Adequacy And Accuracy Of Payment Calculation For Cap Eco-Schemes

Based on experience from the danish preparation of cap strategic plans under regulation (eu) 2021/2115, this paper reviews the role of the functionally independent body that has to perform fair, equitable and verifiable payment calculation in advance of commitment or eco-scheme implementation for the 2023-2027 cap.

The payment calculations should be made on the basis of additional costs and income foregone (article 82), but also taking into account the target set for the commitment (article 70) or for the eco-scheme (article 31).

The paper reviews the different selected approaches to payment calculations of selected eco-schemes from the danish cap strategic plan and the difficulties with reaching adequacy and accuracy in the light of asymmetric information.

Key words: Payments schemes for environmental services, Asymmetric information, Payment calculations, CAP Strategic Plans, Eco-schemes, Commitments