Earmark funds to support NBS in agriculture

Earmarking funds for NBS within financial support programmes for agriculture is one way to encourage NBS within the productive landscape.

Specific Advice

By strategically allocating funds for NBS within financial support programmes for agriculture, farmers are encouraged to consider NBS as a solution to various agricultural challenges, such as soil degradation, water scarcity, and climate change, while also delivering environmental and social benefits.

This can, for example, be done through agricultural subsidies, where farmers who use NBS are subsidized, or tax incentives, where tax credits are offered to farmers who choose NBS. In addition, grant programs can be used to provide targeted grants for farmers starting to implement NBS. These grants can fund e.g., pilot projects, capacity-building, or technical assistance.

There are many opportunities for NBS in culture landscapes (photo: Caroline Enge).

Good to Know

Financial support should be flexible enough to accommodate diverse agricultural landscapes and challenges. Monitoring mechanisms can also ensure that these programs lead to measurable improvements in both environmental outcomes and agricultural productivity.

Regular consultation between farmers and policymakers can help adjust financial support programmes based on real-world performance.

Providing advisory services that also include advice on NBS – both practical implementation and how to apply for grants and reporting may support the adoption of NBS in agriculture.

Context

Financial support is an important tool in enabling and mainstreaming NBS. While many Nordic countries have environmental measures as part of agriculture subsidies, such as buffer zones, grass buffer strips and catch crops, it has usually not been specifically targeted toward NBS. Including NBS and sustainable management in agriculture is key for a more sustainable approach to food production which is also resilient to future challenges.

Nordic farmers have long experience with agri-environmental measures and are also important stewards of the cultural landscapes. Offering financial incentives for NBS in agriculture benefits both ecosystems and rural economies by promoting sustainable practices that enhance biodiversity, soil health, and water management, while also boosting farmers' livelihoods.

Costs of implementing NBS can include the time and extra work needed, additional tools or machines, seeds and plants, and sometimes also time and administrative efforts to apply for permits, grants and reporting. In addition, NBS may require additional acreage which may affect the size of arable land and productivity. High opportunity costs can be a barrier and financial incentives or subsidies should consider both direct and indirect costs of the measure.

Examples and Cases

Nordic examples of funds to support NBS in agriculture:

#DENMARK– Grant programme to support the green transition of the food industry

The Danish Agricultural Agency has set up a grant programme to support the green transformation of the food industry, called the ‘Green Development and Demonstration Programme’ (Grønt Udviklings- og Demonstrationsprogram, or GUDP). The programme is aimed towards

The funding programme supports green and innovative projects throughout the Danish food sector, encouraging the development and demonstration of novel approaches that integrate both green and economic sustainability.These projects are designed to foster dynamic collaborations aimed at advancing the green transition of the food industry, creating sustainable business models that contribute to the broader environmental goals of reducing emissions, preserving natural resources, and promoting circular economy principles. The initiative emphasizes the need for projects to focus on transformative solutions that align economic growth with environmental responsibility.

More information can be found here:

Programme website: https://gudp.lbst.dk/

#NORWAY – Using local and regional agri-environment funds for NBS

Regional Environmental Programmes (RMP)

are subsidy schemes and requirements for measures in agriculture adapted to different regional operating conditions and environmental challenges. It is based on the Norwegian National Environmental Programme (NMP) which includes guidelines and goals for climate and environment in agriculture on all governance levels. The RMPs Include a range of different measures to promote biodiversity, reduce emissions and preserve the cultural landscape. The RMP is adopted by the state administrators in collaboration with regional farmers associations.

Several of the typical measures promoted in the RMPs are either about protecting nature, such as riparian zones, or involve sustainable farming practices such as catch crops and low/no-tillage. Studies show that this kind of support combined with guidance and information can be important for local implementation of measures. At the same time, there are many different measures and actions included, and it can be argued that the environmental programmes could focus even more on the nature-based solutions. In addition to voluntary measures, some regions with challenges related to water quality have introduced regional environmental requirements that also can include nature-based solutions such as buffer strips and no-tillage.

On the local level, farmers can apply for Special Environmental Measures in Agriculture (SMIL) that include various measures to protect biodiversity or reduce emissions and runoff. The funds are distributed to the municipalities by the state administrator and aligned with the Regional Environmental Programs (RMP). The funds are administered and allocated by the municipalities to ensure that the measures are adapted to local conditions and challenges. SMIL is included as a national regulation. These funds can be used for sustainable agricultural practices and protection of nature, but there are also examples of SMIL measures such as tree planting and peat land restoration. It varies to what the degree the funds cover the cost of the measures or parts of the costs.

More information about the regional and local agri-environmental funds can be found here:

Regionalt miljøtilskudd (Statsforvalteren i Østfold, Buskerud, Oslo og Akershus): https://www.statsforvalteren.no/ostfold-buskerud-oslo-og-akershus/landbruk-og-mat/jordbruk/miljotiltak/regionalt-miljotilskudd/#:~:text=Regionale%20milj%C3%B8tilskudd%20(RMP%2Dtilskudd),oktober

Veileder for regionale miljøtilskudd 2024 for jordbruket i Oslo, Akershus, Buskerud og Østfold: https://www.statsforvalteren.no/contentassets/602755da7097417d9899d96955cabecf/veileder-rmp-2024---rev-25032024.pdf

RETNINGSLINJER FOR SPESIELLE MILJØTILTAK I JORDBRUKET – SMIL 2021-2025 (Indre Østfold kommune). https://www.io.kommune.no/_f/p1/i86974632-c97a-4592-873b-7e3c8bc2e170/retningslinjer-for-spesielle-miljotiltak-i-jordbruket-smil-2021-2025.pdf

Learn more

Nature-based solutions in agriculture Project design for securing investment.

A report by the Food and Agriculture Organisation of the United Nations (FAO) and the Nature Conservancy. https://openknowledge.fao.org/server/api/core/bitstreams/583143b9-f6ba-43fe-8609-84f965996f42/content

The successes and challenges of the agri-environmental programme in Finland on impacting local biodiversity

is discussed in this publication (Herzon, et al. 2010): Agri-environmental programme in Finland serving biodiversity: working forward. https://researchportal.helsinki.fi/en/publications/agri-environmental-programme-in-finland-serving-biodiversity-work

International Obligations

SDG 2

Zero Hunger

SDG 12

Responsible consumption and production

SDG 13

Climate action

Kunming-Montreal Global Biodiversity Framework

Ensure that areas under agriculture, aquaculture, fisheries and forestry are managed sustainably, in particular through the sustainable use of biodiversity, including through a substantial increase of the application of biodiversity friendly practices, such as sustainable intensification, agroecological and other innovative approaches contributing to the resilience and long-term efficiency and productivity of these production systems and to food security, conserving and restoring biodiversity and maintaining nature’s contributions to people, including ecosystem functions and services.

EU Farm to Fork

Ensuring sustainable food production