EU project Contracts2.0 explained

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Contracts2.0 works on contractual solutions which provide the right incentives to farmers and land managers to produce more environmental public goods, but also allow them to reconcile the profitability of their farms with sustainability objectives. This is even more important, as many farmers are currently struggling to maintain the economic viability of their farms, facing serious trade-offs between short-term profitability and sustainable production. To reduce trade-offs, improved contract-based approaches are urgently needed which provide tangible support to farmers through additional public and private incentives to produce a mix of private and public goods that better reflects society’s preferences. The main objective of Contracts2.0 is to develop novel contract-based approaches to incentivise farmers for the increased provision of environmental public goods along with private goods.

In this video the background and approach of Contracts2.0 is explained in more detail.