Design principles for result-based, collective and value chain-based environment and climate contract solutions in agriculture and forestry: Learning from 44 case studies across Europe

The European Union promotes the provision of agri-environment-climate public goods (AECPGs) from agriculture and forestry through dedicated policies. Nevertheless, despite long-term efforts and earmarking of significant financial resources for voluntary agri-environmental schemes, the provision of AECPGs from Europe’s agro-ecosystems is continuing to decline. New governance instruments are urgently required to revert this process. Promising new approaches are seen in novel contract solutions promoting result-based payments, collective implementation, and value-chain-based approaches. However, a deeper understanding of the practical design of these novel schemes is needed to achieve acceptance and successful implementation. We systematically examine real-world examples of contract solutions and their design characteristics by analyzing a dataset of 44 case studies from 13 European countries. Data or information from these case studies was collected using a uniform protocol across countries, and a qualitative content analysis was conducted. Our findings show that result-based approaches differ in their design with regard to measuring environmental performance. Successful result-based approaches enable flexible management, include features for knowledge provision, and are often designed as hybrid solutions to enhance uptake, combining action- and result-based elements. Collective contract solutions are based on a common management agreement of the involved group members, but vary in their degree of formalization, often include a coordinator, and foster meetings and exchanges. Value chain-based solutions differ in terms of the relationship between the production of private goods and the provision of AECPGs, their incentive system, value chain characteristics, and marketing, and often comprise an element of cooperation, also representing a hybrid approach. The findings of this research can help shape the design of such alternative approaches and provide inspiration for promoting the voluntary delivery of AECPGs under the Common Agriculture Policy (CAP) and beyond.