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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

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


With little going to agriculture

2% CDM

Animal waste management

Forestry

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

Ecosystem

services

Farmers and other

resource managers

-- supported by

appropriate policies

Climate

change

Food

security

Indirect

drivers


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 Services (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 Services (PES)

  • 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



Map 02 – Areas in agricultural production Services (PES)

with high Soil Carbon Gap


Mitigation and adaptation Services (PES)

  • 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


No compromise with food security and livelihood
No compromise with food security and livelihood Services (PES)

Thank you

www.fao.org


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