Regulation 2021/2116 on the financing, management and monitoring of the common agricultural policy  (consolidated text)

Launched in 1962, the EU’s common agricultural policy (CAP) aims to:
Support farmers and improve agricultural productivity, ensuring a stable supply of affordable food;
Safeguard European Union farmers to make a reasonable living;
Help tackle climate change and the sustainable management of natural resources;
Maintain rural areas and landscapes across the EU;
Promote jobs in farming, agri-food industries and associated sectors.

The first reforms to introduce climate considerations into the CAP took place in 2013. The CAP is a common policy for all EU countries. It is managed and funded at European level from the resources of the EU’s budget.

Common Agricultural Policy

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Laws and Policies

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CCLW national policies

Regulation 2021/2116 on the financing, management and monitoring of the common agricultural policy 

Regulation (EU) 2024/1468 amending Regulations (EU) 2021/2115 and (EU) 2021/2116 as regards good agricultural and environmental condition standards, schemes for climate, environment 

Commission Delegated Regulation (EU) 2022/1408  as regards the payment of advances for certain interventions and support measures

Regulation passed

Amended

<ul>
<li>This regulation sets the overarching framework for the financing, management and monitoring of the Common Agricultural Policy (CAP) for the 2021‑2027 period, replacing Regulation 1306/2013. It lays down rules on how EU funding is allocated through the two main CAP funds (EAGF  EAFRD), how Member States must organise governance, control and reporting systems, and how expenditures must be cleared and conform to Union requirements.<a href="https://www.euro-access.eu/_media/file/680_CELEX_02021R2116-20240525_EN_TXT.pdf?utm_source=chatgpt.com" target="_self"> </a>The regulation also emphasises greater subsidiarity (more national responsibility), monitoring by results instead of only transaction‑based checks, and a stronger link between CAP support and the Union’s climate, environmental and rural‑development objectives.</li>
<li>Regulation (EU) 2024/1468 amends Regulation 2021/2116 to simplify CAP rules, removing the annual performance clearance procedure, improving data governance, and aligning reporting with Regulation 2021/2115. It also eases conditionality checks, exempting small farmers from certain compliance controls and penalties, making CAP implementation more flexible.</li>
</ul>

Regulation (EU) 2021/2116 repealing Regulation (EU) 1306/2013 on the financing, management and monitoring of the CAP

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Groups  of people who are adversely affected by climate change or the response to it

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Area of the economy in which actors engage in identical or related activities.

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The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

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Either money or something of monetary value is transferred between two or more organisations, people or countries.

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Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

This sector provides communication services, software development, and IT solutions.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

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This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

A financial institution that manages a country's currency and can promote climate-related initiatives through green monetary policy and other means.

Regulation 2021/2116 on the financing, management and monitoring of the common agricultural policy (consolidated text)

Target

Policy instrument

Risk

Greenhouse gas

Economic sector

Adaptation/resilience

Finance