Rural Development Programmes to mitigate GHG emissions in Italy

The contribution of Rural Development Programmes to mitigate greenhouse gas emissions in Italy Authors Ph.D. Rocío Dánica Cóndor Italy [email protected] Ph.D. Marina Vitullo Italy [email protected]

Domenico Gaudioso Italy [email protected] Marina Colaiezzi Italy [email protected]

Contact address Istituto Superiore per la protezione e la ricerca ambientale (ISPRA) Dipartimento stato dell'ambiente e metrologia ambientale Via Vitaliano Brancati 48 00144 Rome - Italy Email: [email protected]

Key words Climate change, mitigation, rural development programmes, common agricultural policy

Abstract The Health Check reform, reinforcing the Common Agricultural Policy, emphasises the role of agriculture in climate change, facing issues related to climate change, renewable energies, protection of biodiversity, water management, innovation, and dairy production. The CAP Health Check targets were included in the Rural Development Programmes (RDPs); a preliminary qualitative assessment identified that 14 RDPs include climate change targets and 8 RDPs include the 6 Health Check targets1. This paper is aimed to make an initial quantitative assessment of the impact of GHG emission reduction measures in Italy, taking into account the 21 Italian RDPs. The conceptual framework of this work was based in a multiple criteria approach, which consider the analysis of diverse GHG emission reduction measures for the agriculture sector, and multiple rural development axis-measures-actions from RPDs. Main activities were found under measure 121 (farm modernisation) and 214 (agrienvironment). A more rational use of nitrogen fertilizers can results in an effective mitigation action (reduction of N2O emissions). Concerning emissions of CH4 from manure management, the adoption of biogas recovery could be relevant; while other specific incentives for electric power production are also supporting methane emission reduction (1MW green certificates).

1

MIPAAF ( 2009), “Analisi dei PSR sulle nuove sfide del Health Check - 17/09/2009. Rete Rurale Nazionale 2007-2013”

1

Rural Development Programmes to mitigate GHG emissions in Italy

Introduction In the last years climate change issues have been addressed in different fields such as the agriculture sector. In particular, the Common Agricultural Policy (CAP) and the Health Check reform has directly tackle specific issues related to climate change, renewable energies and water management among others. In March 2010 the European Commissioner for the Environment called for a Common Agricultural and Environmental Policy, saying that the CAP should improve sustainability, soil quality, water quality and efficiency. Right now the CAP is based in two main pillars the so called I Pillar that support farmer’s income through market interventions and direct payments, and the II Pillar supporting the development of rural areas which take the form of Rural Development Programmes (RDPs). A first balance and an analysis of the Italian situation related to rural development and the mechanism that transfers funds from direct payments to rural development measures is available for Italy (Sotte 2009: 264pp). Currently, the 2007-2013 programming period contains a basket of policies with different objectives, management and intervention methods, beneficiaries and stakeholders. These policies range from structural, historical heritage, environmental conservation and biodiversity, to policies for training, information and assistance; also forest policies are included as well as those enhancing food quality; then there are policies for diversification to those for the quality of the life in rural areas. In Italy, the agriculture greenhouse gas (GHG) emission inventory (ISPRA 2010: 459 pp) and projections (Ministry for the Environment, Land and Sea 2009: 236pp) has been improved thanks to research studies. Researches were concentrated to improve inventories from the methodological point of view, and efforts were oriented to develop country-specific emission factors among other activities. Furthermore there was a need to better understand the role of the CAP in GHG emission trend and projections. For this purpose, ISPRA has followed a step-by-step research approach. Initially, the impact of the I Pillar of the CAP was studied; secondly, the assessment of the II Pillar – Rural Development Programmes (RDPs) was performed; and thirdly we expect to follow up and update information from RDPs after the incorporation of the Health Checks targets. Results of the last two activities will be described in this paper. The objective of the article is to present the results obtained from the assessment of GHG mitigation measures described in RDPs from Italy. Two stages are evidenced: the first one has assessed 21 RDPs based on information available by the end of 2008. RDPs period 20072013 were assessed only for climate change mitigation targets. The second stage has considered RDPs recently approved under the Health Check reform; thus, climate change and water management targets were considered. For this last phase selected RDPs were revised. The outline of the article will provide information on recent GHG emissions from the agriculture sector in Italy; GHG policies and measures from this sector will be also presented. A brief overview on the state of the art of RDPs and climate change issues is provided, and methodological approach is described. Results and discussions are provided, and finally main conclusions are presented.

Greenhouse gas emissions The United Nations Framework Convention on Climate Change (UNFCCC) was ratified by Italy in the year 1994 through the law n.65 of 15/01/1994. In the framework of the EU Burden Sharing Agreement and under the Kyoto Protocol, Italy has committed to reduce its GHG emissions by 6.5% below base-year levels (1990) over the first commitment period (20082012). On 1st June 2002, Italy ratified the Kyoto Protocol through law n.120 of 01/06/2002. In order to comply with national and international commitments, the national GHG emission inventory is compiled and communicated annually by the ISPRA (ex-APAT) to the competent institutions, after endorsement by the Ministry for the Environment, Land and Sea. As a Party 2

Rural Development Programmes to mitigate GHG emissions in Italy to the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, Italy is committed to develop, publish and regularly update national GHG emission inventories as well as formulate and implement programmes to reduce these emissions. Therefore, Italy annually submits to the UNFCCC secretariat and the European Union’s Greenhouse Gas Monitoring Mechanism the national GHG emission inventory through the compilation of the Common Reporting Format (CRF)2 and the National Inventory Report (NIR) (ISPRA, 2010). According to the guidelines provided by the UNFCCC, Parties should use for estimations the following methodologies reported by the Intergovernmental Panel on Climate Change (IPCC)3. The ‘2006 IPCC Guidelines for national greenhouse gas inventories’ has merged the agriculture and LULUCF (Land Use, Land Use Change and Forestry) sectors into the Agriculture, forestry and land uses (AFOLU) sector. Up to know Parties are not oblige to report according to the ‘2006 IPCC Guidelines’ since guidelines have not been formally approved by the UNFCCC. However, Italy has already included most methodological improvement from 2006 IPCC Guidelines. As required by IPCC guidelines, methane (CH4) and nitrous oxide emissions (N2O) are estimated for the agriculture sector. For Italy, the following emission categories are included in agriculture sector: enteric fermentation (4A), manure management (4B), rice cultivation (4C), agricultural soils (4D) and agricultural residues burning (4F). For the LULUCF sector, removals (carbon dioxide, CO2) and emissions (CO2, CH4, N2O) occur as a result of changes in land-uses and forestry. Total GHG emissions, in CO2 equivalent, excluding emissions and removals from LULUCF, have increased by 4.7% between 1990 and 2008, varying from 517 to 541 CO2 equivalent million tons (Mt), whereas the national Kyoto target is a reduction of 6.5%, as compared the base year levels, by the period 2008-2012. The most important greenhouse gas, CO2, which accounts for 86.4% of total emissions in CO2 equivalent, shows an increase by 7.4% between 1990 and 2008. In 2008, 6.6% of the Italian GHG emissions, excluding emissions and removals from LULUCF, originated from the agriculture sector, which is the second source of emissions, after the energy sector which accounts for 84%. For the agriculture sector, GHG trends from 1990 till 2008 shows a decrease of 11.6% due to reduction in the number of animals and cultivated surface. The LULUCF sector is responsible for 87.3 Mt of CO2 removals from the atmosphere in 2008 (ISPRA 2010: 459pp).

GHG policies and measures The law that ratifies the Kyoto Protocol in Italy prescribed the preparation of a National Action Plan to GHG emissions. This action plan was adopted by the Interministerial Committee for Economic Planning (CIPE) on 19th December 2002 (n. 123). GHG emission projections, which includes mitigation policies and measures, are also part of international commitments and reporting. Information on how countries are implementing policies and measures is periodically presented through the National Communication reports to the UNFCCC. Italy has recently presented the Fifth National Communication to the UNFCCC (Ministry for the Environment, Land and Sea 2009: 236pp). This report provides indications of future trends in GHG emissions and removals, given the current national circumstances4. In this context, energy and non-energy projections are prepared. Non-energy 2

Available http://unfccc.int

3

IPCC Guidelines are: ‘Revised 1996 IPCC guidelines for national greenhouse gas inventories’, ‘2000 Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories’, ‘2003 Good practice guidance for land use, land use change and forestry for LULUCF’ (GPG for LULUCF). 4

Parties shall report projections: ‘with measures’ (currently implemented and adopted policies and measures); ‘without measures’ (excludes all policies and measures implemented, adopted or planned after the year chosen as the starting point for the projection); and ‘with additional measures’ (encompasses planned policies and measures) projections.

3

Rural Development Programmes to mitigate GHG emissions in Italy projections include the estimation of GHG trends for the agriculture, waste, industrial process and LULUCF sectors. Projections are provided for 2010, 2015 and 2020. In Italy, agricultural emission projections are estimated using the same methodologies utilised for the preparation of the GHG emission inventory, assuring consistency between estimates. In Table 1 projections for the agriculture sector are shown. Respect to 1990, for the years 2010, 2015 and 2020 a further reduction of 2%, 3% and 5%, respectively, is expected. Table 1: Greenhouse gas emission projections from the agriculture sector (Mt CO2 eq.) GHG MtCO2

1990

1995

2000

2005

2006

2007

2010

2015

2020

Enteric Fermentation

12.18

12.27

12.17

10.84

10.63

11.03

10.75

10.70

10.52

Manure Management

7.38

7.07

7.14

6.86

6.65

6.85

6.75

6.71

6.62

Rice Cultivation

1.56

1.66

1.38

1.47

1.48

1.52

1.47

1.49

1.52

Agricultural Soils

19.44

19.34

19.24

18.03

17.86

17.79

17.68

17.32

16.84

Field Burning of Agricultural Residues

0.02

0.02

0.02

0.02

0.02

0.02

0.02

0.02

0.02

TOTAL

40.58

40.35

39.94

37.24

36.63

37.21

36.66

36.24

35.52

Source: Ministry for the Environment, Land and Sea, 2009

In the previous Italian National Communication policies and measures for the agriculture related to the rationalisation of the use of nitrogen fertilizers (reduction of N2O emissions), and the recovery of biogas from animal waste (reduction of CH4 emissions) were considered (‘with additional measures’). However, for the Fifth National Communication (5NC) these measures were included in the trend scenario due to their adoption. In general, most Parties cited other objectives in addition to climate change behind the implementation of agricultural measures and policies, and despite the lack of specific climate policies for the agricultural sector, most Parties reported decreases in emissions (UNFCCC 2003: 57pp). In 2008, for EU-15 emission reduction from the agriculture sector decreased by 12% respect to 1990 (EEA 2010: 369). In the last 4 years, the Italian agriculture sector has verified an important annual GHG emission reduction respect to 1990, from 8% (2005) to 12% (2008). Mitigation measures and policies adopted in Italy for the agriculture sector, as described above, are inline with most Annex-I countries from the UNFCCC. In the last available report from the UNFCCC describes that policies and measures directed at agriculture seek to: reduce N2O emissions through manure management; reduce N2O emissions from agricultural soils through optimized nitrogen fertilizer use; and reduce CH4 emissions through changes in livestock management. This report also highlights as most important policies, in terms of frequency of use and mitigation effects: fiscal incentives (either direct or within the context of agricultural market reform); and regulations (e.g. the EU Nitrates Directive) to a lesser extent (UNFCCC 2007: 37). In fact, a recent report from the European Environment Agency referred that in the agriculture sector, very little emission reductions are projected from existing and additional measures for 2010 and 2020. Agriculture sector is also the sector where the least absolute and relative reductions are expected (EEA 2009: 13). Member States report almost no quantified GHG reductions expected from the CAP and other policies to reduce N2O emissions from soils, in contrast with Commission estimates (EEA 2009: 52). 4

Rural Development Programmes to mitigate GHG emissions in Italy

Climate change and Rural Development Programmes In the last years the agriculture sector has contributed to the reduction of GHG emissions, but still this sector is called to intensify its efforts to reduce GHG emissions in the framework of global EU strategy related to climate change. Agriculture in Europe is determined by the Common Agricultural Policy (CAP). Therefore, drivers on the reduction of GHG emissions are linked to a wide range of policy objectives, such as market reforms (CAP I Pillar); rural development (CAP II Pillar); environmental pollution directives (e.g. the European Community Nitrates Directive and IPPC Directive); and other sustainable agronomic practices (organic farming, integrated agriculture, etc) (UNFCCC 2003: 44). In Europe, the I Pillar of the CAP had a strong impact on the GHG emissions from agriculture. Specifically, the milk quota system leads to a strong reduction of animal numbers in the dairy sector (EEA 2010: 367). In Italy, between 1990 and 2008, the number of dairy cattle and non-dairy cattle has decreased by 31% and 15%, respectively. For instance, this reduction leads to a decrease of CH4 cattle emissions (4A source) by 15%; cattle source represents 78% of 4A and 24% of total agricultural emissions. The animal number reduction (dairy cattle) has also led to an increase in the productivity, reduction of CH4 emissions per unit of milk produced, and the reduction in cow’s fertility (Coderoni and Cóndor 2010). A recent study has analysed the impact of the CAP (from 1990 to 2007 reforms) for the Italian GHG agricultural emission trend by source category (4A, 4B, 4C, 4D and 4F). Results show that in Italy is inline with the rest of Europe; the CAP reform has driven GHG trends is the reduction in the number of animals, and for the increase in the productivity (Coderoni and Cóndor 2010). Rural development policy has adopted 4 axis and 41 measures (II Pillar of the PAC). Axis 1 is about increasing competitiveness in the rural economy, especially in farming and forestry. Axis 2 focuses on conserving the landscape and environment, while axis 3 is related to the improvement of the quality of life in rural areas and helping the diversification of the rural economy. Axis 4 is aimed to help local people to develop their own communities. RDPs need to express their choice for adopting each of the measure, how they will be financed, the way of access and management, and their priorities. In Italy 21 RDPs are available (one for each region and autonomous province), representing 24% of total RDPs in the European Union. This means that while the regionalization policy implements the principle of subsidiarity, on the other hand it certainly implies a considerable additional administrative burden at regional, national and EU level, taking into account the articulated procedures for programming, approval, and monitoring and evaluation of the programmes (Camaioni and Sotte 2010: 45). Regarding climate change challenges, in the European Union, in the II Pillar of the PAC, main GHG emission reduction activities are predominantly or exclusively supported by two rural development measures: farm modernisation (measure 121) and agri-environment (measure 214). Some other activities support the modernisation of farms through energy efficient equipment and buildings, and promoting biogas production (European Commission 2009: 20). In Italy, a recent report from the Ministry of Agriculture - National Rural Network, the following climate change activities from Health Check reform are given: reduction of the input of fertilizers, storage and use of animal waste for the production of biogas, biomass for the use of energy and all the interventions to increase energy efficiency. These are GHG emission reduction measures considered useful under the Kyoto Protocol (MIPAAF 2010: 26pp). In Table 2 a qualitative assessment of climate change targets are presented. We have a complete information for the 21 RDPs (information is based on the initial assessment presented by the Rural Network). Further analysis will be provided in the discussion section.

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Rural Development Programmes to mitigate GHG emissions in Italy

% respect to total RDPs

8

38%

126

Measures to prevent and manage floods

4

19%

214

(f)

Veneto

Improvement of energy efficiency (c)

(f)

Umbria

124

(f)

Trento (a)

52%

(f)

Toscana

11

Sicilia

Improvement of energy efficiency (c)

Sardegna

123

(f)

Puglia

38%

(f)

Piemonte

8

Molise

Prevention against negative effects from extreme weather conditions

Marche

57%

Lombardia

12

Liguria

Improvement of energy efficiency (c)

121

Lazio

38%

Consultancy services related to climate change consultancy services related to climate change Rational use of fertilisers (b), storage of animal waste

Calabria

8

Campania

52%

Basilicata

11

114

Bolzano (a)

52%

111

Activities

Abruzzo

11

Measures

activated measures

Valle d'Aosta

EmiliaRomagna Friuli Venezia Giulia

Table 2 Assessment of Health Checks targets in Rural Development Programmes from Italy

Rational use of fertilisers (b), storage of animal waste Soil management (d) Land use change (e)

16

76%

16 12

76% 57%

Extensification of production

6

29%

216

Land use change (e)

6

29%

221

Afforestation

16

76%

222

Establishment of agroforestry systems

4

19%

Legend overbooking from the programming period 2000-2006 activated not activated not specified

(a) autonomous province; (f) indirectly: sustainable agriculture, etc. (c) reduce the use, precision agriculture; (c) material which reduce heat loss; (d) tillage methods, catch crops, diversified crop rotation; (e) conversion from arable to pasture, permanent fallow

6

Rural Development Plans to mitigate GHG emissions in Italy

Methodology The conceptual framework of this work was based in a multiple criteria approach, which consider the analysis of diverse GHG emission reduction measures for the agriculture sector, and multiple rural development axis-measures-actions from Rural Development Programmes (RPDs). The aim is to assess from a qualitative and quantitative (if possible) point of view the contribution of RDPs to climate change mitigation targets in Italy. Figure 1 gives a graphical representation of the conceptual framework. Two phases are evidenced: i) ex-ante assessment performed at the end 2008, and ii) ex-post assessment, which was executed in 2010 after RDPs included Health Check reforms. Common Agricultural Policy (CAP)

Mitigation GHG emissions/water management

CAP Health Check reform

Rural Development Programmess (RDPs)

Figure 1: Conceptual framework of this research A detailed analysis of RDPs was performed in order to get information related to climate change and water management activities. RDPs were downloaded from the Italian National Rural Network 2007-2013 site (www.reterurale.it). For the ex-ante assessment, data and information contained in the 21 Italian RDPs 2007-2013 by the end of 2008 were considered. On the basis of the qualitative and the quantitative figures reported for different measures (in the various pillars), an assessment of the impact of the scheduled policies and measures on climate change issues was carried out. Main findings were summarised in a matrix reporting the main challenges (i.e. reduction of CH4 emissions from manure management, reduction of N2O emissions from agricultural soils, increase of soil organic matter in agricultural soils, increase of carbon removals in forest lands, etc.) of the RDPs and an impact evaluation, for each activated measure. The analysis of the effect on the atmosphere of the measures envisaged under the RDP was carried out through a detailed analysis of the relationships which may exist between the individual actions (different types of intervention) and the qualitative and quantitative aspects characterising that environmental component. The analysis refers to the specific objectives identified by the National Rural Development Plan for axis 2 measures relating to reducing emissions of GHG: 1) expansion of biomass and biofuels production; 2) carbon sequestration from forests and agricultural land; 3) reduction of GHG emissions; and 4) reduction of ammonia (NH3) emissions. Under objective 3, two main types of actions, resulting in an emission reduction, are distinguised: the promotion of energy saving and renewable energy sources, and consequently a reduction in fossil fuel consumption and in carbon dioxide emissions, and the rationalization of agricultural and animal husbandry practices, leading to a reduction in emissions of CH4 and/or N2O. Based on this approach, the analysis of the impact on the atmosphere has considered the following topics: a) climate change a1) expansion of biomass production and biofuels a2) carbon removal by forests and farmland a3) promotion of energy saving and renewable energy sources 7

Rural Development Plans to mitigate GHG emissions in Italy a4) rationalization of agricultural and animal husbandry practices b) air quality b1) reduction of ammonia emissions, without neglecting the overlaps between them and the frequent synergies with regard to the effects of measures. In assessing the relationships between measures (analyzed systematically and with specific reference to the individual actions included in each measure) and the atmosphere in its various aspects, the analysis evaluated: - the relationship (positive or negative impact or neutrality) between actions under the Plan and environmental issues according to the sustainability criteria set out above; - the type of relationship (direct or indirect); - the extent of the relationship (high, medium, low magnitude); - the transience or permanence of the effects; - the timescale (short, medium and long term); - the scale of action (area of influence). The relationship between specific measures and the environmental component has also considered: likely development in the absence and presence of the measure, reference indicators, comparison with environmental protection objectives, mitigation or compensation measures, evaluation of alternative options, and the structure and adequacy of monitoring networks and actions to be taken to monitor the implementation of the measure. In case of significant effects (positive or negative) the possible synergy of various interventions has also been separately evaluated. For the ex-post assessment, a text analysis revised RDPs, after the adoption of the Health Check and the European Recovery Package. The main objective was to identify new and possible quantitative information from selected RDPs. Six regions were chosen considering their representativeness on animal and agricultural production and their contribution to national GHG emissions. Main contribution to GHG emissions for the agriculture sector is given by: Emilia Romagna, Piedmont, Veneto and Lombardy regions. However, other also Puglia and Campania were considered in the detailed assessment. Climate change and water management targets information was collected from RDPs. In 1990, 54% of GHG agricultural emissions was represented by 4 regions in Italy: Lombardy (20.8%), Emilia Romagna (12.1%), Piedmont (11.0%) and Veneto (10.5%). In 2005, the regional contribution increase to 57%, as follows: Lombardy (23.4%), Emilia Romagna (11.5%), Veneto (11.2 %) and Piedmont (10.%7) (Cóndor et al., 2008).

Results and discussions Ex-ante assessment In this paper only results of two GHG mitigation activities are shown (CH4 from manure management and N2O from agricultural soils). The analysis has been performed for the 41 measures; in this paper focus is given to axis 1 and axis 2. In table 3, the ex-ante evaluation matrix for the 21 Italian RDP is shown. The impact of activated measures on the reduction of CH4 emissions from manure management are evidenced. Results show that most RDPs have activated measures mainly in axis 1. Major impact was given by the Campania, Calabria and Umbria through measure 131 (support farmers to face EU regulations). Emilia Romagna region addressed measure 215 for animal welfare.

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Rural Development Plans to mitigate GHG emissions in Italy

111 112

Valle d'Aosta

Umbria

Trento (a)

Toscana

Sicilia

Sardegna

Puglia

Piemonte

Molise

Marche

Lombardia

Liguria

Lazio

Friuli Venezia Giulia

Emilia-Romagna

Calabria

Campania

Bolzano (a)

Basilicata

Abruzzo

CODE

Table 3 Ex-ante evaluation matrix on the reduction of CH4 emissions from manure management

Legend No impact Low impact

113 114 115 121

AXIS I

122

High impact Not activated

123 124 125 126 131 132 133 141 142 211 212 213 214 215

AXIS II

216 221 222 223 224 225 226 227

In the table 4, the ex-ante evaluation matrix for the 21 Italian RDP is shown, with a focus on the first two axes, concerning the impact of different activated measures on the reduction of N2O emissions from agricultural soils. A relevant impact is mainly address in axis 2 under measure 214 (agro environmental payments). In many cases RDPs disaggregate measure 214 in several actions which target GHG emission reduction. Further description of these actions is given in the ex-post section of this paper. In general, the most common target, highlighted in RDPs, is the reduction of the nitrogen surplus.

9

Rural Development Plans to mitigate GHG emissions in Italy

Veneto

Valle d'Aosta

Umbria

Trento (a)

Toscana

Sicilia

Sardegna

Puglia

Piemonte

Molise

Marche

Lombardia

Liguria

Lazio

Friuli Venezia Giulia

Emilia-Romagna

Calabria

Campania

Basilicata

Abruzzo

CODE

Bolzano (a)

Table 4 Ex-ante evaluation matrix on reduction of N2O emissions from agricultural soils

111

Legend No impact

112

Low impact

113 114

AXIS I

115 121

High impact

122

Not activated

123 124 125 126 131 132 133 141 142 211 212 213 214 214.1 214.2 214.3

AXIS II

214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11

215 216 221

10

Rural Development Plans to mitigate GHG emissions in Italy 222 223 224 225 226 227

Ex-post assessment A first analysis is obtained from Table 2 where main climate change challenges were identified for selected rural development measures (13 RDP were considered by the Rural Network). In order to have a complete panorama of the Health Check reforms regarding climate change challenges, we have incorporated information of the remaining RDPs (Liguria, Marche, Molise, Puglia, Sicilia, Umbria, Valle D'Aosta, Veneto). Two main results can be evidenced: 38% and 76% of RPDs include, under measure 121 and measure 214 actions such as the rational use of fertilisers and the storage of animal waste. However, other activities are also described such as the improvement of energy efficiency, measures to prevent and manage floods, afforestation, land use change, the establishment of agroforestry systems, and the consultancy services related to climate change. The ex-post assessment has found that RDPs gave information on NH3 and GHG emissions. Some of them identified the main source of GHG emissions, due to the use of fertilisers in agriculture and livestock production. The new revision of RDPs identified actions, and, in some cases, also specific indications of compliance under rural development measures. This is commonly found for the action on integrated production. The most relevant GHG mitigation activity for the agriculture sector defined in RPDs will be implemented through the reduction in the nitrogen surplus, which confirms the ex-ante assessment. In some RDPs there is a clear reduction target on surplus reduction respect to the current situation. Another important finding is the correlation evidenced by RDPs, between climate change and water management actions. Other mitigation targets are highlighted such as the increase of carbon sequestration and the production of renewable energies actions. Relevant information from selected RDPs is given in the coming sections of this paper. Attention is given to measures which target climate change and water management. The description of selected RDP also includes a context presentation of each region in order to evidence the different territorial situations. The financial balance between axes has been modified differently in the six regions under examination, as a consequence of Health Check reform. In figure 2, changes in regional balances between axes are reported; in Puglia and Campania reallocation of funds have resulted in an increase of the axis 1 share, at the expense of axis 2. Minor changes were performed by Piedmont or Emilia Romagna. Remaining regions have not changed their cost attributions to each rural development measure. We have performed estimations of GHG agricultural emissions considering findings from RDPs, based on the disaggregation, at regional level, of the national inventory for the last year available (2008, submission to UNFCCC 2010). For the estimations, it has been considered, on the basis of RDPs assessments, that Emilia Romagna, Piedmont and Puglia regions contribute with an annual GHG emission reduction of 1% from 2009 till 2013. It has also been assumed that Veneto and Lombardy regions have at least 0,5% reduction for the same period. Results show that national GHG emissions, for agriculture sector, could be 35.54 Mt CO2 eq. for the year 2010 and 34.83 Mt CO2 eq. for 2015. Taking into account abovementioned findings and assessing the contribution to RDPs to national GHG inventory, a further reduction of 3% and 5% respect to the trend values from the 5NC (see table 1) can be estimated. 11

Rural Development Plans to mitigate GHG emissions in Italy

30.0

%

Axis 1 Axis 2 Axis 3

20.0 10.0 0.0 -10.0 -20.0 -30.0 -40.0 -50.0 Campania

Emilia-Romagna

Lombardia

Piemonte

Puglia

Veneto

Figure 2: Changes in financial balance between axes post Health Check

Campania Agriculture absorbs a large amount of underground and surface waters being used for irrigation purposes. The irrigation network cover 14,69% of the UAA and currently is serving 69% of agricultural land that can be irrigated. Overall the availability of water for irrigation is not a problem since the needs are satisfied by availability of the resource. Rationalisation in the use of water and technological improvement on water saving methods and irrigation system are foreseen. The approach in saving water is also crucial insofar as food sector is concerned and investment for use of waste water for processing is considered a strategic need. Therefore additional allocations will be provided to measures 121, 123, and 124 to meet this challenge. Regarding climate change challenge, RDP intend mainly to contribute to a reduction of the CO2 emissions by operations that will be financed under modernizations of the farms. It has been noted as for the measure 121 a significant reduction of CO2 emissions is expected (almost 25%) by the reduction of the fuel used in heating systems for greenhouses, dryers and stem production in on-farm milk processing plants. It is stressed that the absorption of CO2 provided by forests and the potential of carbon sink in the soils can be exploited. In particular the analysis underlines the contribution on carbon sequestration given by agricultural practices like minimum work of land, precision agriculture, green cover, set-aside, organic farming, etc; priority additional allocations will be given to measures 121 and 123. Regional strategies are oriented towards significant development of renewable energies from biomass of agro-forestry origin in the light also of sustainability. Therefore the contribution that agriculture and forestry could give to the energy production from agro-forestry biomass is important and the support planned in the approved RDP is deemed adequate to face these prioritises. The emissions of greenhouse effect gases will be reduced by effect of the substitution of fossils fuels with renewable sources of energy will improve the quality of air and contribute to combat climate changes too. Emilia Romagna This region is based on intensive cultivation, which is translated into a high and increasing demand for water resources. In 2007, the agricultural production has shown a reduction in the production linked to yields. More demand of water resources for agricultural production lead to a competition for the use of water from agricultural and civil purposes. Then, farmers should pay more to get more irrigation, with the consequence of a higher water abstraction 12

Rural Development Plans to mitigate GHG emissions in Italy that leads to negative results. For this reason, measures oriented to save and use efficiently water resources are highlighted for this region (RER 2009a: 46pp). Priority activities are focused on the reduction of the high pressure of agriculture, which leads to high NH3 and GHG emissions. Thus, the reduction of loads of nitrogen fertilizers, and the rationalisation in the use of animal waste are prioritised. Importance is given to short rotation of poplars and biogas production from animal waste) (RER 2009b: 209pp). For climate change challenges three axis are involved. For axis 1 two main actions are encouraged, farm modernization involved in dairy production, and the protection of regional water resources due to climate change. Axis 1 includes measure 121 to incentive investment for the production of renewable energies, and measure 123 incentives the investment on the recovery and waste disposal of sub products from agro industries also with energetic aims. For axis 2 more financial resources are given to agro environmental measures, biodiversity, and environmental quality in order to overcome climate change and for the protection of water resources (quantity and quality) (RER 2009b: 209pp). Under measure 214 specific actions, related to climate change challenges, such as integrated production, organic farming, and increase of organic carbon content are prescribed. Integrated production action aims to reduce in average the use of macro elements by 30-45% (N, P e K). Other advantages are obtained because of the method, and the application period (time and split of fertilizer application), which determines a low relay to the groundwater by 40% of N and 60% of P (RER 2009c: 322pp). Integrated production also contributes to water management through: i) soil management practices (tillage method, catch crops, diversified crop rotation), and ii) technologies for water saving (e.g. efficient irrigation systems). Specific indications for the use of fertilizers are given (integrated production): i) define the quantitative maximum distribution of macro nutrients by culture; ii) define the timing and procedure for fertilizer distribution based on the climatic characteristics; and iii) the rational use of liquid animal waste according to the best time for distribution for an efficient absorption of nutrients. For irrigation purposes (integrated production), indications encourage to adopt a simplified water balance to define the time and the maximum amount of distribution (based on farm pedology and meteorological conditions) (RER 2009c: 319). Organic farming is an action aiming for the reduction of agricultural inputs, the conservation of soil fertility, and the conservation of water resources. This action also contributes to water management through similar practices described for the integrated production (RER 2009c: 326). Organic soil content action (measure 214) considers the conservation of the soil resource through increasing the surface with organic fertilization. This action has a specific indication for the limitation in the use of mineral fertilizers corresponding to 40% of nitrogen needed for the culture (RER 2009c: 334). Axis 3 considers the construction of plants for the production and distribution of bio energy (measure 311). A specific action considers the production of renewable energies, use and sell of energy and heat (maximum 1 MW). Micro plant for the production of biogas, which can obtain energy and electricity (includes cogeneration, but they are only acceptable it is demonstrated the CO2 balance is positive). The result indicator shows that energy produce from this action could be equal to 5.955.524 KWh (RER 2009c: 399). For the period 2007-2013, the region estimates an annual reduction of GHG emissions of 48.000 t CO2 eq. through the reduction in the use of nitrogen fertilizers, afforestation activities and the production of renewable energies. This is approximately 1% of total agricultural GHG emissions reduction per year (RER 2009b:205). Lombardy The most important agricultural sector of the region is cows' milk, which accounts for nearly 33% of the total agricultural output. The composition of UAA is the following: 74,1% arable, 13

Rural Development Plans to mitigate GHG emissions in Italy 22,3% permanent pastures, 3,9% permanent crops. GHG emissions are concentrated in the lowlands, where intensive agriculture and livestock production is located. Axis 1 considers the adjustment of irrigation infrastructures for water saving and rationalisation is described. Measure 121 will support investments on irrigation equipment for water saving and for renewable energy production. Support will be given to investments for biogas production, using organic waste (maximum power = 1 MW, energy to be used on farm and energy plant dimension proportional to the farm energy consumption). For axis 2 activities will support "green territorial systems" for water purification, creation of ecological corridors, and countryside valorisation, promote low impact agricultural and biomass production (measures: 216, 221, 223). Specific actions with measure 214 will support the integrated production and organic farming. Measure 221 will encourage the production of forest biomass to favour the conversion of agricultural production to sustainable woody production (GHG reduction). For Axis 3, the promotion of renewable energy production (and linked services) will be promoted. Support will be received through measure 311 (diversification into non-agricultural activity), and measure 312 (support for business creation and development). For climate change this region specifically investments: in farms (i.e. renewable energy, manure storage), afforestation and actions to prevent forest fires, training and farm advisory services focusing on climate change issues. Some of the additional operation could have positive effects in terms of climate change mitigation (i.e. biogas in dairy farms). Currently only 33% of farms on animal production have covered storage, as a consequence, the necessity to favour interventions to cover storage system for biogas production (Regione Lombardia 2009: 523pp). Piedmont The forest sector is the most representative economic sector from this region. The prioritized agro food sector is mainly composed of arable land and rice. Most of the Italian rice production comes from this region. Other relevant sectors are for the wine, fruit, milk and beef production. After approving the RPD with the Health Check reform, additional resources for climate change issues have been allocated to measures 111, 121, 123 and 124 for the improvement of energy efficiency and thus for reducing CO2 emissions. Regarding the water management issue, the priority of the region is to safeguard water quality, and to improve water management by rationalizing livestock manure and waste water treatment. Additional Health Check resources have been allocated to measures 111, 121 and 123 aiming to finance structural investments necessary for improving the efficiency of nitrogen fertilizer use, installations for waste water treatments on farms, and for water saving technologies. Regarding climate change, for axis 1 the region focused in the improvement of efficiency in rural infrastructures. Interventions are expected to improve the multifunctional and efficiency of the irrigation network, mainly through the reduction of losses in order to decrease agricultural water consumption (measure 125) (Regione Piemonte 2009a: 206). Through measure 111 the region supports training courses in order to reduce GHG and to adapt to climate change, measure 121 will encourage energy saving, and measure 123 and measure 124 the improvement of energy efficiency. Water management challenges are tackle under measure 111 through training courses on the improvement of water management; measure 121 for the improvement of the capacity to use water more efficiently and to improve the capacity to store water; and measure 123 for the improvement of the capacity to use water more efficiently. The objective to reduce GHG emissions and acidificant pollutants is supported by the following measures in axis 2: agro environmental payments (214), animal welfare payments (215), non productive investments (216 and 227), afforestation of agricultural land (221), the first agroforestry system in agricultural land (222), afforestation in non agricultural land 14

Rural Development Plans to mitigate GHG emissions in Italy (223), environmental forestry payments (225) and restoring forestry potential (226); and through a Bioenergy Program. The most significant action to face climate change mitigation challenges are focused with the increase of carbon sequestration in biomass and soils and, and the production of energy from agricultural and forest biomass and other renewable energies. Activities are oriented to support agronomic practices, animal production, and animal waste management. These actions operate in synergy with those finalized to conserve water resources, in particular, through animal waste treatment (Regione Piemonte 2009a: 211-218). For water resources challenge, in axis 2, actions are related with improving the efficiency of irrigation resources, reducing the pollution of water because of agricultural chemical inputs, reducing the level of nutrient surplus, and reducing the negative effect of animal waste and wastewater. This region has a specific target for GHG emissions that is estimated to be an annual reduction of 1% respect to 1990 till 2020. Two impact indicators that are described by this region are indirectly tackling climate change: water quality improvement through the reduction by 13% of the baseline value of the gross nitrogen balance (71 kg N ha-1), and the increase in the production of energy from renewable energies (+9.2 ktoe) Puglia Agricultural lands cover more than 73% of the territory. In the last years, the utilised agricultural area (UAA) has notably decreased, while the number of small farms (with UAA smaller than 5ha) is increased. Almost 20% of regional UAA is irrigated; nevertheless water availability in rural areas of Puglia does not satisfy the needs of the farmers; in addition, the use of abusive wells is increasing. To address the new challenge water management, additional funding will be used to reinforce measure 125, to support the improvement/modernisation of the distribution network of treated waste water for irrigation, in order to save water. The regional irrigated area will not be increased. In the framework of diversification of farms activity and environment protection the support to investments for the production of energy from renewable sources (mainly biomass) has been proposed; the increase of productions is expect to be of 20%. The region is affected by processes of desertification, soil erosion, and loss of organic matter. The priority of intervention will be addressed by the new measures 214/5, green cover of arboriculture land that will increase carbon sequestration and promote the sustainable use of soil avoiding desertification and erosion, as well as measure 214/6, stubble leaving and/or ploughing, that will also increase the content of organic matter as a means of climate change mitigation (reducing desertification processes). Puglia region assessed a reduction of emissions from agricultural sector of about 7% for the period 2007-2013, while an increase of 5% of removals is expected. Concerning ammonia emissions from agricultural sector, a reduction of 15% is foreseen. Veneto Agriculture and forestry cover 75% of the territory. During the last few years there was a tendency to reduction of the utilised agricultural area (UAA) and forest areas. Air quality is affected by ammonia emissions that cause acid rains with negative effect on forest, biodiversity, and soil quality. This problem is derived from livestock manure and agricultural activities (fertilizers). For axis 1, it is described that agriculture and forestry could contribute with energy production from agro-forestry biomass (reducing GHG emissions). Therefore, additional allocations are provided to improve the processing of forestry biomass (measure 122), and to transform forestry biomass into energy for the forestry sector needs (measure 123). Main climate change challenges are presented in Axis 2. Under measure 214, specific actions are as follows: action b for the improvement of the quality of soil in order to improve the 15

Rural Development Plans to mitigate GHG emissions in Italy content of organic matter and nutrient in the soil, reduce nutrients like nitrogen and phosphorus; and decrease the usage of inorganic fertilizers; action c for supporting organic farming to reduce inputs and undertaking commitments foreseen in Reg. 2092/91 that would benefit biodiversity and water quality; and action g for water resources protection (ground and surface water) in the perspective of implementation of Directive 2000/60, in order to reduce GHG emissions due to conversion of arable land to grassland. For the forestation of agricultural land grant and premium scheme (measure 221) the aims is to increase area (except in mountains) under forestry and contribute to climate change mitigation; to provide sustainable source of timber for energy, to improve water quality in NVZs, to increase biodiversity and create/improve natural environment, and soil protection against erosion. Measure 222 and measure 223 will operate for afforestation and the establishment of agroforestry systems, which have the potential for reducing N2O emissions and increasing carbon sequestration. Measure 223 considers the conversion of agricultural land into forest/agroforestry system for the protection and improvement of water quality. Measure 227 addresses climate change challenges with interventions planned to improve the original conditions of natural forests. This region describes that activities to tackle the climate change challenges are focused on increasing carbon sink. The analysis presents the impact on carbon sequestration also deriving from agricultural practices such as minimum work of land, precision agriculture, green cover, etc. With the Health Check reform a new action that considers climate change and water management issue has been inserted (measure 214i: conservative agriculture) (Regione Veneto 2009: 628 pp).

Conclusions This paper summaries an initial attempt to quantify the contribution of RDPs from Italy to climate change mitigation challenge, and to highlight the relationship with the water management challenge. A quantification of the impact of 41 axis-measures-actions from the 21 RDPs was performed. The matrix analysis of regions, rural development measures and GHG mitigation targets show a moderate impact of activated measures on reduction of CH4 emissions from manure management under axis 1 (measure 121). Regarding axis 2, mainly under measure 214 (environmental payments), high impact is expected for the reduction of N2O emissions from actions oriented to reduce the nitrogen surplus. For the ex-post assessment, carried out on six selected RDPs, a more specific analysis was performed for collecting information regarding climate change and water management targets, aiming to highlight the regional peculiarities adopted by regions in facing both targets. Regions tend to provide descriptive information, while other regions supply additional quantitative information. Each region has considered a different set of actions under each type of rural development measure. Most actions oriented to climate change/water management challenges are addressed in Axis 1 and Axis 2 from the RDPs. A direct correlation between actions which can have an effect on both challenges is evidenced (e.g. Emilia Romagna Region), finding positive synergies. In many cases measures from axis 1 and measures from axis 2 converge and incentive through diverse actions both challenges. For example, integrated agricultural production contributes with water management objectives through soil management and water saving technologies actions. Specific rural development measures have focused: measure 121 commonly used to incentive production of renewable energies (Emilia Romagna), energy saving and use of water efficiently (Piedmont, Campania) and biogas production (Lombardy, Campania) and measure 214 with integrated production and organic farming actions. Local peculiarity has aimed RDPs to prioritise actions such as for the integrated production to rationalize the use of fertilisers (Emilia Romagna), increase in organic soil content, organic farming and water 16

Rural Development Plans to mitigate GHG emissions in Italy resource protection (Veneto Region), and avoid desertification and erosion processes (Puglia Region). On the other hand, there has also been the case that actions targeting biodiversity conservation and conservation of high natural value (HNV) which are indirectly facing climate change challenges because they are encouraging organic production methods, the extensification of production, and sustainable management of forests (Piedmont Region). Three region out of the six selected RDPs have estimated a possible GHG reduction target achievable with the implementation of RDPs (Emilia Romagna, Piedmont and Puglia Region). Emilia Romagna and Piedmont regions assumed that the contribution of regional GHG mitigation is an annual reduction of 1% per year. The detailed analysis of RDPs allows us to estimate the contribution of the activated measures on GHG emission reduction for the agricultural trends. Further 3% (2010) and 4% (2015) of reduction could be achieved with the implementation of RDPs measures. In this context, the monitoring and evaluation of the different actions, which will be implemented under the RDPs, is fundamental to assess the impact of the measures for the mitigation of GHG emissions.

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