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CONSOLE - CONtract SOLutions for Effective and lasting delivery
of agri-environmental-climate public goods by EU agriculture and forestry
CONSOLE - CONtract SOLutions for Effective and lasting delivery
of agri-environmental-climate public goods by EU agriculture and forestry

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Ongoing | 2019 - 2022 Italy
Ongoing | 2019 - 2022 Italy
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Contexte

The CONSOLE project focuses on promoting the delivery of AECPGs by agriculture and forestry through the development of improved contractual solutions. The major challenges to efficient delivery are trade-offs between environmental performance and farm profitability, time lag between action and impact, and mismatch between the scales of actions and effects. As a result, several AECPGs, such as water, air and soil quality, carbon sequestration, animal and plant biodiversity, recreational spaces, etc. are characterized by under-provision. CAP post-2020 aims to pursue provision of AECPGs in rural areas, as per today’s societal demands. However, the actions aimed at the delivery of AECPGs are still unsatisfactory in terms of longevity, effectiveness, and efficiency. Improvements may come from a flexible mix of new instruments, such as new environmental-related tenure systems (e.g., environmental lease), results-based payments, or collective approaches, or by better value chain strategies; but these have not been efficiently tested in the EU. An effective implementation of these solutions requires a consistent multi-level contractual framework accounting for surrounding context variables, such as jointness with market goods, price systems, business networks, social capital, quality of extension services, farmers’ attitude and expertise, and EU/national/local legislations. Thus, the CONSOLE project hopes to deliver multi-, inter- and trans-disciplinary understanding of the contract mechanisms in context of wider issues such as environment and local ecosystems, market forces, price scenarios and variability, value chain strategies, institutional setting, social capital, legal context, available technologies.

Objectives

The general objective of CONSOLE is to boost innovation in the lasting delivery of AECPGs by EU agriculture and forestry, through novel and improved contract solutions, by building a Community of Practice (CoP), by designing and testing effective and efficient cooperation models and by developing a contractual framework supporting implementation by multiple actors.

Objectives

see objectives in English

Activities

Project activities include firstly, the development of a contractual framework supporting the design of new contract solutions for the provision of Agri-Environmental Public goods. Then, we will distil lessons learned from qualitative assessment of successful contract solutions. We will also conduct surveys with key actors in 12 EU member states for assessing the acceptability of new solutions. The project will also assess the economic, social, and environmental performance of new contract designs using empirical exploration and model simulation. Finally, we will build a CoP with stakeholders to facilitate co-constructing, testing and implementation of new solutions.

Activities

In primo luogo, sviluppiamo un framework contrattuale per lo sviluppo di nuovi contratti per la produzione di beni pubblici agro-climatici ambientali. Quindi, distilleremo le lezioni apprese da soluzioni contrattuali di successo passate e in corso. Condurremo anche indagini con attori chiave in 12 Stati membri dell'UE per valutare l'accettabilità di nuove soluzioni. Valuteremo le prestazioni economiche, sociali e ambientali delle nuove soluzioni contrattuali attraverso la simulazione basata su modelli empirici. Infine, costruiremo una Comunità di Pratica con le parti interessate per facilitare la co-costruzione, il test e l'implementazione di nuove soluzioni.

Additional comments

The project addresses actions related to the provision of public goods using contract-based categories and conceptual interpretations (e.g. in economics of contracts), but it is not bound to consider only what is legally considered as a contract; the scope is actually better defined by “solutions” that respond to the four features identified in the topic (land-tenure related provisions, collective, result-based, value chain) irrespectively if they are proper contracts. We also focus on contracts intended at least as voluntary agreements in contrast to e.g. regulation. Mandatory measures in some cases can be interpreted using contract categories (e.g. in terms of compliance); however, the scope of the project includes in principle VOLUNTARY measures. In the context of these broad aspects, the project will address a wide range of contract types, not only from EU co-financed schemes, but also from private-public (e.g. with local administration for compensation measures carried out by farmers for infrastructure) and private-private schemes (e.g. cooperation with honey producers, green aisles for hunting beneficial for farmland birds), commodity contracts with processors/food industry with sustainability requirements. The project will also explore the transferability of contracts used in non-EU countries.

Additional information

The CONSOLE framework includes: a) a catalogue showcasing successful experiences and good practices in AECPGs contracting and cooperation models; b) improved AECPGs contracts solutions and their assessment for different levels of governance; c) a comprehensive guide to the process for the design of AECPGs

contracts; d) documentation, training and supporting materials. CONSOLE includes a comprehensive analysis of at least 52 case studies of existing experiences encompassing land tenure arrangements, result-based approaches, collective implementation and value chain-based remuneration, supported by surveys and modelling. Building upon these experiences, improved contract solutions will be developed in collaboration with the CoP. The CONSOLE framework will be tested in real decision-making contexts and will develop into a supporting tool for actors in the field, enabling the delivery and sustainability of AECPGs. Insights will improve policy design towards the achievement of the Sustainable Development Goals, in particular through environmental policies and the post-2020 CAP.

Project details
Main funding source
Horizon 2020 (EU Research and Innovation Programme)
Horizon Project Type
Multi-actor project
Emplacement
Main geographical location
Bologna

EUR 4 999 998.75

Total budget

Total contributions including EU funding.

Project keyword

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2 Practice Abstracts

An operational framework supporting the design of contractual solutions for the voluntary provision of agri-environmental-climate public goods (AECPGs) entails the representation of four interconnected dimensions: i) context variables related to the farming/forest system; ii) contractual features; iii) contract’s performance variables; iv) processes description. Context variables include a wide variety of aspects such as farm structure, social/cultural context and environmental priorities. They affect the feasibility and the impact of contract solutions. Contractual features include characteristics such as: a) object of contract (e.g. AECPG addressed); b) actors/parties involved; c) reference parameter for payment; d) other payment characteristics; e) role of cooperation among farmers/actors; f) connection with private goods; g) tenure-related prescriptions; h) length of contract; i) information to land managers; k) monitoring and sanctions; l) enforcement; m) adaptability. Contract features may be used to classify different contract types, e.g. result-based or collective. However, experience shows that in practice tailored mixes of contract parameters, rather than rigid categories, are required. Key parameters for performance evaluation are: effectiveness; longevity; acceptance; targeting; flexibility; equity/fairness; compatibility; profitability; social/cultural capital; feasibility; trust. Processes (e.g. incentive distribution) describe the connection among points i), ii) and iii) and how they contribute to the final contract performance.

The framework will serve as a basis for the design of successful contracts, supported by practical examples from real-life implementation.

An operational framework supporting the design of contractual solutions for the voluntary provision of agri-environmental-climate public goods (AECPGs) entails the representation of four interconnected dimensions: i) context variables related to the farming/forest system; ii) contractual features; iii) contract’s performance variables; iv) processes description. Context variables include a wide variety of aspects such as farm structure, social/cultural context and environmental priorities. They affect the feasibility and the impact of contract solutions. Contractual features include characteristics such as: a) object of contract (e.g. AECPG addressed); b) actors/parties involved; c) reference parameter for payment; d) other payment characteristics; e) role of cooperation among farmers/actors; f) connection with private goods; g) tenure-related prescriptions; h) length of contract; i) information to land managers; k) monitoring and sanctions; l) enforcement; m) adaptability. Contract features may be used to classify different contract types, e.g. result-based or collective. However, experience shows that in practice tailored mixes of contract parameters, rather than rigid categories, are required. Key parameters for performance evaluation are: effectiveness; longevity; acceptance; targeting; flexibility; equity/fairness; compatibility; profitability; social/cultural capital; feasibility; trust. Processes (e.g. incentive distribution) describe the connection among points i), ii) and iii) and how they contribute to the final contract performance.

The framework will serve as a basis for the design of successful contracts, supported by practical examples from real-life implementation.

To improve the provision of agri-environmental-climate public goods (AECPGs) from agriculture and forestry, new solutions, such as result-based payments or collective implementation, and new strategies along the value chain might help. The analysis of ca. 120 case studies in and outside EU showed that many real-life cases of implementation combine different contract types. Collective implementation can be a precondition for environmental effectiveness, particularly if AECPGs are addressed that can be hardly improved by measures on single plots, (e.g. water quality). Result-based contracts can target specific AECPGs and increase engagement of land-managers due to flexible management choices. Some recommendations for contract design and implementation are distilled: 1.) Targeting contracts to specific regions addresses regional criticalities and enhances the farmers’ and foresters’ interest and understanding of measures. 2.) Involving land-managers in target-setting and measure development leads to higher compatibility with their businesses and can create win-win situations. 3.) Involving control authorities in the design of indicators in result-based schemes can guarantee integrability into RDPs. 4.) Fostering bottom-up approaches and involving regional key actors as coordinating units enhances commitment and motivation in collective approaches. 5.) Guaranteeing good levels of equity and fairness enhances acceptance particularly in value-chain based solutions. It becomes clear that result-based and collective solutions don’t fit in each context situation, as they often demand high levels of knowledge and collaborative skills. Value chain approaches are often only suited if consumers’ awareness is high.

To improve the provision of agri-environmental-climate public goods (AECPGs) from agriculture and forestry, new solutions, such as result-based payments or collective implementation, and new strategies along the value chain might help. The analysis of ca. 120 case studies in and outside EU showed that many real-life cases of implementation combine different contract types. Collective implementation can be a precondition for environmental effectiveness, particularly if AECPGs are addressed that can be hardly improved by measures on single plots, (e.g. water quality). Result-based contracts can target specific AECPGs and increase engagement of land-managers due to flexible management choices. Some recommendations for contract design and implementation are distilled: 1.) Targeting contracts to specific regions addresses regional criticalities and enhances the farmers’ and foresters’ interest and understanding of measures. 2.) Involving land-managers in target-setting and measure development leads to higher compatibility with their businesses and can create win-win situations. 3.) Involving control authorities in the design of indicators in result-based schemes can guarantee integrability into RDPs. 4.) Fostering bottom-up approaches and involving regional key actors as coordinating units enhances commitment and motivation in collective approaches. 5.) Guaranteeing good levels of equity and fairness enhances acceptance particularly in value-chain based solutions. It becomes clear that result-based and collective solutions don’t fit in each context situation, as they often demand high levels of knowledge and collaborative skills. Value chain approaches are often only suited if consumers’ awareness is high.

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