With Agrifood system emissions accounting for 21 to 37 percent of the total anthropogenic greenhouse gas (GHG) emissions, environmentalists and experts called for accelerating the transition to greener agrifood systems and to move the carbon neutrality agenda forward.
In a major report ” agrifood Investing in carbon neutrality: utopia or the new green wave? Challenges and opportunities for systems,”, the European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization came up with five actions to accelerate the transition to greener agrifood systems.
The five actions they recommend for policy makers, agribusinesses, farmers, international organizations are (i) strategically target carbon neutrality, (11) improve and standardize tools and methods, (iii) promote sound governance mechanisms, (iv) directly support companies and farmers to decarbonize and (v) educate and communicate on carbon neutrality.
STATES
The report also stated that the Governments can set the tone through policies, strategies and road maps including a strong commitment in their Nationally Determined Contributions (NDCs). “They can regulate carbon emissions or provide incentives for the adoption of low carbon technologies, as well as support the development of transparent and efficient carbon markets. Measuring carbon neutrality can be a major challenge for private companies. Governments can help by defining, simplifying and harmonizing internationally recognized standards for carbon accounting,” the report said.
PRIVATE SECTOR
The report stressed that private sector has much to gain by decarbonising agrifood systems – including reducing costs, mitigating risks, protecting brand value, ensuring long-term supply chain viability and gaining competitive advantages. Though some companies have committed to ambitious emissions reduction targets, the report points out that efforts have been uneven. “For one, achieving carbon neutrality is still voluntary. Also, it can be significantly more expensive for a smaller company to become carbon neutral than for a larger one. And it can vary from sector to sector,” the report said.
The report also noted that consumers are often not willing to pay a premium for carbon neutral products.
DATA COLLECTION
In the report, the authors highlighted the need for better, more standardized tools and methods for collecting data and measuring, reporting and verifying emissions, and also for sound governance mechanisms to guide low-carbon investment and private sector compliance. In particular, improved regulations and institutional solutions can lead to greater development of carbon markets, as well as creating more opportunities for green finance, they added.
FINANCING
The report mentions that concessional financing and incentives, as well as development of carbon markets and green finance instruments could support companies and ultimately farmers to decarbonise their operations. “Developing capacities and sharing knowledge at all levels, from farmers and companies to service providers and consumers, are also important. “Simple, more transparent and reliable communication on a product’s environmental footprint can have an impact on consumers’ purchasing habits,” the report said.
Meanwhile, FAO Investment Centre Director Mohamed Manssouri pointed out the need to double down and mobilize greater investment, knowledge and innovations to make agrifood systems greener, more resilient, more productive and more efficient at providing healthy and nutritious diets, good jobs and biodiversity.
EBRD’s Climate Strategy and Delivery director Gianpiero Nacci said: “Decarbonising the agrifood sector is possible and not some utopian ideal or box-ticking exercise. There are low-carbon pathways, as we highlight in the report, but they call for strong political and corporate commitment, concerted action, including sound policies and good governance, and dedicated investment and human resources to see results.”
