Call: Towards an EU approach to assess and internalise positive and negative externalities of food for incentivising sustainable choices

National, EU and global food systems are facing sustainability challenges, from primary production to consumption, that could jeopardise food and nutrition security. The farm to fork strategy, which is key to the success of the European Green Deal and achievement of the UN sustainable development goals (SDGs), aims to address these challenges and to deliver co-benefits for environment, health, society and the economy, ensuring that actions leading to recovery from the COVID-19 crisis also put us onto a sustainable path going forward. Research and innovation (R&I) are key drivers steering and accelerating the transition to sustainable, safe, healthy and inclusive food systems, from farm to fork, thereby ensuring food and nutrition security for all.

Sustainable farming systems provide a number of economic, environmental, social and health benefits, and are the main prerequisite for food and nutrition security. For farmers, who are the backbone of food systems and the immediate managers of natural resources, the Green Deal sets ambitious targets with respect to the sustainability and safety of feed and food production. These targets are included in the core Green Deal policy initiatives, in particular the farm to fork strategy, the biodiversity strategy, zero pollution efforts and climate action. R&I in line with the strategic approach to EU agricultural research and innovation[[https://ec.europa.eu/programmes/horizon2020/en/news/final-paper-strategic-approach-eu-agricultural-research-and-innovation]] will be key enablers if these challenging targets are to be achieved. They will speed up the transition to sustainable and competitive agriculture by unlocking the potential of agroecology[[http://www.fao.org/3/i9037en/i9037en.pdf]], including improving organic farming as part of the agroecological transition, boosting production of EU-grown plant proteins and advancing digital and data technologies (Destination ‘Innovative governance, environmental observations and digital solutions in support of the Green Deal’). R&I will support farmers to manage land, soil, water and nutrients in new, sustainable ways, in particular through the Horizon Europe mission in the area of ‘soil health and food’. New knowledge and innovative solutions will improve plant and animal health and welfare, prevent interspecies disease transmission through food production and trade systems, and reduce farmers’ dependency on pesticides, antimicrobials and other external inputs. Thanks to R&I, farming systems will maximise provision of a wide range of ecosystem services from more sustainably managed EU agro‑ecosystems and landscapes, and help to reverse the loss of biodiversity and soil fertility while ensuring resilient primary production (Destination ‘Biodiversity and ecosystem services’). Farmers will be better equipped to make a significant contribution to climate neutrality and become more resilient to climate change (Destination ‘Land, ocean and water for climate action’). Also, R&I will support the development of policy (in particular the common agricultural policy (CAP)), business models and market conditions enabling transition to sustainable food and farming systems. Effective agricultural knowledge and innovation systems (AKISs) will speed up innovation and the uptake of R&I results from farm to fork (Destination ‘Innovative governance, environmental observations and digital solutions in support of the Green Deal’). As a result, farmers will be able to transform their production methods and move to climate- and environment‑friendly, and resilient farming systems, thereby contributing to sustainable food value chains that provide producers with fair economic returns and consumers with affordable, safe, healthy and sustainable food (Destinations ‘Biodiversity and ecosystem services’ and ‘Land, ocean and water for climate action’).

Sustainable fisheries and aquaculture contribute directly to environment‑friendly, inclusive, safe and healthy food production by providing highly nutritional proteins, lipids and micronutrients for a healthy diet. Sustainably produced food from marine and freshwater bodies can and should account for a much bigger proportion of our overall food consumption. The farm to fork strategy seeks to help fishers and aquaculture producers to achieve better climate and environmental results and to strengthen their position in the supply chain. R&I will directly support the common fisheries policy (CFP) and deliver inclusive, diversified approaches to allow fisheries management to adapt to different realities, including in the international context. Sustainable and resilient aquaculture systems, including the use of low trophic species (e.g. algae and herbivores), high animal welfare standards and alternative sources of protein for food and feed, will increase seafood production and reduce its environmental impact while adding economic value to the chain. Seafood security will benefit from a drastic reduction in the current massive pre- and post-harvest losses in seafood biomass. Producers’ and consumers’ awareness, trust and behaviour with respect to the responsible production, consumption and disposal of seafood will contribute directly to the competitiveness and sustainability of the sector. An overarching partnership for a climate‑neutral, sustainable and productive blue economy will contribute to food security, added value, blue growth and jobs in Europe through a jointly supported R&I programme in the European seas, coastal and inland waters.

Transforming food systems for health, sustainability and inclusion requires robust, system-wide changes at all governance levels (from local to global and vice versa) as food systems are intertwined with all other sectors and are among the key drivers of climate change and environmental degradation. Food systems are to be understood as covering all the sectors, actors, stakeholders, organisations and disciplines relevant to and connecting primary production from land and sea, food processing, food distribution and retailing, food services, food consumption, food safety, nutrition and public health, and food waste streams. The European Green Deal and, in particular, the farm to fork strategy support a shift to more resilient and environmentally, socially and economically sustainable food systems, as required to deliver safe, healthy, accessible and affordable food and diets for all sourced from land and sea, while respecting planetary boundaries. This will involve a better understanding of the multiple interactions between the components of current food systems, to foster solutions that maximise co-benefits with respect to the four priorities of the Commission’s ‘Food 2030’ R&I initiative:

• nutrition and health, including food safety;
• climate and environmental sustainability;
• circularity and resource efficiency; and
• innovation and empowering communities.

R&I will accelerate the transition to sustainable, healthy and inclusive food systems by delivering in various areas: dietary shifts towards sustainable and healthy nutrition; supply of alternative and plant-based proteins; prevention and reduction of food loss and waste; microbiome applications; improving food safety and traceability; fighting food fraud; behavioural change; personalised nutrition; urban food systems (Destination ‘Resilient, inclusive, healthy and green rural, coastal and urban communities’); food systems governance and systems science; and digital and data-driven innovation (Destination ‘Innovative governance, environmental observations and digital solutions in support of the Green Deal’).

R&I activities supporting the partnership for safe and sustainable food systems for people, planet and climate will help identify and deliver innovative solutions providing co-benefits for nutrition, food quality, the climate, circularity and communities.

The EU also aims to promote a global transition to sustainable food systems. Targeted R&I activities, in particular under the EU-Africa Partnership on Food and Nutrition Security and Sustainable Agriculture (FNSSA) and global initiatives involving international research consortia, will contribute to this ambition.

Expected impacts:

Proposals for topics under this destination should set out credible pathways to fair, healthy, safe, climate- and environment‑friendly, resilient food systems from primary production to consumption, ensuring food and nutrition security for all within planetary boundaries in the EU and globally.

More specifically, proposals should contribute to one or more of the following impacts:

• sustainable, productive, climate-neutral and resilient farming systems providing consumers with affordable, safe, traceable healthy and sustainable food, while minimising pressure on ecosystems, restoring and enhancing biodiversity, improving public health and generating fair economic returns for farmers;
• sustainable fisheries and aquaculture increasing aquatic biomass production, diversification and consumption of seafood products for fair, healthy, climate‑resilient and environment‑friendly food systems with low impact on aquatic ecosystems and high animal welfare; and
• sustainable, healthy and inclusive food systems delivering co-benefits for climate mitigation and adaptation, environmental sustainability and circularity, sustainable healthy nutrition, safe food consumption, food poverty reduction, the inclusion of marginalised people, the empowerment of communities, and flourishing businesses.

When considering their impact, proposals also need to assess their compliance with the ‘do no significant harm’ principle[[See Article 17 of Regulation (EU) No 2020/852 on the establishment of a framework to facilitate sustainable investment (EU Taxonomy Regulation).]], whereby R&I projects should not support or involve activities that significantly undermine any of the six environmental objectives of the EU Taxonomy Regulation.

To unlock the full potential of R&I and maximise impacts, participatory approaches, e.g. multi-actor approach, involving input from industry, technology providers, primary producers, the food, drink and hospitality industry, consumers, citizens, local authorities, etc. should be promoted with a view to co-creating innovative systemic solutions in support of food systems’ sustainability.

Topics under this destination should have impacts in the following impact areas of the Horizon Europe strategic plan for 2021-2024:

• sustainable food systems from farm to fork on land and sea
• climate change mitigation and adaptation;
• enhancing ecosystems and biodiversity on land and in waters;
• good health and high-quality accessible healthcare;
• clean and healthy air, water and soil;
• a resilient EU prepared for emerging threats; and
• inclusive growth and new job opportunities.

Expected Outcome:

In line with the European Green Deal, in particular the farm to fork and biodiversity strategies, climate action and zero pollution ambition, the successful proposals should help to speed up the transition to sustainable, biodiversity-friendly, zero pollution, climate-neutral and resilient farming and food systems on land and at sea. They should do so by supporting the development and implementation of policies, business models and market conditions that better internalise the external costs and benefits of food, thereby make the most sustainable food the most available and affordable for consumers, while generating fair economic returns in the supply chain, in particular for primary producers and SMEs.

Projects results are expected to contribute to all of the following expected outcomes:

• better understanding by policymakers, businesses and other actors in farming and food systems on land and at sea, of challenges and opportunities in relation to the internalisation of climate, environmental, social and health externalities of food at various levels (e.g., policy, product, organisational, farm, and investment) and in different contexts;
• well-informed policy at local, regional, national and EU levels on the possible ways of steering primary producers’, businesses’ and consumers’ decision-making towards sustainable options by assessing and valuing the externalities of food (including using subsidies, taxes, incentives, etc.);
• widespread use by policymakers, farmers and businesses of improved and harmonised approaches to identify, measure and value the positive and negative climate, biodiversity, environmental, social and health impacts of food; and
• better internalisation of the positive and negative climate, biodiversity, environmental, social and health externalities of food, so that the most sustainable and healthy food becomes the most affordable and available for consumers, while generating fair economic returns in the supply chain, in particular for primary producers and SMEs.

Scope:

Better internalisation of positive and negative climate, biodiversity, environmental, social and health externalities of food has emerged in the policy debates as one of many options for improving the availability and affordability of sustainable food for consumers and generating fair economic returns for sustainable producers. However, the advantages and disadvantages of the internalisation externalities of food are widely discussed. In addition, the attribution, assessment and valuation of these externalities are complex and challenging tasks. Interest and research around the internalisation of externalities of food have been growing in recent years. A number of initiatives and collaborations are building at various levels, from local to global. Accordingly, various frameworks, methods and approaches to operationalise the internalisation of externalities related to food have been developed and researched (e.g., true cost accounting). Nevertheless, the concept remains more theoretical than practical and it requires development and adaptation over time.

Proposals should follow a ‘multi-actor approach’, pilot a ‘community of practice’ and convene policy dialogues engaging researchers, policymakers and other relevant actors from across farming and food systems on land and at sea (e.g., farmers, fishers, downstream and upstream businesses, retailers, hospitality operators, consumers, financial institutes, NGOs, etc.) that are involved on the ground in identifying, measuring and putting a monetary value on the positive and negative climate, biodiversity, environmental, social and health externalities of food. A balanced coverage of the EU contexts and the inclusion of a wide range of viewpoints (i.e., from ‘believers’ to ‘sceptics’) and relevant projects/initiatives at different levels, from local to global, are essential.

Based on an in-depth review of the state-of-the-art (including scientific evidence, diverse projects and initiatives, and, for example, existing natural capital accounting), proposals should scrutinise various approaches to:

• identifying, assessing and monetarising positive and negative climate, biodiversity, environmental, social and health externalities of food; and
• measuring degrees of internalisation (i.e., what parts of various costs and benefits are already internalised in the current context).

Proposals should explore possible ways to improve, harmonise and operationalise these approaches in practice. They should also map and analyse gaps in existing databases, and collect data needed to assess the externalities, in such a way that they can be used for several purposes (e.g., footprint analysis). Proposals may identify a comprehensive set of case studies (e.g., based on a comprehensive ‘hotspot’ analysis) and demonstrate the usefulness of various approaches and databases in practice.

Proposals should also identify various possible strategies for elevating internalisation of externalities and embedding it in decision-making of primary producers, businesses and consumers. They should analyse these strategies in order to inform policymakers and businesses about the various possible options (e.g., taxing negative externalities and/or rewarding positive externalities across food value chains, from input industry through production to consumption) and their effectiveness, costs, benefits and risks.

All work should cover a wide range of food products sourced from different types of farming systems on land and at sea (including agroecological and organic), supply chains, processes, contexts and levels (e.g. farm, product, policy, investment, organisational, etc.). Attention should also be paid, inter alia, to legal issues (especially in relation to fiscal policy) and distributional effects, the international dimension (e.g., how to deal with feed and food produced outside the EU) and the whole spectrum of impacts along value chains (e.g., in relation to deforestation, land-grabs and rights violations, leakage of greenhouse gas (GHG) emissions, etc.), in line with the principles of due diligence and systems thinking.

Policy recommendations and business strategies should be derived from the insights generated, and then widely communicated and disseminated. Proposals should encourage networking, sharing of knowledge and good practices, as well as building the necessary expertise and competencies among policymakers and businesses, including primary producers and SMEs. As a result, taking into account the various approaches and viewpoints, a consensus should be reached in the policy debate on the feasibility, implications and next steps for developing and implementing a harmonised EU approach for assessing and internalising externalities of food. Depending on the results, proposals may also develop an action plan for policymakers and businesses, and a roadmap for future research and innovation (R&I) to operationalise in practice the assessment and internalisation of externalities of food.

The possible participation of the JRC in the project would consist of a contribution to a holistic assessment, including footprints (e.g., with the MAGNET model). This topic should involve the effective contribution of SSH disciplines. In this topic the integration of the gender dimension (sex and gender analysis) in research and innovation content is not a mandatory requirement.

eligible non-EU countries:

• countries associated to Horizon Europe

• low-and middle-income countries

Legal entities which are established in countries not listed above will be eligible for funding if provided for in the specific call conditions, or if their participation is considered essential for implementing the action by the granting authority.

Specific cases:

• Affiliated entities - Affiliated entities are eligible for funding if they are established in one of the countries listed above.
• EU bodies - Legal entities created under EU law may also be eligible to receive funding, unless their basic act states otherwise.
• International organisations - International European research organisations are eligible to receive funding. Unless their participation is considered essential for implementing the action by the granting authority, other international organisations are not eligible to receive funding. International organisations with headquarters in a Member State or Associated Country are eligible to receive funding for ‘Training and mobility’actions and when provided for in the specific call conditions.

Unless otherwise provided for in the specific call conditions , legal entities forming a consortium are eligible to participate in actions provided that the consortium includes:

• at least one independent legal entity established in a Member State;and
• at least two other independent legal entities, each established in different Member States or Associated Countries.

Proposal page limits and layout:

The application form will have two parts:

• Part A to be filled in directly online  (administrative information, summarised budget, call-specific questions, etc.)
• Part B to be downloaded from the Portal submission system, completed and re-uploaded as a PDF in the system

Page limit - Part B: 45 pages