Introduction

Agriculture faces a challenging and distinct problem as a consequence of climate change. First, agriculture is especially vulnerable because it depends heavily on weather and climate. Higher temperatures, more unpredictable rainfall, invasive pests, and increased extreme weather events are already detrimental to the industry, and these effects will worsen as climate change progresses. In addition, agriculture itself is a significant contributor to global greenhouse gas emissions (GHG), both directly (through emissions from production on farms) and indirectly (through changes in land use brought on by agricultural expansion). Agriculture, Forestry, and Other Land Use (AFOLU) accounts for around one-fifth (22%) of all global anthropogenic greenhouse gas emissions. Farms’ methane and nitrous oxide emissions account for 50% of this; the remaining 50% comes from Land Use, Land-Use Change, and Forestry (LULUCF)-related CO2 emissions (Verschuuren, 2022). Methane reduction is crucial for stabilizing climate change by the middle of the century because it has an exceptionally high short-term impact on temperatures. Agriculture will continue to produce more emissions if nothing is done, and as other industries decarbonize, the sector’s percentage of overall emissions could rise.

However, agriculture has many chances to lower direct and indirect emissions. Furthermore, via carbon storage in biomass and soils, agriculture provides natural methods for removing CO2 from the environment. Additionally, productivity-boosting strategies can be used to accomplish this. According to OECD research, the industry could contribute to mitigation at a pace of 8 Gt CO2eq/year in 2050, equivalent to two-thirds of current AFOLU emissions, with a complete policy package combining global emissions taxes and carbon sequestration subsidies (Heyl et al., 2021). Deforestation and other emissions related to land-use change would account for 62% of this total, while soil carbon sequestration would account for 29% of it (Pe’er et al., 2020).

Even with this potential, agriculture needs to catch up to other industries regarding pledges and activities toward climate change. Only 16 OECD member nations and significant emerging market economies had established objectives for reducing emissions in the agricultural sector by the middle of 2022. Only a few nations utilize targeted subsidies to encourage mitigation, and agriculture is typically excluded from mitigation policies like carbon prices or similar restrictions. Even though agriculture receives much policy assistance, very little fosters innovation or aligns with climate change goals.

The shift to more resilient and sustainable agriculture is hampered in particular by the fall in the share of support for general services, which includes agricultural knowledge and innovation systems and infrastructure, over the past two decades, from 16% to 13% (Dupraz & Guyomard, 2019). Many nations’ current subsidies for agricultural output can raise their GHG emissions significantly. Although OECD countries are paying increasing attention to adaptation, existing plans focus primarily on short- and medium-term solutions than on building the transformative ability required to adjust to significant and ongoing environmental changes.

Responding to the above conditions, the European Union (EU), in the context of the new Common Agricultural Policy (CAP), which is into effect in 2023, aims to foster an agricultural industry that is competitive, resilient, and able to support farmers’ livelihoods while also supplying society with wholesome, resilient food and vibrant rural communities. The European Green Deal is centred on agriculture and rural areas, and the new CAP aims to be a crucial tool in achieving the Farm to Fork and biodiversity targets. According to the document “2030 Digital Compass: The European Way for the Digital Decade”, digital technology has the potential to significantly contribute to the achievement of the European Green Deal’s objectives because the adoption of digital technologies and data will support the transition to a climate-neutral, circular, and resilient economy (Doukas et al., 2022).

The EU has also committed to new international agreements, such as the UN-Paris Agreement, dealing with climate change and sustainable development concerns. The Paris Agreement builds on the UN Framework Convention on Climate Change (UNFCCC) by bringing all nations together in the fight to effectively reduce greenhouse gas emissions and strengthen national capacities to build resilience and respond to the effects of climate change, including by ensuring that developing countries receive adequate assistance (UN, 2021).

In this chapter, the issues related to the interconnection of the agricultural sector with climate change will be examined, and the joint efforts for the climate goals at the global level will be described. Lastly, the role of research and innovation (R&I) in the agricultural sector in achieving them will be highlighted, especially in the context of the EU and the new CAP.

As it can be observed in Fig. 1, the new CAP is organized around ten key objectives for the years 2023–2027. These objectives, emphasizing social, environmental, and economic concerns, served as the blueprint for how EU nations constructed their CAP Strategic Plans. It is worth mentioning that climate change action, environmental care, and the preservation of landscapes and biodiversity are included as top priorities for the next years, along with the fostering of knowledge and innovation.

Fig. 1
A diagram lists the 10 C A P objectives. Food value, climate, environmental care, landscapes, generational renewal, rural areas, food and health, knowledge and innovation, fair income, and competitiveness.

Key policy objectives of the CAP. (Source: European Commission, n.d.)

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Climate Change Effects on Agriculture

Due to its enormous scale and sensitivity to weather conditions, which have significant economic effects, agriculture is the most vulnerable to climate change. Variations in climatic events like temperature and rainfall substantially impact the production of crops. The impact of changing precipitation patterns, rising temperatures, and CO2 fertilization differs depending on the crop, the area, and the degree of parameter change. It has been discovered that rising temperatures decrease yield; however, rising precipitation is likely to cancel out or lessen the effects of rising temperatures (Adams et al., 1998). As seen in Iran under climatic variables, crop productivity is influenced by crop type, climate scenario, and CO2 fertilization effect (Karimi et al., 2018). In Cameroon, it has been discovered that a drop in precipitation or a temperature rise dramatically reduces farmers’ net income. The low demand for Cameroon’s agricultural exports due to this problem and bad policymaking has caused volatility in national income. The impact of climate change on agriculture output varies by region and irrigation method. Expansion of irrigated regions can boost crop production but can harm the ecosystem. By shortening their growing seasons, many crops will probably produce less. If both the temperate and tropical regions experience a rise of 2 °C, the total yield of wheat, rice, and maize is anticipated to decline (Challinor et al., 2014). Tropical regions are more affected by climate change overall because tropical crops are still closer to their high-temperature optimums and are, therefore, more susceptible to high-temperature stress during high temperatures.

Additionally, humid and warm environments are more likely to have insect pests and diseases. Other factors affecting agricultural yields include humidity, wind speed, temperature, and rainfall. Without considering these factors, it is possible to overestimate the cost of climate change. Since the turn of the century, extreme weather events have increased in frequency in the Netherlands, substantially impacting wheat yield. The severity of the yield drop in wheat was determined by the week an extreme weather event occurred (Powell & Reinhard, 2016). In most of the world’s areas, it has been predicted that there will be more droughts shortly due to climate change and that by 2100, the area impacted by droughts will have increased from 15.4 to 44.0%. The region is considered to be the most vulnerable in Africa. Significant crop yields in drought-affected areas are predicted to decline by more than 50% by 2050 and nearly 90% by 2100 (Verschuuren, 2022). Crop yield declines can drive food costs and severely impact agriculture’s well-being globally, with a 0.3% annual loss in potential global GDP by 2100 (Wreford et al., 2010). The agriculture industry in India may suffer due to the expected rise in temperature in the range of 2.33 °C to 4.78 °C, doubling of CO2 concentration, and lengthening of heat waves (OECD, 2019). The average crop yield in sub-Saharan Africa is predicted to decline by 6–24% due to climate change. Additionally, it is anticipated that Solomon Islands’ overall fish demand will outpace fish output by 2050, significantly impacting food security as per-capita consumption will decline (OECD, 2022).

Agriculture’s Impact on Climate Change

After the energy sector, the AFOLU sector is the second-largest emitter of GHGs globally, and the AFOLU accounts for 18% of GHG emissions in 2019 (Aguirre-Villegas & Craig, 2022). This is different in the EU, partly because there is not any deforestation, which in other regions of the world is frequently linked to agriculture (Fig. 2).

Fig. 2
A chart includes the following major categories with values. Energy, 73%. A F O L U, 18%. Industrial, 5%. Waste, 3%. The categories of waste include energy in industry, energy in buildings, and transport. The categories of industrial includes 3% of cement and 2% of chemical.

Global GHG emissions by sector, where AFOLU is Agriculture, Forestry, and Other Land Use. (Source: Aguirre-Villegas & Craig, 2022)

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A decline in cattle numbers brought on by changes in agricultural practices in Eastern Europe changes to the Common Agricultural Policy (CAP), and the effects of policies enacted following the EU Nitrates Directive were the leading causes of the initial 20% decrease in agricultural emissions, which were primarily methane and nitrous oxide emissions (Clark et al., 2020). However, emissions have significantly increased since 2014. Around 435 million metric tonnes of carbon dioxide (CO2) equivalent was emitted in 2018, making up around 10% of all GHG emissions in the EU (Le Quéré et al., 2020). Approximately 70% of these come from cattle, 10 with the majority being enteric fermentation-related methane emissions, which account for 37% of all agricultural GHG emissions (Guerrero et al., 2022). Without any policy change, emissions are anticipated to stay in this range. To fulfill the EU’s 2030 mitigation objective, it has been calculated that agricultural emissions must decrease by 25% by 2030 compared to 2015 (Huang, 2014). Reducing emissions from livestock, improving carbon storage (in agricultural soils and plants on fields), and restoring and managing peatlands are all ways to accomplish this.

It is worth mentioning that 9.3 billion tonnes of carbon dioxide equivalent of emissions connected to agriculture and related land use were produced globally in 2018. More than half of this total (5.3 Gt CO2 eq) was produced by crop and animal activities within the farm gate, with land use and land-use change activities accounting for roughly 4 Gt CO2 eq (Jenkins et al., 2018). In 2000, these parts were 4.6 and 5.0 Gt CO2 eq, respectively. Emissions from the farm gate and land usage climbed during the 2000s, and trends in these two components started to diverge. Over the whole period of 2000–2018, emissions from agricultural and animal activities increased and were 14% higher in 2018 than they were in 2000 (Lynch et al., 2021). On the other hand, emissions from land use and land-use change declined across the study period, in line with trends in the amount of deforestation that were seen. As a result, the total agricultural emissions at the farm gate and on the field were around 4% lower in 2018 than in 2000 (EEA, 2022). In 2018, 17 percent of worldwide GHG emissions came from agriculture and related land use, down from 24 percent in the 2000s (EEA, 2022). This decline in emissions in 2018 resulted from the noted minor decrease in absolute emissions and the emissions from other economic sectors expanding at comparatively quicker rates between 2000 and 2018.

Global Response to Climate Change

Every part of the world is impacted by climate change. Sea levels are rising due to the melting of the polar ice caps. In certain areas, catastrophic weather events and flooding are growing more frequent, while high heat waves and droughts are getting more frequent in others. The official United Nations (UN) measures show that the average global temperature increased by 0.85 °C between 1880 and 2012. So, grain yields are decreased by about 5% for every degree the temperature rises. Corn, wheat, and other significant crops suffered significant output losses of up to 40 megatons per year between 1981 and 2002 due to a warmer environment. As seas grew owing to warming and glaciers melted, the average sea level rose globally between 1901 and 2010 by 19 cm. Global carbon dioxide (CO2) emissions have increased by over 50% since 1990. Between 2000 and 2010, emissions rose more quickly than they had throughout the previous three decades. It will be more likely that global warming will not progress to this point if significant structural and technological reforms are made (UN, 2021).

The 2030 Agenda for Sustainable Development, which the EU28 and all other UN members endorsed in 2015, provides a shared framework for peace and prosperity for individuals and the global community. The 17 Sustainable Development Goals (SDGs) are at the core. Each goal typically has between 8 and 12 targets, and each target has 1–4 metrics that are used to monitor progress toward the goals. The objectives are either “outcome” targets (intended results) or “means of implementation” targets (UN, 2021). According to the Intergovernmental Panel on Climate Change (IPCC) in their 2018 Climate Report, limiting global warming to 1.5 degrees Celsius will need swift, extensive, and unmatched advances in all sectors of civilization. In Paragraph 14 of the Agenda, climate change is referred to as “one of the greatest challenges of our time”, with fears that “its negative impacts endanger the willingness of all countries to advance sustainable development”. The aims for Sustainable Development Goal 13 for Climate Change span various climate-related topics. There are a total of five targets. “Output targets” are the first three objectives including building knowledge and capacity to deal with climate change, increasing resilience and adaptive capacity to climate-related disasters, and incorporating climate change measures into policies and plans. Implementing the United Nations Framework Convention on Climate Change and promoting procedures to increase planning and management capacity are the final two objectives, which are “means of achieving” objectives. The leading worldwide intergovernmental platform for discussing the world’s response to climate change is the UNFCCC. By addressing the dangers and possibilities climate change brings, Sustainable Development Goal 13 seeks to improve all nations’ resilience and capacity for adaptation to climate-related hazards and natural disasters.

Global disruptions in human activity and development were brought about by the COVID-19 pandemic in 2020, with some of these changes having a favourable impact on GHG emissions. The use of coal-fired power plants was dramatically decreased, especially in China, due to a 5% decrease in domestic and international energy demand (UN, 2021). The EU27’s proportion of global emissions declined from 16.8% in 1990 to 7.3% in 2021, a decrease of 27.3% from 1990 levels (Crippa et al., 2022). As a result, UNEP supports authorities and investors in funding fiscal stimulus plans and prioritizing green and decent employment. Emissions increased once the world economy recovered from the pandemic. CO2 emissions increased by 5.3% in 2021 compared to 2020, totalling 37.9 Gt CO2, just 0.36% less than in 2019. The top emitters of CO2 worldwide were China, the United States, the EU27, India, Russia, and Japan. Together, they were responsible for 67.8% of the world’s fossil CO2 emissions, 66.4% of its fossil fuel consumption, and 49.2% of the world’s population (UN, 2021). In 2021 compared to 2020, all six significant emitters increased their fossil CO2 emissions, with India and Russia experiencing the most significant percentage increases (10.5% and 8.1%) (Crippa et al., 2022). As stated in the United Nations Framework Convention on Climate Change, nations should fulfill their commitments to fully put into practice the Green Climate Fund, tackle the needs of developing nations in the light of meaningful mitigation actions, and mobilize $100 billion annually from all sources by 2020. Focusing on women, youth, and local, underserved groups help countries promote methods for enhancing the ability of the least developed nations and small island developing states for effective climate change planning and management.

The Paris Agreement builds on the UNFCC 1, bringing all nations together in the fight to quickly reduce greenhouse gas emissions, strengthen national capacities, foster resilience, and respond to the effects of climate change, including by guaranteeing that developing nations receive adequate support. With the early entry into force of the Paris Agreement and the practical introduction of the Katowice Climate Package, the world has reached a new period in its collective efforts to combat climate change, concentrating on urgently growing commitment and implementation at all levels of government, industry, and civil society (UN, 2021).

Most of the worst effects of climate change are too severe and too quickly occurring for adaptation strategies to be effective, which has posed a new problem that has been a significant discussion point during the Paris negotiations. In particular, the Paris Agreement acknowledges the need to address losses and damages of this kind and aims to develop appropriate solutions. According to this statement, loss and destruction can occur in various ways, including rapid effects of severe weather and slow-rise effects, like a land loss at sea for lower islands with serious adverse effects on agricultural production (Climate Focus, 2016).

Although the NDCs of each Party may not be legally binding, the Parties are legally obligated to review their development toward the NDC and find ways to support their goals. In Article 13 of the Paris Accord, which establishes uniform criteria for monitoring, reporting, and verification (MRV), the phrase “enhanced accountability system for action and assistance” is used. As a result, both rich and developing countries must submit reports on their mitigation efforts every 2 years and be subject to technical and peer evaluation (Climate Focus, 2016). The Agreement recognizes the various circumstances of various countries and declares that competent expert evaluations appreciate the distinctive reporting capacities of each nation (Asselt, 2018). Accordingly, at the 2015 Paris Conference, when the Agreement was considered and determined to mobilize $100 billion in climate finance by 2025, the less developed countries reaffirmed their promises to mobilize $100 billion annually on climate financing by 2020. The money will be used to promote development mitigation and adaptation. The UNFCCC Green Climate Fund and several other public and private initiatives are funded using this money. The Paris Agreement requires a new lease of $100 trillion annually to be agreed upon through 2025 (Roberts et al., 2021). Parties at the UN Climate Change Conference (COP27), which concluded in Egypt on 2022, agreed that limiting global warming to 1.5 C required rapid, deep, and persistent reductions in global greenhouse gas emissions, with a 43 percent reduction by 2030 relative to the 2019 level. They underlined the need from the Glasgow Climate Pact for nationally determined contributions (NDCs) to be adjusted as necessary by the end of 2023 in order to align with the Paris Agreement temperature objective. Additionally, they reaffirmed that a new mitigation work programme will be guided by the Glasgow Climate Pact in order to urge Parties to align their goals and activities in the direction of net zero (Doukas & Petides, 2021). The Paris Agreement is a legally binding agreement that, as opposed to the Kyoto Protocol and the Copenhagen Accord, draws all countries collectively for the first time in the multilateral climate change process to carry out bold steps to tackle and accommodate climate change. The Paris Convention affirms that despite allowing initial volunteer contributions from other Parties, wealthy countries should take the lead in providing financial assistance to less compliant and needy nations. Because significant emissions reductions demand large-scale investments, mitigation necessitates climate financing. Since significant financial resources are needed to adapt to the harmful effects and lessen the effects of climate change, climate finance is also essential for adaptation. Nations fashioned a more open system with the Paris Agreement (ETF). In 2024, nations will provide transparent reports on their actions, their progress, and the support they have received or provided under the ETF. Additionally, it specifies global guidelines for examining articles that have been submitted (UN, 2021).

Despite the COVID-19 pandemic’s marginally positive effects on pollution reduction, SDG 13 still has several obstacles to overcome. According to the 2022 report on CO2 emissions of all world countries, compiled by the JRC, the International Energy Agency (IEA), and the Netherlands Environmental Assessment Agency, global fossil CO2 emissions rose by 5.3% in 2021 compared to 2020, approaching pre-pandemic 2019 levels (Crippa et al., 2022). Unless an emphasis is given on green agreements when transferring monetary money, financing economic policy would likely redirect emergency funds often devoted to environment funding, such as the Green Climate Fund and environmental policies. As government lockout measures are loosened, transportation emissions are expected to rise. Also, nations which experienced a decrease in their productivity levels tend to restrict compliance with environmental standards. Furthermore, the COP27 – held in Sharm El-Sheikh, Egypt, in November 2022 – failed to progress on commitments or prove that nations are willing to take significant action to reduce global emissions (World Economic Forum, 2022). Therefore, the world could not keep the global temperature increase below 1.5 degrees Celsius, a temperature goal set in the Paris Agreement.

SDGs (13) calls for “urgent action to tackle climate change and its impacts” because it is universally acknowledged as a threat that defines our time. 70% of studies on the effects of climate change predict declining crop yields by 2030, with half of those studies predicting decreases of between 10% and 50%. Climate change already impacts food systems, and agriculture is one of the most severely impacted industries. About 25% of global annual GHG emissions are caused by agriculture and related land-use shift. It would be necessary to significantly reduce emissions in the food systems if the global warming goal were not realized. As a result, many adaptation and mitigation measures in the food systems would be required to achieve SDG 13. The fact that food systems are linked to several SDGs and that food system behaviour may result in trade-offs across SDGs is a significant problem, with trade-offs being more challenging in developing nations where climate change vulnerability is highest (Doukas & Petides, 2021). The food system must change significantly to meet SDG 13 and UNFCCC commitments. However, this change must consider the possibility of trade-offs between other SDGs, such as adaptation and mitigation. The difficulties are so great that a complete revolution in food systems is required, with specific behaviour determined by context. There are various ways in which food systems are evolving. However, many academics contend that the shift needs to be considerably more significant for food security, climate change mitigation, and environmental sustainability in the coming years. The Food and Agricultural Organization (FAO) is additionally helping countries adapt to and mitigate the effects of climate change by creating national climate plans and putting into action research-based programmes and initiatives, focusing on smallholder agriculture and strengthening the livelihoods of rural communities (FAO, 2019).

Research and Innovation in the Agricultural Sector: Benefits and Risks

In times of successive economic, geopolitical, health, and climate crises, exploring the extent to which research and technology can be significant parameters in initiating a sustainable development process is essential. The role that agriculture, and more broadly the rural space, can play in this effort is worthy of investigation, given the vital need to produce sufficient, safe food to feed the world’s population. The concept of sustainable agriculture has gained a central position in the public debate to mitigate climate change effects, among others, and new technologies are called upon to provide solutions that allow the achievement of purely economic goals (food sufficiency, productivity, and efficiency) on the one hand but also relating to the safeguarding of public health, environmental and climate protection, and social cohesion (Doukas & Maravegias, 2021; Labrianidis et al., 2005).

At the same time, it is worth noting that, throughout the agro-food chain, the human factor plays an equally important role, either from the producer’s or the consumer’s side. In particular, the farmer-producer tries to respond to the rapid changes taking place in the agricultural society but also in the markets of agricultural products and at the same time to fulfill his multiple roles as a producer of healthy and safe food products, a modern entrepreneur, and a central factor in the development of the rural space (Maravegias & Doukas, 2011). Therefore, the farmer should respond by increasing productivity, improving the quality of the produced product, and responding immediately to the demands of the market – by introducing new products into the production process, demonstrating adaptability but also the ability to immediately integrate new processes into the agricultural production (Siardos & Koutsouris, 2004).

Also, R&I in the agricultural sector is constantly intensifying and includes a wide range of applications in biotechnology, digital information technology, communications, production of new products, use of new inputs, and organic agriculture. These developments significantly affect agricultural production, as they play a decisive role in forming modern methods in agro-food sector and their subsequent effectiveness (Doukas & Maravegias, 2021).

By the nature of the agricultural process, technology applications are carried out locally, yet the production of these applications is highly internationalized and primarily concentrated in private companies (Schimmelpfennin & Τhirtle, 1999). Therefore, the involvement of multinational corporations, organizations, and their subsidiaries is crucial in transferring and disseminating know-how. As mentioned, the local character (climate and physical factors) dominates agricultural production. So, their local subsidiaries produce research work to adapt these products to the needs of local production and the particular requirements of technology demand, as they are formed at a local level. As a result, every aspect of contemporary agriculture technology and information dissemination is currently being actively pursued by global corporations. It might cover everything from mechanical machinery breakthroughs to new propagation materials for producing plants and animals. Utilizing contemporary agricultural technologies requires farmers to have high professional training (Apostolopoulos, 2004; Doukas & Maravegias, 2021).

Developing new organizational structures to combine the various factors in the production process through the integrated management of agricultural holdings is an essential outcome of agricultural R&I, based mainly on digital applications. Integrated management includes the best possible utilization of agronomic data in production, with weather sensors, drones, and GPS, to name a few. Also, economic and agricultural research shows that participatory production to achieve economies of scale by sharing high-cost fixed capital equipment contributes to better income outcomes. At the same time, environmental and climate goals are ensured, through the more efficient use of production factors and the subsequent reduction of greenhouse emissions.

On the other hand, modern trends in R&I and technology have brought to the fore issues that are the subject of intense reflection, such as the benefits and risks deriving from the use of genetically modified organisms, food safety issues, and environmental effects from the implementation of new production processes and methods, whose effects on the ecosystems cannot be immediately seen, nor can they be accurately predicted, significantly when the level of education of the farmers does not contribute to the evaluation, from their side, of the above critical issues (Doukas, 2018). Additionally, the modern organizational systems of the agro-food chain, which prioritize consumers’ “needs and wants” while also intending to protect the environment, are characterized mainly by structures of monopolistic competition and market power concentration and require significant cutting-edge applications in the supply chain, which not all farmers can support based on their economic position. Thus, agriculture of different speeds is created worldwide and the economic inequalities between the participants in the global food systems widen.

Research and Innovation: The EU Context

Within the EU, the objectives of the new CAP for the period 2023–2027 include ensuring a fair income for farmers, action on climate change, encouraging generational renewal, increasing competitiveness, protecting the environment, developing dynamic rural areas, balancing power in the food chain, preservation of landscapes and biodiversity, protection of health, and food quality (EC, 2018a, b, 2020). Particular importance is given to “Green Architecture” or “Green Deal” for the agricultural sector’s environmentally sustainable development. They also agreed that 30% of total EU Budget spending, including the COVID-19 Recovery Fund (Next Generation EU), should contribute to climate goals. In this direction, it was decided that 40% of the expenditure of the new CAP should be committed to achieving the above objectives (EC, 2020).

Based on the above, there are many challenges to which the new CAP must respond in the coming years. The most important ones include the economic strength and sustainability of the agricultural sector, ensuring the proper management of the natural environment, actions to tackle climate change, creating a solid and cohesive economic and social fabric in the EU’s rural areas, and exploiting emerging opportunities for action in the fields of global trade, bioeconomy, renewable energy, and the digital economy (Maravegias et al., 2023). Incentives are also given for developing “smart” applications (precision agriculture, improvement of broadband connections) and developing a pan-European risk management platform. Finally, the strategic plan of each member-state should necessarily include actions for exchanging knowledge and innovation, a commitment that requires the modernization of the respective state services (Doukas, 2019).

On the world map of the production of know-how and innovations in the agricultural sector, the EU has been developing intense activity over the last three decades (e.g. the Horizon programme), while for the education and training of farmers, it has significant resources. Through various research programmes, particular emphasis is placed on food safety, animal health, and the environmental impact of agriculture, and at the same time, a strict policy of exclusion from the European internal market of genetically modified products is practised (Doukas & Maravegias, 2021). In addition, education, training, research, technology, and innovation actions with applications in the agricultural economy and rural development are financed mainly through the European Agricultural Fund for Rural Development (EAFRD) of the CAP. Also, research and technology issues are in an even more central position in the Commission’s new proposals for the CAP concerning the period 2021–2027 (Doukas, 2019).

Also, the EU funds research initiatives that involve both public and private sector organizations and have a global scope. The relationship between research and professional education is also encouraged, and cooperation between productive and academic organizations is strengthened. The funding of the initiatives mentioned above is typically anticipated, with sums up to 10 billion euros within the framework of the Horizon programme (EC, 2018b). However, there is a delay in adopting new technology by farmer-producers in the agricultural sector since they need to become more familiar with innovations and new production systems due to their lack of agricultural education. Large groups of farmers experience erosion in their ability to compete and a squeeze in their income.

The established institutional framework and incentives offered for environmentally friendly agricultural practices and the adoption of animal welfare and euthanasia practices, both in the EU and internationally, are redefining the orientation of agricultural production and, to some extent, determining the direction of technological advancements in the agricultural sector. Therefore, with the primary goal of preserving natural resources and protecting the environment, the use of less-polluting procedures and methods, integrated systems for the utilization of agricultural waste, and recycling of valuable materials direct agricultural production toward products for niche markets, such as organic products and goods for energy purposes, and require, in several cases, new technological applications.

As mentioned above, climate change has brought significant disruption in primary crops; it is expected that technology applications and digitization of the agro-food sector will lead to the most efficient use of depleting natural resources with the lowest possible environmental footprint. So, to hasten the transition from primary production to consumption of sustainable, wholesome, and inclusive food systems, the Farm to Fork Strategy – the central pillar of the new CAP – acknowledges that R&I is essential driver. R&I may help with the creation and testing of solutions, the removal of barriers, and the identification of new market opportunities. The European Innovation Partnership’s Agricultural Productivity and Sustainability (EIP-AGRI) will play a more significant part in the strategic plans of the member states to promote innovation and knowledge transfer. The Commission plans to work with the member states on this. The European Regional Development Fund will also contribute to the collaboration and innovation of the food value chain through smart specialization (Doukas et al., 2022).

They can also contribute to the sustainability of agricultural systems from an economic, social, and environmental point of view compatible with the EU’s Green Deal and the Farm to Fork Strategy objectives to secure climate goals, the maintenance of biodiversity, and the European echo systems (EC, 2019). Such technologies can optimize all types of agriculture, facilitate better decision-making, and reshape the functioning of agricultural markets throughout the food chain, and are in line with the EU Commission’s recognition that since the so-called twin transitions to a green and digital Europe continue to be the generation’s defining issues, the CAP must be at the forefront of the shift to more sustainable and climate-neutral agriculture (Doukas et al., 2022).

Conclusions

In the threatening context of climate change, agriculture is in a complex and distinct circumstance as it is particularly vulnerable due to its reliance on weather and climate. As it was illustrated in this chapter, the effects of climate change on the industry are already adverse and will worsen as it progresses. These effects include rising temperatures, unpredictable rainfall, invasive pests, and increased extreme weather events. A considerable portion GHG emissions are also caused by agriculture itself, both directly (through emissions from farm production) and indirectly (through changes in land use brought on by agricultural expansion).

Therefore, investigating the extent to which R&Ι in the agricultural sector can address the above challenges is essential. Various applications in biotechnology, digital information technology, communications, new product development, new inputs, and organic agriculture are areas where agricultural R&I is continually intensifying. These changes substantially impact agricultural output since they are essential to developing contemporary agro-food sector methods and their success.

Nevertheless, there is a need for a digitally skilled workforce to support the modernization process of the agricultural sector. The potential for the spread of digital technology in European agriculture is much greater than in developing countries. However, the needs for digital technology are also more significant as the demands of the consumer and environmental movement in Europe are higher than in other parts of the world. Thus, advanced digital technologies such as artificial intelligence, robotics, and “5G” can improve the efficiency of farms and increase their productivity in the EU.

Due to the nature of the agricultural process, in order to transmit and spread knowledge, international firms, organizations, and their subsidiaries need to be involved. As a result, multinational firms are actively pursuing every facet of modern agriculture technology and information transmission. Due to their differing economic circumstances, not all farmers can sustain the numerous cutting-edge supply chain applications required by such monopolistic competition and market power concentration structures. Therefore, agriculture is developed at different speeds worldwide, and the economic disparities between the participants in the global food systems increase. This poses challenges to the EU and Latin America cooperation and should be addressed in the political dialogue between the EU, CELAC, and other Latin American regional organizations.

In the EU framework, “Green Architecture” is given a particular position for the agricultural sector’s sustainable development in promoting the transition to a climate-neutral, circular, resilient rural economy. At the same time, the EU has also committed to new international agreements, such as the UN-Paris Agreement, dealing with climate change and sustainable development concerns. The Farm to Fork Strategy, which provides the core of the new CAP, recognizes that (R&I) constitutes an essential driver. Developing and testing solutions, removing obstacles, and discovering new market opportunities may all be aided through R&I. In order to effectively address the problems posed by climate change, the European Innovation Partnership’s Agricultural Productivity and Sustainability (EIP-AGRI) is supposed to play a more significant part in the member states’ strategic plans.