Sustainability of the agricultural sector of the Republic of Moldova: public support to combat the effects of climate change

Abstract

The agricultural sector of the Republic of Moldova represents a significant element of the national economy. It has an important contribution to the GDP formation, provision with employment of rural population and ensuring food security. Nevertheless, it faces severe threats as a result of the effects of climate change, which include droughts, late frosts, floods and degradation of soil area. This chapter studies the agricultural sector’s sustainability in the framework of these challenges, emphasizing the role and contribution of public support as a key policy tool for adaptation and mitigation. Based on the analysis of quantitative and qualitative data from the period of 2014–2024, there is provided an overview of the structural aspects of the sector, production trends, foreign trade, and main challenges that it faces, together with the analysis of climate current trends such as increasing temperatures and declining in the quantity of precipitation. The present analysis aims to integrate agricultural, economic and environmental aspects, as well as public policy, through the evaluation of the effectiveness of specific subsidies in the field of promotion of climate resilient practices like irrigation systems, support and anti-hail equipment, organic farming, conservative agriculture and risk insurance. The chapter also reflects the review of the national legal framework on climate change and agricultural sector, including the alignment with EU CAP standards, and presents responsibilities and attributions of institutions in the field. Analysis of subsidy allocations for environmental aspects reveals oscillating, but increasing support for environmental measures. The conclusions express the need for enhanced policy integration and monitoring in order to boost the resilience of the agricultural sector, providing empirical evidence and recommendations to support the development of a sustainable sector in the context of climate effects and vulnerabilities that it causes.