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Incentivizing Systemic and Climate-resilient Farming Approaches through Rewarding Mechanisms

 

Photo: DiAuras, CC BY-SA 4.0, via Wikimedia Commons, Cover: Climate Farm Demo project, 2026

Incentivizing Systemic and Climate-resilient Farming Approaches through Rewarding Mechanisms

Barriers, challenges and recommendations

Publication
Citation

Scheid, Aaron et al. (2026): Incentivizing systemic and climate-resilient farming approaches through rewarding mechanisms. Barriers, challenges and recommendations. Policy brief of the Horizon Europe project "A European-wide network of pilot farmers implementing and demonstrating climate smart solutions for a carbon neutral Europe".

This policy brief examines how current climate-action rewarding mechanisms address – or fail to address – organic farming as a systemic and climate-resilient approach. It analyses existing monetary, regulatory and supportive instruments at EU level, with a particular focus on the Common Agricultural Policy (CAP) and the Carbon Removal and Carbon Farming (CRCF) Regulation. Current mechanisms largely fail to recognise organic farming as a whole-farm system delivering integrated climate and environmental benefits. As a result, organic and transitioning farmers face significant access barriers to climate-related funding streams, as most schemes prioritise individual practices rather than systemic approaches.

Make the post-2027 CAP income-positive for systemic farming

Monetary, supportive and regulatory rewarding mechanisms are key drivers for farmers adopting and maintaining systemic and climate-resilient approaches. The post-2027 CAP should therefore provide income-positive payments that go beyond covering conversion and maintenance costs for organic farming. Fully recognising and rewarding the broader public goods delivered by systemic farming systems requires overcoming restrictive interpretations of “costs incurred, income foregone” and rigid “no double funding” rules, which currently limit incentives for farmers to deliver additional sustainability and climate outcomes. 

At the same time, advisory services and knowledge infrastructure remain essential yet undervalued enabling mechanisms. Strategically strengthening these support structures under the post-2027 CAP will be critical to scaling up systemic and climate-resilient agriculture across Europe.

Ensure the CRCF rewards systemic approaches

The CRCF Regulation should explicitly incentivise and reward systemic approaches such as organic farming by recognising their long-standing soil carbon stewardship, reduced reliance on synthetic inputs and broader sustainability contributions. This recognition must be backed by robust criteria that ensure durable climate and environmental gains. 

Rewarding mechanisms must move beyond practice-based incentives and explicitly recognise systemic farming approaches for climate-resilience, public goods provision and long-term sustainability in European agriculture.

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Language
English
Authorship
Julia Pazmino Murillo
Lisa Sinnhuber (IFOAM Organics Europe)
Sabine Reinecke (FiBL)
Gokul Mathivanan (University of Giessen)
Wiebke Niether (University of Giessen)
Funding
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Year
Dimension
16 pp.
Project
Project ID
Table of contents
Keywords
systems-based incentives, public goods remuneration, whole-farm sustainability, results-based payments, environmental performance, long-term resilience, European Union agriculture, EU climate policy, CAP reform Europe, EU carbon farming framework, European rural development
Europe
policy analysis, comparative policy assessment, systems approach, whole-farm assessment, governance analysis