Agroforestry needs fairer, clearer policies, and more funding, warn farmers

This article is part of our special report Europe’s forests at a crossroads. Can economic growth and conservation coexist?.

The European Union faces challenges in achieving forest-based carbon removal, but it also has opportunities to enhance forest resilience. To unlock the full potential of this solution, comprehensive policy interventions are needed to address institutional, economic, and perceptual challenges.

European forest policy is complex, as forest legislation is largely determined by national contexts. While stakeholders recognise the need for increased funding and clearer policies, inconsistencies in implementation hinder progress.

In a recent policy brief, the OptFor-EU research project examines challenges and opportunities through expert surveys and stakeholder workshops in alignment with the EU’s Biodiversity Strategy for 2030 and the European Green Deal.

It lists financial constraints, information gaps, competing social priorities, fragmented governance, and differing perspectives based on gender and experience as the main threats in achieving forest-based carbon removal.

However, the policy brief suggests there are opportunities to enhance forest resilience through improved data sharing, policy coordination, and innovative tools such as decision support systems and digital monitoring technologies.

Moving forward, it recommends stakeholders to reinforce strategic priorities, adopt climate-smart forestry practices, and strengthen financial sustainability to support long-term climate resilience.

Carbon removal through agroforestry

A recent publication, taking the Upper Rhine region (Germany, Switzerland, and France) as a case study, examines the potential of agroforestry systems (AFS) for carbon dioxide removal (CDR), climate adaptation, and providing environmental and social co-benefits.

However, their expansion is hindered by structural resistance, conflicting perceptions, and restrictive institutional frameworks. While there is broad conceptual support for AFS, their adoption is limited due to economic concerns, legal contradictions, and mistrust in farmers’ capacities.

In Germany, AFS are often seen as economically nonviable and incompatible with modern agriculture, whereas Switzerland and France show stronger cultural and economic valuation of trees and hedgerows, offering alternative pathways for scaling up.

The study uses the 3I framework (institutions, interests, and ideas) to analyse the political dynamics affecting AFS adoption. Institutional barriers, such as complex legal processes and insufficient financial support, are significant obstacles.

Unlocking the full potential

Farmers face high administrative burdens and financial risks, with compensation mechanisms often inadequate. Additionally, conflicting interests between conservation and production, as well as societal expectations, create further challenges.

Farmers value AFS for resilience and ecosystem services but feel overburdened by demands to address climate change and biodiversity without fair compensation. Policy interventions must prioritise climate adaptation, enhance farmer engagement, and create enabling conditions for experimentation.

According to the study, simplifying legal processes, providing upfront finance, and fostering collaboration are essential. Trust-building and aligning incentives with farmers’ realities are crucial for integrating AFS into mainstream agriculture.

Ultimately, a shift in mindset, from viewing trees as obstacles to recognising them as essential components of resilient and sustainable agricultural systems, is crucial for unlocking the full potential of agroforestry in achieving climate and biodiversity goals.

CDR funding

To achieve its climate neutrality by 2050, the EU must rapidly scale up a diverse range of CDR, an effort that also presents substantial economic opportunities. By 2050, the sector could generate €220 billion annually, create 670,000 jobs, and position Europe as a leader in the green economy.

However, the lack of research, funding gaps, and limited policy support, threaten the large-scale deployment of this solution. Despite being a global research leader, the EU’s financial support for CDR has been insufficient and fragmented, with only €657 million allocated between 2020 and 2023.

Current funding mechanisms fail to distinguish CDR from carbon capture and storage (CCS), limiting opportunities for targeted innovation. To bridge the funding gap, the EU must invest €2.88 to €5.85 billion over the next 15-20 years to accelerate technical development and ensure deployment readiness.

A clear roadmap is essential for addressing research and financial gaps. Expanding the research, development, and innovation funding beyond EU level is also crucial, requiring collaboration between the Commission, member states, and the private sector.

Integrating CDR into ETS

The EU climate advisory board recently recommended integrating carbon removals into the emissions trading scheme (ETS) to accelerate technology deployment while maintaining strict sustainability criteria.

While some fear removals could delay immediate climate action, the Commission sees them as crucial for the 2050 net-zero goal. The proposal includes separate targets for permanent and temporary removals and a gradual ETS link to generate credits and reduce reliance on public funding.

Experts increasingly support the idea, though concerns persist about weakening ETS effectiveness. Politically, the centre-right EPP backs integration, while left-leaning politicians remain cautious.

[Edited By Brian Maguire | Euractiv's Advocacy Lab ]