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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
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
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

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
policy options
Policy Options
  • Regulations
    • Taxes
    • Penalties
  • Incentives
    • Payments for Environmental Services
    • Access to technology
    • Education
regulations often mitigate as a side effect
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
demand is growing

30 US$ Billion


(Size in million mtCO2e)

10US$ Billion










(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

with little going to agriculture

2% CDM

Animal waste management


1% CDM

With little going to agriculture

Cap & Trade

30 billion

payments for environmental services pes
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
payments to farmers for environmental services
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
appropriate policies are key
Appropriate policies are key



Farmers and other

resource managers

-- supported by

appropriate policies








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%
poverty related issues in payments for environmental services pes
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
transaction costs of pes
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
state of food agriculture 2007
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

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