Description
The Common Agricultural Policy (CAP) Funds, particularly the European Agricultural Fund for Rural Development (EAFRD), play a crucial role in promoting sustainability in the agricultural sector while supporting sustainable energy projects. These funds, part of the broader €386.6 billion CAP budget, focus on fostering sustainable agricultural practices, rural development, and sustainable development of bioeconomy including bioenergy.
level of support
EU-wide
type of funding
Grants, Loans
Funding amount
A total of €386.6 billion is available for the CAP from the EU budget (2021-2027). Project funding varies depending on the specific program and type of project being supported.
Eligibility criteria
Eligibility depends on the specific objectives and national strategies of each country’s CAP Strategic Plans.
Application Process and Timeline
Proposals are submitted through CAP strategic plans. While the European Commission bears overall responsibility for the financial management of the CAP, it does not normally make payments to beneficiaries. Most of the CAP budget is implemented under so-called ‘shared management’ between the European Commission and EU countries, with the remainder falling under ‘direct management’. Under shared management, EU countries are responsible for setting up a management and control system for payments from the CAP strategic plans that complies with EU regulations. They must ensure that this system functions effectively and is capable of preventing, detecting and correcting irregularities.
Evidence Of Success
Many CAP funded initiatives has helped build robust knowledge flows and speed up innovation in agriculture, forestry and rural areas.
Expert Opinion
Energy communities can benefit significantly from the CAP 2023-2027 through two key objectives in the National CAP Strategic Plans. Objective SO4 promotes the development of sustainable energy projects, providing energy communities with funding to invest in renewable energy sources such as solar, wind, and bioenergy, thereby contributing to energy independence and supporting rural sustainability. Additionally, objective SO8 focuses on the sustainable development of the bioeconomy, including bioenergy, allowing energy communities to leverage local agricultural by-products for bioenergy production. These objectives provide energy communities with access to CAP funding to support local renewable energy initiatives, enhancing rural economic resilience and supporting the EU’s climate goals.
