm management need to be considered, in order to avoid new technology-related environmental hazards (Downey, 2006). Although knowledge and technological advances are in most cases considering the environmental dimension, intensive farm management may lead to the downgrading of land productivity and can question availability of water resources. This in turn will affect the very existence of the agricultural sector in rural regions, as it can drive to land abandonment and desertification, but will also affect the quality of natural resources in rural regions. In respect to the local population, a knowledge and technology intensive farm management may raise certain objections as to the quality and safety of agri-food production and the environmental burden placed in rural regions. Moreover, it can place local agricultural population in a disadvantageous position due to the lack of knowledge and expertise in technology-driven farm practices. 9 Variant 2 Knowledge-intensive farm management focusing on decoupling agricultural production from environmental degradation contributes to the flourishing of: ‐ agricultural firms as it results to a better management of natural resources; less harmful agri-production; preservation of biodiversity based on the continuity of diversified cultivation patterns; support of farm income based on the increasing demand for qualitative products etc.; and ‐ rural communities as it results to the creation of a more environmentally responsible image, which, based on the quality of local resources, supports the development of a range of other activities in rural regions, reinforcing thus multifunctionality of rural land. This in turn enhances employment and income opportunities at the rural level. Moreover, based on the adoption and use of environmentally friendly practices, it may result to resource preservation and production of high quality agricultural products. 90 5.5.13. Policy package 13: Development of human resources Construction logic The rationale of PP13 focuses on strengthening the knowledge and skills of human resources in rural regions (knowledge and technology driven production processes, ICTs skills etc.) Policy orientations The policy orientations serving the objectives of PP13 on “Development of human resources” have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure/services orientation that aims at establishing proper communication infrastructure for knowledge and information transmission to rural areas; ‐ Lifestyle orientation, aims at promoting an e-culture in rural regions, inspiring trust to technology and its applications for capacity building. Main policy measures Key policy measures in this policy package are (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Deployment of proper network infrastructure (ICTs) relevant to the customized needs of each rural region; ‐ Measures that increase skills of rural population; ‐ Infrastructure for local labour force training (e-learning platforms, e-seminars, elibraries, access to information and knowledge services etc.); ‐ Access of farmers to on-farm services for the provision of on-farm personalized information (Stratigea, 2010); ‐ etc. Impact on stakeholders Capacity building of human resources in rural regions is to the benefit of both the individual and the business level (Giaoutzi and Stratigea, 2009b, D5.5). At the individual level, capacity building leads to personal development and development of skills that improve accessibility of local population to employment opportunities. At the business level, more skilled and knowledgeable workers support the raising of labour productivity, but also the rate of adoption and use of knowledge- and technology-driven production processes that support competitiveness of local businesses. Additionally, capacity building may promote entrepreneurial behavior in rural regions, taking advantage of existing but also new business opportunities. Moreover, exploitation of new business opportunities may broaden the range of employment opportunities, restraining thus decline and out-migration of rural population. 91 Finally, capacity building in these regions contributes to the establishment of a skilled labour force pool attracting new investments, increasing thus employment and income opportunities, population growth, adoption and use of technology, etc. 5.5.14. Policy package 14: Accessibility of rural regions to ICTs and transport infrastructure Construction logic PP14 aims at increasing accessibility of rural regions to ICTs and transport infrastructure, supporting thus mobility of persons and goods but also information exchange both at the intra-regional (interaction within the rural region) and inter-regional levels (interaction of rural regions with the outer world). Rural regions are considered traditionally as serving the needs of population for food. Moreover, they are attractive locations for various kinds of leisure and entertainment activities, based on the presence of valuable natural and cultural resources. The above imply that certain mobility of goods and people, but also information exchange is taking place from/to the rural regions (Stratigea, 2010). The present policy package aims at improving accessibility of rural regions to both ICTs and transport infrastructure. Policy orientations The policy orientations serving the objectives of Policy Package 14 on “Accessibility to ICTs and transport infrastructure” may have as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Public infrastructure / services orientation that aims at the provision of the necessary ICTs and transport infrastructure, serving mobility purposes of persons and goods as well as information exchange in rural regions. ‐ Regulation orientation, that aims at setting the rules for ICTs and transport infrastructure development and use (pricing). Main policy measures Key policy measures in this policy package are (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Development of ICTs and transport infrastructure; ‐ Land use planning; ‐ Integration of the local to the regional/national transport network. ‐ Pricing of ICTs and transport infrastructure; ‐ etc. Impact on stakeholders Improvement of ICTs and transport infrastructure in rural regions is to the benefit of both rural population and businesses, as they enable interaction of rural regions with the rest of the world (Giaoutzi and Stratigea, 2009b, D5.5). 92 At the citizens’ level, it may improve accessibility of rural population to various services, e.g. health, education, reducing thus both time and costs involved. At the business level, it may enable interaction among firms and broadening of trade opportunities, while network cooperation is stimulated. Finally, it reduces transport costs and supports competitiveness in local production. At the community level, ICTs infrastructure supports marketing in rural regions, by supporting both e market penetration of agri-food products but also the attraction of visitors based on local assets. This has positive impacts on the development of various sectors e.g. agriculture, manufacturing and tourism, enhancing multifunctionality in rural areas, while broadens local employment opportunities and enhances income generation. 5.5.15. Policy package 15: Spatial planning Construction logic PP15 deals with the issue of spatial development in rural regions. Spatial planning is important for defining spatial patterns, enabling agricultural land to function among strongly competing uses, towards a balanced spatial distribution better serving local objectives. Policy orientations The ranking of policy orientations serving the objectives of PP15 on “Spatial planning” are as follows (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Regulation orientation that sets the strategic land use planning framework in rural areas. ‐ Public infrastructure / services orientation dealing with the development of the necessary infrastructure, both transport and ICTs, taking into account the land use patterns in rural regions. Main policy measures Key policy measures in PP15 are (Giaoutzi and Stratigea, 2009b, D5.5): ‐ Protection of agricultural land. ‐ Delineation of residential areas. ‐ Development of transport infrastructure. ‐ Development of ICTs infrastructure. ‐ Preservation of natural and cultural heritage. ‐ Preservation of NATURA regions and other valuable ecosystems. ‐ Delineation of land uses for economic activities (e.g. industrial areas) ‐ etc. Impact on stakeholders Spatial planning contributes largely to a balanced well functioning spatial organization of both residential and business sectors in rural regions. It improves accessibility of rural regions and their interaction with the outer world, based on the 93 integration of local and regional transportation networks, improving thus the potential for unimpeded movements of goods and people. Effective land use planning may also contribute towards rationalizing the use of networks, impacting thus energy consumption patterns in rural areas. Finally, it may also set the rules for the protection of valuable natural and cultural resources (Giaoutzi and Stratigea, 2009b, D5.5). 5.6. Policy Paths in AG2020 A policy path is made up of both policy packages and policy measures. The construction of policy packages and policy paths is an iterative process, which could go on over many cycles. Both policy packages and paths can be developed by involving stakeholders, at all stages of the policy making process, enriching thus the produced output (see also Giaoutzi et al, 2009a, D5.4). The construction of policy packages has been one of the most important steps in the backasting process, since it allows: - Focused discussions, producing results within limited time; and - Intuitive creativity, enabling the development of new perspectives within a specific participatory framework. The construction of policy paths, on the other hand, will contain a large number of policy measures necessary for achieving the pursued targets, set in the images. Towards this end, a two-step approach has been adopted (Giaoutzi and Stratigea, 2009b, D5.5). - First, several measures are combined into policy packages covering issues or addressing target groups, falling under the directions of interest defined by the critical issues and key elements in the previous stages. - Second, several of these policy packages are combined to form a path. The approach for the construction of policy paths is presented in Fig. 5-3 below, where the measures within a package and the packages within a path are meant to be interrelated. Basic attitudes of the responsible policy makers will always shape the course of developments. Therefore it seems reasonable to take the policy orientations, introduced in the previous stages, as construction principles for the different paths. In practice these orientations always overlap. In the following are presented the AG2020 policy paths, paving the way to the AG2020 Images of the Future. The structuring of the policy paths involves the proper combination of policy packages, enabling the fulfilment of the AG2020 objectives for each Image. The outcome of this process, in the AG2020 context, consists of three policy paths, each one corresponding to a specific policy scenario in AG2020, namely Image of the Future, and the sets of policy packages and policy measures better serving each one of these packages (Giaoutzi and Stratigea, 2009b, D5.5). 94 Fig. 5-3: Methodology for the construction of policy paths Source: POSSUM, 1998 Policy Packages Policy Measures Policy Paths policy measure measure policy measure policy measure measure measure measure measure policy measure policy measure measure measure measure measure measure policy measure measure policy measure It should be kept in mind, though, that the policy paths presented in this section are not unique trajectories towards the Images of the Future, as there are many other possible paths towards the same end. Worth noting also is that the policies presented above should be seen as indicative, rather than prescriptive means to an end. The emphasis of the present section is on the methodological aspect of building the policy paths in AG2020 rather than on the presentation of an exhaustive list of potential paths. The policy paths to follow are based on the policy packages presented above, taking also into account the key states that describe the pace of changes necessary in order to reach each specific Image. The ‘key states’ refer to the level of change required in order to achieve the AG2020 targets within each Image. The ‘key states’ are, linked to the key elements involved in each image, focusing, at the same time, on the main assumptions concerning each key element in the Images. Key states, in this respect, are indicative rather than prescriptive tools for identifying the gap between baseline scenario and the images. For bridging this gap, different combinations of policy packages and measures should be addressed, based on their potential to affect changes in key elements, towards the desired end (Giaoutzi and Stratigea, 2009b, D5.5). In AG2020, for bridging this gap, are combined: sets of policy measures that affect changes in the key elements; and policy packages, selected on the base of the level of change required, in order to close the gap, towards each of the images as policy directions serving specific strategies. The selection of policy measures is based on their performance as to the agri-food sector, the AG2020 targets and the critical issues for the future of the EU agricultural sector (see Table I-1, APPENDIX I). For more information on the key states (level of change) required to achieve the AG2020 targets, see Deliverable 5.5 (Giaoutzi and Stratigea, 2009b, D5.5). In the following are presented three distinct paths that drive developments towards the respective AG2020 Images of the Future (Table 5-5 below), based on the policy 95 orientations already described in previous section (Giaoutzi and Stratigea, 2009b, D5.5). Table 5-5: Policy paths in AG2020 Image Policy orientation - Life-style orientation - Market orientation - Regulation orientation - Public infrastructure / service orientation 5.7. Image I (top-down) Image II (combined) Image III (bottom-up) Path 1 Path 2 Path 3 Policy Path 1 (Image I) 5.7.1. The context In Image I, Europe is politically and economically the strongest block in the world, playing a leading role in climate change policy. Europe is rich; its wealth is mainly based on its leading role in the High-Tech sector. GDP growth is high and large investments in science and research activities are being realised. In particular, clean energy technologies are of utmost importance for the European wealth, with efficient and CO2-lean energy technologies being the basic pillar of economic growth. At the same time, EU policy strongly promotes energy efficiency and renewables for serving climate change mitigation, energy security and economic competition. Lifestyles are consumption-oriented, exhibiting a high degree of trust in technology. The international lifestyle has gained strength. Prices are playing an important role in consumption patterns, while there is a preference for convenience, functional, ethno and fast food, with emphasis on out-of-home consumption. ICTs dominate in international relations. The development and adoption of ICTs has contributed to the strong networking and cooperation among EU businesses and citizens, which brings the various actors closer and diffuses knowledge and information throughout the whole EU territory. The agri-food sector is intensive user of high tech (precision farming, biotechnology, GMO, traceability – labelling etc.), resulting into an increased efficiency of the sector, with strong market orientation. Adoption of technological advances has remarkable consequences for food quality, meeting thus the increasing demand of customers for qualitative and nutritive products. As a result, support to farmers is phased-out. More precisely, CAP, in the 1st pillar, places emphasis on efficiency in agricultural production, enforcing measures for phasing out support to farmers; while, in the second pillar, the focus of the core of the EU policy measures is on the support for investments in new technologies. The energy sector is setting high blending targets of biofuels, placing emphasis on the 2nd generation of biofuels and the enhanced use of biomass (energy crops or exploitation of agricultural waste), by means of technological advances, although no mandatory targets exist. 96 There is a high degree of integration of agri-food systems in the international markets, where trade liberalisation is based on bilateral agreements. There is a low regulatory framework in agricultural factor markets. WTO is far less powerful and ineffective due to a fragmented world, where there is no enhancement of multilaterally agreed international rules. Green issues are not pushed by a broad support, while public participation is led by centralized initiatives (national and EU). It is rather the politicians trying to find solutions at the EU and global level. Nevertheless, there is some degree of green consciousness and an acceptance of policy measures, intended to mitigate the environmental problems. Low emphasis is placed on regionally targeted policies to protect flora and fauna. 5.7.2. Main policy packages / areas of change The main policy packages incorporated into Policy Path 1, leading developments towards Image I, have as follows (see Table 5-6, also Figure 5-4 below) (Giaoutzi and Stratigea, 2009b, D5.5): Table 5-6: Policy Path 1 Source: Giaoutzi and Stratigea, 2009b, D5.5 PATH PATH 1 POLICY PACKAGE Policy Package 1: Knowledge-driven diversified rural economies Policy Package 3: Environmental and resource stewardship – Variant 1 Policy Package 6: Log-in the Information Society Policy Package 9: Administrative innovations – e-government Policy Package 12: Knowledge-intensive farm management – Variant 1 Policy Package 13: Development of human resources Policy Package 14: Accessibility of rural regions to ICTs and transport infrastructure Policy Package 15: Spatial planning 5.7.3. Priorities in policy orientations The prevailing policy orientation of this path is the “Public infrastructure/services orientation” (see Athens II and III validation workshops, July 2010). Key policy areas (packages) in this orientation, based also on the study of key elements and key states, are (Giaoutzi and Stratigea, 2009b, D5.5): - PP1 - Knowledge-driven diversified rural economies: in support of the development of new knowledge and innovations in fields such as renewable energy and energy efficiency, biofuels, nanotechnology and biotechnology, valueadded food processing, etc. - PP6 - Log-in the Information Society: supports the promotion of an e-culture in rural regions by means of a set of policy measures that will support skill acquisition for ICTs, by the rural population. - PP9 - Administrative innovations – e-government: in support of local administration, in rural areas, that will improve the quality and credibility of public services and decrease the existing inequalities in access to basic services. - PP12 - Knowledge-intensive farm management – Variant 1: for the provision of knowledge and technological innovations to farmers that support cost-efficient agri-food production. 97 - PP13 - Development of human resources: for the upgrading of rural human resources in order to create the “grounds” for the adoption and use of technological advances and innovations. - PP14 - Access to ICTs and transport infrastructure: in support of mobility of both people and goods and of intensity/cost effectiveness in information exchange. Second most important policy orientation is the market orientation, where as key policy areas are considered (see Athens II and III validation workshops, July 2010) (Giaoutzi and Stratigea, 2009b, D5.5): - PP1 - Knowledge-driven diversified rural economies: provide market incentives towards the adoption and use of technology and innovation by farm but also other businesses, supporting among others the diversification of activities in rural regions. - PP3 - Environmental and resource stewardship: promotes the market penetration of agri-food and other businesses in rural regions by means of an environmentally responsible behaviour, based on technological innovations. - PP6 - Log-in the Information Society: supports businesses to log-in the information society and reap the benefits of e.g. innovative organizational structures, networking, teleworking, links to R&D and Research Centers, ecommerce applications. - PP12 - Knowledge-intensive farm management: provides incentives to farm businesses to join innovative, knowledge-intensive farm management approaches. Moreover, of minor importance are: Life-style orientation expressed via (Giaoutzi and Stratigea, 2009b, D5.5): - PP6 - Log-in the Information Society: promotes an e-culture to the everyday individual and business transactions in rural regions; and - PP3 - Environmental and resource stewardship – Variant 1: in support of increasing trust to technology and environmental awareness among the farmers’ community. Regulation orientation expressed via: - PP15 - Spatial planning: in support of defining land use patterns so that valuable natural resources are protected; - PP3 – Environmental and resource stewardship: in support of setting environmental quality standards in order to be achieved an environmentallyfriendly resource management, based on the use of technology; and - PP14 – Access to ICTs and transport infrastructure: facilitating use of ICTs and transport infrastructure by use of pricing. 98 Fig. 5-4: Path to Image I (Path 1) Source: Giaoutzi and Stratigea, 2009b, D5.5 Lifestyle orientation Market orientation Policy Package 1 Knowledge-driven diversified rural economies Regulation orientation Public Infrastructure / services orientation Policy Package 3 Environmental and resource stewardship – V 1* Policy Package 6 Log-in the Information Society Lifestyle orientation Policy Package 9 Administrative innovations – egovernment Market orientation Image I Policy Package 12 Knowledge-intensive farm management – V 1* Regulation orientation Policy Package 13 Development of human resources Public infrastructure / services orientation Policy Package 14 Access to ICTs and transport infrastructure Policy Package 15 Spatial planning *V1: Variant 1 99 5.7.4. Linkages and Synergies In Image I, High-tech Europe: Global Cooperation for Sustainable Agriculture, science and technology is of utmost importance, together with a focus on “top-down” initiatives. The prevailing policy orientation of this path is the “Public infrastructure/services orientation”. Furthermore, also the market orientation is important (Giaoutzi and Stratigea, 2009b). At the core of this path is Policy Package 6 (Log-in the information society), provided that a proper network infrastructure (PP 14 – Access to ICTs and transport infrastructure) is already available in the rural regions. An important aspect is the creation of a communication platform to increase interaction among stakeholders in rural regions; and the establishment of links with R&D institutions, research centers, universities etc. Adoption and use of ICTs applications in rural regions may support the development of an e-culture, beneficial for rural areas, laying at the core of personal and business development (Stratigea, 2010). Additionally, PP6 is closely linked to PP1 (Knowledge-driven diversified rural communities) and PP12 (Knowledge-intensive farm management), establishing thus a ‘bridge’ for the diffusion of knowledge and information among the various stakeholders. PP6 also forms the backbone for the implementation of PP13 (Development of human resources). At the same time, fulfillment of PP13 will facilitate the pursuit of PP1 (Knowledge-driven diversified rural economies) and PP12 (Knowledge-intensive farm management), as it lays the ‘grounds’ for both adoption and use of technology and innovation (Giaoutzi and Stratigea, 2009b). Furthermore, PP6 is very important for the implementation of PP9 (administrative innovations - e-government), as e-government applications support all kinds of eservices, provided by public institutions. Adoption and use of ICTs and their applications supports trust to technology and skill acquisition, which in turn facilitates the development and use of e-government applications (Giaoutzi and Stratigea, 2009b). Another important policy package, in this respect, is the upgrading of the quality of ICTs and transport infrastructure. PP14 (Accessibility to transport – ICTs infrastructure) promotes the deployment of the necessary transport and telecommunications infrastructure that may facilitate the in and out smooth flow of persons, goods, and information from rural regions to the outer world. This supports a better exploitation of local resources and the flourishing of a variety of economic activities, contributing to the diversification of rural economies (Giaoutzi and Stratigea, 2009b). Finally, PP15 (Spatial planning) is setting the rules for a balanced land use distribution in rural regions, serving as a tool for land management; protection of valuable natural resources in rural regions; control of competition among land uses; etc., contributing among others to the bettering of social and economic cohesion of rural population (Giaoutzi and Stratigea, 2009b). 100 5.7.5. Indicative list of policy measures serving Path I In the following, an indicative list of policy measures, falling within each policy package in Path 1, is presented (see Table 5-7 below) (Giaoutzi and Stratigea, 2009b, D5.5). Table 5-7: Indicative list of policy measures serving Path 1 (Image I) Source: Giaoutzi and Stratigea, 2009b, D5.5 Indicative Policy Measures PATH 1 Policy Package Policy Package 1: Knowledge-driven diversified rural economies Policy Package 2: Environmental and resource stewardship – Variant 1 Policy Package 6: Log-in the Information Society - Promotion of R&D in GMO, to increase yields and plant resistance to certain external factors e.g. drought - Promotion of R&D – agri-food technological innovations e.g. novel pesticides suited for organic farming - R&D development for less water-intensive crops - Promotion of R&D investments on energy efficiency (for both households and firms in rural regions) - Promotion of green biotechnology to improve quality and value of crop plants - Development of certified organic ingredients with technological effects on food and positive effects on human health - Development of new labelling concepts for food processing - Stimulate innovation and technology transfer in the agri-sector e.g. creation of agri-technology platforms - Development / promotion of eco-labelling technologies - Promotion of traceability technologies (e.g. Radio Frequency Identification – RDIF tags) - Promotion of plant and animal breeding technologies – molecular breeding - Promotion of innovations on alternative or complementary medication for organic livestock - Support SMEs to develop novel products, equipment, software and diagnostic tools for managing organic livestock – novel veterinary treatments - Support developments in improvement of food processing, preservation and storage to reduce loss of agri-product quality - Promotion of R&D in additives, adding value to functional food - Development of appropriate surveillance systems for controlling illegal abstraction of water - Development / promotion of energy efficiency and water saving technologies in agriculture - Promotion of technologies for soil, crop and animal management (smart crop rotation, cultivation and soil preparation technologies). - Promotion of eco-businesses as environmental innovationbusinesses, producing goods and services for environmental protection (e.g. waste management businesses) - Promotion of agricultural sensing technologies, with focus on environmental protection - Promotion of e-commerce - Promotion of e-marketing - Promotion of e-banking, teleworking etc. - Promotion of ICTs hubs diffusing agri-related information in rural regions (technologies, farm management practises, agri-policies, market opportunities, etc.) 101 Indicative Policy Measures PATH 1 Policy Package Policy Package 9: Administrative innovations – egovernment Policy Package 12: Knowledge-intensive farm management – Variant 1 Policy Package 13: Development of human resources Policy Package 14: Accessibility of rural regions to ICTs and transport infrastructure Policy Package 15: Spatial planning - Provide access of farmers to on-line information systems - Promotion of networking among rural businesses - Promotion of ICTs applications for forest protection (sensor systems for fire protection) - Create innovative administrative structures to serve effectively the needs of both population and businesses in rural regions - Increase capability of human resources in ICTs - Establishment of structures for life-long training of agri-food and forest labour resources - Set up farm management and forest advisory services – Forest management - Financial or other support to sectoral or commodity-specific groups developing and marketing new, environmentally sustainable crops - Promotion of smart-sensing devices for agriculture-environment interaction e.g. nano-delivery systems for pesticides - Promotion of nano-particles offering the potential to administer pesticides, herbicides and fertilizers more efficiently and safely - Promotion of incentives for greater use of alternative water supplies e.g. waste water, grey water and “harvested” rain water - Promotion of agri-technology e.g. precise farming - Promotion of clusters of science-based agri-food and forestry businesses in rural regions for efficient exploitation of natural resources - Support new revenue-generating opportunities in the agri-sector e.g. capturing of by-products from agriculture for energy production - Support investments of modernization of agricultural holdings - Support investments at the level of holding/farming e.g. harvesting equipment - Promotion of specialization of agriculture by training farmers to new approaches to management, production and marketing - Provision of information on food quality/safety issues - Upgrading of human resources by enhancing training and skill acquisition opportunities (e.g. e-training) - Increase technology awareness (new machinery, fertilizers, plants, seeds etc.) to increase efficiency - ICTs infrastructure provision – broadband accessibility in rural regions - Improvement / upgrading of intra- and inter-regional transport networks in rural regions - Improvement of accessibility to agri-forest land - Promotion of interaction via ICTs and transport infrastructure by properly pricing these services - Land use planning for the protection of valuable ecosystems and agricultural land - Support the renewal of rural settlements - Support the preservation of cultural resources and rural heritage 102 5.8. Policy Path 2 (Image II) 5.8.1. The context In Image II, a balance of power has been reached between local, regional and supranational initiatives and objectives, a kind of harmony between “bottom-up” and “top-down” politics. Strong multilateral institutions and governance (WTO, UNFCCC) have also emerged, reaching consensus on international regulations to combat climate change. A kind of balance of power has evolved, based on strong public involvement in local and regional affairs. Strong local identity and regional/national governments have emerged. Considerable technological progress is triggered by focussed technological developments. Energy production, with emphasis placed on the development of biobased economy, creates a balanced supply. There is a high mandatory blending target of biofuels, with special emphasis on the 2nd generation of biofuels. There is a sufficient mass of public investments in bio-energy and bio-materials, with rural regions to develop as bio-based economies. In such a context, the agricultural sector regains importance for the development of rural regions, based on renewable energy production, e.g. biofuels, and rural development is supported by appropriate policy measures. A cooperation spirit permeates all levels of interaction among individuals, i.e. the local, regional, national, EU as well as the global level. Green values are widespread, while food preferences appear to be mixed, ranging from local to international. There is a medium focus on food quality, expected throughout the whole range of preferred food products (regional, international food) and a strong belief in labelling. ICTs play an important role in everyday life and facilitate knowledge and information exchange. They also contribute to the production / processing of agri-food products, aiming at the support of qualitative production. The agri-food sector is exhibiting a continuous trend in technological cost-saving progress, traceability and monitored labelling. There is a balance between regional and international agri-food markets. There is also an enhanced use of biotechnology and GMO. There is a continued CAP (1st pillar) reform process and an increase in modulation of direct payments. There is also a continuation of current rural development policy in CAP 2nd pillar and an increase in transfer of funds from the 1st to the 2nd pillar. There is a medium level of regulatory framework in the agricultural factor market, based on international rules. Finally, there is moderate emphasis on regionally targeted policies to maintain protected flora and fauna. 5.8.2. Main policy packages / areas of change The main policy packages incorporated into Policy Path 2, leading developments towards Image II, have as follows (see Table 5-8, also Figure 5-5 below) (Giaoutzi and Stratigea, 2009b, D5.5): 103 5.8.3. Priorities in policy orientations A certain balance of different policy orientations is necessary for the implementation of Path 2 (Table 5-8 and Figure 5-5 below), although the public infrastructure/services policy orientation seems to slightly overweight the rest three policy orientations (see Athens II and III validation workshops, July 2010). In public infrastructure/services orientation, the key policy packages, based on the study of key elements and key states, have as follows (Giaoutzi and Stratigea, 2009b, D5.5): - PP1 - Knowledge-driven diversified rural economies: PP1 refers to public investments in R&D, supporting the development of new knowledge and innovations in fields such as: sensor technology, nanotechnology and biotechnology, traceability and food labelling, energy production and energy efficiency technologies etc., serving the agri-food production, but also the production of other economic sectors in rural societies. - PP6 - Log-in the Information Society: as rural regions are, in this Image, developing as bio-based economies, the issue of knowledge and information exchange is of crucial importance. This PP refers to the promotion of an e-culture (adoption and use of ICTs applications) in rural regions that will support local population and businesses to log-in the information society and its applications. - PP9 - Administrative innovations – e-government: in support of local administration, in rural regions, to adopt and use ICTs-based communication in order to improve the quality and credibility of public services and decrease inequalities in access to basic services. - PP10 – R&D innovation – Bio-innovations: rural regions in this Image are developing as bio-based economies. PP10 supports public investments on the development of new knowledge and bio-innovations. Fields of interest in this respect are: environmentally friendly cost-effective production and processing innovations for the production of bio-products (biofuels – biomaterials), innovations that support the less energy-intensive and waste-generating biofuels production, environmentally friendly energy crops, bio-refineries, waste management innovations, etc. - PP13 – Development of human resources: in support of upgrading of local human resources for knowledge acquisition on, among others, bio-based activities in rural regions and skills in ICTs. - PP14 – Accessibility to ICTs and transport infrastructure: in support of the deployment of the necessary ICTs and transport infrastructure in rural regions that facilitates interaction. In the market orientation, key policy packages, based on the study of key elements and key states are (Giaoutzi and Stratigea, 2009b, D5.5): - PP1 - Knowledge-driven diversified rural economies: promote measures that motivate businesses to invest on R&D and innovations for the development of new, knowledge-based, innovative, competitive and sustainable production and processing systems (biotechnology, traceability, labelling, energy efficient production/processing systems, etc.). - PP2 - Green entrepreneurship: motivates green entrepreneurial behaviour, which, based on the development and/or adoption of innovations in the production / 104 processing process, integrates successfully competitiveness and environmental objectives in the business agenda. - PP6 - Log-in the Information Society: promotes intra-business innovations (e.g. new organizational structures) and/or inter-business innovations (cooperation in a network business structure) that support in firms competitiveness, efficiency, sharing of resources, risks management etc. - PP10 - R&D innovations – Bio-innovations: encourage the adoption – use of various types of bio-innovations at the business level, by promoting a set of policy measures e.g. financial incentives. - PP12 – Knowledge intensive farm management: this PP stimulates the adoption – use of knowledge-intensive farm-related innovations, aiming at both a more effective but also an environmentally less-harmful agri-food production. Table 5-8: Policy Path 2 Source: Giaoutzi and Stratigea, 2009b, D5.5 PATH PATH 2 POLICY PACKAGE Policy Package 1 - Knowledge-driven diversified rural economies Policy Package 2 - Green Entrepreneurship Policy Package 3 - Environmental and resource stewardship – Variants 1 and 2 Policy Package 4 - Reduce, Reuse, Recycle (3Rs) Policy Package 6 - Log-in the Information Society Policy Package 9 - Administrative innovations – e-government Policy Package 10 - R&D innovations – Bio-innovations Policy Package 12 - Knowledge-intensive farm management – Variants 1 and 2 Policy Package 13 - Development of human resources Policy Package 14 - Accessibility of rural regions to ICTs and transport infrastructure Policy Package 15 - Spatial planning As to the rest three policy orientations, holds the following: In the regulation orientation of importance are the following policy packages (Giaoutzi and Stratigea, 2009b, D5.5): - PP3 – Environmental and resource stewardship: promotes the regulation orientation for setting rules for agri-forest management in order to assure the sustainable exploitation of natural resources. - PP4 – Reduce, Reuse, Recycle: promotes rational use of resources by imposing the reduction and multiple uses of resources, as well as waste management at the household and business level. - PP14 – Access to ICTs and transport infrastructure: introduces pricing regulations in order to ensure equal access to ICTs and transport infrastructures. - PP15 – Spatial planning: this PP introduces land use planning frameworks, in support of sustainable development i.e. environmental protection, economic efficiency and social and economic cohesion in rural areas. Finally, in respect to the lifestyle orientation, key policy packages are (Giaoutzi and Stratigea, 2009b, D5.5): 105 - PP3 - Environmental and resource stewardship: promotes increasing awareness as to resource preservation and management, based on both technological progress and decoupling policy measures. - PP4 - Reduce, reuse, and recycle: promote changes in the patterns of resource use and management, by inspiring reduction and multiple use of these resources, but also the management of waste in rural communities (both households and businesses). - PP6 - Log-in the Information Society: promote trust in technology and encourage adoption – use of ICTs and their applications in the everyday transactions in rural population. 5.8.4. Linkages and Synergies In Image II - In search of Balance: Accord on Sustainability - the focus is on the economy and energy. A certain balance of different policy orientations is necessary for the implementation of this path, although the public infrastructure/services orientation seems to be ranked higher in importance than the other three policy orientations (Giaoutzi and Stratigea, 2009b). For reaching Image II, is necessary to combine technology and decoupling elements. This requests improvement of the rates of adoption/use of technology, where an emphasis is placed on the support of R&D and knowledge-driven innovations (PP1 – Knowledge-driven diversified economies), but also on knowledge-intensive farm management innovations (PP12). In addition, PP3 on ‘environmental and resource stewardship’, dealing with the use of technological innovations for a more environmentally-friendly management of the agri-forest resources, is of great importance. Moreover, PP10 (R&D innovations – bio-innovations) places emphasis on all kinds of innovations relating to the bio-based economy. The application of the above PPs creates synergies, that motivate rural communities towards acquiring a broader knowledge base and available technologies for an effective rural resource management. Moreover, the upgrading of human resources (PP13 – development of human resources), combined with the adoption – use of ICTs and their applications (PP6 – Log-in the information society), create the appropriate conditions for unimpeded flow of information and knowledge among rural stakeholders, expected to positively impact entrepreneurship, job creation and support of local income. Finally, good access of rural regions to transport infrastructure (PP14 – access to transport and ICTs infrastructure) may support interaction and trade of agri-food and forest products. As to the decoupling element, in Image II a more conscious attitude towards preserving natural and environmental resources is adopted, with stakeholders taking active roles for the protection and preservation of these resources. PP2 (green entrepreneurship), PP3 (environmental and resource stewardship – Variant 2), and PP4 (reduce, reuse and recycle) are promoting a more conscious attitude towards consumption patterns of natural resources, which implies the development of a new culture of resource-saving and multiple use of natural resources in rural regions. These also introduce a new spirit of resource management at both the household and the business level that may also impact positively job creation and local income generation. Moreover, it forms the basis for the creation of agri- and non agri-based activities, supporting the levels of multifunctionality in rural regions. 106 Fig. 5-5: Path to Image II (Path 2) Source: Giaoutzi and Stratigea, 2009b, D5.5 Policy Package 1 Knowledge-driven diversified rural economies Policy Package 2 Green Entrepreneurship Policy Package 3 Environmental and resource stewardship – V 1, 2* Lifestyle orientation Policy Package 4 Reduce, Reuse, Recycle Market orientation Image II Regulation orientation Public infrastructure / services orientation Lifestyle orientation Market orientation Regulation orientation Infrastructure / Public services orientation *V 1, 2: Variants 1 and 2 Policy Package 6 Log-in the Information Society Policy Package 9 Administrative innovations – egovernment Policy Package 10 R&D innovations – Bio-innovations Policy Package 12 Knowledge-intensive farm management – V 1, 2* Policy Package 13 Development of human resources Policy Package 14 Access to ICTs and transport infrastructure Policy Package 15 Spatial planning 107 Finally, spatial planning (PP15) sets the framework for a more effective spatial organization of rural regions (residential areas, spatial pattern of economic activities, infrastructure etc.), that aims at serving the needs of both population and activities, preserving at the same time local valuable ecosystems. 5.8.5. Indicative list of policy measures serving Path II In the following, is presented an indicative list of policy measures, falling within policy packages in Path 2 (see Table 5-9 below) (Giaoutzi and Stratigea, 2009b, D5.5). Table 5-9: Indicative list of policy measures serving Path 2 (Image II) Source: Giaoutzi and Stratigea, 2009b, D5.5 Indicative Policy Measures PATH 2 Policy Package Policy Package 1: Knowledge-driven diversified rural economies Policy Package 2: Green Entrepreneurship - Promotion of R&D in GMO to increase yields and plant resistance to certain external factors e.g. drought - Promotion of R&D – agri-food technological innovations e.g. novel pesticides suited for organic farming - R&D development of less water-intensive crops - Promotion of R&D investments on energy efficiency for both households and businesses in rural regions - Promotion of green biotechnology to improve quality and value of crop plants - Development of certified organic ingredients with technological effects on food and positive effects on human health - Development of new labelling concepts for food processing - Stimulate innovation and technology transfer in the agrisector e.g. by creation of agri-technology platforms - Development / promotion of eco-labelling technologies - Promotion of traceability technologies (e.g. Radio Frequency Identification – RDIF tags) - Promotion of plant and animal breeding technologies – molecular breeding - Promote innovations on alternative or complementary medication for organic livestock - Support SMEs to develop novel products, equipment, software and diagnostic tools for managing organic livestock – novel veterinary treatments - Support developments on improvement of food processing, preservation and storage to reduce loss of agri-product quality - Promotion of R&D in additives adding value to functional food - Promotion of innovations relating to co-existence of crops (conventional, organic and TGM food production) - Development of proper systems for quality control of food - Provision of effective irrigation infrastructure – water resource management - Promotion of R&D serving “coexistence” of genetically modified (GM) and organic farming - Support organic agriculture and organic food - Promote RE in agricultural regions (energy crops, biomass 108 Indicative Policy Measures PATH 2 Policy Package Policy Package 3: Environmental and resource stewardship – Variants 1 and 2 Policy Package 4: Reduce, Reuse, Recycle Policy Package 6: Log-in the Information Society Policy Package 9: Administrative innovations – egovernment Policy Package 10: R&D innovations – Bioinnovations production, wind, solar energy) - Fostering entrepreneurship in green activities/products e.g. support of specialized retail shops for selling organic and regional of special quality products - Promotion of waste management in household, manufacturing and agri-forestry - Development of appropriate surveillance systems controlling illegal abstraction of water - Development / promotion of energy efficiency and water saving technologies in agriculture - Promotion of technologies for soil, crop and animal management (smart crop rotation, cultivation and soil preparation technologies) - Promotion of eco-businesses as environmental innovationbusinesses, producing goods and services for environmental protection (e.g. waste management businesses) - Promotion of agricultural sensing technologies, with focus on environmental protection - Increase public-business awareness on green values and environmental protection – promote quality-oriented life styles - Setting sustainability standards for biofuels and energy crops - Promotion of strict emission standards - Enforcement of rules for nutrient applications - Promotion of “reduce, reuse and recycle” technologies - Waste management - Reduce, reuse and recycle of agri-food packaging - Reduce energy consumption in both the household and the business sector - Promotion of e-commerce - Promotion of e-marketing - Promotion of e-banking, teleworking etc. - Promotion of ICTs hubs diffusing agri-related information in rural regions (technologies, farm management practises, agri-policies, market opportunities, etc.) - Provide access of farmers to on-line information systems - Promotion of networking among rural businesses - Promotion of ICTs applications for forest protection (sensor systems for fire protection) - Create innovative public structures to effectively serve the needs of both population and businesses in rural regions - Promote consensus-building mechanisms at the local level - participation - Promote R&D investments for the creation of a portfolio of biomass processing technologies - Promote R&D investments towards increasing costeffectiveness of biofuels - Promotion of regional biomass action plans - Promotion of ‘smart energy networks’ - Promotion of combined heat and power installations (CHP) - Promotion of biofuels in public transportation - Public procurement of heating and cooling systems based on biomass use 109 Indicative Policy Measures PATH 2 Policy Package Policy Package 12: Knowledge-intensive farm management – Variants 1 and 2 - Promotion of biofuels by tax exemption or differentiation of fuel VAT pricing on behalf of biofuels - Support of investments on biomass district heating schemes, as cost-efficient modern plants, for heating in rural regions - Promote recovering of animal by-product energy (biogas, bio-diesel production) - Establish sustainable biofuels certification for biofuels production in the EU as well as for biofuels imports - Increase capability of human resources in ICTs - Establishment of structures for life-long training of labour resources on agri-food and forest management issues - Set up farm management and forest advisory services – forest management - Financial or other support to sectoral or commodityspecific groups developing and marketing new, environmentally sustainable crops - Promotion of smart-sensing devices for agricultureenvironment interaction e.g. nano-delivery systems for pesticides - Promotion of nano-particles offering the potential to administer pesticides, herbicides and fertilizers more efficiently and safely - Promotion of incentives for greater use of alternative water supplies e.g. waste water, grey water and “harvested” rain water - Promotion of agri-technology e.g. precise farming (use of IT, GPS, sensors etc.) - Promotion of satellite technology for crop surveillance - Promotion of clusters of science-based agri-food and forestry businesses in rural regions for more effective exploitation of natural resources - Support of new revenue-generating opportunities in the agri-sector e.g. capturing of by-products from agriculture for energy production - Support investments in modernization of agricultural holdings in order to comply with Community standards - Support investments at the level of holding/farming e.g. harvesting equipment - Promote specialization of agriculture by training farmers in new approaches to management, production and marketing - Promotion of crop rotation – support a minimum diversity of cropping patterns - Promotion of low-intensity pasture systems - Further reduction / control of the use of pesticides - Promotion of sustainable agricultural practises on sloping lands e.g. proper irrigation systems, soil-protecting monocultures, presence of hedges and trees . - Promote the production of low-impact bio-energy crops - Promotion of the right crop mix and cropping practise for bioenergy production - Promotion of fallow and set aside practises for resource conservation - Financial support to environmentally responsible agripractises 110 Indicative Policy Measures PATH 2 Policy Package Policy Package 13: Development of human resources Policy Package 14: Accessibility of rural regions to ICTs and transport infrastructure Policy Package 15: Spatial planning 5.9. - Eco-labelling of regional food products - Support agricultural production for non-food purposes (e.g. forestry) - Promote incentives for agri-waste collection at the farm level - Promotion of standard quality low price agri-food production - Promotion of highly nutritive healthy food (functional food) - Protection of regional food in EU (PDO, TGI, TSG) - Provision of information on food quality/safety issues - Upgrading of human resources by enhancing training and skill acquisition opportunities (e.g. e-training) - Increase technology awareness (new machinery, fertilizers, plants, seeds etc.) to increase efficiency - ICTs infrastructure provision – broadband accessibility in rural regions - Improvement / upgrading of intra- and inter-regional transport networks in rural regions - Improve accessibility of agri-forest land - Promote interaction via ICTs and transport infrastructure by properly pricing these services - Land use planning for the protection of valuable ecosystems and agricultural land - Support the renewal of rural settlements - renovation and development of villages - Support the preservation of cultural resources and rural heritage Policy Path 3 (Image III) 5.9.1. The context In Image III, policies are mainly driven by local and regional initiatives. Local and regional aspects are high on the political agenda, while global environmental issues are more down on the list. A strong public participation, led by community initiatives has emerged. A tax based reform has taken place in the EU countries, shifting taxation from labour to the use of natural resources and energy, with the scope to stimulate conservation of resources. This, in parallel with green demand, has led to the reduced consumption patterns of energy, materials and hazardous substances. Overall demand is affected and people are willing to pay for greener products as well as for locally produced goods. Production is more locally oriented and serves mainly the local markets, but is also based on licences and know-how from the large international firms and networks (global production). There is also an increasing share of the service sector, with traditional manufacturing industry showing a declining share in total production. Settlement patterns and location of workplace and service functions are also affected. Many urban sub-centres have developed to a higher degree of self sufficiency and city 111 centres are being re-urbanized. People are pushing the politicians to adopt stricter environmental regulations and standards, especially at the local level (urban areas). There has been a trend towards more ‘local life-styles’ and widespread green values among the general public. People increasingly take responsibility for the common goods, and attitudes towards collective actions are positive, especially at the local and regional level. Reflexive slow lifestyle, slow food, slow travelling etc. are established. Green values are pushed by grassroots movements rather than by national or EU politicians, who lag behind, but try to meet the demand of people. A high level of consumers’ awareness for regionally produced food is developing and organic farming as well as ethno food are important. There is strong focus on quality of life, health, well being, recreation, safety and different paths to achieve these objectives. There is strong networking and cooperation, with emphasis on green activities. Increased accessibility to ICTs networks is pursued to reduce mobility, while there is a certain preference for cyber and virtual applications. Based on that, there appears a decreased need for transport of agricultural products and inputs. Technological progress is oriented towards food quality (e.g. nanotechnology) and improving regional products. There is a low use of biotechnology and GMOs are not allowed. Low technological developments make it difficult to produce, for example, enough food and biomass at the same time. Local investments are directed in low-tech bio-energy and biomaterials (local bio-based economies). There is high focus on food quality, especially in terms of green and cultural values. Local and organic food is therefore preferred. There is continuation of the current CAP, although payments are more coupled to land use and environmental issues. There is strong support to organic farming. Finally, emphasis is placed on rural development policies, as well as regional and local business networking. Specific policies are directed to small scale farmers to enhance social cohesion. 5.9.2. Main policy packages / areas of change The main policy packages incorporated into Policy Path 3, leading to developments towards Image III, have as follows (see Table 5-10, also Figure 5-6 below) (Giaoutzi and Stratigea, 2009b, D5.5). 5.9.3. Priorities in policy orientations Key policy orientation in this path is the lifestyle orientation (see Athens II and III validation workshops, July 2010), implemented in order to widen the already existing rigorism on green values, environmental responsibility, regionality and respect for local resources, culture etc. as well as the importance of quality of life and the local environment, qualitative and safe food, etc. It follows the market orientation that places all market policy measures aiming at motivating businesses to follow a “green” behaviour and develop / adopt all kinds of innovations that support this direction. Of relative importance is also the public infrastructure / services orientation that aims at the provision of the necessary infrastructure in rural regions, the upgrading of human resources and the investments on R&D in order to develop the required technological innovations used for the sustainable management of natural resources. Finally, the regulation orientation is setting the framework for spatial development and environmental stewardship (Giaoutzi and Stratigea, 2009b, D5.5). 112 Table 5-10: Policy Path 3 Source: Giaoutzi and Stratigea, 2009b, D5.5 PATH POLICY PACKAGE PATH 3 Policy Package 2 - Green entrepreneurship Policy Package 3 - Environmental and resource stewardship Policy Package 4 - Reduce, reuse and recycle (3Rs) Policy Package 5 - Ecological tax reform Policy Package 6 - Log-in the Information Society Policy Package 7 - Culture of “regionality” Policy Package 8 - Social responsibility Policy Package 9 - Administrative innovations – e-government Policy Package 10 - R&D innovations – Bio-innovations Package 11 - Public participation Policy Package 12 – Knowledge-intensive farm management - Variant 2 Policy Package 13 - Development of human resources Policy Package 14 - Accessibility of rural regions to transport and ICTs infrastructure Policy Package 15 - Spatial planning In the lifestyle orientation, the key policy packages, based on the study of key elements and key states, have as follows: - PP3 - Environmental and Resource Stewardship - Variant 2: promotes resource preservation and management, based on policy measures that support decoupling of the environmental quality from agri-food and forest activities. - PP4 - Reduce, reuse and recycle: promotes an environmentally responsible attitude of resource-use by inspiring the reduction and multiple use, but also the management of waste in rural communities (both households and businesses). - PP6 - Log-in the Information Society: in support of trust in technology that promotes the adoption and use of ICTs and their applications in the everyday transactions in rural areas. - PP7 - Culture of “regionality”: supports changes in behavioural patterns, placing emphasis on quality and authenticity (quality of food, quality of life, quality of social interaction, quality of natural and cultural environment, etc.). - PP8 - Social Responsibility: supports the strengthening of responsibility in the management of environmental, cultural and social resources, in rural areas. - PP11 - Public participation: in support of participatory decision making at the local level, increasing thus mutual understanding and reaching of consensus among local stakeholders on issues of local interest, which enhance successful implementation of various policies and commitment of citizens and businesses to common goals. In the market orientation, the key policy packages, based on the study of key elements and key states, have as follows (Giaoutzi and Stratigea, 2009b, D5.5): - PP2 - Green Entrepreneurship: provides policy measures that motivate business innovations, capable of supporting the integration of environmentally-friendly business behaviour and competitiveness. - PP3 - Environmental and Resource Stewardship -Variant 2: provides measures motivating agri-food and forest businesses to adopt in production/processing environmentally-friendly practises, which support the decoupling of environmental quality from economic activities. 113 - PP6 - Log-in the Information Society: promotes the adoption of intra-business innovations (e.g. new organizational structures) and/or inter-business innovations (cooperation in a network structure) that support in firm’s competitiveness, efficiency, sharing of resources and risks etc. based on the potential offered by ICTs and their applications. - PP8 - Social Responsibility: contributes to motivation of business behaviour that takes into account local environmental and social resources. - PP10 - R&D innovations – Bio-innovations: contributes to business motivation for the development and adoption of all kinds of innovations that may support production of bio-materials. - PP12 - Knowledge-intensive farm management – Variant 2: motivates businesses to adopt knowledge-intensive farm management that supports the decoupling of agricultural production from environmental quality. In the public infrastructure/services orientation, the key policy packages, based on the study of key elements and key states, have as follows (Giaoutzi and Stratigea, 2009b, D5.5): - PP6 - Log-in the Information Society: promotes the development of various types of rural-specific ICTs applications, which support the agri-food and forest sectors, but also other sectors of rural economies towards an ICT4D 12 approach. - PP9 - Administrative innovations – e-government: support local administration to adopt and use ICTs-based communication in order to improve the quality and credibility of public services and decrease, at the same time, inequalities in access to basic services. - PP10 - R&D innovations – Bio-innovations: promotes investments in R&D for the development of the necessary technological innovations that support the transition of rural regions to bio-based economies. - PP12 - Knowledge-intensive farm management – Variant 2: promotes the development of environmentally-responsible agri-food and forest practices and knowledge to support decoupling of production and processing from environmental quality. - PP13 - Development of human resources: promotes the creation of educational structures for the upgrading of local human resources. - PP14 - Access to transport and ICTs infrastructure: in support of the deployment of ICTs and transport infrastructure, that improves accessibility in rural regions. Finally in the regulation orientation, the key policy packages, based on the study of key elements and key states, have as follows (Giaoutzi and Stratigea, 2009b, D5.5): - PP3 - Environmental and Resource Stewardship -Variant 2: promotes the setting of rules for agri-forest management in order to assure the sustainable exploitation of natural resources. - PP4 - Reduce, Reuse, Recycle: in support of a more rational use of resources by imposing the reduction and multiple use of resources, as well as waste management practices at the household and business levels. - PP5 - Ecological tax reform: promotes a reform of taxation, following a shift from a labour tax to a resource-intensive business tax. - PP14 – Access to transport and ICTs infrastructure: enforces pricing regulations in order to ensure equal access to infrastructure. 12 ICT4D – ICTs for Development. 114 - PP15 – Spatial planning: introduces land use planning frameworks, in support of sustainable development i.e. environmental protection, economic efficiency and social and economic cohesion in rural areas. 5.9.4. Linkages and Synergies The focus of Image III - Active Regions and Reflexive Lifestyles - is on behavioural changes and involves strong public participation. Key policy orientation in this path is lifestyle orientation, for widening the already existing rigorism on green values, environmental responsibility, regionality, respect for local resources, culture etc., but also quality of life and the local environment, food, etc. This is followed by the market orientation, which adopts market policy measures motivating business to follow “green” behaviour and develop / adopt innovations accordingly (Giaoutzi and Stratigea, 2009b). In Path 3, where lifestyle orientation is important, participatory decision making (PP11 - Public participation) forms the platform for interaction among local stakeholders and the creation of a vision for the future development of rural regions, based on respect to social, cultural and natural resources. This is facilitated by the adoption and use of ICTs and the creation of an ICTs platform, supported by PP9 (Administrative innovations – e-government). Of importance is also the dedication to values, authenticity, cultural heritage, social interaction and demand for quality, expressed via PP7 (Culture of “regionality”) that drives behavioural patterns in rural regions; but also the taking of responsibility of both population and business in respect to the management of environmental, cultural and social resources, expressed by PP8 (Social responsibility). The above mobilize environmental and resource stewardship, based on: resource preservation and management (PP3); a reduction, multiple use of resources and recycling (PP4). Moreover, the spirit of e-culture, which is well established among local population, is a key driver for access to information and knowledge that supports decisions on sustainable resource management (Giaoutzi and Stratigea, 2009b, D5.5). Of additional importance is the provision of incentives to business for gaining respect and competitiveness in the rural context. More precisely, PP2 (Green Entrepreneurship) promotes policy measures that motivate business innovations, capable of supporting the integration of an environmentally-friendly business behaviour and competitiveness objectives; PP3 (Environmental and Resource Stewardship) promotes policy measures that motivate agri-food and forest business to adopt environmentally-friendly product and process practises that may support the decoupling of environmental quality from these activities; PP8 (Social Responsibility) motivates business behaviour that takes into local environmental and social resources; PP12 (Knowledge-intensive farm management) motivates business to adopt knowledge-intensive farm management techniques that may support the decoupling of agricultural production from environmental quality; finally PP10 (R&D innovations – Bio-innovations) motivates business to develop / adopt innovations that may support bio-material production. 115 Fig. 5-6: Path to Image III (Path 3) Source: Giaoutzi and Stratigea, 2009b, D5.5 Policy Package 2 Green Entrepreneurship Policy Package 3 Environmental and Resource Stewardship -V 2* Lifestyle orientation Policy Package 4 Reduce, Reuse, Recycle Policy Package 5 Ecological tax reform Market orientation Policy Package 6 Log-in the Information Society Policy Package 7 Culture of “regionality” Image III Policy Package 8 Social Responsibility Regulation orientation Policy Package 9 Administrative innovations – egovernment Policy Package 10 R&D innovations – Bio-innovations Public infrastructure / services orientation Policy Package 11 Public Participation Policy Package 12 Knowledge-intensive farm management – V 2* Policy Package 13 Development of human resources Lifestyle orientation Policy Package 14 Access to transport and ICTs Market orientation Regulation orientation infrastructure Public Infrastructure / services orientation Policy Package 15 Spatial planning *V2: Variant 2 116 Of importance is the contribution of PP6 (Log-in the Information Society), which creates the potential for both intra-business and/or inter-business innovations (network cooperation) that may support firms’ competitiveness, efficiency, sharing of resources and risks, etc. (Giaoutzi and Stratigea, 2009b, D5.5). Moreover, investments on public infrastructure and services are also important in order to strengthen the economic base of rural regions, by improving accessibility of rural regions (PP14 - Access to ICTs and transport infrastructure), their knowledge base (PP6 - Log-in the Information Society), but also quality of local human resources (PP13 - Development of human resources) (Giaoutzi and Stratigea, 2009b, D5.5). Finally, of importance is a certain regulatory framework for the spatial organization of rural settlements (PP15 – Spatial planning) that may form the basis for strengthening of linkages among activities, and an upgraded network infrastructure (PP14 – Access to transport and ICTs infrastructure). The protection of valuable natural systems (PP3 - Environmental and resource stewardship) is also of great importance. The above framework is setting the directions for a sustainable exploitation of resources (PP4 Reduce, Reuse, Recycle) and a set of financial measures as disincentives for developing resource-intensive activities (PP5 - Ecological tax reform) (Giaoutzi and Stratigea, 2009b, D5.5). 5.9.5. Indicative list of policy measures In the following, an indicative list of policy measures, falling within policy packages in Path 3, is presented (see Table 5-11 below) (Giaoutzi and Stratigea, 2009b, D5.5). Table 5-11: Indicative list of policy measures serving Path 3 (Image III) Source: Giaoutzi and Stratigea, 2009b, D5.5 Indicative Policy Measures PATH 3 Policy Package Policy Package 2: Green entrepreneurship Policy Package 3: Environmental and resource stewardship – Variant 2 - Support organic agriculture and production of organic food - Promote Renewable Energy (RE) production in agricultural regions (energy crops, biomass production, wind, solar energy) - Fostering entrepreneurship in green activities/products e.g. support of specialized retail shops for selling organic and regional - of special quality - products - Promotion of waste management in household, manufacturing and agri-forestry - Promotion of green entrepreneurship in other sectors e.g. manufacturing, tourism - Promotion of corporate responsibility of firms - Fostering entrepreneurship in biomass energy production (waste processing installations, forestry farming etc.) - Promotion of private-public partnerships (PPP) in biomass energy production - Development / promotion of energy-efficient and water-saving technologies in agriculture - Promotion of eco-businesses as environmental innovationbusinesses, producing goods and services for environmental protection (e.g. waste management businesses) 117 Indicative Policy Measures PATH 3 Policy Package - Promotion of agricultural sensing technologies, with focus on environmental protection - Increase public-business awareness on green values and environmental protection – promote quality-oriented lifestyles - Setting sustainability standards for biofuels and energy crops - Promotion of strict agri-emission standards - Enforcement of rules for nutrient applications - Promotion – maintenance of farmed landscape for the protection of biodiversity - Promotion of eco-conditionality – harmonization of standards of good farming practises - Promotion of compulsory long-term set aside on arable land (instead of rotational set aside) - Promotion of partial coupling in order to prevent land abandonment - Enforcement of rules in nutrient applications (fertilizers and manure) Policy Package 4: Reduce, reuse, recycle Policy Package 5: Ecological tax reform Policy Package 6: Log-in the Information Society Policy Package 7: Culture of “regionality” Policy Package 8: Social responsibility Policy Package 9: Administrative innovations – e-government - Promotion of “reduce, reuse and recycle” supporting technologies - Promotion of waste management technologies - Reduce, reuse and recycle of agri-food packaging - Reduce energy consumption in both the household and the business sector - Promote incentives for agri-waste collection at the farm level - Differentiation of fuel VAT pricing on behalf of biofuels - Promotion of biofuels by tax exemption - Reform of taxation, following a shift from labour tax to resourceintensive business tax - Promotion of e-commerce - Promotion of e-marketing - Promotion of e-banking, teleworking etc. - Promotion of ICTs hubs diffusing agri-related information in rural regions (technologies, farm management practises, agripolicies, market opportunities, etc.) - Provide access of farmers to on-line information systems - Promotion of networking among rural businesses - Promotion of ICTs applications for forest protection (sensor systems for fire protection) - Promote green consumerism - Promotion of the “bio-region” concept as a new partnership among organic farmers, processors, traders, gastronomy, tourism and local communities - Promote lifestyles based on quality of life, natural resources, local food, traditions and culture - Support innovation in food processing techniques, pursuing minimum destruction and maximum authenticity of rural qualitative products - Promotion/protection of regional food products (PDO, PGI, TSG) - Increase public / business awareness on green values and environmental protection – promote quality-oriented lifestyles - Create innovative public structures to serve effectively the needs of both population and businesses in rural regions - Promote consensus-building mechanisms at the local level – 118 Indicative Policy Measures PATH 3 Policy Package Policy Package 10: R&D innovations – Bioinnovations Policy Package 11: Public participation Policy Package 12: Knowledge-intensive farm management – Variant 2 enhance public participation in decision making processes - Support R&D in organic farming - Promotion of regional biomass action plans - Promotion of biofuels in public transportation - Promotion of biofuels by tax exemption or differentiation of fuel VAT pricing on behalf of biofuels - Support investments on biomass district heating schemes as costefficient modern plants for heating in rural regions - Promote recovering of animal by-product energy (biogas, biodiesel production) - Establish sustainable biofuels certification for biofuels’ production in the EU as well as for biofuels imports - Establish community platforms for communication and exchange of views and ideas of local stakeholders - Promotion of building shared community values through the establishment of participatory mechanisms - Increase capability of human resources in ICTs - Establishment of structures for life-long training of agri-food and forest labour resources - Set up farm management and forest advisory services – forest management - Financial or other support to sectoral or commodity-specific groups developing and marketing new, environmentally sustainable crops - Promotion of incentives for greater use of alternative water supplies e.g. waste water, grey water and “harvested” rain water - Promotion of agri-technology e.g. precise farming (use of IT, GPS, sensors etc.) - Support new revenue-generating opportunities in the agri-sector e.g. capturing of by-products from agriculture for energy production - Promotion of specialization of agriculture by training farmers to new approaches to management, production and marketing - Promotion of crop rotation – support a minimum diversity of cropping pattern - Promotion of low-intensity pasture systems - Further reduction / control of the use of pesticides - Promotion of sustainable agricultural practises on sloping lands e.g. proper irrigation systems, soil-protecting monocultures, presence of hedges and trees. - Promote the production of low-impacts bio-energy crops - Promotion of the right crop mix and cropping practises for bioenergy production - Promotion of fallow and set aside practises for resource conservation - Financial support to environmentally-responsible agri-practises - Eco-labelling of regional food products - Support agricultural production for non-food purposes (e.g. forestry) - Promote incentives for agri-waste collection at the farm level - Promotion of highly nutritive healthy food (functional food) - Protection of regional food in EU (PDO, TGI, TSG) - Provision of information on food quality/safety issues - Promotion of extensification of agri-production – maintain existing sustainable extensive systems 119 Indicative Policy Measures PATH 3 Policy Package Policy Package 13: Development of human resources Policy Package 14: Accessibility of rural regions to transport and ICTs infrastructure Policy Package 15: Spatial planning - Promotion of undersowing and cover crops, strips (e.g. farmed buffer strips) (positive impacts on water and soil quality as well as biodiversity) - Establishment of buffer strips in areas of special biodiversity - Promotion of mixed farming and traditional crop rotations, including organic rotations (more environmental benefits than greater specialization of farming) - Promotion of small scale farms with diversified production (instead of large, specialized and intensified farming) - Promotion of traditional and low input farming - Promotion of environmental maintenance of abandoned land - Support the combination of extensive agriculture and forestry systems for high quality livestock, food and forestry crops - Reduction of land-use intensity – promotion of organic farming, reduction of productivity of arable crops - Improvement of quality assurance systems to improve integrity of organic food, including new strategies for inspecting and traceability - Promotion of cost-effective standard setting and certification systems in organic farming - Support SMEs to reach niche food markets for organic and traditionally produced food products - Support eco-labelling of “green” products - Upgrading of human resources by enhancing training and skill acquisition opportunities (e.g. e-training) - Increase awareness on environmentally friendly agricultural practises as well as on supporting products e.g. low input pesticides, fertilizers. - Increase capacity of local labour resources in ICTs - Provide direct access to up to date information systems on agrifood issues - ICTs infrastructure provision – broadband accessibility in rural regions - Improvement / upgrading of intra- and inter-regional transport networks in rural regions - Improve accessibility of agri-forest land - Promote interaction via ICTs and transport infrastructure by properly pricing these services - Land use planning for the protection of valuable ecosystems and agricultural land - Support the renewal of rural settlements - renovation and development of villages - Increase awareness on the value of natural and cultural heritage – support preservation of these resources - Expand NATURA protected natural areas’ network – more strict restrictions on farming activities within and around NATURA areas 120 5.10. Backasting Policy Scenarios in AG2020 The output of the above discussion is the backasting policy scenarios built in AG2020, as depicted in Fig. 5-7 below (Giaoutzi and Stratigea, 2009b, D5.5). Fig. 5-7: Backasting policy scenarios in AG2020 Source: Giaoutzi and Stratigea, 2009b, D5.5 Path 3 PP 2 - Green entrepreneurship PP 3 - Environmental and resource stewardship PP 4 - Reduce, reuse and recycle PP 5 - Ecological tax reform PP 6 - Log-in the Information Society PP 7 - Culture of “regionality” PP 8 - Social responsibility PP 9 - Administrative innovations – e-government PP 10 - R&D innovations – Bio-innovations PP 11 - Public participation PP 12 – Knowledge-intensive farm management - Variant 2 PP 13 - Development of human resources PP 14 - Accessibility of rural regions to ICTs and transport infrastructure PP 15 - Spatial planning IMAGE III “Active Regions and Reflexive Lifestyles” IMAGE I “High-tech Europe: Global Cooperation for Sustainable Agriculture” Present State of EU Agriculture POLICY SCENARIO III IMAGE II “In search of Balance: Accord on Sustainability” Path 1 Path 2 PP 1: Knowledge-driven diversified rural economies PP 3: Environmental and resource stewardship – Variant 1 PP 6: Log-in the Information Society PP 9: Administrative innovations – e-government PP 12: Knowledge-intensive farm management – Variant 1 PP 13: Development of human resources PP 14: Accessibility of rural regions to ICTs and transport infrastructure PP 15: Spatial planning PP 1 - Knowledge-driven diversified rural economies PP 2 - Green Entrepreneurship PP 3 - Environmental and resource stewardship – Variants 1 and 2 PP 4 - Reduce, Reuse, Recycle PP 6 - Log-in the Information Society PP 9 - Administrative innovations – egovernment PP 10 - R&D innovations – Bio-innovations PP 12 – Knowledge-intensive farm management – Var. 1 and 2 PP 13 - Development of human resources PP 14 – Accessibility of rural regions to ICTs and transport infrastructure POLICY SCENARIO I POLICY SCENARIO II PP: Policy Package 121 6. VALIDATION METHODOLOGY IN AG2020 In this section is presented the validation methodology and participatory tools used to validate results in AG2020. More details on the application of the proposed methodology and results can be found in Deliverable D5.4. 6.1. Validation in AG2020 In AG2020, foresight analysis makes diligent use of extensive consultations in the stakeholder community through questionnaires, meetings, validation workshops, involving a wide range of actors and stakeholders. Stakeholders’ participation, apart from being a dissemination activity per se, communicating the message and efforts undertaken in AG2020, provides insights and validates the obtained results. Stakeholders’ knowledge adds also value to the learning process of the system at hand. In order to fulfil the pursued objectives, AG2020 seeks to gather intelligence on long term trends, in world agricultural markets, that will help to identify possible / desirable futures of the EU agriculture and respective policy paths to reach them. Stakeholders’ validation is a key element throughout the whole project that supports the scenario backasting process development by integrating the stakeholders’ views and priority setting on the proposed issues. In AG2020 were validated: the methodological approach as well as objectives/targets, external and strategic elements; the Images of the Future; and the policy measures, packages and paths (see Figure 6-1 below). Fig. 6-1: Validation in the AG2020 backasting framework Validations 1 and 2 Objectives/Targets ▪ ▪ ▪ ▪ ▪ ▪ Strategic Elements External Elements Environmental protection Economic efficiency Regional development Social cohesion Food quality-safety Energy Validation 3 Images of the Future Key Elements - Technology Policy Measures 1. Lifestyle oriented 2. Market oriented 3. Regulation oriented 4. Public infrastructure/services etc. Case Studies - Decoupling Policy Packages Key Issues Validation 4 122 Policy Paths 6.2. Validation Methodology In order to plan and structure the validation approach in AG2020, a number of successive steps were followed (see Fig. 6-2 below) that would define the (Giaoutzi et al, 2009a, D5.4; Giaoutzi and Stratigea, 2009b, D5.5): - Purpose of the workshop; - Selection of the appropriate participatory method for each workshop; - Selection process of stakeholders according to the participatory method adopted in each workshop; - Validation of the structure and material for the workshops; - Running of the workshop; - Production of the report; - Selection and application of the qualitative data analysis model ATLAS-ti. Fig. 6-2: Steps of the validation methodology in AG2020 Source: Giaoutzi et al, 2009a, D5.4 Purpose of the Workshop Selection of the appropriate participatory method The selection process of the participants Validation of the Structure and Material Running of the workshop Production of Report Selection and Application of the “content analysis method” Final Output 123 6.2.1. Define the purpose of the workshops A clear definition of the purpose of the workshop is important at this step, as it can largely define the participatory approach to be used, the type of participants, etc. In AG2020 the purpose of each workshop is depicted in Fig. 6-1 above. 6.2.2. Selection of participatory method for each workshop Each participatory method is serving a different purpose. Therefore at this stage, the selection of the appropriate method for each workshop has been carried out. The selection was based on the following criteria (Steyaert and Lisoir, 2005): - The objective of the whole exercise (reason for involvement and expected outcome); - The nature and scope of the issue under study (e.g. complex, highly controversial issue); - The participants involved (public, experts, stakeholders etc.); and - The time and resource constraints. 6.2.3. The selection process of stakeholders The selection of stakeholders in the AG2020 validation workshops was based mainly on the criterion of the expertise available on issues relating to the AG2020 context. Stakeholders for each workshop were selected, among others, from the following groups: - Researchers; - Professionals; - Members of Associations in the agricultural sector; etc. All stakeholders were considered as experts in their fields of interest, who were also distinguished as to their ability to think 'out of the box' or their ability of being visionary (for more information on the selection process of stakeholders see Deliverable D5.4, Giaoutzi et al, 2009a). 6.2.4. Validation of the structure and material for the workshops Important issue in a participatory process is the structure and the material of each validation workshop in order to successfully create a platform for fertile dialogue among stakeholders. A crucial aspect in this respect is the participatory approach adopted. In this step are also validated both the participatory process and the type of the resulting material. Validation of the participatory process may shed light on the limitations of the potentially adopted participatory tool, which may in turn influence the quality of the results. The type of the obtained results, on the other hand, is also validated as to their value added to the issues raised in the workshop. Further processing of results was carried out by use of qualitative approaches e.g. qualitative data analysis (for more details see Deliverable D5.4, Giaoutzi et al, 2009a). 124 6.2.5. Running of the workshop In this stage, the application of the already selected participatory methods is taking place, following the specific requirements of each method in terms of the material presented at the information stage of each process, but also of the coordination/moderation expertise of the persons running the workshops. The produced output, in each case, is formulated in a way that enables a concise presentation of the produced results at each stage of the process in order to be used at the next stage of the iterative process. 6.2.6. Production of the report In most participatory methods the expected output of the process has the form of a report (written, audiovisual, visual arts, etc). This contains, according to the process and structure of the selected method, one or more of the above outputs, which have to be processed further in order to provide useful results for the pursued end in each particular case. 6.2.7. Selection and Application of the Qualitative Data Analysis Model ATLASti The aim of the present step is the identification of the appropriate “qualitative data analysis method” for the processing of the produced output report from each workshop, so that further useful information to be extracted from the original material. The obtained results from the previous steps can be used as an input to the ATLAS-ti model - a qualitative data analysis model - in order to enrich or even modify elements of the AG2020 Policy Scenario backasting process (Giaoutzi et al, 2009a, D5.4). The output produced from the workshops, be it written, tape or video recorded, collage etc. is used as an input to the ATLAS-ti model that will extract the hidden information for use in refining the already produced information in the AG2020 project. On that basis were explored ways for further refinement of the AG2020 process based on the validation results (for more details see Deliverable D5.4). 6.3. Validation Workshops in AG2020 Six validation workshops were organized, in AG2020, focusing on different parts of the Policy Scenarios Backasting Process. More specifically (Giaoutzi et al, 2009a, D5.4): - The first workshop aimed at validating the AG2020 methodological approach as well as external, internal and strategic elements and objectives (Copenhagen, May 2007), which would be used for building the AG2020 Images of the Future. Validation of the above elements was of great importance, since it further supported the refinement of the AG2020 objectives; identified the decision environment (external/internal elements) and added further insights on policy elements. 125 - The second workshop aimed at elaborating further on the external and internal elements, strategic elements as well as the finalization of objectives and targets (Athens, 2008); - The third workshop validated the baseline scenario and the Images of the Future in AG2020 (Florence, October 2008); - The fourth workshop aimed at validating policy measures in AG2020 (Chania, September 2009). - Finally, the fifth and sixth workshops aimed at validating policy measures, packages and paths proposed in the AG2020 context (Athens, July 2010). Three participatory methods were adopted in the validation workshops in AG2020, namely (Giaoutzi et al, 2009a, D5.4): - The expert panel method, used as an advisory participatory approach that aims at reaching consensus among stakeholders; - The focus groups methodology, used as a platform for social learning that brings together scientific knowledge and behavioural patterns of citizens; and - The world cafe method, used as an advisory participatory tool mapping diversity among stakeholders. More specifically: In the first validation workshop the emphasis was placed mostly on brainstorming and exchanging of expert ideas on the founding concepts of the policy backasting framework. In this respect the “expert workshops” method was adopted, as most appropriate for bringing new ideas into the scene and identifying the level of convergence among the various scientific streams, and the opinion making on the likely to emerge futures of agriculture in Europe. In the second validation workshop the focus group methodology was selected, as more capable of dealing with complex issues, using knowledge from various scientific disciplines and/or stakeholders. The output of a structured participatory process, at this stage, was the integrated insights that are made available to the AG2020 consortium. In the third validation workshop, the world café participatory method was adopted as a useful participatory tool for: - Engaging large groups (more than 12 persons) in an authentic dialogue process; - Generating input, sharing knowledge, stimulating innovative thinking and exploring action possibilities around real life issues and questions; - Conducting in depth exploration of key strategic challenges or opportunities; - Deepening relationships and mutual ownership of outcomes in an existing group. In the fourth validation workshop the focus group methodology was adopted in a variation that enables to inform stakeholders by preparing a rather detailed report, far in advance, and give the opportunity to the participants to express in a written form their views and assessments on the discussion issues. The output of the reflections to this report, including various other issues at stake was registered as the basis for discussion in the focus group methodology during the fourth validation workshop. 126 Finally, in the fifth and sixth workshops aimed at validating policy measures, packages and paths the focus group methodology was adopted. 6.4. Validation Results The validation workshops have largely contributed to the (Giaoutzi et al, 2009a, D5.4): - Acquirement of further insight into each specific step of the backasting methodology (internal/external elements, strategic elements, Images of the Future, policy measures, packages and paths) (see also Deliverable D5.4). - Enrichment/indulgement into the content of each step (see also Deliverable D5.4); - Refinement of the objectives/targets, Images of the Future, policy measures, packages and paths structured in AG2020 (see also Deliverable D5.4). - Better understanding and communication both among project partners and stakeholders on the scope and approach of the project. 127 7. THE AG2020 CASE STUDIES In this part of AG2020, regional development scenarios are presented in four European regions. These are assessed and validated at the local level, in order to reveal the different types of challenges and threats faced by the different regional agricultural systems at the EU level (see Fig. 6-1 in the previous chapter). These in turn, will bring into AG2020 the peculiarities of the different EU agricultural systems in the respective countries and the policies required in order to cope with the resulting challenges and threats. In the following are presented shortly the four case study regions and the methodological approach adopted in this part of the project (for more details see D6.4 for each specific case study). 7.1. Foresight Analysis on a Regional Basis – The AG2020 Case Studies In AG2020, a foresight analysis at the regional level was carried out, based on four case studies, presenting four distinct regional agricultural contexts at the EU level. Foresight analysis, at this level, focused on the structuring and assessment of regional development scenarios of the respective regions that bring into AG2020 the regional perspectives of the agricultural sector, but also the challenges and threats faced, in the context of the AG2020 Images of the Future. Regional scenarios are also validated by local stakeholders and policy measures are proposed, which are used to enrich the pool of policy measures of AG2020. The steps, at the case study level, are as follows (AG2020, Annex I): - Identification and selection of representative regional case studies. - Identification of stakeholders, to be invited to participate in workshops organized by each specific case study. - Collection of data on regional influential factors (key factors) either market and/or non-market related. - Sensitivity analysis of regional policy scenarios that involves understanding of the regional stakeholders’ priorities, and identification of the prevailing attributes in each regional context (e.g. state of development of technologies, importance of agriculture for rural development, impact of climate change). - Validation of the results of the regional based sensitivity analysis. Representative regional case studies are selected based on the following criteria: - Challenges posed by a diversified EU agricultural sector. - Presence of factors that are expected to have a strong influence on the agricultural development. - Presence of factors that are identified as most challenging and influential at the regional level. - Balanced geographical representation. Based on these criteria, the following four Case Studies (CSs) were selected: ‐ the Rhodope Mountainous region in Bulgaria (CS1), ‐ the Kastelli region (Herakleion Crete) in Greece (CS2), ‐ the Central Denmark region in Denmark (CS3), and 128 ‐ the Tuscany region in Italy (CS4). In the following are presented: a short description of the above four regional case studies, the objectives set in each case study, the regional scenarios constructed and the policy framework relevant to reach each specific regional scenario. Finally, some conclusions are drawn as to the contribution of the case studies to the AG2020 context. 7.2. The Rhodope Mountainous Region in Bulgaria (CS1) In this section the Rhodope mountainous region is shortly presented (for more details see the D6.4 AG2020 Rhodope Region Report). Population Rural regions cover 98.8% of the Bulgarian territory and account for 84.3% of the total population. The rural population has been declining and the age structure of rural population exhibits a lower share of the working age cohort, while a higher share of retired people in the population. The educational level of the rural population is significantly lower than that of the urban areas. Employment in rural areas is highly dependent on agriculture and forestry, while a very small number of farms have diverted into non-agricultural activities. Non agricultural employment in rural areas is mainly related to retail trade and catering. Local Economy ‐ The agricultural sector The agri-sector in Bulgaria is divided into two distinct groups: in the first group belongs a large number of small farms, cultivating very small parcels of land; while in the second group is found a small number of large private agricultural units, of relatively much bigger size, in control of arable land. As a result, a remarkable fragmentation of land plots in the country can be observed. There are also substantial differences between the size of the holdings managed by individuals and those managed by legal entities (cooperatives, limited companies, sole traders, partnerships). Moreover, Bulgaria is a net exporter of agricultural products, thanks to its favorable climate conditions for the main agricultural products, but also the cultivating traditions that hold in the agrarian sector. Despite the fact that Bulgaria has kept its position as a net exporter, the unfavorable trends holding in the development of the sector have already been reflected in the trade turnover. A serious drawback of the agri-sector is the very low level of adoption of new technologies and the low investments. ‐ Food industry The food processing industry is the most important market for the agricultural products of Bulgaria. In 2004, the food processing industry contributed to 15% of the industrial production. The most developed food processing industry sectors are bread and bakery production, beverages, meat processing and tobacco. 129 Moreover there is a growing interest for organic products, where a large amount of production is processed and exported, but there is also a growing domestic market as well. ‐ Food safety and quality Considerable efforts are made for the modernization of food industry in order to comply with the EU quality, hygiene, and work safety standards. Milk and meat food companies are outstanding in this process, with almost 75% of the firms in these sectors having completed or initiated modernization projects. ‐ Energy sector There is a large potential for production of energy crops. Objectives set for the Rhodope region In line with the AG2020 objectives, the following objectives are pursued for the Rhodope mountainous region: ‐ Environmental protection: the emphasis is placed on the protection of biodiversity and landscape quality, as the region posses outstanding natural characteristics and rich/unique biodiversity. ‐ Economic efficiency: increase in competitiveness is pursued by this objective, so that sustainability in the sector is pursued without state support. ‐ Regional development: namely increase in employment, accessibility of rural regions and a shift towards more value-adding agricultural production. ‐ Food quality and safety: where the emphasis is placed on the production of high quality and safe products, the production of gourmet products, organic products, labeled products etc. ‐ Energy: refers to the improvement of the energy efficiency in the agri-food production sector. 7.3. The Kastelli Region (Herakleion nomos) in Greece (CS2) In the following is presented a short description of the Kastelli region (for more details see in D6.4 the AG2020 Kastelli Region Report) The municipality of Kastelli is located at the western part of the Herakleion nomos in the Crete administrative division (Map 7-1 below). The city of Kastelli is the economic and administrative center of the municipality. The region consists of a mountainous part, near the Dikte Mountain, and a flat part at the north of the region, where the Kastelli plain is located. Municipality’s population amounts up to 6.819 inhabitants, distributed at the fourteen municipal compartments. The region of Kastelli municipality covers about 12.332 hectares, while 25% of the population lives in the city of Kastelli (1629 inhabitants). The total number of working population at the municipality of Kastelli is approximately 2.518. The employment structure in the area is presented in Table 7-1 below. 130 Map 7-1: The Kastelli region Heraklion Nomos Kastelli region Unlike the majority of working population at the nomos level, employed in the tourist and trading sector, the majority of working population at the municipality of Kastelli almost 1/3 of the working population - is occupied in the primary sector.. Table 7-1: Employment structure in the Kastelli region Type of employment Number of employees % Higher administrative and managerial executives of public and private sector Employment in various sectors such as scientists, artists or other Technologists - technical assistants and employers: (%) Desk clerks Employees in shops, outdoor markets and service sector Specialized farmers, stock-farmers and foresters Specializing technicians Unskilled workers, manual workers and small scale tradesmen Not sufficiently declared Young people Not declared 85 3.4 158 92 138 313 855 227 283 7 194 60 6.3 3.6 5.5 12.4 33.9 9 11.2 0.2 7.7 2.4 The rather fertile quality of soil in the Kastelli plain encourages the development of the primary sector. The tourist sector has a low level of development, despite the presence of valuable cultural and archaeological resources in the area. As a result, employment related to the tourist sector is very low. The rest of the tertiary sector has also a low presence in the Kastelli region, as there are no important urban or semiurban centers in the area. As a result, the majority of the working population in the area is mainly employed in agricultural activities. Local Economy - Primary sector The main source of the regional income comes from the agricultural production, like in the majority of municipalities located in the hinterland of the Herakleion nomos. More specifically, in the Kastelli region the main source of agricultural income comes from the cultivation of olive trees, but also from the production of grapes, wine, vegetables, honey, traditional cheese etc. 131 - Service sector The settlement of Kastelli is the administrative and service center of the Kastelli municipality, serving the needs of local population. A health centre, two small hotels, traditional restaurants, small tourist shops and two traditional hostels are the main activities of the service sector located in the area. - Environment and Culture The natural environment of the region is of outstanding quality. The landscape is characterized by small streams, low sprouting, plane-trees, springs, rocky mountain, and trails, which offer the possibility for walking tours (e.g. the European trail “E4”). Moreover, there are places of astonishing natural beauty (e.g. “Agia Anna” in the village Geraki, “Mesada” in Kastamonitsa”). Apart from natural are also present remarkable cultural resources in the region, such as historical Byzantine churches but also two ancient cities, namely the “Acropolis of Smari” and the “Ancient Lyttos”, which have not yet been properly restored. The local tradition of the region is also very important such as local cuisine, local fetes and customs but also traditional products (e.g. Cretan cheese). - Areas of Aesthetic Value In the municipality of Kastelli there are also many areas, characterized as “areas of aesthetic value” but also “national parks”. The land morphology of the municipality of Kastelli is offered for walking tour activities, through landscapes where forestry areas are alternating with rocky mountains. Objectives set for the Kastelli region The main goal of the Kastelli case study is the Integrated Agricultural Development for the Kastelli region, taking into account both the potential of the agricultural sector but also the upcoming relocation of the main airport of the island in the Kastelli area, which is at present located within the urban area of the Herakleion capital city of nomos. In this context, the following objectives are pursued for the Kastelli region: ‐ Environmental protection: the development of the region will be pursued on the basis of a rational exploitation of resources, placing emphasis on the protection of natural and cultural environment. ‐ Economic efficiency: efficiency aspects of economic activities are the focus, with emphasis on innovation diffusion and entrepreneurship in all sectors. ‐ Regional development: refers to broadening the range of activities in all sectors in order to enlarge employment and income opportunities in the study area. Emphasis is placed on promoting multifunctionality, by means of both tourist development - oriented towards environmentally friendly tourist activities – and manufacturing of agricultural products; but also improvement of accessibility. ‐ Social cohesion: aims at ensuring equal access to opportunities in e.g. labour market, health, education, other services. ‐ Food safety and quality: aims at increasing competitiveness of the agri-food sector on the basis of qualitative agricultural products. ‐ Energy: aims at enhancing energy production in the Kastelli region by means of RES (biomass, solar and wind energy). 132 7.4. The Central Denmark Region in Denmark (CS3) In this section is shortly presented the Central Denmark region (for more details see in D6.4 the AG2020 Central Denmark Region Report). Population / regional inequalities Central Denmark Region has 1,250,000 inhabitants and covers an area of 13,124 square kilometers (30 % of the Denmark's land). The region stretches across from the North Sea to the Kattegat, that is around 200 km from one end to another (Map 7-2). The great distance means significant differences among different people and culture, as for example employments rates (larger proportion of the population in employment in the western part than in the eastern part). Conversely, educational attainment is higher in East Jutland than in West Jutland (27.2 and 21.0 per cent respectively). Generally, regional inequalities between the eastern (high) and western (lower) part of the region are addressed in respect to: - population growth, - personal income, - employment rates, - education level, and - number of advanced educational institutions. Map 7-2: The Central Denmark region (CS3) Local Economy ‐ The agricultural sector Danish agriculture has become increasingly specialized. Half of all Danish farms are today without livestock and 80 % of all milking cows and pigs are already in specialized farms. This development leads to an industrialization of the landscape but also to new reflections on corporate branding and social responsibility. As a result, the number of farms in Denmark is declining steadily. Over the last 50 years, the total number of farms decreased by 75 %. In 2006, there were 47400 farms in Denmark. Today there are 42000, and the expectation is that the number in 2015 will drop to 29000. Of those, only 9700 being full-time farming. In 2015, a full-time farmer is expected to have a farm of 220 hectares. 133 Due to the low prices on the national and global markets, Danish farmers search for the production of new crops. This might change the landscape dramatically. Less profitable fields will increasingly become fallow and turn into shrub and woodland, while energy shortages and climate policy objectives stimulate the production of crops such as willow and elephant grass for energy production to the detriment of grain, oilseed rape and grass. Generally there is a trend for large, highly specialized, farms. At the same time, the proportion of part-time and hobby farms has increased markedly. Part-time farmers now represent the two thirds of all Danish farms and have mainly settled in the peri-rural areas around Copenhagen, Aarhus and Odense (Source: UMM19side11-16_MandagMorgen 13-05-2010 18:52 Side 11). ‐ The industry sector The Central Denmark Region has a vibrant economic life, strong competencies in knowledge environments, research and education, and rapid population growth. The region thus accounts for almost a fourth of the total Danish workforce. In the eastern part of the region, the growth zone of Aarhus attracts manpower and investments, thanks partly to the numerous institutions of higher education, which include the university, business school and engineering academy. Aarhus also has Denmark's largest container port for overseas container transport. In the west, the growth centers around the cities of Holstebro and Herning are particular industrial strengths, with food processing, wood and furniture industries, textiles and clothing, metal and production technology. ‐ The energy sector The Central Region Denmark has a has a particularly strong position in this sector, based merely on: 9 The presence of a strong business cluster in bioenergy, which supports innovations in the field and brings the Central Denmark Region already above the EU target for 2020 (22 % of the total regional consumption). 9 The presence of the Denmark’s first test centre for hydrogen technologies, which is involved in the development and rollout of fuelling facilities. nd 9 The presence of the world’s first plant producing 2 generation biodiesel. 9 The presence of the CO2 neutral island of Samsø, the electric power consumption of which is 100% covered by an offshore wind farm, while solar heating, biofuels and wind turbines are also in use. 9 The presence of some of the world’s largest wind turbine manufacturers in the region. ‐ Natural / cultural resources The landscape of Central Denmark Region is quite varying and beautiful, ranging from the North Sea and its dunes in the west and the beautiful lakes in the lake highlands to attractive bays and idyllic inlets in the eastern part of the region. The region also offers a broad range of cultural attractions, from the internationally recognized art museum Aros in Aarhus to a medieval festival and large-scale concerts featuring international names in Horsens, living-history events at Hjerl Hede Open Air Museum and fantastic experiences at Aqua in Silkeborg, the Kattegat Centre in Grenaa and Randers Rainforest Tropical Zoo. 134 Objectives set for the Central Denmark region The main goal of the Central Denmark Region case study is the Regional Development for the region, taking into account the potential of the agricultural sector for the development perspective of the area. The objectives, towards this end, were the following: ‐ Environmental protection: Central Denmark Region aims to be an active player in energy and environmental matters. Within this objective are considered issues such as the protection of water resources and the nature preservation, but also the establishment of eco-efficient agricultural technology for certification purposes. ‐ Economic efficiency: of importance in this objective are the training of labour force, the establishment of links between agri-businesses and R&D firms, the promotion of innovation and entrepreneurship and the strengthening of cooperation among agri-food businesses. ‐ Regional development: under this objective are addressed the upgrading of: human potential, export activity of the region, network infrastructure and built environment. ‐ Social cohesion: that aims at the decrease of inequalities within the study area. ‐ Food quality and safety: as the food sector is a strong sector in the local economy of the Central Denmark region, within this objective is pursued the diversification in food production, placing emphasis on two types of food, namely ‘clever everyday food’ and ‘cultural food’, based on the competitive advantage of the region at hand. ‐ Energy: the focus here is on the further exploitation of renewable energy, based merely on the development of proper technology for effectively exploiting renewable energy sources (e.g. manure and biomass); and the gradual lessen of dependency from fossil fuel. 7.5. The Tuscany Region in Italy (CS4) In this section is shortly presented the Tuscany region. The key attributes of the Tuscany region are depicted in Fig. 7-1 below and are shortly described as follows (for more details see the D6.4 AG2020 Tuscany Case Study Report). Population Tuscany is one of the twenty Italian regions - fifth in size, with a population of 3,677,048 inhabitants over 22,992 square kilometres. Population growth rates were rather stable until the end of the nineties. The increase in immigration rates, both from southern Italian regions and from foreign countries produced a significant increase in the population (+5.1% in the period 1999-2008), which in ten years exceeded the 3,600,000 inhabitants (from less than 3,500,000). This trend is in line with the Italian national population growth, which has been stable (and close to no growth) during the eighties and nineties, and started again to increase at the beginning of the new millennium. The 40% of the Tuscan population is living in rural areas, covering the 75% of the total regional area, producing one third of the total regional added value, and contributing to the 35% of employment. 135 Fig. 7-1: Key elements for the Tuscany region Local economy In Italy the GDP per capita was € 25,100.00 in 2008, slightly higher than EU average (€ 23,600.00). The GDP of Tuscany in 2006 was the 6.72 % of the national GDP and the 0,83% of the EU. The Tuscan GDP, is higher than both Italian and EU average, but lower than northern Italian and other developed EU regions; This is mainly due to the low average labour productivity (in particular in secondary and tertiary sectors), to the low labour supply. Therefore, Tuscany presents a small turnover in the labour market, a high divergence between labour supply and demand with a low productivity rate. In the recent years, however, this gap has been reduced. ‐ Primary sector - Agriculture Tuscan agriculture is worldwide known for its positive impact on the landscape. Both the cultural and landscape heritage are the most important assets of the region, and attract tourists all year long. During the last decades, there has been a significant reduction in the primary sector. Although the share of the regional added value has remained rather stable, while employment rates in the sector have started to increase from the mid - nineties onwards. The number of farms in the region decreases dramatically from 1961 to 2000 (around -40% or from 233,207 to 139,872 farm units), in parallel to the industrialization boom of the sixties and the subsequent increase of the tertiary sector. However, during the 90’s, the Tuscan farms decreased by 7%, compared to the 15% national average. This is mainly due to the reforms introduced by regional administration for the restructuring of Tuscan agricultural products, production chains and landscape, and the spread of agro-tourism. In 2000, the 98% of farms in Tuscany was managed directly by the farmers, and run by household labour, where the 28.3% of farms is producing for own consumption. The 51.5%, on the other hand, consists of non-professional household farms. Also 136 the part-time, directly managed by farmer, type of farms has increased in the recent time. Livestock sector, is mainly based on meat production (74% of sector production, 409 millions of Euros in 2003), in particular bovine and pork. Estimates from ISTAT accounted 541.131 sheep, 19.733 goats, 104.207 bovines, 33.769 horses and 194.329 pigs. Livestock farms are generally medium-small sized, with a production oriented to: small and local production, and international markets. The distribution of livestock farms is not homogenous over the region, in terms of farm size, number of heads and geographical coverage. The agri-food sector represents the 6% of the regional exports, mainly directed to EU 25 (53%), which is significantly less than the Italian average (67%). The main exports are directed to North America (28%). Tuscan agriculture mainly exports wine and olive oil (40% and 36%, respectively) followed by nursering products. Agrotourism is increasing within the region (almost doubled from 2000 to 2006 in terms of number of farms) and has significant impacts on Tuscan agriculture. ‐ Secondary sector: Industry The secondary sector is mainly distributed along the axis of Arno River, and is predominantly composed by medium-small sized mid-low technology factories. It employs the 30% of total regional manpower and contributes to the 28.1% of regional GDP, and the trend shows a progressive decline from the nineties onwards. The manufacturing industry represents the heart of Tuscan secondary sector, and it keeps close relationships with agriculture, in particular for high quality products. The main activities of the Tuscan secondary sector are textile-clothing industry (21% of labour units, mainly located in the province of Prato), leather and shoes industry (13.7%, mid-lower Arno river basin, Santa Croce district), paper industry (5.4%, province of Lucca) and goldsmith (3.9%, Arezzo). Also important are food production and mechanical industries. The structure of the secondary sector has not changed significantly, with respect to other regions, from the seventies; furthermore, the reduction of employment in manufacturing sector has not produced an increase in more innovative sectors, as in other more developed EU regions. ‐ Secondary sector: Energy sector Energy demand increases by +2% yearly. In 2004 the total Tuscan energy consumption was 21000 Gwh (35% in industry, 32% in households 13 , 31.5% in transport and 1.5% in agriculture), while the local production was around 19000 Gwh. The 28% though of the energy produced in Tuscany is geothermal. The 13% is from renewable sources, mainly hydroelectric. The 77% is produced by thermoelectric power plants, in particular, using oil (even if the conversion to a combined cycle with methane has been started). The law 39 of 2005 regarding the energy sector, followed by the Regional Energetic Plan (PIER, Piano di indirizzo energetico regionale), designed the new energy 13 Of which the 60% is used for heating, hot water production and cooking. 137 policy for Tuscany, with 109 millions of euro invested in order to reach by 2020 the 39% of locally produced electric, and the 10% of thermal energy, from renewable sources, reducing CO2 emissions of 7.2 millions of tons. ‐ Tertiary sector: Services The tertiary sector produces almost the 70% of the regional GDP, and includes different kinds of activity. During the 1991-2001, employment in the sector increased significantly, with diversified growth rates depending on the subsector concerned. Tourism is a major activity in the region, producing a significant income; it is mainly split into cultural (historical cities and towns such as Florence, Siena, Lucca, San Gimignano, etc) and natural (mainly seaside, but agrotourism as well). Objectives set for the Tuscany region The following objectives were considered for the rural development of the Tuscany region: ‐ Environmental protection: three main domains can be identified within this objective, namely the natural environment protection, the cultural heritage protection and the landscape protection. ‐ Economic efficiency: increased economic efficiency is focusing on two aspects: the improvement of the production processes and the promotion of entrepreneurship. ‐ Regional development: is based on an integrated approach of activities, triggering the competitive advantages of the region, and encouraging diversification of activities and innovation. ‐ Social cohesion: is targeting the removal of social inequalities. ‐ Food quality and safety: is pursued through the promotion of organic farming, innovations in the agri-food sector, etc. ‐ Energy: the rational use of natural resources is pursued, by increasing the share of Renewable Energy production. 7.6. The AG2020 Methodological Approach in Case Studies The methodological steps followed, in each case study, are (see Figure 7-2 below): More specifically: 9 Description of Frames and Targets (Part II) where for each region are presented the: - objectives of the region, which reflect the six AG2020 objectives, properly adjusted to fit each specific regional context. - regional analysis of the region at hand, presenting environmental, social and economic characteristics, social and cultural characteristics, infrastructure networks, etc. 138 Fig. 7-2: The WP6 case study methodological approach PART II Description of Frames and Objectives PART I – General Context Case Study Context Objectives AG2020 Project WP6 in AG2020 Methodological Approach Regional Analysis Presentation of the Region Kastelli Region Rhodopes Region Central Denmark Region Tuscany Region TOOLS used 1. LIPSOR analytical model 2. Focus Groups Methodology 3. Future workshops TOOLS used 1. Microsimulation tool 2. Validation workshops PART III - IV Assessment of Regional Scenarios Stakeholders’ Validation Regional Development Scenarios (expert-based) PART III Assessment of Regional Policy Scenarios Regional Development Scenarios Assessment of Regional Scenarios (expert-based) Assessment Regional Scenarios, Policy directions and policy measures (Expert-based) PART IV Stakeholders’ Validation Validation of Regional Scenarios, Policy directions and policy measures (Local participation) Validation of Regional Scenarios (Local participation) PART V – Region Specific Policy Measures – D6.4 1. Region-specific policy measures 2. Scenario-specific policy measures AG2020 Pool of Policy Measures 139 9 Assessment of regional development scenarios (Part III): on the basis of the previous analysis, regional development scenarios are developed, taking into account the regional characteristics, the objectives set at the previous stage, as well as the developments of the external environment, provided by the AG2020 Images of the Future. More specifically, the scenario building process follows the steps described below: - A set of hypotheses is structured, based on the key elements of the region at hand, as these are identified by the regional analysis; - For each hypothesis, different possible future outcomes are drawn; - Regional development scenarios are structured, placing at the core the agricultural sector. Each of them presents a different combination of future outcomes of hypotheses considered. - Expert-based scenario assessment: the three regional development scenarios are assessed by experts. In such a context, qualitative assessment tools (e.g. SWOT analysis and MULTIPOL evaluation model) are used to carry out scenario assessment for each case study, where it is assessed the performance of each scenario in respect to the objectives set. 9 Stakeholders’ validation of the scenarios (Part IV): each regional development scenario is, as a next step, validated by local stakeholders in each region. Tools used for that purpose are: - The Microsimulation approach; - Stakeholders’ workshops at the local level; and - Focus groups methodology integrating ‘future workshops’ participatory approach. 9 Region-specific policy measures (Part V): the outcome of the previous steps is a set of region-specific (Rhodopes, Kastelli, Central Denmark and Tuscany regions) and scenario-specific policy measures, which can feed the pool of AG2020 policy measures, reflecting thus region-specific policy directions towards fulfilling the objectives set. 7.7. Results from Case Studies In this section are presented the results from the work carried out in the four AG2020 case studies. More specifically, are shortly presented the regional scenarios built in each specific case study as well as the indicative region-specific and scenario-specific policy measures that were used as an input to the pool of AG2020 policy measures. In order to better understand the regional scenarios and the respective policy measures supporting their implementation in each specific case study, the most outstanding characteristics, of each of the four case studies selected in AG2020, have as follows: ‐ the Rhodope Mountainous region - Bulgaria (CS1): the most outstanding feature of the Rhodopes region is the rich biodiversity, drawing upon the Eastern Rhodope Mountains, characterized by Mediterranean and Sub-Mediterranean flora 140 and rare and diverse habitats; and the Western Rhodopes part, characterized by Central European and Northern Boreal flora, with high value forest ecosystems. The agricultural sector in the region is declining, during the past decades based, among others, on the low level of efficiency and modernization, the rough morphology, but also the political priorities set in the past. Other important issues, framing the development of the agricultural sector so far, are the scale of land ownership (small parcels), the limited accessibility, the low qualification and productivity of labour resources, etc. The region today is facing new challenges for driving successfully sustainable rural development. As main comparative advantages, in this respect, can be considered the qualitative agri-food production, alternative tourism, but also the energy production, based on biomass management. ‐ the Kastelli region (Herakleion Crete) - Greece (CS2): a rural region in the Crete island, facing a great upcoming challenge for the sustainable development of the area, due to the location of a new airport infrastructure that intends to occupy a large part of the most fertile land of the region. The focus, in this context, is on the development of an integrated plan for the study region, which promotes: multifunctionality in the area. This may attract new investments in the region, for increasing employment opportunities and income of the local population.. ‐ the Central Denmark Region - Denmark (CS3): the agri-food sector in this region is traditionally a highly innovative, industrially-oriented sector, strongly dominated by large multinationals food businesses, placing emphasis on efficiency aspects based on innovation and holding a strong export orientation. Main threats that the region is facing nowadays relate to the intensive use of local resources (land, water etc.); the industrially-based agriculture, placing a lot of pressure on the environment (e.g. landscape); the lack of diversified production; etc. On the advantages can be countered the gains in competitiveness of the agrifood sector in a global context. ‐ the Tuscany region - Italy (CS4): is a region, rich in natural and cultural resources, where the revitalization of the agricultural sector and its integration to the local economic structure, is at the core of the efforts. A high level of multifunctionality is pursued, with the agricultural sector forming the basis for qualitative food production, safeguard of the natural resources, host of alternative tourist activity, production of renewable energy etc. The protection / conservation of landscape, as the most important resource for the local population and a main attraction for visitors in the region constitutes a key aspect for the area. In the following sections, are presented regional scenarios constructed for each case study as well as policy measures supporting the implementation of these scenarios. 7.7.1. The Rhodopes case study Regional scenarios and respective scenario-specific policy measures for the Rhodopes rural region are presented in the following. As key domains for the development of the Rhodopes regional development scenarios are considered the: 141 - regional structure domain, including the agricultural sector, the agri-food sector, the phytopharmacy sector, the tourist sector, the labour force, the market, and the ICTs infrastructure; the technology and innovation domain, including agri-technology, agri-food technology and environmentally saving technologies; and finally the energy domain (see D6.4). Based on that, three scenarios are constructed, which have as follows: ‐ S1 Scenario: High-tech Rhodopes region; ‐ S2 Scenario: Sustainable Rhodopes region; and ‐ S3 Scenario: Business as usual. Scenario S1 “High-tech Rhodopes region”: in this scenario, the Rhodopes region is specializing in the high-tech agricultural production. Problems (environmental, social or economic) are solved by investing in R&D, education and training of labor force. The focus is on both: technologies that support regional specialization and export; and technologies that support less labour-intensive and more efficient agricultural activities. Adoption and use of technology rates at a high level in this respect (D6.4). Scenario S2 “Sustainable Rhodopes region”: the focus of this scenario is on strengthening the local identity of the Rhodopes region by the revitalization of traditional high quality products, with strong emphasis on certification aspects. It is based on the support of environmentally friendly agricultural activities and food processing, leading to the production of highly qualitative and value-adding products. High labour input and production costs are involved in this respect. The scenario builds upon a high level of multifunctionality, linking agricultural activities with alternative tourism. Adoption and use of technology rates at a medium level. A labour-intensive view is adopted, where more people are employed in both farming and processing of agri-food products. The scenario aims to take advantage of the shift of consumers’ preferences towards high quality ‘green’ products (D6.4). Scenario S3 “Business as usual”: in this scenario, the local economy is characterized by local production and consumption. People prefer to buy locally produced and processed food, since they are cheaper. Export orientation is limited to the export of green unprocessed products (herbs, berries, mushrooms) with no added value, at very low cost. Reckless collection and depletion of plants and animals have led to a loss of gene pool diversity and biodiversity. A more labour-intensive approach in farming activities is adopted in this scenario. The region is self-sufficient in basic lifesupporting goods, such as food and energy for producing the food, including fossil fuels and commercial fertilizers. This renders the local community more resilient to external shocks, such as energy supply disruptions (D6.4). Policy measures In Table 7-2 below are listed some indicative sets of policy measures, serving each of the above presented regional development scenarios for the Rhodopes region. 142 Table 7-2: Scenario-specific policy measures for the Rhodopes region (CS1) Source: D6.4 AG2020 S1 “High-tech Rhodopes region” S2 “Sustainable Rhodopes region” S3 “Business as usual” Protection of natural resources and the environment Improvement of water and soil quality Gathering manure from several Strict requirements for Requirements for establishing livestock farms into one largeestablishing manure storage manure storage capacity for scale regional biogas facility. capacities for preventing water preventing water and soil and soil pollution. pollution. Support for poor farmers in Stronger support for poor Support for poor farmers in protected sanitary zones and in farmers in protected sanitary protected sanitary zones and in zones near mineral water zones and in zones near mineral zones near mineral water springs in implementing good water springs in implementing springs in implementing good agricultural practices. good agricultural practices. agricultural practices. Construction of a sewage Construction of a sewage Construction of a sewage infrastructure as well as a large infrastructure as well as a waste infrastructure in villages. scale waste water treatment water treatment facilities for the facilities for the sustainable sustainable management and management and growth of the growth of the region. region. Conservation of biodiversity Establishment of special Support preservation of local Support preservation of local center(s) for research and indigenous, rare and indigenous, rare and preservation of unique disappearing biodiversity by disappearing biodiversity by biodiversity in special protected restricting collection and restricting collection and area (reserves for preservation). depletion of plants and animals, depletion of plants and animals, that can lead to a loss of gene that can lead to a loss of gene pool diversity and biodiversity. pool diversity and biodiversity. Establishment of gene banks for plants and animals by using natural caves and studying the unique, of high economical value, germ plasm in special reserves. Conversion of naturally growing animal and plant resources into cultivated ones. Support the development of technologies that serve the balance of ecological factors (e.g. the impact of acid rains on forestry equilibrium). Decreased use of chemicals and fertilizers in agriculture, fragmentation and restoration of some natural elements of the agricultural landscape. Prevent land abandonment. Prevent land abandonment. Prevent land abandonment. Regular grazing and Regular grazing and Regular grazing and maintenance of meadows and maintenance of meadows and maintenance of meadows and pastures for preserving plant pastures for preserving plant pastures for preserving plant diversity and prevent diversity and prevent diversity and prevent disappearance of associated disappearance of associated disappearance of associated invertebrate and vertebrate invertebrate and vertebrate invertebrate and vertebrate communities. communities. communities. Utilization of municipality land Utilization of municipality land Utilization of municipality 143 S1 “High-tech Rhodopes region” for pastures in order to preserve local biodiversity. S2 “Sustainable Rhodopes region” for pastures in order to preserve local biodiversity. S3 “Business as usual” land for pastures in order to preserve local biodiversity. Increase awareness on the value of the genetic variety and natural heritage. Promotion of incentives and mechanisms for reintroduction of local plant varieties and breeds. Raise awareness on the economic benefits and performance of local plant varieties and breeds. Stimulate livestock breeding of local breeds in mountain areas. Development of Organic farming Promotion of incentives for farmers for the transition from conventional to organic production. Support to organic farmers. Develop sustainable land management practices Promotion of investments in Promotion of investments in Promotion of investments in afforestation in order to avoid afforestation in order to avoid afforestation in order to avoid erosion. erosion. erosion. Replace monocultural crop (potato, tobacco) growing with alternative plants. Natural handicap payments to farmers in mountain areas Support farming activities in Support farming activities in Support farming activities in naturally deprived regions like naturally deprived regions like naturally deprived regions like Rodopi. Rodopi. Rodopi. Sustainable forest land management Promotion of extension and improvement of forest resources. Afforestation of agricultural areas. Afforestation of marginal agricultural lands. Prevention and rehabilitation of Prevention and rehabilitation of Prevention and rehabilitation destroyed forests in order to destroyed forests in order to of destroyed forests in order to preserve local indigenous, rare preserve local indigenous, rare preserve local indigenous, rare and disappearing biodiversity. and disappearing biodiversity. and disappearing biodiversity. Sustainable forest land management Training private owners of Training private owners of Training private owners of forests in forest management. forests in forest management. forests in forest management. Policies for development of competitive and innovation-based agriculture, forestry and food processing industry Training, information and diffusion of knowledge Establishment of life-long Establishment of life-long Establishment of life-long vocational training of farmers vocational training of farmers vocational training of farmers with focus on the processing of with focus on environmentally with focus on traditional agricultural and forest products friendly agricultural activities farming activities. (phytopharmacy, agri-forestry and alternative tourism. 144 S1 “High-tech Rhodopes region” S2 “Sustainable Rhodopes region” processing, renewable energy production and entrepreneurship). Establishment of specialized schools. Establishment of training structures for formal agricultural training and acquirement of managerial and business skills for manpower involved in agriculture . Support the involvement of young and educated people in agriculture . Support training concerning the compliance of agri-food sector to EU food safety standards. S3 “Business as usual” Establishment of specialized Establishment of specialized schools. schools. Establishment of training Establishment of training structures for formal structures for formal agricultural training and agricultural training and acquirement of managerial and acquirement of managerial and business skills for manpower business skills for manpower involved in agriculture . involved in agriculture . Support the involvement of Support the involvement of young and educated people in young and educated people in agriculture. agriculture. Support training concerning the Support training concerning the compliance of agri-food sector compliance of agri-food sector to EU food safety standards. to EU food safety standards. Raise environmental awareness among local population for the development of local markets and local demand for environmentally safe products. Provision of farm advisory and extension service Provide sufficient state Provide sufficient state Provide sufficient state agricultural services with agricultural services with agricultural services with managerial, business and managerial, business and managerial, business and agronomic skills for farmers. agronomic skills for farmers. agronomic skills for farmers. Meet EU standards Provision of financial support Provision of financial support Provision of financial support for agricultural holdings in for agricultural holdings in for agricultural holdings in order to align with international order to align with international order to align with quality standards . standards (health standards; international standards origin of production, organic e.g. in the milk production production, etc), e.g. protection sector to comply with the milk of geographical trade marks for quality standards, in the a very specific unique food, poultry branch for egg-laying phyto-pharmaceutical products. hens, in animal breeding, in manure-storing points and in purification installations, especially in the nitrate vulnerable zones. Support the adjustment of farming structures Promotion of small-scale Promotion of small-scale Promotion of small-scale farming. farming. farming. Facilitate the entrance of young Facilitate the entrance of young Facilitate the entrance of farmers in the sector and farmers in the sector and young farmers in the sector support of structural support of structural and support of structural adjustments of their small size adjustments of their small size adjustments of their small size holdings. holdings specialized in the holdings specialized in the production of organic products, production of traditional certified products, etc. products. Improve access to credit for Improve access to credit for Improve access to credit for small and medium-sized small and medium sized small and medium sized agricultural producers in rural agricultural producers in rural agricultural producers in rural regions. regions. regions. Encouraging of investments in Stimulate the production of organic farming. traditional fruit varieties taking 145 S1 “High-tech Rhodopes region” S2 S3 “Sustainable Rhodopes “Business as usual” region” Reorganization of production advantage of the favorable sector to organic farming and climatic and weather marketing of organic products conditions and local traditions. (certification). Restructure and modernize physical potential and promote innovation Improve the economic Support competitiveness of the performance of the agricultural dairy sector. holdings and the food processing industry through Support the processing of adding value to agricultural and animal origin products. forestry products. Support businesses adding value to organic products. Support adjustment of farming structures and support co-operation Establishment of new types of cooperation between producers (framers), processors and the marketing sector to serve the interests of all stakeholders. Support voluntary land Support voluntary land Support voluntary land consolidation (land consolidation (land consolidation (land consolidation agreements). consolidation agreements). consolidation agreements). Energy policies (Policies for protection of natural resources and the environment of rural areas & Policies for development of competitive and innovation-based agriculture, forestry) Developing renewable energy potential Promotion of centralized (large Promotion of decentralized Promotion of decentralized scale) hydroelectric facilities - (small scale) plants on (small scale) plants on construction of large artificial mountain river banks for mountain river banks for lakes for producing electricity. energy production. energy production. Promotion of large scale Promotion of small scale Support the exploitation of facilities for combined facilities for combined existing natural resources production of electro- and heat production of electro- and heat (wood) for heating purposes energy from biomass from energy (biogas) from solid and livestock breeding (solid and liquid manure. liquid manure). Promotion of large scale Renewable use of compost facilities for combined from byproducts of wood production of electro- and heat processing industry, vine energy from biomass industry and animal waste for originating from the wood energy production. processing industry. Support the exploitation of waste from manufacturing to be converted into compost for organic farming. Policies for improving the quality of life and diversify job opportunities in rural areas Improve access to and quality of basic services and infrastructure Promotion of high health care Promotion of high health care Promotion of high health care services. services. services. Promotion of investments for Promotion of investments for Promotion of investments for the development/upgrading of the development/upgrading of the development/upgrading of the transport infrastructure. the transport infrastructure. the transport infrastructure. Promotion of investments in Promotion of investments in Promotion of investments in ICTs infrastructure – improve ICTs infrastructure – improve ICTs infrastructure – improve broadband access of rural broadband access of rural broadband access of rural regions. regions. regions. 146 S1 “High-tech Rhodopes region” S2 S3 “Sustainable Rhodopes “Business as usual” region” Promotion of investments in Promotion of investments in Promotion of investments in water supply, electricity supply water supply, electricity supply water supply, electricity supply and sewage system. and sewage system. and sewage system. Promotion of investments in Promotion of investments in Promotion of investments in social services (establishment social services (establishment social services (establishment of kinder gardens and schools). of kinder gardens and schools). of kinder gardens and schools). Develop income generating activities outside the agricultural sector for farm households and the wider rural population Promotion of investments in Promotion of investments in Promotion of investments in rural tourism. rural tourism. rural tourism. 7.7.2. The Kastelli case study In this section are presented the regional development scenarios and the respective scenario-specific policy measures developed for the Kastelli rural region. As key domains for the development of these scenarios are considered the: settlement patterns; agro-technology and food technology; multifunctionality of agricultural land; share of renewable energy; exploitation of Information and Communication Technologies (ICTs); location of a technological park; and the location of a new airport. Key issues for building regional scenarios for the Kastelli region are technology and the location of the new airport. The following scenarios were selected, out of a range of ‘possible’ scenarios emerging from the application of the MORPHOL model (D6.4): - S1: Scenario “with new airport”; and - S2: Scenario “without new airport”. A short description of these scenarios has as follows: The S1 : Scenario “with new airport”: takes away a considerable part of agricultural but also residential land. - A new concentrated settlement pattern prevails in the area, as a result of the relocation of the population to already existing or new residential settlements. - Agricultural land is significantly decreased and emphasis is placed on technology and innovation (see agri-food technology) for increasing efficiency. - The role of multifunctionality is stressed, through the development of alternative tourism, processing of agricultural products (manufacturing), energy production from renewable energy sources, etc. - ICTs is also important, for the creation of network opportunities e.g. tourist marketing, e-commerce, access of population to services etc., but also for the diffusion of knowledge and information in the agri-food sector and other sectors. - New economic activities are attracted in the area by the new airport and the improvement of the regional infrastructure networks (new or improved road transport network). 147 The S2: Scenario “without new airport”: The existing spatial pattern of settlements and the population distribution remains unchanged. Technology and innovation are considered as “tools” for the protection / preservation of natural resources of the region. The local economy is based on the: - agricultural sector, with emphasis on technology and innovation for the environmental protection and rational use of resources (e.g. precise farming) and the production of high quality products (organic agriculture); - development of alternative tourism (agrotourism, ecotourism, walking tourismpaths, cultural tourism, wine tourism, sight-seeing tourism in traditional settlements, religious tourism, archaeological tourism, etc); - energy production (biofuels), based on the processing of biomass (agricultural waste) and the cultivation of energy crops; food sector, based on the processing of local agricultural products, where emphasis is placed on the role of technology for the production of both high quality and traditional products; - and trade of local products, focusing on exporting agri-food products of high quality and biofuels. - ICTs play a substantial role for networking among firms and for marketing purposes. - A more environmentally responsible image of the region attracts tourist flows as well as small scale investments around eco-activities in the region. - Renewables gain ground in the region as a mean to preserve local assets. - Environmental culture prevails in the region, based on increasing awareness of local community and strong participation in the decision making processes. - Agriculture, in the present scenario, is considered not only as a production sector but as the core for preserving nature and developing small scale eco-activities. Policy measures In the Kastelli case study, the building and assessment of scenarios was carried out with the application of the LIPSOR participatory model (see Fig. 7-2 above) and more specifically the MORPHOL and MULTIPOL modules. Based on this approach, four different policy directions are considered as serving the two scenarios S1 and S2. These have as follows (Table 7-3 below) (D6.4): - Policy 1 (P1) places emphasis on increasing multifunctionality; - Policy 2 (P2) relates to the specialization of the region in the food sector; - Policy 3 (P3) aims at the development of the region as a technological/ educational node in the agri-food sector; and - Policy 4 (P4) places emphasis on tourism-culture as the backbone for the development of the region. 148 Table 7-3: Pool of scenario-specific policies in the Kastelli case study (CS2) Source: D6.4, AG2020 SCENARIOS POLICY DIRECTIONS - P1 (multifunctionality) Scenario S1 (with new airport) - P2 (specialization in the food sector) - P1 (multifunctionality) and - P4 (tourismculture)* Scenario S2 (without new airport) ‐ P3 (technological / educational node) ACTIONS (POLICY MEASURES) - A4: Restructuring / upgrading of road infrastructure network; - A6: Management - Trading - Promotion of agricultural products; - A8: Development of agrotourism; - A9: Developments of eco-tourist activities in environmentally sensitive parts of the Kastelli region; - A10: Development of walking - mountainous tourism - network of paths; - A13: Information and Communication Technologies (ICTs) - Development of network infrastructure; - A16: Development of the mountainous compartments of the study region - A17: Settlements and cultural development - A1: Modernization of the production process in the agricultural sector - A3: Quality control of agricultural products - Product labeling - A7: Networking among agricultural and other firms (e.g. agricultural firms, tourist firms, etc) - A13: Information and Communication Technologies (ICTs) - Development of network infrastructure - A14: Promotion of innovation with emphasis on the food sector - A15: Processing and marketing of agricultural products - A4: Restructuring / upgrading of road infrastructure network - A6: Management - Trading - Promotion of agricultural products - A8: Development of agrotourism - A9: Developments of eco-tourist activities in environmentally sensitive parts of the Kastelli region - A10: Development of walking - mountainous tourism - network of paths - A13: Information and Communication Technologies (ICTs) - Development of network infrastructure - A16: Development of the mountainous compartments of the study region - A17: Settlements and cultural development - A2: Restructuring of agricultural production Intensification of agricultural land; - A5: Training - Upgrading of existing skills and knowledge stock in the study region; - A11: Energy production from biomass (processing of agricultural waste - energy crops); - A12: Energy production (wind - solar energy); - A14: Promotion of innovation with emphasis on the food sector; and - A18: Development of a technological/training centre. *P1 and P4 are closely relating policy directions 149 Moreover, a number of actions (policy measures) are proposed, which have as follows (D6.4) (Table 7-3 above): ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ A1: Modernization of the production process in the agricultural sector A2: Restructuring of agricultural production - Intensification of agricultural land A3: Quality of agricultural products– Product Labeling A4: Restructuring / upgrading of road infrastructure network A5: Training – Upgrading existing skills – Increase knowledge stock A6: Management – trading – promotion of agricultural products A7: Networking between agricultural and other firms A8: Agrotourism A9: Eco-tourism A10: Walking – mountainous tourism Α11: Energy – biomass (agricultural waste – energy crops) A12: Energy (wind energy-solar energy) Α13: Development of ICTs infrastructure Α14: Promotion of innovation with emphasis on the food sector A15: Processing and marketing of agricultural products Α16: Development of mountainous regions Α17: Settlement and cultural development Α18: Development of training centre Based on the LIPSOR approach, are identified both the policies that fit best to each single scenario, and the actions (policy measures) that fit best each policy direction (D6.4, AG2020). In this respect, policy directions and actions proposed for each scenario have as follows (Table 7-3 above). More specifically, the above presented policy directions and policy measures can be further developed as follows (D6.4): Policy 1 - Multifunctionality and Policy 4 - Tourism and Culture The package of measures that better serves the above policy directions is: - A4: Restructuring / upgrading of road infrastructure network; - A6: Management - Trading - Promotion of agricultural products; - A8: Development of agrotourism; - A9: Developments of eco-tourist activities in environmentally sensitive parts of the Kastelli region; - A10: Development of walking - mountainous tourism network of paths; - A13: Information and Communication Technologies (ICTs) - Development of network infrastructure; - A16: Development of the mountainous compartments of the study region; and - A17: Settlements and cultural development. 150 These actions can be further specialized into bunches of policy measures, which are described in the following. 9 A4: Restructuring / upgrading of road infrastructure network ‐ Improvement of access to transport services of all settlements of the Kastelli municipality; ‐ Increase safety of transport network; ‐ Upgrading of intra and interregional transport infrastructure – increase intra/interregional accessibility; ‐ Integration of local to regional road network; and ‐ Increase number of parking places in the municipality of Kastelli. 9 A6: Management - Trading - Promotion of agricultural products ‐ Increase interaction among sectors – processing of agricultural products – trade; ‐ Management of raw material at the field level – promotion of recycling for energy production – rational use of resources; ‐ Promotion of the local “green” production; ‐ Specialization in high food quality – Quality assurance; ‐ Promotion of innovative vertical structures for the collection, manufacturing and trading of agricultural green products; ‐ Increase of export trade – Market expansion on the basis of high quality products; ‐ Export trade of products certified as “made in EU” or “made from EU high-tech products”. ‐ Restructuring of the agricultural sector based on comparative advantages (available natural and human resources) – production of new products based on global consumption patterns – demand – market orientation; ‐ Restructuring of the production process – Modernization of the sector by use of light machinery and precise farming for more rational use of available resources; ‐ Creation of innovative systems for the promotion of local products by means of ICTs; ‐ Promotion of e-commerce; ‐ Development of specific innovation and marketing support programs for SMEs of the agri-food industry. 9 Α8: Development of agrotourism ‐ Active support of non-agricultural income perspectives (e.g. tourism, handicrafts, local cuisine). ‐ Development of agrotourism infrastructure – creation of agrotourism hostels of high quality – Quality assurance of agricultural businesses; ‐ Creation of information center providing information for funding opportunities in the agrotourism sector by European and national funds; ‐ Training of human resources on agri-tourist activities; ‐ Promotion of agrotourism businesses through ICTs e.g. site of Kastelli municipality, Region of Crete, Hellenic Tourist Association etc.; ‐ Creation of Information Centre for the support of local people willing to create agrotourism businesses. 151 9 A9: Developments of eco-tourist activities in environmentally sensitive regions ‐ Enhanced and enforced protection of environmentally sensitive areas; ‐ Land use planning to protect environmentally sensitive areas and areas with high valued biodiversity; and ‐ Active support of non-agricultural income perspectives (e.g. tourism, handicrafts, local cuisine). ‐ Development of eco-tourist activities by creation of the necessary infrastructure e.g. creation of a network of paths and rest stations in regions of natural beauty; ‐ Increasing awareness of local society in respect to environmental protection of sensitive areas by means of information diffusion, organization of conferences, etc., targeting also young people at schools; ‐ Promotion of eco-businesses in environmentally sensitive areas; ‐ Integration of eco-tourist activities in the image of the region – promotion by local and national sites; ‐ Creation of a park of Cretan flora in the location of the old scrap heap. 9 A10: Development of walking - mountainous tourism - paths ‐ Active support of non-agricultural income perspectives (e.g. tourism, handicrafts, local cuisine) in mountainous regions; ‐ Development of path networks in mountainous regions – creation of rest stations in selected places of natural or other interest e.g. aesthetic forests, biotopes; ‐ Establishment of links of the path network with the mountainous settlements – creation of entry points to the path network from these settlements; ‐ Development of tourist infrastructure in the mountainous settlements with emphasis on the exploitation of traditional local characteristics e.g. local architecture, traditions; ‐ Upgrading/promotion of mountainous traditional settlements. 9 A13: Information and Communication Technologies (ICTs) - Development of infrastructure network ‐ Establishment / Upgrading of ICTs infrastructure in all settlements of the Kastelli municipality – development of broadband networks, local wireless networks etc.; ‐ Establishment of information/communication nodes providing information on agricultural and other issues; ‐ Life-long e-training facilities for the upgrading of local skills in the agricultural and other sectors; ‐ Increase capabilities of human resources in ICTs; ‐ Create nodes for providing access to ICTs in all settlements, serving local population with no access to relative equipment. ‐ Development of Wi-Fi access in mountainous settlements; ‐ Provision of services via Internet e.g. e-services for citizens, e-school, egovernment, e-business. 9 A16: Development of mountainous compartments ‐ Improvement of access to mountainous compartments – upgrading of road 152 ‐ ‐ ‐ ‐ ‐ ‐ ‐ network – increasing safety of the network; Creation of network of paths in the mountainous compartments - creation of rest stations in selected places of natural or other interest e.g. aesthetic forests, biotopes; Establishment of links of the path networks with the mountainous settlements – creation of entry points to the path networks from these settlements; Fire protection of mountainous compartments – development of fire protections zones/paths; Promotion of volunteerism in mountainous compartments (protection, cleaning etc. in cooperation with local authorities); Regeneration of mountainous settlements; Promotion of archaeological sites in mountainous regions (Smari, Lyttos) – improve accessibility to these sites – upgrade surrounding area; and Upgrading of natural and cultural resources of mountainous compartments – improve access to these locations – promotion by ICTs. 9 A17: Traditional settlements and cultural development ‐ Land use planning to protect environmentally sensitive areas and areas with high biodiversity; ‐ Regeneration of declining areas by supporting economic activities in support of employment in these areas; ‐ Active support of non-agricultural income perspectives (e.g. tourism, handicrafts, local cuisine) in regional areas; ‐ Improvements of housing and neighborhood quality / access to facilities; ‐ Development of cultural resources; ‐ Support of agricultural settlements with declining growth rates; ‐ Enhancement of the range of economic activities in mountainous settlements (tourist activities, processing of agricultural products, handicraft, mountain products, etc.) – training of local population in traditional sectors – support of entrepreneurship; ‐ Relocation of polluting economic activities – Creation of specific zones for the location of productive activities e.g. processing, oil press businesses, etc. ‐ Creation of “green belts” in environmentally sensitive regions of the Kastelli municipality – land use restrictions in these belts; ‐ Increase awareness of local society towards renewable energy exploitation at the household level (photovoltaics, solar energy) in all settlements of the Kastelli municipality – support energy production at the household level; ‐ Increase awareness of local society towards rational use of energy – energy saving; ‐ Improvement of the environment and standards of living in all settlements of the Kastelli municipality – improve access to services of local population; ‐ Increase interaction among mountainous regions of the municipality – support complementarity of mountainous settlements; ‐ Rehabilitation of building stock of the city of Kastelli – Rehabilitation and change of use of old building - public use; ‐ Creation of athletic center in the Kastelli municipality – Creation of supporting infrastructure; ‐ Creation of a digital museum in the Kastelli municipality – Promotion of cultural heritage; 153 ‐ Creation of a “green” fund at the municipality level, which will invest in green activities e.g. recycling or activities referring to the upgrading of the environmental quality of settlements (e.g. rehabilitation projects, greening of settlements, etc.); ‐ Support actions towards “green households” and “green neighborhoods” as cells serving the goal of preservation of the local identity and cultural heritage – creation of wide coalitions among municipality authorities and local society towards this direction; ‐ Upgrading of the built environment of the mountainous settlements – rehabilitation of public space, development / upgrading of public infrastructure (e.g. sewage and water infrastructure). Policy 2 - Specialization in the food sector The package of measures that better serves the above policy direction is: - A1: Modernization of the production process in the agricultural sector; - A3: Quality control of agricultural products - Product labelling; - A7: Networking among agricultural and other firms (e.g. agricultural firms, tourist firms, etc); - A13: Information and Communication Technologies (ICTs) - Development of network infrastructure; - A14: Promotion of innovation with emphasis on the food sector; and - A15: Processing and marketing of agricultural products. These actions can be further specialized into certain policy measures, which are described in the following. 9 A1: Modernization of the production process in the agricultural sector ‐ Use of subsidies for the support of local qualitative production and the upgrading of the food sector; ‐ Support investments in environmentally friendly technologies e.g. precision farming, technologies focusing on the protection of resources (e.g. land, water etc.) and technologies supporting the decrease of agricultural environmental impact (pollution); ‐ Increase technology awareness – provision of information on new crops and new uses of crops to facilitate the promotion of bio-based economy; ‐ Promote diffusion of agricultural sensing technologies with focus on efficiency aspects; ‐ Restructuring of the agricultural sector based on local resources and potential strong market orientation – shift to organic production of high quality; ‐ Restructuring of agricultural production - Promotion of bio-based crops - new crops and/or new uses of existing crops; ‐ Diffusion of appropriate technologies for soil and crop management; ‐ Use of EU resources for innovation in agriculture, food-processing, bio-energy 154 etc. in order to be able to cope with increasing international competition; ‐ Creation of information center, at the municipality level, aiming at the diffusion of knowledge on agri-food technologies supporting competitiveness of agri-food sector at the global level; ‐ Adoption of modern technologies for the advertising – promotion of agri-food products; ‐ Modernization of production process by means of new technological innovations. 9 A3: Quality of agricultural products - Product labelling ‐ Financial support of organic agriculture and organic food; ‐ Promotion of “green food products” and “regional food products”; ‐ Enforcement of limits on nutrient applications (fertilizers and manures), high standards for crop rotations and crop management; ‐ Promotion of product traceability - Product labeling - quality control/assurance of agricultural products; ‐ Adoption of surveillance technologies in agricultural production - Use of satellite technology for crop surveillance; ‐ Establishment of systems for quality control, standardization and certification of agri-food products (traceability and monitored labeling); and ‐ Increase awareness of local agricultural society in respect to environmentally responsible agricultural practices; ‐ Increase awareness in respect to the agri-food production of high quality – Promotion/adaptation to high agri-food standards; ‐ Diffusion of knowledge in respect to technologies increasing efficiency and assuring quality in the agri-food sector; ‐ Support training programs for the upgrading of skills of human resources in respect to issues such as organic production, use of technological innovation in agricultural production, food technology (processing, standardization etc.). 9 A7: Networking among firms (e.g. agricultural firms, tourist firms etc.) ‐ Establishment / Upgrading of Information and Communication infrastructure; ‐ Support of technologies for active communication between farmers and consumers through the Internet and other communication channels - direct marketing of environmentally friendly products; ‐ Creation of information/communication nodes diffusing knowledge and information on agricultural and other issues; ‐ Create collective capacity to undertake coordinated action – promotion of local partnerships – businesses’ networking; ‐ Establish links between R&D institutions and local businesses (e.g. on food quality – safety) – Diffusion of research results in the local production sectors; ‐ Promotion of electronic commerce; ‐ Fostering entrepreneurship; ‐ Establishment of information and support services at the local level for new farmers; ‐ Promotion of vertical/horizontal cooperation - networks among firms. ‐ Promotion of farms’ associations. 155 9 A13: Information and Communication Technologies (ICTs) - Network infrastructure ‐ Creation of modern telecommunications infrastructure – upgrading of existing infrastructure – development of broadband services; ‐ Life-long training facilities for the upgrading of human skills in the use of ICTs in all economic sectors - Increase capabilities of human resources in ICTs; ‐ Establishment of information/communication nodes, diffusing knowledge and information on the use of ICTs in the agricultural sector; ‐ Creation of nodes for providing access to ICTs. ‐ Promotion of services to the local society through Internet - e-services, eschools, e-government, e-business, e-health, etc. 9 A14: Promotion of innovation with emphasis on the food sector ‐ Promotion of regional innovation systems to increase regional competitiveness; ‐ Promotion of specialization of agricultural regions - Creation of Business Innovation Centers (BIC) in rural areas; ‐ Promotion of eco-business (environmental innovation-oriented businesses producing goods and services for environmental protection); ‐ Establishment of links between R&D institutions and local businesses, with emphasis on food quality and safety; ‐ Fostering entrepreneurship in all sectors – emphasis on the food processing sector; ‐ Creation of awards and provision of wide publicity at the regional level for innovative entrepreneurial behavior in all sectors; ‐ Establishment / Upgrading of Information and Communication infrastructure; ‐ Creation of nodes for providing access to ICTs, supporting knowledge diffusion in respect to food innovative production-processing technologies, food storage technologies etc.; ‐ Promotion of less energy-intensive food-processing, transport and refrigerating facilities; ‐ Development of specific innovation and marketing support programs for SMEs of the agri-food industry. 9 A15: Processing and promotion of agricultural products ‐ Upgrading of skills of human resources in respect to issues relating to product quality, new technologies in the production process, ICTs etc. ‐ Upgrading of the production process in the agri-food sector – adoption of technologies supporting qualitative and competitive agri-food production; ‐ Restructuring of the agri-sector based on the rational use of local resources – emphasis on the qualitative agri-food production; ‐ Promotion of innovative vertical structures for the collection, processing and trading of agricultural green products; ‐ Export stimulation by means of products “made in EU” or “made from EU hightech production”; ‐ Adoption of modern technology for the food processing, standardization and packaging - switch of food industry to eco-packaging (e.g. biodegradables); ‐ Restructuring of the agricultural production based on local resources and 156 ‐ ‐ ‐ ‐ potential - strong market orientation; Creation of innovative marketing systems for local products / integration into the destination image; Promotion of electronic commerce; Establishment / Upgrading of Information and Communication infrastructure. Use of agri-raw sub-materials for the production of high added value products. Policy 3 - Technological and Training Node The package of measures that better serves the above policy direction is: - A2: - Restructuring of agricultural production Intensification of agricultural land; A5: Training - Upgrading of existing skills and knowledge stock in the study region; A11: Energy production from biomass (processing of agricultural waste - energy crops); A12: Energy production (wind - solar energy); A14: Promotion of innovation with emphasis on the food sector; and A18: Development of a technological/training centre. These actions can be further specialized into certain policy measures, which are described in the following: 9 A2: Restructuring of agricultural production - Intensification of agricultural land ‐ Use of integrated technological solutions and ICTs aiming at increasing efficiency – compliance with EU and other standards; ‐ Support precise farming technologies for the rational exploitation of resources (land, water etc.) and the limitation of agricultural pollution; ‐ Promote diffusion of agricultural sensing technologies with focus on efficiency aspects; ‐ Restructuring of the agricultural sector based on local resources and potentialstrong market orientation – diversification of production according to demand; ‐ Promotion of control systems and methods searching for infective and toxic substances in agricultural production; ‐ More intensive use of agricultural land based on agro-technological developments in production, pesticides, machinery, etc. to ensure efficiency but also environmental protection; ‐ Use of agri-raw sub-materials for the production of high added value products. ‐ Promotion of energy crops; ‐ Promotion of the production of raw materials of high nutrition value for food production. 9 A5: Training - Upgrading existing skills and knowledge stock in the region ‐ Promotion of regional specialization of production methods, practices etc (not only focused on food / feed production); 157 ‐ Creation of life-long training facilities for the upgrading of human resources in the agricultural and other sectors; ‐ Increase capabilities of human resources in ICTs; ‐ Increase awareness on environmentally responsible agricultural practices through campaigns; ‐ Create innovative public structures for serving effectively the needs of rural regions e.g. e-government, e-health; ‐ Creation of awards and provision of wide publicity at the regional level for innovative entrepreneurial behavior; ‐ Establishment of information and support services at the local level for new farmers; ‐ Promotion of entrepreneurship among young people and women; ‐ Establishment / Upgrading of Information and Communication infrastructure; ‐ Increase public/business awareness on green values / entrepreneurship at the local level. 9 A11: Energy production from biomass (processing of agricultural waste - energy crops) ‐ Promotion of initiatives at the municipality level for the collection, management and processing of biomass; ‐ Provision of incentives at the field level (local producers) for the collection of biomass; ‐ Increase level of multifunctionality with focus on energy production - Energy production from biomass (residuals) – Energy crops in fields where other crops are less efficient; ‐ Promotion of technologies for the processing of biomass and the production of biofuels; ‐ Promotion of technological developments in renewable energy sector (energy efficiency and security); ‐ Increase skills of local human resources in respect to management, processing and uses of biomass. 9 A12: Energy production – Renewable Energy (RE) (wind energy - solar energy) ‐ Diffuse information on technological developments in renewable energy sector (energy efficiency and security); ‐ Increase awareness of local society regarding renewable energy production and efficient use of energy (energy saving) through the organization of campaigns, conferences, diffusion of printed material etc. – Focus on the young generation; ‐ Promotion of RE in public buildings (schools, municipality premises, athletic infrastructure etc.); ‐ Exploration of potential sites for the location of wind - photovoltaic parks Land use planning for RE. 9 A14: Promotion of innovation with emphasis on the food sector ‐ Promotion of regional innovation systems to increase regional competitiveness; ‐ Promotion of specialization in agricultural regions; ‐ Promotion of innovation through the creation of Business Innovation Centers 158 ‐ ‐ ‐ ‐ ‐ ‐ ‐ (BIC) in rural areas; Promotion of eco-business (environmental innovation-oriented businesses, producing goods and services for environmental protection); Establishment of links between R&D institutions and local businesses, with emphasis, among others, on food quality and safety; Fostering entrepreneurship in all sectors – emphasis on the food processing sector; Creation of awards and provision of wide publicity at the regional level for innovative entrepreneurial behavior in all sectors; Establishment / Upgrading of Information and Communication infrastructure; Creation of nodes for providing access to ICTs supporting knowledge diffusion in respect to food innovative production-processing technologies, food storage technologies etc.; Promotion of less energy-intensive food-processing, transport and refrigerating facilities. 9 A18: Development of technological / training centre ‐ Life-long training facilities for the upgrading of human resources in the agricultural and other sectors; ‐ Increase capabilities of human resources in ICTs; ‐ Diffuse information on agricultural and other issues; ‐ Promote specialization of agricultural areas in new agricultural practices; ‐ Increase awareness on environmentally responsible agricultural practices through campaigns; ‐ Establishment of links between the technological / training center and R&D institutions on agricultural and other issues e.g. production methods, food safety and quality, agricultural markets, etc.; ‐ Creation of innovative public structures for serving effectively the needs of rural regions e.g. e-government; ‐ Creation of awards and provision of wide publicity at the regional level for innovative entrepreneurial behavior; ‐ Establishment of information and support services at the local level for new farmers; ‐ Promotion of entrepreneurship among young people and women; ‐ Establishment / Upgrading of Information and Communication infrastructure; ‐ Creation of nodes for providing access to ICTs; ‐ Provision of training services relating to the adoption and use of ICTs; ‐ Increase public/business awareness on green values / entrepreneurship at the local level. 7.7.3. The Central Denmark case study In this section are presented the regional development scenarios and respective scenario-specific policy measures developed for the Central Denmark region. As key domains for the development of scenarios were considered the: population distribution pattern, agri-sector, manufacturing / services, tourism, agri-technology, food-technology, ICTs and energy production patterns. Based on different combinations of the above domains in the study area, the following three scenarios were developed (see Hansen et al, 2009): 159 ‐ S1 Scenario “high tech agri-food sector”; ‐ S2 scenario - “Nature matters”; and ‐ S3 Scenario - “Revitalization of the Central Denmark rural region”. A short description of these scenarios has as follows: S1 Scenario “high tech agri-food sector”: population distribution patterns remain almost unchanged, with certain increase in population of urban regions in the eastern coast. Labour force is commuting from rural areas to working places. Strong emphasis is placed on the increase of efficiency in the agri-food sector, in conjunction to the environmentally friendly production of high quality primary products for further processing in the region and export. Key issue in this respect is technology, the use of which has resulted to continuous cost reduction and decreasing labour costs, in support of competitiveness of local production. The landscape is industrialized on fertile land, but landscape values are preserved in appointed natural reserves. Manufacturing is concentrated in certain poles, forming clusters in the neighbourhood of major cities (peri-urban areas), particularly in the eastern coast part of the study region, while it is mainly export-oriented. There is strong collaboration between knowledge institutions and the agri-food industry in order to support innovation and competitiveness on the international market. Existing urban and costal tourist activities are strengthened by branding the landscape values preserved in nature reserves. There is a high rate of adoption and use of ICTs in urban areas, with rural areas rating lower in this respect. Finally, there is a medium dependence on fossil fuels (oil and gas) mainly of the high tech industrial production, a medium share of centrally produced renewable energy (combined heat and power plants, biogas plant and large scale wind turbines), while energy efficiency is high in the local agenda. Moreover, bioenergy is important, mainly produced from crops combustion in centralized efficient heat and power plants (D6.4). S2 scenario - “Nature matters”: Population distribution patterns remain unchanged, with urban regions (east cost) attracting certain parts of the population. The rest of labour force is commuting from neighbouring rural areas to urban and industrial locations. Industrially-based agriculture is developing in certain parts of the agricultural land as intensive commercial activity, where technology is used in support of both increasing yields and reducing environmental harms. Moreover, certain restrictions/incentives are posed for farming in high value land, aiming at managing valuable natural resources. Manufacturing is concentrated in certain poles, forming clusters around major urban settlements, in particular in the eastern coast, while it is mainly export-oriented. Emphasis is also placed on the development of tourist activity, by integrating agro-eco tourist activities in rural areas with coastal and urban tourist activities (business, conference, educational etc.), driving the diversification of the tourist product and the development of tourist experience all year long. There is a high rate of diffusion of agri-food technologies, used for serving both the increase of efficiency of the agri-food sector and the protection of local natural resources. 160 Also there is a high exploitation of ICTs throughout the region, serving the needs of both businesses and population, and a high share of renewable energies in the energy mix. Based on the concern on environmental issues, energy efficiency is largely promoted in the region (D6.4). S3 Scenario - “Revitalization of the Central Denmark rural region”: draws upon a more evenly distributed population pattern (dispersed pattern of population distribution). Rural areas in this scenario are revitalized based on the improvement of accessibility to transport and ICTs infrastructure as well as educational and cultural activities. Emphasis is placed on the development of niche, innovation-based, export-oriented agri-food production, placing emphasis on local agri-products and manufacturing. There is a dispersed pattern of manufacturing, mainly agri-food SMEs, that are forming the backbone of agri-food qualitative production in rural areas, combined with other industrial sectors located in the neighbourhood of urban settlements where the focus is on export-oriented cost-effective production. Locally produced, of high value and quality, products are gaining ground in the local but also the international market (wine, beer, cheese etc.). Agro-eco tourist activities are developed in rural areas, based on the competitive advantages of these regions, which are integrated with coastal and urban tourism activities, driving thus the diversification of the tourist product and the development of tourist experience all year long. There is a high rate of adoption/use of ICTs throughout the study region; while renewable energy production is gaining a high share in the energy mix, following a dispersed pattern, which takes advantage of all kinds of local renewable energy sources available in the region. The region covers almost 50% of its energy demand from renewable sources, while it aims to become soon fully independent from fossil fuels. Energy efficiency is also of high concern in the local population (D6.4). Policy measures In Table 7-4 below are presented indicative sets of policy measures serving each specific scenario. Table 7-4: Scenario-specific policy measures for the Central Denmark Region (CS3) Source: D6.4 AG2020 S1 “High tech agri-food sector in Central Denmark Region” Development of logistics, infrastructure and ICTs in support of innovative behaviour of firms. Encourage immigration of skilled manpower. S2 “Nature matters” Structural Policies Development/upgrading of local networks / clusters to "Branding" – for developing economies of scale. Reorientation of subsidies from direct support to environmental support. S3 “Revitalization of the Central Denmark rural region” Support the networking of SMEs for the production of high quality, local products. Support investments in rural infrastructure. Support knowledge diffusion infrastructure in rural areas. Facilitate foreign investments in all sectors, especially in the Market Policies Promote cooperation between large multinational and small 161 Support entrepreneurship at the local level. S1 “High tech agri-food sector in Central Denmark Region” energy sector. Promotion of policies supporting firms to cope with unstable markets e.g. rising energy prices. Support firms to cope with the financial crisis. Removal of all kinds of barriers in the movement of goods. Support investments in technologies reducing environmental harm. Promotion of cooperation between knowledge institutions and agri-food companies. Promotion of innovation and business clustering. Support the development and demonstration of technologies for sustainable energy crops, animal manure, residue and algae. Promotion of R&D in the agrifood sector. S2 “Nature matters” innovative companies. Promotion of high quality “non-organic” food. Agricultural Policies Promotion of incentives for strengthening cooperation between primary producers, food companies, consultancy, R&D firms etc. Promotion of coordinated environmental, energy, climate etc. policies towards sustainable primary food production. Support new protein crops to minimize import of soya. Support life-long training of farmers. Promotion of traceability and labelling of agri-food products. Environmental Policies Promotion of sustainable farming e.g. less energyintensive environmentally friendly production. S3 “Revitalization of the Central Denmark rural region” Promotion of the shortening of the production chain. Support of high quality local production. Support the establishment of direct links between consumers and producers (WEB, SMS tools etc.). Protection of local traditional products. Promotion of labeling of local high quality products. Support climate friendly agriculture in rural areas. Promotion of incentives for environmentally sensitive land management. Promotion of innovation diffusion in rural areas. Promotion of the adoption and use of ICTs by farmers and other businesses for e.g. business networking, access to agri-food and energy technologies. ICTs Policies Promotion of the adoption and use of ICTs by farmers and other businesses for e.g. access to information on ‘green’ production, environmental friendly agri-practises. Land Use Policies Promotion of the adoption and use of ICTs by farmers and other businesses for improving access to information and knowledge. Promotion of branding of local culture, lifestyle etc. Improve accessibility of rural areas to health services. Transport/Logistic Policies Promotion of investments in infrastructure, in particular transport (motorways). Improve accessibility to the harbours in Tyborøn and Hvide Promotion of investments in transport infrastructure (road network) and logistics in rural areas. 162 S1 “High tech agri-food sector in Central Denmark Region” Sande and the Aarhus harbour. Promotion of infrastructure investments in East Jutland metropolitan region (logistics, transport, etc.) to facilitate transportation of goods and work force from rural areas. Promotion of investment in high tech large energy plants, sea wind mill parks etc. S2 “Nature matters” Energy Policies Promotion of coordinated policies for energy use as well as landscape and groundwater protection. S3 “Revitalization of the Central Denmark rural region” Promotion of small-scale renewable energy production. 7.7.4. The Tuscany case study In this section are presented the regional scenarios and the respective scenario-specific policy measures developed for the Tuscany region. As key domains for the development of regional scenarios were considered the: population distribution, agri-sector, manufacturing / services, tourism, agritechnology, food-technology, ICTs and energy production patterns. Based on different combinations of the above domains, the following scenarios were developed (see D6.4): ‐ S1 Scenario - “High tech Tuscany”; ‐ S2 Scenario - “Business as usual”; and ‐ S3 Scenario - “Revitalization of the Tuscany rural region”. A short description of these scenarios has as follows: S1 Scenario - “High tech Tuscany” follows a concentrated pattern of population distribution. Agri-food production is focusing on efficiency aspects, but also on food safety and quality, production of new products, and export orientation. A concentrated pattern of manufacturing and services is prevailing. Moreover, a low/medium level of multifunctionality is adopted. In the tourist sector, alternative but also other types of tourist activities are promoted e.g. urban, conference, cultural, mass tourism. There is a high rate of technology diffusion in the agri-food sector that serves the high standards set for food quality and safety and food specialization. A high rate of ICTs adoption and use drives strong networking and cooperation among businesses as well as the diffusion of knowledge in the various fields. Moreover, there is a high share of renewable energy in the energy mix, based on the promotion of related technologies, which leads to the decrease of dependence on fossil fuels. Finally, energy efficiency is rating high in the local agenda, based on the diffusion and commercialization of relating technologies (D6.4). S2 Scenario - “Business as usual”: is based on a concentrated pattern of population distribution. The focus is on the qualitative organic production and the promotion of an environmentally friendly agriculture. The region is specializing in qualitative food production with strong export orientation. There is a concentrated pattern of manufacturing and services. Moreover, a low/medium level of multifunctionality is 163 adopted. In the tourist sector, alternative but also other types of tourist activities are promoted e.g. urban, conference, cultural, mass tourism. There is a low/medium rate of adoption of agri-food technology and a low/medium rate of ICTs adoption/use. The region is strongly dependent on fossil fuels, with a low share of renewable energy production in the energy mix (existing pattern based mainly on geothermal, hydroelectric and biomass) (D6.4). S3 Scenario - “Revitalization of the Tuscany rural region”: a deconcentrated pattern of population distribution prevails in this scenario. Rural regions are revitalized, based on the production of qualitative organic products, PDO, PGI, TSG, mountain products. Product certification is of importance. Environmentally friendly agriculture is the prevailing attitude, with the region to specialize in a large variety of qualitative certified food with export orientation. A dispersed pattern of manufacturing and services is holding in the region, serving the demand of both population and businesses. There is strong emphasis on the development of alternative tourist activities (agro, wine, eco, gastronomic, mountainous, cultural, adventure etc.), exhibiting thus a high level of multifunctionality of rural land. There is a low/medium rate of adoption of agri-food technology aiming at serving the protection of local resources, but also a medium rate of ICTs adoption and use. In the energy sector, there is low dependence on fossil fuels (oil-gas) due to the high share of renewable energy (geothermal, hydroelectric, wind parks, P/V parks, agri- forestry waste), while energy efficiency aspects are high in the local agenda (Trombi et al, 2010). Policy measures Indicative sets of policy measures, serving each specific scenario have as follows (Table 7-5): Table 7-5: Scenario-specific policy measures for the Tuscany Region (CS4) Source: Trombi et al, 2010 S1 “High tech Tuscany” S2 “Business as usual” S3 “Revitalization of the Tuscany rural region” Structural Policies Promotion of investments in logistics, network infrastructure, ICTs, etc. in order to cope with existing structural problems of the region (in particular morphology) Decentralization of services in rural territory (schools, health, etc…) – Public investments. Encouraging the immigration of skilled manpower. Promotion of structural reorganization, in particular in: ‐ Productive sectors ‐ Services ‐ Market ‐ Network infrastructure Promotion of partnerships among producers, especially small ones. Promotion of the existing, capillary rural fabric all over the region. Upgrading of transport and ICTs infrastructure networks. Promotion of social integration of immigrants. Support knowledge diffusion infrastructure. Support innovation in various sectors. 164 S1 “High tech Tuscany” S2 “Business as usual” S3 “Revitalization of the Tuscany rural region” Market Policies Removal of all barriers and constraints to free movement of goods - support competition, innovation and specialization in all sectors. Attraction of foreign investments in all sectors, in particular from India and China. Promotion of high quality local products by large scale marketing strategies. Creation of local scale brands – promotion in the global market. Restructuring of the agri-sector (size of firms), either by favouring the aggregation of firms (networks) or by promoting the reduction of the number of existing farms, thus increasing the farm average land. Promotion of land management (improvements) at the farm level. Promotion of the “Tuscan way” to highly specialized competitive at a global scale agriculture: focus on the production of highly qualitative products (e.g. wine, nursery, gardening, etc…), based on mechanisation and technology. Support the shortening of the production chain. Promotion of direct links between producers and consumers. Agricultural Policies Support an “entrepreneurial culture” in the agri-sector by life-long training of farmers aiming at increasing: ‐ management capacity, ‐ marketing skills, ‐ capability of understanding markets and demand, and adjust properly, ‐ ability to cope with market issues and/or crisis. Exploitation of the existing agricultural fabric and network of farms. Promotion of environmental policies stimulating environmentally-friendly agricultural development. Policies for the creation of direct links between consumers and producers. Protection of local traditional products. Support the development of trust between consumers and producers, besides the official labelling/certification; Development of low cost, local forms of products’ certification Promotion of product differentiation. Support specialization and increasing added-value production. Support differentiation of certification schemes with: ‐ Low-cost regional certification schemes for products promoted in the local market, ‐ EU certification schemes: support for farmers promoting their products in EU market Support farms willing to shift from local to global markets (export orientation). Promotion of traceability and 165 Support access of local producers to the market e.g. by creation of specific spots inside large supermarkets, where local producers may sell directly to customers. Support the enhancement of multifunctionality (agri-food production, tourism, etc.). Support farmers in dealing S1 “High tech Tuscany” S2 “Business as usual” labelling of products. S3 “Revitalization of the Tuscany rural region” with higher production costs. Promotion of Products of Designated Origin (PDO). Promotion of export orientation of the region (agricultural but also other sectors). Promotion of urban and periurban agriculture Support farmers to adjust to EU sanitary standards. Support bargaining power of farmers and producers. Support farming in remote and abandoned land (e.g. for woods exploitation) with multiple beneficial effects (environmental, social security and cohesion, green energy, etc.). Environmental Policies Promotion of policies protecting biodiversity. Support the production and use of bio-energy. Support farmers for environmentally friendly practises (e.g. no mechanisation for soil defence or other environmental purposes). Promotion of water management policies. Promotion of reforestation and advanced wood management systems. Protection of landscape in support of regional brand. Research, education, innovation and transfer of knowledge Promotion of communication / Increase awareness of interaction among producers, customers regarding “green”, between customers and locally produced, products, producers, as well as between seasonality of products, etc. research centres and producers. Support investments on Support investments on innovations – technology for environmental innovations – increasing efficiency in the technologies, serving agricultural sector. environmental goals. Promotion of life-long training Increase awareness of both of entrepreneurs, focusing on customers and producers as to issues of regional interest and the environmental impacts of market / management issues. agri-production systems. Support mechanisms for innovation diffusion and access to information and knowledge. Promotion of R&D investments Promotion of life-long training on: for farmers, with particular - The development of regards to marketing issues, technologies suitable for contributing to the increase of solving local problems, while awareness on market contributing to high quality developments, opportunities, products. consumers’ demand, etc. - Precision farming and mechanisation, suitable for the Tuscan morphology. - 166 S1 “High tech Tuscany” S2 “Business as usual” S3 “Revitalization of the Tuscany rural region” Increase awareness of both for farmers and citizens on “green values”, sustainability, importance of agriculture, etc. ICTs Policies Support the creation of technology and innovation poles (research, innovation, knowledge transfer, etc.) linked to the international R&D centres; efforts to become an international centre of excellence for ICTs applications in the agri-food sector. Improve access of entrepreneurs to sources of innovation, technology, information etc. Support broadband and mobile phone access of the whole rural territory. Enhancement of the adoption and use of ICTs by farms and other businesses – access to information on green production, environmental friendly agricultural practises etc. Land Use Policies supporting the lowering of rural land prices, in order to encourage investments, and drive a restructuring of farms’ size towards larger, more specialized farms. Reorganisation of urban settlements’ network aiming at a more balanced distribution of population over the whole region. Transport/Logistic Policies Support investments in infrastructure, in particular transport networks, logistics systems, storage of agri-food products. Support investments in transport and logistics systems in order to create a homogeneous fabric over the whole region. Support mobility of people (in particular commuters), goods and information. Energy Policies Promotion of investments for the rational exploitation of the local natural resources, e.g. forest management.. Promotion of investments in the energy sector in order to meet the increasing local energy demand. Promotion of networking of small scale energy producers Promotion of less strict landscape related constraints, which may hamper the development of small scale energy production (e.g. solar panels, windmills). Other Policies Promotion of cultural integration of migrants, favouring the immigration of skilled manpower. Promotion of policies defending the development of local monopolies, patronage systems etc. 167 7.8. Conclusions The output of the foresight exercises for the four specific AG2020 case studies have provided considerable insights into the different region-specific agricultural contexts of the European territory, which enhance the scope of the project and present regionspecific peculiarities, challenges and threats that need to be taken into account in the context of AG2020. More specifically, based on each specific regional context, a range of policy measures are drawn that deal with the regional peculiarities. These can enrich the pool of the AG2020 proposed policy measures, and enable the selection of a wider and more representative range of policy measures that can effectively cope with the challenges faced by the European rural regions (see respective AG2020 Case Study Reports). Moreover, a number of innovative tools and approaches were applied in the context of the AG2020 case studies (e.g. LIPSOR model, Future workshops, Focus groups, Microsimulation approach) documenting the results of case studies. These strengthen the contribution of AG2020 to the spreading and establishment of powerful foresight tools for policy making purposes. Finally, the work undertaken in the AG2020 case studies can be of importance for the regional decision makers of the selected regions, as regional development scenarios and respective policy measures for each region draw upon: ‐ an in depth exploration of potential future developments of various key drivers, both at the European and the global level, which may affect developments of the agricultural sector in each single region; ‐ the interaction among interdisciplinary stakeholders, involved in the AG2020 project, broadens the vision and challenges out-of-the-box thinking for the benefit of the decision making process; ‐ the wide communication of regional scenarios and respective policy measures to the local communities, in the context of stakeholders’ workshops, which promotes consensus; and ‐ the validation of regional scenarios and policy measures at the regional level, which contributes to their refinement, in order to best fit to each specific cultural and social context. 168 8. CONCLUSIONS The aim of the Final Report is to present the AG2020 innovative methodology for structuring policy scenarios in agriculture at the European level for the year 2020 . The AG2020 is based on the backasting methodology, which sets out objectives and targets for building the “Images of the Future”. orienting the future of the EU Common Agricultural Policy towards the desired end. The backasting policy scenarios (images and related policies) provide possible alternative policy options, for agriculture in Europe, for the year 2020. These options (appropriate policy instruments and paths), are based on: - a set of key elements (areas of change), identifying the most interesting areas of change in the study system; - key states, indicating the levels of change required to achieve the AG2020 targets; - policy measures, clustered on the basis of their orientation (lifestyle, market, regulation and public infrastructure/services oriented); - policy packages and paths, driving future developments towards the desired end; and - changes in technology and decoupling that may influence key elements. Important issues to policy implementation, such as time horizon of the impact of policy measures and scale of impact are also addressed, as important components for building policy packages and paths. It becomes then possible to assess the role that each policy measure may have in achieving the AG2020 targets. This detailed set of procedures has been adopted to ensure consistency and comprehensiveness in the process of policy formulation. Moreover, the outcome of each of the above steps was validated by involving experts’ opinion for assessing consistency and comprehensiveness, at the EU level. The AG2020 project is concerned with identifying the most interesting policy options likely to be required in the future, which are useful under a range of external conditions, rather than under a specific set of conditions. Thus, the policy scenarios for sustainable agriculture represent possible alternative futures, which illustrate the range of available measures, packages and paths, as well as the scale of the required change. Principles for implementation, based on acceptability, lead-times, dynamic effects and adaptability are also developed within AG2020. 169 9. 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Agrifood Research Finland, SCAR Foresight Group. 178 APPENDIX I: POLICY MEASURES IN AG2020 179 Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 • • 3 4 Critical Issues 1-7 5 1 2 • • 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 • • • 3 4 5 6 7 8 1 2 3 Time / Scale Effects 4 Short Medium Long Direct Payment Policy Measures 1 Increased modulation rate to support demonstrations and investments in environmentally friendly technologies 2 Promotion of partial coupling in order to maintain certain types of production (http://www.rlg.nl/cap/manual.html#A) 3 Removal of historical reference for Single Farm Payments (IFOAM, 2009) 4 Removal of subsidies to intensive - not land-based livestock production (IFOAM, 2009) 5 Promotion of fair distribution of support (IFOAM, 2009) 6 No direct payment to large scale intensive farming (Banse, 2009) 7 Setting up of young farmers and support the structural adjustments of their holdings [EC(2005)1698] 8 Support direct payments to organic farmers (Schmid et al, 2008) 9 Promotion of early retirement schemes for farmers in order to improve the viability of agricultural holdings [EC(2005)1698] • • • • • • • • • • +++ • ++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ ++ +++ • • +++ • • +++ • +++ • +++ Trade Oriented Policies Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 180 Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 5 Critical Issues 1-7 1 2 3 10 Removal or reduction of quotas (Delayen, 2007) • • • • 11 Prohibition of the production and trade of artificial ingredients and polluting agents in EU • • • • 12 Higher tariffs imposed by EU on imported processed food incorporating artificial ingredients and polluting agents • • 13 Removal of any kind of export subsidies (IFOAM, 2009) 14 Tariffs on imported food and feed with high carbon footprint (e.g. beef, soya, palm oil) (Banse, 2009) 15 Setting of special ethic and sustainability standards in EU – Enforcement of trade barriers for products that do not meet these standards 16 Public procurement initiatives (Schmid et al, 2008) 17 Eco-conditionality – harmonize standards of good farming practises (differences in standards, differences in the enforcement of standards can lead to distortions of competition) 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 3 4 5 6 7 8 1 2 • • • • • • • • • • • • 4 Short • • • 3 Time / Scale Effects Medium ++ ++ +++ • • • • ++ • • Long ++ • +++ • • • • • • • • • • • • • • • • • ++ • ++ Market Policy Measures 18 19 Financial or other support to sectoral or commodity-specific groups wishing to develop and market new, environmentally sustainable crops (Ministry of Public Works and Government Services - Canada, 1997) • Financial support to environmentally responsible agripractices (e.g. organic agriculture, water saving etc.) • • • • • • • • • • • • • • • • +++ • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 181 +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 • • • • Reduction of costs and bureaucracy involved in different standard setting and organization schemes for organic food – support of farmers • 21 Financial support of organic agriculture and organic food • • • • • 22 Financial support for conversion to and maintenance of organic farming systems (Schmid et al, 2008) • • • • • 23 Income support strictly linked to advance of public interest e.g. safe and qualitative food, protection and improvement of the environment, natural resources, soil and genetic diversity, landscape and the countryside • • • • 20 25 Support investments for the modernization of agricultural holdings in order to comply with Community standards • • • 26 Support investments for the modernization of the forestry holding/farming equipment e.g. harvesting equipment • • • • 27 Encourage farmers to adopt high standards of animal welfare beyond the mandatory standards (animal welfare payments) (Art. 4) • • 29 2 3 • • 4 5 6 7 1 2 3 4 5 • • • • • • 6 7 8 1 2 3 4 Short Medium Long • • • • • • • • • • • • • • • • • • • • • • • +++ • • +++ • • • • • • • • • • • ++ • • • • • • • • • • • • • • • • ++ ++ ++ Setting up farm management and forest advisory services Forest management Support investments in eco-businesses e.g. waste management businesses 1 Time / Scale Effects +++ • 28 5 Policy Orientation 1-4 AG2020 Targets ++ Support new revenue-generating opportunities in the agrisector e.g. capturing of by-products from agriculture for energy production [EC(2005)1698] 24 Critical Issues 1-7 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 182 +++ +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling 30 Support income of organic farming to reduce specialization (IFOAM, 2005) 31 Support the provision of environmental services by farmers or other land managers by encouraging agri-production methods compatible with the protection and improvement of the environment, landscape, natural resources, soil and genetic diversity beyond the mandatory standards (agrienvironmental payments) (Art. 4) • Support the provision of environmental services by forest holders to enhance biodiversity, preserve high value forest systems and reinforce the protective value of forests with respect to soil erosion, maintenance of water resources and water quality etc. beyond mandatory standards– forestenvironmental payments (Art. 4) • 32 33 34 1 2 3 • • • • • • • • 4 • Critical Issues 1-7 5 • 1 • 5 Policy Orientation 1-4 AG2020 Targets 2 3 4 6 7 • • • • • • • • 1 • 2 3 4 5 • • • • • • • 6 7 8 1 2 3 • Time / Scale Effects 4 Short Medium Long +++ • +++ • • • • • • • • • • • • • • • • +++ Support non-productive investments e.g. on-farm investments which enhance the public amenity value of a NATURA 2000 area or other high natural value areas [EC(2005)1698] • • • • • • • • +++ Removing of production constraints in organic farming such as set-aside (aiming originally at conventional producers) (Schmid et al, 2008) • • • • • • • • • 35 Support and facilitate SMEs innovations in the field of novel pesticides suited for organic farming (IFOAM, 2005) • • 36 Support SMEs to develop novel products, equipment, software and diagnostic tools for managing organic livestock – novel veterinary treatments (IFOAM, 2005) • • Support SMEs to develop breeds and varieties for low-input agriculture (IFOAM, 2005) • 37 Sectoral Elements 1-5 • • • • • • • • • • • • • • • • • • ++ +++ • +++ • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 183 +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 • • • • • • • • • • • • • • Critical Issues 1-7 5 1 2 3 4 • • • • • • • • 5 Policy Orientation 1-4 AG2020 Targets 6 4 5 6 7 8 1 2 3 Time / Scale Effects 7 1 2 3 4 Short Medium • • • • • • • +++ • • • • • • • ++ • • • • • • • • • • Long Environmental Policy Measures 38 Eco-labelling of agri-food products • 39 Support for "green" agri-food products • 40 Tax on agri-food products with high ecological footprint (e.g. N2O or CH4 emissions in CO2 equivalent) 41 Ecological tax reform charging resource use in agri-food production (e.g. water- intensive crops) 42 Ecological tax reform charging resource use instead of labour in other than agri-food sectors • 43 Support of organic agriculture and organic food • • 44 Promotion of organic farming • 45 Setting of emission standards from agriculture (e.g. carbon and nitrogen emissions) 46 Support the establishment of infrastructure for waste management 47 Setting sustainability standards for biofuels and energy crops production 48 Eco-labelling, eco-certification of green agri-food products • 49 Reduce, recycle and reuse e.g. water, waste etc. (households and businesses) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ • • +++ • • ++ • • • +++ • • • ++ • • • • • • • • • • • • • • • • • • • • • +++ +++ ++ +++ • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8 Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 184 +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 • 2 3 4 • • Critical Issues 1-7 5 1 • • 2 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 • 3 4 5 6 7 8 1 • 2 3 • • ++ • +++ 50 Reduce - reuse - recycle of agri-food packaging 51 Preserve natural and cultural heritage • • • • • • • • • 52 Increase awareness on the value of natural and cultural heritage • • • • • • • • • 53 Promotion of incentives for greater use of alternative water supplies e.g. waste-water, grey-water and ‘harvested’ rain water (Olesen, 2010) • • • 54 Promotion of incentives for efficient and sustainable use of water in agriculture (Olesen, 2010) • • • • • • • 55 Promotion of less water-intensive crops and irrigation methods in areas of water scarcity (Olesen, 2010) • • • • • • • 56 Promotion of more environmentally friendly agricultural practices - low-input farming • • • • 57 Water pricing based on volume of consumption (Olesen, 2010) for both businesses and households • • • 58 Improvement of irrigation systems – reduction of water losses • 59 Provision of effective irrigation infrastructure - water resource management 60 61 • • • Time / Scale Effects 4 Short Medium Long +++ • • +++ • • • • • • • • • • ++ +++ • +++ • • • • • • • • • • • • • • Development of drought management plans focusing on water risk (Olesen, 2010) • • • • • Development of water management infrastructure (e.g. water dams) • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 185 ++ ++ ++ • • +++ ++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 • • • 4 Critical Issues 1-7 5 1 2 3 • • • • Increase public/business awareness on green values and environmental protection – promotion of quality-oriented life styles • 63 Promote “green consumerism” • • • • • • • • 64 Taxes for non-environmentally responsible use of the production factors e.g. tax on the consumption of energy and natural resources (e.g. water) • • • • • • • • 62 65 Promotion of eco-businesses as environmental innovationbusiness producing goods and services for environmental protection (e.g. waste management business) 4 5 6 • • 7 1 2 • • • • • • • • • 3 4 5 6 • • • • 7 • 8 • 1 2 3 Time / Scale Effects 4 • • • • • • • • • • • • • • Short Medium +++ • +++ +++ • • Promotion of more strict emission standards in the agricultural sector • • • • • • 67 Tax on agri-food businesses’ greenhouse emissions – Carbon tax (in CO2 equivalent) • • • • • • • 68 Increase environmental awareness • • • • • • • 69 Expand NATURA 2000 protected nature areas’ network – more strict restrictions on farming activities within and around NATURA 2000 areas • • • 70 Improvement of accessibility of forest land – creation of fireprotection zones (network) • 71 Promotion of water-saving technologies in the agricultural sector • Promotion of environmental technologies supporting ecobusiness activities producing goods and services for environmental protection (e.g. waste management) • • • • • • • • +++ • ++ • • • • • ++ • +++ • • +++ • • • • • • • • • • • • • • • • • • • • +++ +++ • +++ Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 186 Long • • 66 72 Policy Orientation 1-4 AG2020 Targets Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 • 3 4 Critical Issues 1-7 5 1 2 • • • • 73 GMO regulation (development of less land and water intensive crops) • • • 74 Promotion of R&D on environmentally sound (organic and low-input) management practices (N-management) (Olesen, 2010) • • • 75 Eco-labelling of products as to their energy consumption • • • • • 76 Eco-labelling of agri-products – green (organic) products • • • • • 77 Promotion of eco-labelling technologies of agri-food products – green agri-food products • • • • 78 Promotion of eco-packaging • 79 Promotion of plant breeding providing varieties with high nutrient uptake efficiency and fooder with high nutritional value • • • 5 6 7 1 2 • • • 3 4 5 • • • • 6 7 8 1 2 3 4 Short Medium • Long +++ • • • • • • • • • • • • • • • • • • • • • • • • • • ++ ++ ++ +++ • +++ Promotion of sustainable land management practices [EC(2006)144] 81 Promotion of environmental services and animal-friendly farming practises [EC(2006)144] 82 Promotion of increasing diversity of crop and livestock - crop rotation (IFOAM, 2005) • 83 Promotion of area-based agri-environmental support to encourage the conversion to and (in most cases) continuation of organic production (Schmid et al, 2008) • Promotion of waste management in household and agrifood businesses 4 Time / Scale Effects +++ 80 84 • 3 Policy Orientation 1-4 AG2020 Targets • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ ++ ++ • +++ • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 187 +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 • • Critical Issues 1-7 5 1 2 3 • • • 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 3 • • 4 5 6 7 8 1 2 3 Time / Scale Effects 4 Short Medium Long Agri-food Technology Promotion of nano-particles offering the potential to administer pesticides, herbicides, and fertilizers, more efficiently and safely, by controlling precisely when and where they are released • Promotion of smart-sensing devices for agriculture environment interactions - reduction of the environmental load of agriculture, e.g. nano-delivery systems for pesticides • 87 Biotechnology - GMO • • • • • • • • • • • • • • 88 Support the development of new products, processes and technologies in the agri-food and forestry sector • • • • • • • • • • • • • • 89 Promotion of GMO to increase yields and plant resistance to certain external factors e.g. drought • • • • • • • 90 R&D - agri-food technological innovations e.g. in the field of novel pesticides suited for organic farming (IFOAM, 2005) • • • • • • • • 91 Promotion of agri-technology – e.g. precise farming • • • • • • • 92 R&D – development of less water-intensive crops • • • • • • 93 Promotion of appropriate surveillance systems, controlling illegal abstraction of water (use of penalties for irrational water use) (Olesen, 2010) • Support R&D in organic farming (IFOAM, 2005) • 85 86 94 • • • • +++ • • • • • • • • • • • +++ • • • • • • • • • • • • • • • • • • • • • • • • +++ • +++ • • +++ • • +++ • • • +++ • +++ • ++ • • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 188 • +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 95 Promotion of green biotechnology (agriculture) to improve quality and value of crop plants (Markussen et al, 2009) • • • • • 96 Development of certified organic ingredients with technological effects on food and positive effects on human health (IFOAM, 2005) • • • • • Improvement of the quality systems in order to improve integrity of organic foods, including new strategies for inspecting and traceability (IFOAM, 2005) • 98 Development of new labelling concepts for food processing (IFOAM, 2005) • 99 Promotion of cost-effective standard-setting and certification systems in organic farming (IFOAM, 2005) • 100 Enforcement of rules (standards) on nutrient applications (fertilizers and manures) 101 Complete and further harmonize organic standards (aquaculture, seaweed,wine, yeast) (Schmid et al, 2008) 102 Increase technology awareness (new machinery, fertilizers, plants, seeds etc.) to increase efficiency • 103 Promotion of environmentally sustainable technologies in the agri-food sector e.g. new types of commercially viable equipment • Promotion of R&D on Genetically Modified Organizations (GMO) • • • • • Stimulate innovation and technology transfer in the agrisector (e.g. through creation of agri-technology platforms) • • • • • 97 104 105 5 Critical Issues 1-7 1 2 3 • • • 4 • 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 3 • • • • 4 5 6 7 8 1 2 3 Time / Scale Effects 4 Short Medium • Long +++ • • ++ • • • • • • • • • • +++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ +++ • • • ++ • • • • • +++ • • +++ • ++ • • • • • • • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 189 • • +++ +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 106 Promotion of eco-labelling technologies (green and low input agri-food products) • • • • • • 107 Promotion of technologies supporting the 3R’s, i.e. Reduce, Recycle and Reuse of waste (agri-food waste, household waste, etc.) (Ministry of Public Works and Government Services – Canada, 1997) • • • • • • Promotion of technologies supporting the 3R’s, i.e. Reduce, Recycle and Reuse of water waste (in agri-food businesses, households etc.) (Ministry of Public Works and Government Services – Canada, 1997) • 109 Promotion of satellite technology for crop surveillance • 110 Promotion of green biotechnology (agriculture) to improve crops productivity (less land-intensive) and reduce water demand (less water-intensive crops) • • • 111 Promotion of technologies for soil, crop and animal management (smart crop rotation, cultivation and soil preparation technology) (Markussen et al, 2009) • • • 112 Promotion of precise farming reducing input in agriproduction e.g. water, pesticides etc. • 113 Promotion of technologies for precise farming (use of IT, GPS, sensors etc.) • 114 Promotion of fermentation technologies for biogas production (Markussen et al, 2009) • • Promotion of plant and animal breeding technologies (GMO) (Markussen et al, 2009) • • 108 115 Critical Issues 1-7 5 • 1 2 3 4 • • • • • 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 3 • • • • • • • • 4 5 6 7 8 • 1 2 3 Time / Scale Effects 4 • • • • • Short Medium Long +++ • +++ • • • • • • • +++ • • • • • • • • • • • • • • • • • • +++ • +++ • • • • • • • • • • • • +++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 190 +++ +++ +++ +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 116 Promotion of innovations in alternative or complementary medication in organic livestock systems (IFOAM, 2005) • 117 Promotion of animal breeding for organic agriculture – traditional breeding- MAS12 (non GMO) - participatory breeding (Markussen et al, 2009) • Promotion of traceability technologies (e.g. Radio Frequency Identification - RDIF tags) (Markussen et al, 2009) • 119 Promotion of agricultural sensing technologies with focus on environmental protection (sustainable use of resources) • • • • • 120 Promotion of environmentally responsible management systems to gain certification through the International Standards Organization (ISO) (Ministry of Public Works and Government Services – Canada, 1997) • • • • • Promotion of technologies that reduce production of greenhouse gases (Ministry of Public Works and Government Services – Canada, 1997) serving greenhouse gases thresholds set for agri-production • 122 R&D – environmentally sound (organic and low-input) management practices (N-management) • 123 Promotion of R&D serving “coexistence” of genetically modified (GM) and organic farming (IFOAM, 2005) 124 125 118 121 4 Critical Issues 1-7 5 1 2 • • • • 3 4 5 6 7 1 2 • • • • • • Policy Orientation 1-4 AG2020 Targets • • 3 4 5 6 7 8 1 2 • • • • • • 3 Time / Scale Effects 4 Short Medium Long ++ +++ • • • • • • • • +++ • • • • • • • • • • • • • • • • • • • • +++ +++ • +++ • • • • • • • • • • +++ • • • • • • • • • • Promotion of R&D on pest management technologies • • R&D supporting renewable energy production and energy efficiency technologies in the agri-food sector • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 191 +++ ++ ++ +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 4 5 Critical Issues 1-7 1 126 Technological developments promoting energy efficiency in the agri-food sector • • • • • 127 Water-saving technologies in the agricultural sector (at the field level) • • • • • 128 Promotion of sensor technology for irrigation purposes • • • • 129 Promotion of technologies improving the efficiency of the irrigation network (Ministry of Public Works and Government Services – Canada, 1997) • • • • Promotion of closed artificial growth systems where all inputs are industrially produced and all emissions are controlled (Markussen et al, 2009) • 131 Promotion of biotechnology for livestock and poultry e.g. breeding, propagation, health etc. (Markussen et al, 2009) • 132 Promotion of Integrated Farm Management (IFM) systems and technologies in intensive farming (AGRIBLUE, 2004) • 133 Promotion of field management technologies (e.g. data management of field records) • 134 Support diffusion of appropriate technologies for soil and crop management to increase volume of production of energy crops (Markussen et al, 2009) • Setting up farm and forest management technologies e.g. satellite surveillance • Promotion of technologies that capture by-products from agriculture and food processing industries (Ministry of Public Works and Government Services – Canada, 1997) • 130 135 136 2 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 • 3 4 5 6 7 8 1 2 • • • • • • • • 3 Time / Scale Effects 4 Short Medium Long ++ ++ +++ • ++ • • • • • • • • • • • • ++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ++ +++ +++ • • • • +++ • • • • • • • • • • • • • • • • • • • • • • +++ • ++ Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation- Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 192 Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 Support R&D for improving plants thus making the conversion process from plants to biofuels less energyintensive and waste-generating (EC, 2004, Plants for the Future) • 138 Support R&D in agri-food businesses that stimulates development of new products and improved product quality • 139 R&D and innovation in food processing technology for premium and organic food (IFOAM, 2005) • 140 Strengthening of R&D in organic agriculture and production methods (IFOAM, 2005) • 141 Promotion of R&D in additives adding value to functional food (IFOAM, 2005) 142 Conservation of genetic resources in agriculture eligible for support – creation of web-based inventories of genetic resources currently conserved [EC(1999)1257] 137 • 2 3 • 4 • 5 Critical Issues 1-7 1 2 • • 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 • 1 2 • 3 4 5 • 6 7 8 • • • 1 2 3 • Time / Scale Effects 4 Short Medium Long • +++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ +++ +++ ++ • ++ Agri-environmental Measures 143 144 145 Promotion of the extensification of agri-production - maintain existing sustainable extensive systems (EC, 2005, Agrienvironmental measures, p. 12) • Promotion of the extensification of livestock (EC, 2005, Agrienvironmental measures, p. 12) • Promotion - maintenance of farmed landscape (EC, 2005, Agri-environmental measures, p. 12) • • • • • • • • • • • • • +++ • • • • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation- Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 193 +++ ++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures 146 Techno Decoulogy pling Maintain certain production-specific payments in order to avoid abandonment of this production (http://www.rlg.nl/analysis.html - CAP implementation in the EU-27 member states) Sectoral Elements 1-5 1 2 3 • • • 4 5 Critical Issues 1-7 1 2 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 • 7 1 • 2 • 3 4 5 6 7 8 1 2 • 3 4 Short Medium Long • ++ 147 Promotion of mixed farming and traditional crop rotations including organic rotations [COM(1999)22 final, p. 9] • • • • • • • • • • • • 148 Promotion of small scale farming with diversified production [COM(1999)22 final, p. 9] • • • • • • • • • • • • 149 Promotion of traditional and low-input farming [COM(1999)22 final, p. 9] • • • • • • • • • • 150 Promotion of low intensity pasture systems [COM(1999)22 final, p. 25] (IFOAM, 2009) (EC 1783/2003) • • • • • • • • • • 151 Reduction of high livestock density [COM(1999)22 final, p. 11] • • • • • • • • 152 Promotion of sustainable agricultural practises on sloping lands - effective soil erosion control [COM(1999)22 final, p. 12] • • • • • • Promotion of agro-forestry (Smith et al, 2007) • 153 Time / Scale Effects • • • • ++ ++ • ++ ++ ++ +++ • • • • • • • • • • • • • • • ++ 154 155 Support the production of low-impact bioenergy crops (SCAR Foresight Group, 2006 - Agriculture and the Environment, p. 12) • Promotion of forest protection measures in particular regarding forest fires [COM(1999)22 final, p. 28] • • • • • • • • • • • ++ • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 194 • ++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 156 Promotion of afforestation programs [COM(1999)22 final, p. 13] 2 3 4 Critical Issues 1-7 5 • • 3 4 5 Policy Orientation 1-4 AG2020 Targets 1 2 6 7 1 • • • • • • • • • • • • • • • • • • • 2 3 4 5 • 6 7 8 • • • 1 2 3 Time / Scale Effects 4 Short Medium • Long +++ Information Technology Policy Measures 157 Establishment/upgrading of ICTs infrastructure – broadband access of rural areas • • • • • 158 Establishment of ICTs hubs for the diffusion of agri-related information (e.g. agri-practices, new products, new uses of products, farm management, market opportunities,agripolicy etc.) • • • • • 159 Promotion of networking among agri-food businesses (agrifood chain) • 160 Access of farmers to on-line information systems via ICTs • 161 Use of ICTs for raising awareness and capacity building in the farmers’ community • 162 Promotion of ICTs for marketing tourist businesses/rural destinations (Stratigea and Giaoutzi, 2006) 163 164 165 • • • • • • • +++ • +++ • • • • • • • • • • • • • • Promotion of ICTs for networking of firms in rural regions (Stratigea and Giaoutzi, 2006) • • • • Promotion of ICTs applications in forest protection (e.g. sensor systems through ICTs for fire protection) • • Promotion of ICTs applications e.g. e-training, e-health, ebanking, e-government etc. (Stratigea, 2010) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ +++ +++ +++ • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation- Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 195 +++ +++ +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 Critical Issues 1-7 1 2 3 4 5 • • • 166 E-government • • • 167 Support the establishment of ICT hubs diffusing agri-related information in respect to energy production e.g. biomass exploitation potential, biomass energy production technologies, effective energy crops management, etc. • • • 168 Promotion of ICTs hubs diffusing information on food quality-safety issues • 169 Promotion of field management technologies based on ICTs e.g. data management of field records • • 1 2 3 4 5 6 7 1 2 • • • Policy Orientation 1-4 AG2020 Targets • 3 4 5 6 7 8 1 2 3 • • Time / Scale Effects 4 • • • • • Short Medium Long +++ • +++ • • • • • • • Land use planning - environmentally protected zones in rural areas (valuable ecosystems, agricultural land, forest areas, cultural areas etc.) • • • • 171 Promotion of compulsory long-term set-aside on arable land (instead of rotational set-aside) • • • • • • • 172 Reduce land-use intensity (promotion of organic farming, reduction of productivity of arable crops etc.- CAP agrienvironmental measures) (Olesen, 2010) • • • • • • • Support the combination of extensive agriculture and forestry systems (agri-forestry) aiming at the production of high quality livestock or food crops on land that grows trees for timber, fire-wood and other forest products – establishment of agro-forestry systems on agricultural land (Smith et al, 2007) • • • • • • • • • • • • • • • +++ • +++ Land Use Policy Measures 170 173 • • • • • • • • • • +++ • • • +++ • ++ • • • • • • • • • • • • • • • • • +++ Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation- Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 196 Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures 174 Promotion of innovations relating to co-existence of crops (conventional, organic and GM food production) (EC, 2004, Plants for the Future) Techno Decoulogy pling • • Sectoral Elements 1-5 1 2 3 • • • 4 Critical Issues 1-7 5 1 2 3 4 • • • 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 • 2 3 4 5 • • • • 6 7 8 1 2 3 Time / Scale Effects 4 Short Medium Long • • +++ Regional Development Policy Measures 175 Establishment of structures for life-long training of agri-food labour resources • • • • • 176 Eco-labelling of regional green products • • • • • 177 Promote consensus-building mechanisms at the local level – Building shared community values - strengthening of participation • • • • • • • • • • • • • Promote social responsibility of businesses • 179 Incentives for the location of small scale manufacturing and tourist businesses in rural regions • 180 Support of agricultural production for non-food purposes (e.g. forestry) • • 181 Fostering entrepreneurship in green activities/products e.g. support of specialized retail shops for selling organic and regional special quality products • • Support local SMEs to reach niche food markets for organic and traditional agri-food products • • • • Promotion of the “bio-region” concept as new partnerships between organic farmers, processors, traders, gastronomy, tourism and local communities (IFOAM, 2005) • • • • 182 183 • • 178 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ ++ • +++ • +++ • • • • • • • • • +++ +++ • +++ • • • • • • • • • • • • • • • • • • ++ • +++ Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation- Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 197 Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Create innovative public structures for serving effectively rural regions (citizens and businesses) (e-government, ehealth etc.) • 185 Support the development of food quality schemes • 186 184 Sectoral Elements 1-5 Critical Issues 1-7 1 2 3 4 5 • • • • • 1 2 3 6 7 1 2 3 4 5 6 7 8 1 2 3 • Time / Scale Effects 4 Short Medium Long • +++ • • • Protection of regional food products in EU (PDO, PGI, TSG) • • • • • 187 Promotion of locally produced healthy crops e.g. fruit and vegetable sector (Delayen, 2007) • • • 188 Promotion of partial coupling in order to prevent land abandonment in certain regions (http://www.rlg.nl/cap/manual.html#A) • • Promotion of clusters of science-based agri-food and forestry businesses in rural regions for more effective exploitation of natural resources 5 • • 189 4 Policy Orientation 1-4 AG2020 Targets • • • • • • • • • • • • • • • • • • • • • +++ • • • +++ ++ • +++ • • • • • • • • • • • • • • +++ 190 Support High Nature Value (HNV) farmland through better targeted CAP measures (Olesen, 2010) • • • 191 Support Less Favoured Areas (LFA) towards the continued use of agricultural land, maintaining of the countryside, maintenance and promotion of sustainable farming systems (Olesen, 2010) [EC(2005)1698] (natural handicap payments) • • • 192 Promotion of non-agricultural activities [EC(2005)1698] • 193 Support the development of tourist and craft activities • • • • • • • • • • • • • • ++ • ++ • • • • • • • • • • • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation- Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 198 +++ ++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures 194 Techno Decoulogy pling Support the creation and development of micro-enterprises to promote entrepreneurship and develop the economic fabric [EC(2005)1698] • Sectoral Elements 1-5 Critical Issues 1-7 1 2 3 4 5 • • • • • 1 2 3 4 5 6 7 • • 1 2 3 4 • • 5 6 7 8 • • • 1 2 3 Time / Scale Effects 4 Short Medium • • • • • • • • • • • • • 195 Support broadband access to rural regions 196 Support the provision of basic services for the rural economy and population [EC(2005)1698] • • • 197 Support rural settlements’ renewal - renovation and development of villages [EC(2005)1698] • • • 198 Support protection and conservation of rural heritage [EC(2005)1698] • • • • 199 Promote exchange of good practise and experiences of Rural Development Programs (RDP) implementation between countries • • • • 200 Policy Orientation 1-4 AG2020 Targets • Promotion of area-based agri-environmental support to encourage the conversion to and /or expansion of organic farming (Schmid et al, 2008) • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ • +++ • • • • • • • • • • • • • • • Long +++ ++ • +++ • +++ • • • +++ 201 Promotion of e-commerce in rural regions in the agri-food sector • • • • • 202 Promotion of e-business in rural regions e.g. in the tourist sector • • • • • • • 203 Promotion of teleshopping, telebanking, teleworking etc. applications • • • • 204 Promotion of improvements in the processing and marketing of primary agricultural and forestry products – adding value to agro-forestry products [EC(2005)1698] • • • • • • • • • • • • • • • • • • +++ • +++ • • • • • +++ • +++ Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 199 Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures 205 Promotion of 'supply-push’ and ‘demand-pull’ policies to support and encourage organic products market development (Schmid et al, 2008) Techno Decoulogy pling • • Sectoral Elements 1-5 1 2 3 • • • 4 Critical Issues 1-7 5 1 2 3 4 • • • 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 • 2 3 • • 4 5 6 7 8 • 1 2 3 Time / Scale Effects 4 Short Medium Long • ++ Transportation/ Logistics Policy Measures 206 207 208 Increase access of rural regions to urban centres Strenghtening of linkages / interaction with urban settlements Improvement/upgrading of transport network infrastructure increasing accessibility of rural areas (intra-inter accessibility) • • • • • • • • • • • • • • • • • • +++ • • Improvement of accessibility of agri-forest land • • • • • • • • • • • • • • • • • • • • • • • • +++ • +++ Energy Policy Measures 209 Promotion of RES in agricultural regions (energy crops, biomass, wind, solar energy) - Creation of a new energy culture 210 Tax reduction in bio-energy 211 Public procurement in environmentally friendly biomass energy production/ technologies 212 Special tax for energy-consuming agri-food production/processing 213 Promotion of investments on energy efficiency (households – businesses) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ • • • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 200 ++ ++ ++ ++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 214 Promotion of biomass for heating at the individual/household level 215 Tax on fossil fuel consumption 216 Promotion of biofuels by tax exemptions (EC, 2003) 217 2 • • 3 4 Critical Issues 1-7 5 • 1 2 • • 3 4 5 6 7 • • • • • • • • • • • • • • • Differentiation of fuel VAT pricing on behalf of biofuels • • • • • • • • • 218 Support investments on biomass district heating schemes as cost-efficient modern plants for heating in rural regions • • • • • • 219 Fostering entrepreneurship in biomass energy production (e.g. waste processing installations, forestry farming etc.) • • • • • • • 220 Promotion of incentives for agri-waste collection at the farm level • • • • 221 Promotion of measures recovering animal by-product energy (biogas, biodiesel production) [COM(2005) 628 final] • • 222 Promotion of cooperation between private - public sector in biomass energy production (Public Private Partnerships PPPs) 223 Establishment of sustainable biofuels certification for biofuels production in the EU as well as for biofuel imports (Delayen, 2007) 224 Promotion of regional biomass action plans 225 R&D – creation of a portfolio of biomass processing technologies [COM(2005) 628 final] • • • • • • • 1 2 3 • • • • Policy Orientation 1-4 AG2020 Targets • 4 5 6 7 8 • • • • • • • • • • • • • 2 3 4 Short • • • • • +++ • • • +++ • • • • • • • • • • • • • • Medium +++ • ++ • +++ • ++ • ++ • • • • • • • • • • • • • +++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • ++ • • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 201 Long +++ • • • 1 Time / Scale Effects +++ • +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 Critical Issues 1-7 4 5 1 2 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 1 2 3 4 • 5 6 7 8 • • • • • • • 226 Support of R&D towards increasing cost-effectiveness of biofuels • • • • • • 227 Promotion of biofuels in public transportation • • • • • • 228 Public procurement for heating and cooling systems, based on biomass use [COM(2005) 628 final] • • • • • • • • • • 229 Promotion of plant breeding aiming at producing plants’ raw material more suitable for biomass production – exploitation (Markussen et al, 2009) • • • • • • • • • 230 Support the development of "smart energy networks" [COM(2005) 628 final] • • 231 Support the location of CHP (Combined Heat and Power installations) • • 232 Promotion of conservation agriculture (CA) to reduce energy consumption (http://www.ecaf.org/danes/First.html#3) 233 Promotion of energy efficiency technologies (households, businesses) 234 • • 1 2 • 4 Short • • • • • • • • • • • • • ++ • • • • • • • • • • • • • • • • • • • • Promotion of bioenergy production technologies (e.g. biogas, bioethanol, CHP) (Markussen et al, 2009) • • • • • • • • • • • • • • 235 Support investements in small scale biorefineries in rural regions (Markussen et al, 2009) • • • • • • • • • • • • • • 236 Promotion of technological developments in renewable energy sector (biomass energy production technologies) • • • • • • • • • • • • • • Promotion of R&D – Technologies exploiting RES for energy production (biomass, solar, wind, hydro etc.) • • • • • • • • • • • ++ • • • +++ +++ • • +++ • +++ • +++ • +++ +++ • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8 Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 202 ++ • • • Long +++ • • Medium • • • 237 3 Time / Scale Effects +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures Techno Decoulogy pling Sectoral Elements 1-5 1 2 3 • • 4 5 Critical Issues 1-7 1 2 5 Policy Orientation 1-4 AG2020 Targets 3 4 6 7 1 2 3 4 5 6 7 8 1 2 3 • • • • • Time / Scale Effects 4 Short Medium Long Food Safety - Quality Policy Measures 238 Setting a coherent and transparent set of food safety rules [COM (1999) 719 final] 239 Support full food-ingredient labelling [COM (1999) 719 final] • • • • • • • • ++ 240 Quality control of food (labelling) • • • • • • • • +++ 241 Provision of information on food quality/safety issues • • • • • • • • +++ 242 Support/diffuse innovation in food processing techniques pursuing minimum destruction and maximum authenticity of rural qualitative products • • • • • 243 Improvement of food processing, preservation and storage to reduce loss of agri-product quality • • 244 Promotion of innovations in food packaging • • 245 Promotion of the qualitative organic products together with environmental orientation of their processing and trading (IFOAM, 2005) • 246 Promotion of highly nutritive healthy food (functional food) • 247 Promotion of high quality green food • 248 Promotion of low-price standard-quality food production • 249 Reducing costs of different standard setting and certification schemes for organic food (IFOAM,2005) • • • • • • • • • • • • • • • • • • +++ • • +++ +++ ++ +++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ • +++ • + • Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 203 +++ Table I-1: Impact of policy measures on the agri-sector, the critical issues and AG2020 targets – policy orientation and time / scale – Potential groups of policy measures for inclusion in policy packages and paths in AG2020 (Giaoutzi and Stratigea, 2009b, D5.5) a/a Policy Measures 250 Techno Decoulogy pling Improve stakeholders’ involvement in food safety policy making Sectoral Elements 1-5 Critical Issues 1-7 1 2 3 4 5 • • • • • • • • 1 2 3 4 5 Policy Orientation 1-4 AG2020 Targets 6 7 • • • • 1 2 3 4 5 6 7 8 1 • 2 3 Time / Scale Effects 4 Short Medium • Long +++ Policy Measures supporting the Upgrading of Human Resources in Rural Regions 251 Promotion of farmer advisory programmes in respect to the rational use of resources in the agri-sector e.g. water resources 252 Enhancement of training and skill acquisition opportunities e.g. e-training and network services 253 Support the demand for qualitative products through better informed and educated consumers 254 Setting up farm and forest management advisory services through ICTs [EC(2005)1698] 255 • • • • • • • +++ • • • • • • • • • • • • • • • Promotion of life-long training programmes for farmers on the identification and pursuing of new market opportunities (new products, new uses of existing products, new / improved production processes) • • • • • 256 Improvement of ICTs capabilities of farmers / land managers • 257 Promotion of specialization of agriculture by properly training farmers involved in agricultural and forestry activities, especially as regards to new approaches to management, production and marketing [EC(2005)1698] • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ++ • • • • +++ +++ • +++ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • +++ +++ Sectoral Elements: 1: Crops, 2: Livestock, 3: Food processing, 4: Industry, 5: Services Critical Issues: 1: Global environmental issues, 2: Balance agric. biodiversity, 3: Food quality / safety, 4: Global agri-food markets, 5: Regulated agri-factor markets, 6: Land use conflicts, 7: Rural development AG2020 Targets: 1: Decrease GHG, 2: Biodiversity, 3: Competitiveness - Efficiency agri-sector, 4: High level multifunctionality, 5: High rate food traceability, 6: Transportation - Fuel 10%, 7: Electricity 7%, 8: Chemicals 10% Policy Orientation: 1: Lifestyle, 2: Market, 3: Regulation, 4: Public infrastructure/services 204 205