Regional & Rural Development

The two main EU financial instruments are those related to the Common Agriculture Policy (CAP) and the Regional and Structural Funds, which together amount to 70 per cent of the total EU budget.

While these funds are decisive in raising European living standards, the CAP is a major cause of environmental problems not only in Europe but globally and the use of structural funds is often limited to large, expensive and unsustainable projects which undermine agreed environmental objectives.

It is essential that agriculture, regional and structural funds are properly directed and managed. Used wisely, such funds can contribute to environmental protection in Europe while boosting the economy.

Regional funds
The present Regional Funds Regulation reflects the EU Treaty’s commitment to sustainable development and requires all funded projects to include environmental protection and nature conservation provisions. But only 16 per cent per cent of regional funds spending is currently used on environmental measures.

WWF wants sustainable development to be the primary objective of all EU funds. In particular, WWF works to increase financial support for the Natura 2000 network of protected areas, the implementation of the Water Framework Directive, energy efficiency measures and implementation of other EU environmental and nature protection laws.

The arrival of new members in the European Union is an opportunity to safeguard some of Europe’s most pristine environments, but the appropriate use of regional funds will be critical in shaping the approach to sustainable development while benefiting nature, people and local economies.

EU funding can – for example – be used in the energy-efficient refurbishment of all public buildings, changing district heating systems from coal to renewable energy sources. They can also be used to invest in eco-tourism facilities in protected areas, to train jobless scientists to become protected area managers and to establish efficient public transport systems, as well as restablishing natural floodplains to protect upstream settlements.

Rural development
The CAP is the most controversial EU policy resulting in environmental impacts and restricting market access for many developing countries. The CAP has a direct impact on the production choices of farmers in Europe, trade patterns and global governance in agriculture through the World Trade Organization's Agreement on Agriculture.

Intensive agriculture often has a devastating impact on the environment and less intensive farming practices are essential in maintaining a wide variety of valuable habitats. Some two-thirds of the currently endangered bird species in Europe depend on agricultural habitat. About 15-25 per cent of the agricultural area in use in Europe is defined as high nature value agriculture.

Since the CAP was reformed, in 2004, the strengthening of rural development budgets and new measures to support environmental integration made the CAP become potentially the main budget in Europe to support the implementation of the Freshwater, Habitats and Birds Directives.

The EU’s rural funds are key to help the farming sector move towards more environmentally sustainable practices. Rural funds also play a crucial role in helping maintain farming systems, which, although they may have limited economic value, play an essential role in land management.

According to WWF, all subsidies encouraging farming practices which harm the environment should come to an end and greater use of the Rural Development Fund should be made to deliver EU environmental objectives.