Wines can be red, white and rosé, but rarely “green,” flags EU audit

28 Sep 2023 --- The European Court of Auditors (ECA) has published a report criticizing the EU’s wine policy for failing to meet its environmental and competitiveness objectives. The report found that the EU spent around €500 million (US$529.2 million) per year on improving vineyards without ensuring that the projects positively impacted the climate or market competitiveness.

The auditors also question the rationale and the effects of allowing wine growers to plant additional vines yearly, as it has “never been assessed from an environmental perspective.”

The ECA is calling for a more ambitious and targeted approach to support the EU wine sector, the world’s leading producer, consumer and exporter. According to Innova Market Insights, in 2022 Europe accounted for 58.9% of all global wine sales or €304.7 billion (US$322.7 billion).

“Fostering the competitiveness of the wine sector is essential and particularly relevant for the EU, but it should go hand in hand with improved environmental sustainability,” says Joëlle Elvinger, the ECA member who led the audit. “The least we can say is that, in either objective, EU action still has to deliver.”

“In the EU, wines can be red, white and rosé, but the way they are grown is rarely ‘green.’ The auditors lament the fact that, despite the large amount of funding involved, the EU’s wine policy has done little for the environment.”

Elvinger notes that the court of auditors has two recommendations: to target the area allowed for planting, the so-called restructuring, and to “increase environmental ambition.”

Lack of ambition?
The auditors highlight that the “outlook is not much brighter,” underlining that the new Common Agricultural Policy (CAP), the environmental ambition for the wine sector “remains limited.”

Europeans are the biggest buyers of wine, accounting for 58.9% of all global wine sales in 2022.Elvinger highlights that farmers around the EU will have to use only a minimum of 5% of the received money on actions linked to climate change.

“The auditors find this figure of 5% rather low, given that, under a greener CAP, 40% of all agriculture expenditure is expected to target climate-related objectives,” she says.

Senseless expansion?
The auditors underscore how the restructuring measure, which allows wine planted area to grow 1% per year, shows little consideration for green goals.

“In practice, EU money has not been channeled to projects to reduce the impact of wine growing on the climate and/or the environment,” says the report. 

“Indeed, it could even have the opposite effect, such as switching to grape varieties that need more water. Similarly, the 1% annual increase in vineyard areas, which was extended by an additional 15 years (until 2045), has never been assessed from an environmental perspective.”

Food Ingredients First asked the auditors what will happen now that additional planting is allowed, particularly when countries like France are paying €200 million (US$211.8 million) to farmers to destroy their wine surpluses – and the own EU has a €160 million fund (US$169.4 million) for wine destruction.

“Decisions that winemakers take now will have effects in the very long term. A vineyard you plant now will be productive in three years and will keep producing in the next 20 to 50 years, or even more,” says Els Brems, ECA auditor.

“The [French] situation was a remnant of too much planting in the past and overproduction,” she adds.

“In the EU, planting was forbidden for some years, but now expansion is allowed. It is to observe what will happen in certain areas closely to avoid overproduction.”The report highlights that money has not been effectively targeted toward improving the sustainability of vineyards.

Compatibilizing competitiveness with sustainability
Elvinger says winemakers can boost their profits while being more environmentally friendly.  

“Both objects can be interlinked; environmental care is valued by wine consumers and there will be room to increase competitiveness by targeting a more environmentally conscious audience,” she explains.  

In the same manner, “a competitive winegrower will have more flexibility to switch to more environmental practices,” Elvinger notes.

Elvinger also clarifies that the ECA is not “calling for less money for winegrowers, but for better targeting of the measure and the scheme toward the competitive and environmental sustainability objectives.”

She says that in the future, EU countries could prioritize funds to those farmers who better justify their needs and explain how they will make their crops more sustainable.

By Marc Cervera