A strengthening of environmental aspects is indispensable to the reform of the Common Agricultural Policy (CAP) for 2014-2020. The Agriculture Commission at the German Federal Environment Agency (KLU) is of the view that, in future, EU agricultural budget funding can only be justified if it is based on the principle of “public funds for public goods”. However, particularly in Pillar 1 of the CAP (direct payments), this principle has not yet been purposely applied. The introduction of a mandatory and effective greening component into Pillar 1 is indispensable to achieving the provision of public goods in return for public funds at a politically realistic level.