Explanatory Memorandum to COM(2020)483 - Amendment of Regulation (EU) 2018/848 on organic production as regards its date of application and certain other dates referred to in that Regulation

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

Regulation (EU) 2018/848 of the European Parliament and of the Council, adopted on 30 May 2018, establishes a new regulatory framework to ensure the smooth functioning of the internal market as regards organic production, with the aim of developing further an overall system of farm management and food production that combines best environmental and climate action practices, a high level of biodiversity, the preservation of natural resources and the application of high animal welfare standards and high production standards in line with the demand of a growing number of consumers for products using natural substances and processes. Organic production thus plays a dual societal role, where, on the one hand, it provides for a specific market responding to consumer demand for organic products, and, on the other hand, it delivers publicly available goods that contribute to the protection of the environment and animal welfare, as well as to rural development.


The recent adoption of the Farm to Fork Strategy 1 identifies organic production as one of the ways to meet the requirements to create a sustainable food system. The Biodiversity strategy, acknowledges the role of organic production in preserving biodiversity on the European territory. A solid, consensual regulatory framework for the next 10 years, is therefore key for achieving the objective of 25% of agricultural land dedicated to organic farming and a significant increase in organic aquaculture by 2030, stated objectives in the Farm to Fork and Biodiversity Strategies.


https://ec.europa.eu/food/sites/food/files/safety/docs/f2f_action-plan_2020_strategy-info_en.pdf


The outbreak of the COVID-19 pandemic and the related public health crisis presents an unprecedented challenge to the Member States and puts a heavy burden on national authorities and organic operators. The outbreak of the COVID-19 pandemic has also created extraordinary circumstances that demand a substantial adaptation of the organic sector in terms of production, marketing, controls and international trade that could not reasonably have been anticipated at the time of adoption of Regulation (EU) 2018/848.


Those extraordinary circumstances have a significant impact on various areas covered by Regulation (EU) 2018/848, and therefore it is very likely that Member States and organic operators will not be ready to ensure the proper implementation and application of that Regulation from 1 January 2021.


In order to ensure the smooth functioning of the internal market, to provide legal certainty to all organic operators, and to avoid potential market disruption, it is necessary to defer the date of application of certain provisions of Regulation (EU) 2018/848 by one year.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The proposal is based on Article 43(2) of the Treaty on the Functioning of the European Union (TFEU).

Subsidiarity

According to the principle of subsidiarity, Union action may only be taken if the envisaged aims cannot be achieved by Member States alone. Union intervention is required to ensure the smooth functioning of the internal market as regards organic production and avoid potential market disruption. In this regard, the legislation, that is being amended, is adopted in full compliance with the principle of subsidiarity and any amendment thereto must be made through a Commission proposal.

Proportionality

This Union action is necessary to achieve the objective of the proper implementation and application of Regulation (EU) 2018/848 and the relevant secondary legislation by all involved parties, taking into account the magnitude of the COVID-19 pandemic and the consequences on the organic sector of the public health crisis in terms of production, controls and trade. The proposed amendments aim to ensure that the intended purpose of Regulation (EU) 2018/848, that is to establish a framework for organic production, with the goal of developing further an overall system of farm management and food production that combines best environmental and climate action practices, a high level of biodiversity, the preservation of natural resources and the application of high animal welfare standards and high production standards in line with the demand of a growing number of consumers for products using natural substances and processes, is achieved.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

This proposal is not accompanied by a separate impact assessment, as this proposal does not alter Regulation (EU) 2018/848 on substance and does not impose new obligations on the concerned parties. It aims at providing, for exceptional reasons in the context of the COVID-19 pandemic, a one-year deferral as regards the date of application of that Regulation and certain other dates referred to in that Regulation that are derived from that date.

4. BUDGETARY IMPLICATIONS

The proposal does not have a budgetary impact for the EU institutions.