Carlsberg Collaborations: Transforming European Agriculture
In 2023 agriculture was the third highest global contributor to emissions after the power sector and the transport sector.
Global food and beverage leaders are urging the EU to take swift action to accelerate the shift to regenerative agriculture.
A new report titled Sowing Change: EU Policy and Opportunities to Scale Regenerative Agriculture, published by Boston Consulting Group (BCG), OP2B and Carlsberg Group, outlines key recommendations to overcome barriers and create a sustainable food system.
Regenerative Agriculture in the EU
The European Union stands at a critical crossroads in its sustainability journey.
As climate resilience becomes increasingly urgent, transitioning to regenerative agriculture offers a promising solution.
Regenerative practices restore soil health, protect biodiversity and lower emissions, all while supporting farmers' livelihoods.
Achieving this transformation requires strong public-private collaboration to drive competitiveness, ensure a smooth transition and unlock private investments that support climate and nature goals.
In line with climate change goals, global food and beverage leaders are urging the EU to accelerate the transition to regenerative agriculture.
Despite their willingness, many farmers face economic risks and a lack of clear guidelines, while companies seeking regeneratively grown crops encounter supply shortages and inconsistent standards.
How to transition to sustainable agriculture
The report from Carlsberg, OP2B and BCG emphasises six key recommendations to scale regenerative agriculture practices.
“Collaboration is key to transforming our agricultural systems,” explains Stefania Avanzini, Director at OP2B.
“Regenerative agriculture offers a solution to the growing challenges farmers and businesses face, but we need coordinated action across the value chain to make it a reality.
“At OP2B, we are focused on lifting the barriers to accelerate the transition to regenerative agriculture. Public-private collaboration, backed by an Agricultural Transition Fund, can unlock investments, support farmers and accelerate transformation to a sustainable and equitable food system."
The Sowing Change report, based on extensive research and stakeholder input, presents a roadmap to scale regenerative agriculture across the EU:
- Establish an EU-wide definition of regenerative agriculture: Develop a clear, outcome-based definition aligned with EU climate goals and benchmarking systems, focusing on metrics like reduced GHG emissions, increased biodiversity and improved soil health.
- Standardise measurement and monitoring: Implement an EU-wide Measurement, Monitoring, Reporting, and Verification (MMRV) programme to track key outcomes such as carbon sequestration and soil health, ensuring credibility and consistency.
- Incorporate outcome-based payments into CAP: Leverage the EU's Common Agricultural Policy (CAP) to reward farmers with practice-based payments during transition and outcome-based payments for measurable environmental improvements.
- Create an Agri-Transition fund: Establish a fund through the European Investment Bank (EIB) to finance the transition, including land banks, insurance products, and capital loans to mitigate risks and support investment.
- Promote knowledge-sharing and education: Develop peer-to-peer farmer networks, digital resource hubs, and training programmes to share best practices and build long-term capacity.
- Develop ecosystem service markets: Create public-private marketplaces linking private investments to environmental outcomes such as carbon sequestration and biodiversity gains, supported by tax incentives and technical assistance.
Alongside these recommendations is the Agri-Transition Fund (ATF), led by the European Investment Bank.
The ATF is pivotal for providing financial stability when transitioning to regenerative agriculture.
By providing land banks conditioned on sustainable practices, offering insurance against risks, and facilitating loans for initial investments, the fund will empower farmers to embrace regenerative methods with confidence.
Carlsberg’s sustainability
Carlsberg has made notable progress in sustainability through its Together Towards ZERO and Beyond (TTZAB) programme, setting ambitious targets to address environmental and social challenges.
The brewer aims for net zero emissions across its value chain by 2040, having already achieved a 16% reduction in value chain carbon emissions and a 57% cut in total brewery emissions since 2015.
With seven breweries powered entirely by renewable energy, Carlsberg is advancing its commitment to green operations.
Furthering its environmental goals, Carlsberg targets 100% recyclable or reusable packaging by 2030 and uses 100% recycled material for shrink-wrap beer packaging.
The company has also reduced relative water use by 31% since 2015 and pledged to replenish all water consumed in high-risk areas by 2030.
With the help from the EU, Carlsberg aims to source all grains from regenerative farming practices by 2040.
“At Carlsberg Group, we are committed to driving the transition to regenerative agriculture, but we can’t do this alone,” Simon Boas Hoffmeyer, VP Sustainability at the Carlsberg Group.
“By collaborating with Boston Consulting Group (BCG) and One Planet Business for Biodiversity (OP2B), we aim to create a resilient food system that benefits people and the planet.
“Our Sowing Change report outlines actionable recommendations to help the transformation of European agriculture, restore soil health, protect nature and reduce emissions.”
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