EU farm vision lacks Agri-ETS for food companies

19 February 2025

A ‘vision’ to reshape EU food and farming policies tabled by the European Commission today is weak and disappointing, according to the TAPP Coalition, Europe’s network of 80 food companies and NGO’s including farmers, advocating for fair and true (higher) prices for animal proteins and reduced prices for healthy and sustainable food.  

Director Jeroom Remmers, said: “The new EU vision on agriculture and food is lacking a vision on how competition and climate goals can be perfectly combined: with a future downstream Agri-Food Emission Trading Scheme (ETS3) for food companies like meat- and dairy processors starting by 2030 to realise 2040 and 2050 climate goals. During an Agri-ETS conference last Monday, organised by TAPP Coalition, FoodDrinkEurope and Rabobank, different actors acknowledged the benefits of it, with a new net finance flow towards farmers for climate solutions: higher prices by consumers and revenues from Agri-ETS auctions and CBAM import taxes. The combination of EU Competition and Climate goals leads directly to a downstream Agri ETS for a limited number of dairy factories and slaughterhouse companies, because climate goals can be realised at lowest costs with flexibility for companies. 

According to Nina Schindler, the CEO of the European Association of Co-operative Banks, an Agri ETS leads to a new additional source of income and finance towards farmers, exactly what is needed now. She confirmed this yesterday at the livestreamed event of FoodDrinkEurope in a reply to a question by TAPP Coalition director Remmers. 

The TAPP Coalition is concerned by:

• The elephant in the room not mentioned: the need for an Agri-ETS for food companies. Many organisations urged Ursula von der Leyen and EU Commissioners to implement an Agri-ETS in a letter. TAPP Coalition expects the decision will be made in 2026.
• A lack of environmental and climate targets or increased budget for ‘greening’ farms;
• An absence of plans to address meat and dairy-heavy diets that are harmful to the environment and human health;
• The cherry picking of recommendations from the Strategic Dialogue, excluding most recommendations on consumer demand and food policies.
• The lack of mentioning EU Member State VAT food reforms, urged by the EU Parliament (0% for vegetables & fruit, highest VAT for food with negative health or climate impacts). 
• The continuation of exemptions for European retail alliances within the EU competition law (exemption (Article 101(3) TFEU), against the interests of farmers to get a fair payment for a sustainable food product. In this way, the EU Commission says:  'a low food price for consumers is more important compared to a fair price for farmers'. The EU should restrict selling and marketing of food products with highest climate emissions below cost price and with any price reductions to consumers (similar to alcohol). 

The TAPP Coalition welcomed:

• Rewarding farmers for carbon farming and eco-services and priority for fair prices for farmers, with higher prices paid by food and retail companies for rewarding farmers for environmental and animal welfare commitments. The ‘voluntary on-farm sustainability benchmark’ can help food-, retail and catering companies to start with true pricing tools.
• Address Europe’s dependence on foreign grain to feed farm animals .This may lead to policies to improve diets with less meat and dairy. The EU: ‘We need to consider both the way protein is produced and consumed in the EU, and to develop a comprehensive plan’.
• Commitment to improve animal welfare rules and phase-out cruel cages in farming.
• The new EU ‘work stream on livestock’ with policy pathways and tools for the sector. TAPP Coalition recommends a ‘true pricing’ tool to help the sector to ‘valorise more extensive livestock systems’. We offer to cooperate with the EU Commission on this.
• Annual Food Dialogue and promotion (subsidies?) for Local (Healthy) Food initiatives. 

The TAPP Coalition is a member of EEB that is part of a new board advising the Commission on food and farming policy. Many of its members have stated the consensus agreement (Strategic Dialogue) should be implemented in full. Similar to TAPP Coalition, EEB also advocated an Agri-ETS in its Position Paper. TAPP Coalition is also a partner of CAN Europe. They also asked the EU Commission for 'carbon pricing' of agri food and a VAT reform on food products.

ENDS

Info: Jeroom Remmers | Director TAPP Coalition | info@tappcoalitie.nl 0031622407712