Sustainability Incentives Fund

Balancing food security, bioeconomy, climate and biodiversity objectives to unlock sustainable value chains is sponsored by European Commission — Horizon Europe. Expected Outcome: Project results are expected to contribute to all of the following expected outcomes: decision-makers have improved understanding of the impacts of bioeconomy and nature markets on the sustainability of the agricultural sector, food security, climate and biodiversity, as well as on land-use conflicts; society benefits from economic activities that align bioeconomy, climate and biodiversity objectives while safeguarding food security; farmers gain opportunities to diversify their production, their income and improve the environmental performance of agricultural production without compromising food supply; policymakers are better equipped to develop more effective, evidence-based agricultural and environmental policies. Scope: As the bioeconomy and nature markets gain importance, enabling diversification of value streams for farmers, policymakers must ensure that the growing use of agricultural biomass and agricultural land for non-food purposes (e.g., for the development of novel bio-based chemicals, compounds, materials, products and services, energy production, environmental services provision, carbon and biodiversity credits) does not compromise food security. For the purpose of this topic, nature markets encompass market mechanisms (e.g., nature credits as proposed in the Nature Credits Roadmap [1] , carbon credits, market-based payments for environmental services) mobilising private finance to create income streams for primary producers in return for undertaking actions supporting well-functioning ecosystem services (e.g., water quality and availability, biodiversity, climate). Strategies are needed to balance market incentives, safeguard food supply and the environment, and support farmers in diversifying incomes through sustainable business models and value chains. Successful proposals should support the EU Vision for Agriculture and Food, the Common Agricultural Policy, the new EU bioeconomy strategy, the Carbon Removals and Carbon Farming (CRCF) Regulation and the climate and biodiversity objectives of the European Green Deal. Proposals should: explore natural capital accounting methods integrating economics and nature into agricultural accounts, and their potential to support economic valuation, pricing and integration in decision-making of environmental services provided by farmers; analyse existing and develop new innovative business models and value chains from which farmers can derive fair value and new income beyond food and feed production. This work should include, among others, an assessment of their potential to integrate sustainable practices, enhance farm profitability and performance, and support the transition to a circular bio-based economy and the green transition, as well as an assessment of the market operators involved; when conducting the research/assessment, consider the potential of biomass residues and secondary biomass streams, including waste, as well as low value, unused or underutilised biomass, and land areas; conduct interdisciplinary research from farm to macro levels, encompassing economic, social, biodiversity and climate impacts, and provide analytical tools in particular assessing implications for: farmers' income, decision-making and farm management including of its natural capital ; biomass supply and demand and threshold effects of market prices on production choices; land-use conflicts and food security risks (covering the availability, accessibility, utilisation and stability dimensions), considering leakage effects and other potential conflicts of use (e.g. water); provide recommendations for the design of policies and sustainable business models and value chains. The recommendations should anticipate trade-offs and align bioeconomy, climate and biodiversity goals while safeguarding food security and ensuring that farmers can diversify and receive fair incomes. They should also respond to evolving consumer demand. Proposals should ensure complementarities with o Programme areas: Horizon Europe (HORIZON), Global Challenges and European Industrial Competitiveness, Food, Bioeconomy Natural Resources, Agriculture and Environment, Bio-based Innovation Systems in the EU Bioeconomy Keywords: Accounting, Agricultural economics, Bioeconomy, Business models, Natural resources and environmental economics, Nature, circular bio-based economy, farm income diversification, food security, natural capital