Strategies for Mitigating Climate Change in AgricultureRecommendations for Philanthropy

INTRODUCTION

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Goal and Approach of the Project

Goal• Give strategic advice to the Climate and Land Use

Alliance (CLUA) on grant making to catalyze work on GHG emission reductions from the agricultural sector globally.

• Climate Focus and California Environment Associates (CEA) have produced an analysis of the international opportunities for agricultural GHG mitigation and the potential role for philanthropy within the context of existing or planned activities.

 

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Consulted people for the project

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TECHNICAL AND STRATEGIC ADVISORY PANELBarbara Bramble, National Wildlife Federation Bruce Campbell, CCAFSTony Cavalieri, Gates FoundationAchim Dobermann, International Rice Research Institute Mario Herrero, CSIROJon Hillier, University of AberdeenLeslie Lipper, FAORicardo Meléndez-Ortiz, ICSDTDavid McLaughlin, WWFMichael Obersteiner, IIASAMarc Sadler, The World BankPhilip Thornton, CCAFSJan Kees Vis, UnileverPaul West, University of MinnesotaLini Wollenberg, CCAFS

PEER REVIEWERS OF INDIVIDUAL SECTIONS, RECOMMENDATIONS, AND ANALYSESDavid Blandford, Pennsylvania State UniversityRobert Boddey, EMBRAPALeonardo Fleck, Moore FoundationManget Garg, National Dairy Development Board, IndiaPierre Gerber, FAODana Gunders, NRDCKarin Kaechele, The World BankPromode Kant, Institute of Green EconomyErmias Kebreab, University of California, DavisOdin Knudsen, Real Options International Brian Lipinski, WRIPeggy Neu, Meatless MondaysMarina Piatto, ImafloraDebbie Reed, Coalition on Agricultural Greenhouse GasesPeter Riggs, Pivot PointBjoern Ole Sander, IRRITim Searchinger, WRITimm Tennigkeit, UNIQUE Forestry and Land use Nathalie Walker, National Wildlife FederationReiner Wassmann, IRRIAndreas Wilkes, Values for Development UK

AGRICULTURAL GHG EMISSIONS

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Greenhouse gas emissions from agricultural production and food supply chains total ~20% of emissions

6Sources: FAOStat, EDGAR 4.2, FRA 2012, Harris 2012, Vermeulen 2012, and others.

Global agriculture and land use change emissions

Sources of direct emissions from agriculture

7Source: FAOStat data from 2010 (accessed 2013)

Sources of emissions %

Enteric fermentation Ruminants (e.g., cattle, sheep, goats, water buffalo) emit CH4 directly as a byproduct of digestion.

43%

Manure deposited on grazing lands Manure and urine that falls on grazing lands causes N2O emissions.

16%

Synthetic fertilizers N2O emissions from soils resulting from large amounts of nitrogen fertilizer added to crops.

15%

Rice production Most rice production systems result in CH4 emissions from anaerobic decomposition on flooded fields. This fraction represents CH4 emissions from rice only. N2O emissions from fertilizers are counted above.

11%

Stored manure Livestock manure and urine cause both CH4 emissions through increased decomposition in wet storage systems, as well as N2O emissions in dry storage systems.

7%

Crop residues Crop residues that remain on agricultural lands are a source of N2O.

3%

Manure deposited on croplands Manure is another source of nitrogen fertilizer for crops, resulting in N2O emissions.

2%

Cultivation of organic soils N2O emitted from drained organic soils.

2%

This report focused almost exclusively on direct agricultural emissions. Bioenergy, reduced deforestation, restoration of degraded lands, and restoration of peatlands were all out of scope.

Direct agricultural emissions are spread across regions and across production sectors

8Source: FAOStat data from 2010 (accessed 2013); area of pie charts scaled to regional emissions.

“Ag soils” includes synthetic fertilizers, manure applied to crops, field application of crop residues, and nitrous oxide from cultivated organic soils.

Beef cattle and other ruminants dominate agricultural emissions

9Source: FAOStat data 2008; Gerber et al. 2013; Paul West, Institute on the Environment, University of Minnesota

Beef, dairy, and other ruminant meat account for roughly two-thirds of direct agricultural emissions. Beef, palm, and soy are the largest agricultural-commodity drivers of land use emissions.

AGRICULTURAL GHG MITIGATION

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Technical agricultural mitigation potential in 2030

11Source: CEA analysis. See Annex 3 in the full report for methodology.

Note: This waterfall implies that all segments are additive. In fact, they are not and this analysis did not model mitigation potential, but rather looked at discrete opportunities statically. 

Mitigation opportunities by country

12Source: CEA analysis. See Annex 3 in the full report for methodology.

Mitigation opportunities are clustered primarily in the major agricultural economies.

Agricultural cost curves all have basically the same structure

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Representative cost curve

This report provided an assessment of the technical GHG mitigation potential in agriculture. It did not include an economic assessment due to insufficient data. However, the economics of mitigation follow roughly the same pattern in most geographies.

RECOMMENDATIONS FOR PHILANTHROPY

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Development of recommendations

• Select top mitigation opportunities based on technical potential• Assess co-benefits and trade-offs• Identify priority regions and countries for engagement• Determine objectives• Develop interventions

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12 Strategies and 41 Interventions

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Supply-Side Measures

Sustainable intensification

Improving nitrogen fertilizer management and production

Reducing Emissions from Enteric Fermentation

Sequestering carbon in agricultural systems

Reducing methane emissions from rice cultivation

Managing manure

Demand-Side Measures

Reducing food wastage

Shifting dietary trends

Cross-Cutting Measures

Subsidies and trade

Finance and investments

Corporate supply chains

Tracking emissions in agriculture

1) Shift consumption patterns

• Diets • Food waste• (Biofuels)

~ 3 Gt CO2e per year

Four overarching recommendations

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4) Support carbon sequestration, but not in lieu of other mitigation opportunities

• Explore synergies in SSA and Brazil• Invest in better data • Make long-term investments (biochar)

~0.7 – 1.6 Gt CO2e per year

3) Pursue catalytic, cross-cutting interventions

• Financing standards • Corporate supply chain transparency • Agriculture trade issues (WTO,

UNFCCC)• Reform of major subsidy programs

No CO2e estimate

2) Reduce direct emissions

• Cattle/grazing lands in Brazil• Dairy cattle/feed efficiency in India• Fertilizer on croplands in China • Rice in Southeast Asia • Managing manure

~2 Gt CO2e per year

1. SHIFTING CONSUMPTION PATTERNS

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Overarching Rec 1: Shifting Diets

While numerous researchers and institutions around the world are focused on reducing the carbon footprint of livestock production (supply), little has been done about the viability of curbing growth trajectories of meat consumption (demand).

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Overarching Rec 1: Shifting Diets

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Overarching Rec 1: Shifting Diets

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Goal Objectives Interventions Reduce meat consumption, primarily of beef, to healthy levels of consumption ~2.15 Gt CO2e per year by 2030

Influence domestic policies in China and the U.S. to reduce demand

Leverage existing food security policies to reduce beef production and imports, and promote alternative proteins in China Promote public health policies that incentivize healthy diets and healthy levels of protein intake in the U.S.

Curb future demand of beef in China and decrease per capita meat consumption in the U.S. through media and outreach campaigns

Expand national campaigns and promote health links in the U.S. Build argument and enhance communications campaigns in China

Overarching Rec 1: Reducing Food Wastage

Approximately one third of all food intended for human consumption is lost or wasted in the value chain (production, handling and storage, processing and packaging, distribution and market, and consumption). The carbon footprint of food wastage is estimated at 3.3 Gt CO2e, making it the third largest source of emissions after the U.S. and China

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Overarching Rec 1: Reducing Food Wastage

In the developing world, losses mainly occur postharvest as a result of financial and technical limitations in production techniques, storage and transport. In contrast, losses in the developed world are mostly incurred by end consumers.

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Overarching Rec 1: Reducing Food Wastage

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Goal Objectives Interventions

Reduce food wastage by 60%> 2 Gt CO2e

Reduce consumer food waste in China and the U.S.

Revise food date labeling practices in the U.S. Support consumer education through communication campaigns

Engage the private sector and reform corporate policies in China and the U.S.

Measure food waste in food companies along the supply chain

Reduce food loss in the value chain by improving handling and storage practices in South/ Southeast Asia and Sub-Saharan Africa

Provide technical and financial support to farmers

2. REDUCE DIRECT AGRICULTURAL EMISSIONS

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Overarching Rec 2: Sustainable IntensificationIntensification is essential for food security and can contribute to mitigation through improved emissions efficiency. Mitigation benefits depend on: 1) the compound emissions efficiency of production inputs, 2) the rebound effect of intensification

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Goal Objectives Interventions

Reduce GHG emissions through sustainable intensification

Promote realization of high mitigation intensification opportunities at scale

Assess mitigation effectiveness of intensification strategies in REDD+ finance Develop assessment tools to identify mitigation opportunities with high co-benefits and low / manageable tradeoffs

Overarching Rec 2: Enteric Fermentation Enteric fermentation is responsible for over 40 percent of direct agricultural emissions. Beef and dairy cattle account for roughly two-thirds of all emissions from enteric fermentation. The emissions reduction potential in Brazil, India, the U.S. and E.U. alone amounts to 350Mt CO2e per year.

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Overarching Rec 2: Enteric Fermentation

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Goal Objectives Interventions

Reduce GHG emissions from enteric fermentation through improved livestock diets ~940 Mt CO2e per

year

Improve grazing lands management in beef production in Brazil

Promote awareness and capacity of cattle ranchers through outreach and vertical integration of the supply chain Increase effectiveness of the ABC program to reduce agricultural emissions

Improve feeding practices in dairy production in India

Increase adoption of improved practices by making a business case and supporting outreach campaign s to processors , producers and farmers

Overarching Rec 2: Improving nitrogen fertilizer management and production

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Nitrous oxide emissions stem from nitrogen fertilizers on croplands that have not been absorbed by plants, and leach instead into the environment. Fertilizer run-off contaminates surface and ground water quality and creates GHG emissions in the form of nitrogen oxide. The global technical mitigation potential for reducing nitrous oxide from soils is roughly 325 Mt CO2e.

Goal Objectives Interventions

Reduce GHG emissions from improved fertilizer management and production~485 Mt CO2e per year

Improve fertilizer use and management in China

Evaluate the Soil Testing and Fertilizer Recommendation program in China and additional measures to reduce fertilizer application Support efforts in knowledge dissemination to farmers on correct fertilizer management

Improve fertilizer production in China

Engage the fertilizer industry through investment or outreach

3. CROSS –CUTTING MEASURES

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Overarching Rec 3: Steer finance towards higher sustainability practices

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Considering the capital and investment needs of the agricultural sector, it is essential that baseline financial flows into agriculture be re-directed towards low emitting, carbon rich and sustainable agricultural models.

Goal Objectives Interventions

Steer international public funds into low-emissions agriculture

Reduce GHG impact of internationally financed agricultural programs

Steer donor support away from high emitting agricultural activities, especially beef production Include GHG data in investment appraisal and program evaluation

Channel climate finance towards agriculture

Incorporate climate-smart agriculture in design and implementation of the Green Climate Fund

Overarching Rec 3: Subsidies and Trade

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Goal Objectives Interventions

Create international incentives for GHG reduction and removal

Incentivize GHG mitigation through subsidies reform in the U.S. and the E.U.

Establish financial incentives for soil management in the U.S. and the E.U.

Protect, strengthen and expand conservation programs supported through the U.S. farm bill Support farmer advisory programs in the U.S. and the E.U.

Remove barriers and create incentives for GHG mitigation under the WTO and UNFCCC

Support a formal or informal process to examine the trade and clime change interface in the WTO

Overarching Rec 3: Increase Transparency

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Measuring and monitoring GHG emissions is fundamental for managing emissions effectively. A robust understanding of how much carbon can be sequestered, or how much GHG emissions can be reduced by different practices, is central to making informed decisions about the most appropriate mitigation strategies. Measuring and monitoring emissions is also required to enable governments to implement policies and incentive frameworks.

Goal Objectives Interventions

Increase traceability and monitoring of GHG emissions from agricultural systems

Measure GHG emissions from agricultural sources

Develop GHG monitoring frameworks in developing countries

Develop simple on-farm monitoring tools

Increase the traceability of GHG emissions along the supply chain

Support the development of robust emissions tracking systems across supply chains

Facilitate the assessment of the impact of investments on GHG emissions

Develop tools that allow investors to assess the GHG impact of their investments

4. SEQUESTERING CARBON

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Overarching Rec 4: Sequestering Carbon in Agricultural Systems

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Soils hold an enormous amount of carbon. As much as 1,500 Gt of soil organic carbon (C) is stored to a depth of one meter, versus roughly 270 Gt C stored in standing forest stocks globally. There are numerous land and crop management practices that can increase the soil organic carbon in agricultural soils. Goal Objectives Interventions

Increase carbon sequestration in agricultural systems

Make the case for silvopastoral systems in Brazil

Initiate and support research and dialogue to establish better practices Support awareness campaigns targeted at producers to communicate best practice

Increase below and above-ground carbon sequestration in agricultural systems in Sub-Saharan Africa (SSA)

Facilitate the development of methods and decision support tools for trade-off assessment Support scientific network to collect and analyze long-term data series of SSA soil carbon stocks and fluxes

Support the development of biochar

Test and scale-up biochar production and use in key markets (e.g. China, Brazil). Enhance credibility and knowledge on biochar by promoting standards in biochar production

Main conclusions

• The agricultural sector accounts for roughly a fifth of GHG emissions when one considers the full life cycle of production including agriculture’s role in deforestation.

• A constructive debate on agriculture and climate change is hampered by a false dichotomy between food security and mitigation. The majority of GHG emissions from agriculture are life style emissions

• A major part of emission reductions could be achieved by shifting consumption patterns while supply side and cross cutting measures also need to play an important role.

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Themes

• Beef & ruminants• Intensification and

efficiency

Types of interventions

• Farmer and industry outreach

• Consumer outreach• Influencing public

policy• Research and tools

Geography

• China• EU• Brazil• India• USA• ASEAN countries• Sub Saharan Africa