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This 2012 report by the Stockholm Environment Institute analyzes the implementation of the European Union's Common Agricultural Policy (CAP) within the Baltic Sea Region (BSR) during the 2007-2013 period. It examines the challenges of integrating agricultural productivity with environmental boundary conditions, such as nutrient reduction and biodiversity conservation. The report argues that the diversity of farming systems in the BSR should be an asset and recommends that post-2013 CAP reforms shift toward treating environmental services as a core value of farming rather than a precondition for payment, while introducing 'soft measures' to improve transboundary cooperation and stakeholder engagement.