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Big Ideas

Big Ideas. Agricultural sector contributes significantly to GHG emissions Agricultural sector can contribute more to mitigation In agriculture, adaptation goes hand-in-hand with mitigation. Mitigation options. Reduce deforestation and forest degradation Afforestation and reforestation

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Big Ideas

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  1. Big Ideas • Agricultural sector contributes significantly to GHG emissions • Agricultural sector can contribute more to mitigation • In agriculture, adaptation goes hand-in-hand with mitigation

  2. Mitigation options • Reduce deforestation and forest degradation • Afforestation and reforestation • Forest management interventions to maintain or increase forest carbon density • Increase carbon stocks in wood products and enhance fuel substitution

  3. Adaptation options that also reduce emissions • promote crop diversification and availability of quality seeds • reduce the rate of deforestation and forest degradation • improve wildfires control • avoid burning of crop residues • improve soil ecosystems through better management practices including conservation agriculture • promote efficient energy use by commercial agriculture and agro-industries

  4. Policy Options • Regulations • Taxes • Penalties • Incentives • Payments for Environmental Services • Access to technology • Education

  5. Regulations (often mitigate as a side effect) • Taxes • Nitrogen Fertilizer Taxes in Europe • Pesticide tax in India • Methane tax under consideration in New Zealand • Penalities • Water runoff quality

  6. 30 US$ Billion 1,639M (Size in million mtCO2e) 10US$ Billion 710M 107M 78M 2003 2004 2005 2006 2006 2005 (Value in US$ Billion) Figures from the State and Trends of the Carbon Market, several issues World Bank Demand is growing SIZE and VALUE of the cap & trade carbon market

  7. 2% CDM Animal waste management Forestry 1% CDM With little going to agriculture Cap & Trade 30 billion

  8. Payments for Environmental Services (PES) • Payments to Farmers for: Carbon (including set asides and management changes), Biodiversity, Water • The largest is China’s “Grain for Green” programme with 15 million farmers in over 2000 counties to grow trees and reduce soil erosion • Poorer farmers do participate, often contributing land with better potential impact

  9. Payments to farmers for environmental services • payments are for incremental costs • change in land use • e.g. cropland to grassland or forest • change in management practices • e.g. reduced tillage • possible synergies, possible tradeoffs • soil loss, water quality, carbon sequestration • yields, prices, employment, land values

  10. Appropriate policies are key Ecosystem services Farmers and other resource managers -- supported by appropriate policies Climate change Food security Indirect drivers

  11. Silvopastoral Ecosystem Management in Colombia, Costa Rica, and Nicaragua: Impact from payments for environmental services (carbon sequestration and biodiversity) 2003-2006 • Herbicide use down by 60% • Degraded pasture down by 64% • Pastures with high tree density up by 130% • Fodder Bank up by 256% • Carbon sequestered up by 71% • Farm income up by 115%

  12. Poverty related issues in Payments for Environmental Services (PES) • Informal property rights • Lack of credit • Information hard to find • Possible Risks • Lower wages for farm labour • Higher food prices • Pressure to exclude poor from informal land use

  13. Transaction costs of PES • Transaction costs borne by Farmers • Complex rules • Buyer-seller linkages • Local organization • Transaction costs borne by Formal Institutions • Incorporate traditional property rights • Institutions for collective management • Capacity Building • Business Skills • Technical Skills • Policy Coherence

  14. State of Food & Agriculture 2007 • Demand for ecosystem services will grow • Agriculture can provide a better mix • Appropriate incentives are essential; payments for environmental services are one tool • Effective payments require careful consideration of who, how/much, what for • Payment programmes can also affect poverty and food security • Need to clarify rights, improve information and support appropriate institutions

  15. Map 01 – Soil Carbon Gap

  16. Map 02 – Areas in agricultural production with high Soil Carbon Gap

  17. Mitigation and adaptation • Develop early warning systems based on vulnerability • Collect and analyze good practices and knowledge • Build resilience at local level by promoting adaptation capacity at community level

  18. No compromise with food security and livelihood Thank you www.fao.org

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