Sustainable technological innovations in agriculture: Financial challenges and investment priorities under the European Green Deal

Abstract

This study explores the important financial challenges faced by Spanish agricultural and livestock companies to meet stringent environmental regulations without compromising their competitiveness. Using a Delphi method integrated with a systematic literature review, the research identifies key sustainable technological innovations (STIs) that require significant financial investment. Priority STIs include renewable energy sources, water use efficiency, by-product management, alternative fertilizers, and digital technologies, among others, each of which plays a key role in mitigating environmental impacts and aligning with overarching European sustainability frameworks, notably the European Green Deal and the 2030 Agenda for Sustainable Development. The findings support the formulation of specific policy recommendations aimed at overcoming the financial constraints that hinder the adoption of STIs. These include designing progressive financing schemes, launching green credit lines with subsidized interest rates, and increasing agri-environmental subsidies linked to STIs adoption. Furthermore, the study advocates the expansion of public-private investment frameworks and the establishment of technical advisory services to support producers in the selection, integration and implementation of appropriate technologies. These measures are essential to reduce economic barriers and accelerate the sector's technological transition to greater environmental and economic resilience.