Carbon efficiency and trade policy

Alan Matthews | July 1st, 2010 - 5:13 pm

In an earlier post, I wondered whether there were data on the relative carbon efficiency of agricultural production in Europe versus third countries. A recent FAO study arising from a collaborative effort by FAO and the International Dairy Federation which assesses GHG emissions from the dairy food chain throws light on this. The study uses a Life Cycle Analysis (LCA) approach, and thus includes the land use change induced by the consumption of feed (principally soybeans) in intensive dairy systems.

The results are unambiguous:

“A global trend emerging from the results is the lower level of emissions per unit of product in intensive compared to extensive systems. This is mainly driven by two factors: the higher digestibility of the animals’ feed, and the higher milk productivity level… However, it is possible that production systems in industrialised countries will experience increasing emissions with intensification, as the marginal reductions in emissions from enteric fermentation may not compensate for the increased emissions from manure, fossil energy and other inputs.” (p. 52).

The results are summarised in this graphic taken from the report. Total LCA emissions are broken down between production, deforestation and processing, although in all regions production is the largest single component. Western Europe, which is the largest producer of milk, is ranked only in third place as a producer of emissions.

Estimated GHG emissions per kg of standardised milk averaged over regions and the world

There are two implications from these results. The first, given the challenge of almost doubling global food production by 2050 from a 2000 base (70% increase over 2006), is the importance of efficiency improvements in helping to offset the additional GHG emissions we would otherwise expect from higher food production. Agricultural production is highly carbon intensive. The IPCC has reported that agriculture is responsible for over a quarter of anthropogenic GHG emissions, but accounts for only about 4 per cent of global GDP. Agricultural intensification, including but not only through the use of transgenic varieties, has a vital role in limiting the carbon footprint of more food production. A recent ICTSD paper by Tybbert and Sumner discusses the range of agricultural technologies open to developing countries to mitigate and adapt to climate change.

The second consequence has relevance to the debate on carbon leakage where EU agriculture is faced with a carbon price (either a tax or cap and trade system or regulations to limit emissions). Farm groups object to this in part because, in the absence of any measures to tackle consumption, such measures could lead to the displacement of EU production to third countries which are less carbon efficient (the issue of carbon leakage). As limiting the total amount of carbon emitted to the atmosphere is the main objective, such a consequence would clearly be nonsensical. At the same time, the option of excluding EU agriculture from efforts to meet the EU’s global carbon reduction commitments is not a satisfactory option either. One way to resolve this conundrum is to impose border tax adjustments on imports from third countries deemed not to be making an adequate effort to limit emissions, but the use of trade measures as part of carbon policy remains highly controversial.

Informal meeting Agricultural Ministers in Sweden 14-15 September to discuss agriculture and climate change

Alan Matthews | September 11th, 2009 - 4:14 pm

The Swedes have chosen to highlight agriculture and climate change at the informal agricultural council meeting next week. The discussion will be built around three questions:

1. Climate change is of great concern for the future competitiveness of EU agriculture and this challenge is being dealt with at all levels. While the framework is set at EU level, implementation will need to be carried out at farm level.

What should be the role of the EU regarding mitigation and adaptation in agriculture, and, in particular, what should be the key areas of cooperation?

2. An instrument in handling climate change in the agricultural sector is rural development programmes. While climate change is already one of the Community priorities for the current programming period, additional funds were provided that can be targeted to climate relevant actions.

How are these opportunities best utilised and are there any early lessons to be learned?

3. One of many consequences of the changing climate is the increased presence of pathogens and diseases. This is likely to be a main concern for crop, livestock and, at worst, human health. The economic consequences for the sector may be substantial.

How could we further develop our common policy and strategies to best meet the challenges of a changed pattern of dissemination of pathogens and diseases?

What recommendations would readers make to the assembled Ministers?

Is EU agriculture carbon-efficient?

Alan Matthews | September 7th, 2009 - 9:29 pm

A relatively new argument being used to justify support for agricultural production in the EU is that reductions in EU food production would be made up by increases elsewhere where less efficient production systems exist and thus would result in a heavier carbon footprint. This raises the question whether this statement is factually correct and what do we know about the relative carbon efficiency of production systems in different parts of the world? [...]

Vision for the future of the CAP

Wyn Grant | March 14th, 2009 - 2:16 pm

The influential Land Use Policy Group will be launching their vision for the future of the CAP after 2013 in Brussels on March 30th. This will be an important event in the long-term effort to clarify thinking about future policy so that it delivers benefits to the environment and rural communities. [...]

The methane menace and hamburgers

Wyn Grant | November 18th, 2008 - 11:55 pm

A paper on the contribution to climate change of livestock methane emissions has found that the problem is likely to get worse as global demand for meat and dairy products increases. Dr Andy Thorpe, an economist at Portsmouth University, found that a single herd of 200 cows can produce annual emissions of methane roughly equivalent in energy terms to driving a family car 180,000 km. [...]

New Humboldt University report on global market trends

Alan Matthews | June 29th, 2008 - 10:27 pm

Another study forecasting higher real food prices for the next decade has recently been published by three authors associated with the Humboldt University in Berlin led by Professor Harald von Witzke. The working paper provides a useful qualitative survey of the reasons why agricultural supply will have difficulty in keeping up with the demand for food and other products of agriculture (including bioenergy). For the more technically minded, it uses a partial equilibrium multi-market model (descended from the venerable SWOPSIM model once supported by the US Department of Agriculture) to provide quantitative estimates of price levels for the key grains and oilseeds which are the focus of the study.
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France asks “Who will feed the world?”

Jack Thurston | April 29th, 2008 - 5:16 pm

The French government has launched a new website as part of the run-up to a conference it will hold on 3 July, at the very beginning of France’s 6-month EU Presidency, to discuss the future of European and global agriculture. Entitled “Qui va nourrir le monde?” (Who will feed the world), the debate is being organised around six questions, divided into two groups. Find out more after the jump… [...]

New studies show biofuels increase carbon emissions

Jack Thurston | February 14th, 2008 - 10:40 am

Two new studies published in Science magazine add to the mounting evidence that most biofuels are actually increasing carbon emissions, rather than reducing them. The current boom in biofuels in the EU and US is entirely driven by government policies and subsidies, which are invariably presented as a way of addressing climate change by reducing carbon emissions. [...]

Food security: woolly thinking and self defeating solutions

Ariel Brunner | February 11th, 2008 - 7:19 am

As Jack Thurston has well exposed in his recent entry, the “food security” argument seems to be the new rally call for those trying to justify continuation of untargetted payments to farmers, or even a return to production support (albeit disguised as “risk management”, “income insurance” and the like). At a recent debate I was struck by the fact that the “food security” threat, and hence the need to support further agriculture intensification was almost universally endorsed, including by “CAP reformers”. While Jack has given a powerful argument for refuting the neo-Malthusian scaremongering about looming food shortage, you don’t actually need to believe in a future of plenty to call the bluff on this line of reasoning. [...]

Meat: facing the dilemmas

Wyn Grant | December 4th, 2007 - 2:02 pm

The excellent Food Ethics published by the Food Ethics Council has devoted its latest issue to this theme. You can read excerpts online here. There are a lot of issues related to increasing meat consumption: climate change; health issues; water scarcity and biodiversity loss from clearing forests to make way for pasture and feed production; and animal welfare, which is certainly not a luxury we can no longer afford. [...]