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Peatland

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Motivation
Peatland restoration has a high potential for GHG mitigation.Netherlands has more than 15% of its intensive dairy livestock system located on peat soils.National policies are exploring payment policies to restore peatland and to mitigate GHG emissions.

Motivation

Peatland restoration has a high potential for GHG mitigation.

Netherlands has more than 15% of its intensive dairy livestock system located on peat soils.

https://www.melkvee.nl/

National policies are exploring payment policies to restore peatland and to mitigate GHG emissions.

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European scenarios

European scenarios

Baseline: no constraints on CAP budget, nature restoration or LULUCF targets; no climate change

Environmental Ambition: continuity of Green Deal policies and full climate ambitions;

  • 25% Organic farming share across the EU
  • Full NRR regulation (peatland, agricultural and forest targets)
  • EU Biodiversity Strategy (30% restoration of forests, 20% of agricultural land)
  • LULUCF -310 MtCO2eq reached by 2030, 400 MtCO2eq by 2040, full climate neutrality contribution of ag and forest sector by 2050 (need reference for other sectoral contributions)

Full Productivity: rollback to compliance-only approach for NRR and LULUCF targets

  • CAP SP levels of organic farming (similar to current levels)
  • Basic NRR regulation (minimal peatland, agriculture implementation)
  • No EU biodiversity Strategy beyond NRR
  • LULUCF -310 MtCO2eq reached by 2040 (more mitigation of ag and forestry sector than -310 MtCO2eq by 2040), full climate neutrality not achieved by 2050

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Dutch peat policy payment format

Policy Budget

·Minimum payment of 125,000 EUR per farm partnership and total budget of 55.4M EUR;

·Payment lifetime (2024 – 2028);

Policy goals

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General approach: model toolbox

General approach: model toolbox

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Results

Farms eligible for receiving peat subsidies

Profitability of different farm types applying for peat payment policy

  • After 7 years, policy option becomes less attractive than no change for small and medium farms;
  • For the constructed large farm, change is attractive in a 10 years horizon;

Dutch macro-economic projections and their reflect on national land use (grazing grass areas)

Dutch macro-economic projections and their reflect on national land use (livestock distribution)

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