The EU faces a “critical moment”, claims the Danish brewing giant in a new report which urges a move towards regenerative farming practices that “restore soil health, protect nature, and reduce emissions while improving farmers’ income”.
Co-written with Boston Consulting Group (BCG) and One Planet Business for Biodiversity (OP2B), a business coalition, the report gives six recommendations to transform European agriculture and secure a more sustainable future.
1. Create an EU-wide, outcome-based definition
First is to give it an actual definition. At present, regenerative agriculture is not a specific practice, but rather a philosophy that uses a variety of techniques in combination. The report falls short on which definition it actually prefers, though the one offered by the OP2B, which represents 26 companies across the agri-food value chain, is an “outcome-based farming approach that generates agricultural products while measurably having net-positive impacts on soil health, biodiversity, climate, water resources and farming livelihoods at the farm and landscape levels.”
Whatever it is, an agreed term can serve as the foundation of an EU-wide benchmarking system, the report says. It would align clear metrics on outcomes such as minimize GHG emissions, increased cultivated biodiversity, and improved soil health, while setting progressive adoption targets for 2030, 2040, and 2050 to align with EU climate goals.
2. Develop EU-wide measurement, monitoring, reporting, and verification (MMRV)
Another current drawback to regenerative agriculture is that without standardised methods, measurements can vary significantly across regions, laboratories, and practices, leading to inconsistent data. This not only hinders effective comparison and analysis but fails to ensure that claims about regenerative practices are credible and verifiable. Clear guidelines may help prevent accusations of greenwashing, where vague or unsubstantiated claims about sustainability are used for marketing purposes.
The Carlsberg report says an EU-wide programme would standardise data collection and reporting, focusing on key metrics like carbon sequestration and soil health. It would build on the work done by the Carbon Removal Certification Framework (CRCF), a voluntary EU regulation designed to standardise the certification of carbon removal activities. The use of existing data, such as satellite imagery, the report adds, can ensure scalability and accuracy.
3. Incorporate outcome-based criteria into CAP Pillar I payments
CAP Pillar I payments provide direct financial support to farmers. Carlsberg’s report recommends that farmers receive both practice-based payments during the transition and outcome-based rewards tied to measurable environmental improvements.
4. Create an Agri-Transition Fund through the European Investment Bank
This fund, managed through the European Investment Bank (EIB), would facilitate three important components in a farmer’s financing stack: a land bank conditioned on regenerative practices, insurance products to mitigate risks such as extreme weather or reduced yields during transition, and capital loans to help farmers cover the initial investments.
5. Improve knowledge-sharing programmes to accelerate adoption
Peer-to-peer farmer networks, digital resource hubs, and in-person training sessions would facilitate the exchange of best practices. Integrating regenerative into agricultural education and advisory services would ensure long-term capacity building.
6. Develop a public-private market
This hopes to link payments to the provision of ecosystem services. This framework would link private investments to environmental outcomes such as carbon sequestration, water quality improvements, and biodiversity gains. Tax incentives and technical support can encourage private-sector participation while providing financial rewards to farmers.
‘Coordinated action needed’
There is desire from farmers to incorporate newer practices, the report stresses, but those willing to make the switch face economic uncertainty and a lack of clear guidelines.
Food and beverage companies eager to source regeneratively grown crops to protect their supply chains, meanwhile, are constrained by limited supply and inconsistent definitions of what regenerative agriculture entails.
Owing to the complex challenges of transitioning to sustainable farming, the report suggests public-private collaboration is vital to scale regenerative practices.
EIB funds ‘central’
Central to the proposals is the Agri-Transition Fund, led by the European Investment Bank. This aims to address the financial risks farmers face during the multi-year move to regenerative agriculture. It is reccommended the fund offers innovative tools such as a regenerative land bank to support sustainable practices and insurance products to protect farmers from challenges like yield reductions and extreme weather.
“Regenerative agriculture offers a solution to the growing challenges farmers and businesses face, but we need coordinated action across the value chain to make it a reality,” said OP2B director Stefania Avanzini.
“At OP2B, we are focused on lifting the barriers to accelerate the transition to regenerative agriculture. Public-private collaboration, backed by an Agricultural Transition Fund, can unlock investments, support farmers and accelerate transformation to a sustainable and equitable food system.”
Simon Boas Hoffmeyer, VP of sustainability at Carlsberg Group, added: “We are committed to driving the transition to regenerative agriculture, but we can’t do this alone.”
