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

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

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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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

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

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

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

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

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

This sector involves the wholesale and retail selling of goods.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

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

Actions or measures to adapt terrestrial systems to climate change.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

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.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

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.

Actions to adapt human health, healthcare systems and well-being to climate change.

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.

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

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

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

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

Target

Policy instrument

Risk

Just transition

Greenhouse gas

Economic sector

Adaptation/resilience

Finance