C l i m a t e - S m a r t A g r i c u l t u re i n C a n a d a N A C S A A. January 16, 2018

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1 C l i m a t e - S m a r t A g r i c u l t u re i n C a n a d a N A C S A A January 16, 2018

2 Canadian Emissions

3 Agriculture Produces 8% of Canadian Greenhouse Gas Emissions (GHGs) Canadian agricultural emissions dropped 4% (2 megaton CO2 Equivalent). Intensity improved by 33%. Source: Agriculture and Agri-Food Canada and Environment and Climate Change Canada

4 Canadian Mitigation Policy Some provinces had already moved ahead with pricing carbon. Federal government has set a minimum price set at $10 per tonne in 2018, rising $10 per year to $50 per tonne by Provinces are free to use a cap and trade, carbon tax or hybrid system while retaining all revenues. Biological emissions are not covered. The impact to producers varies due to policy coverage, exemptions, rebates, possibility of carbon offsets and regional make up of industry. Preliminary analysis has shown pricing carbon is unlikely to result in significant reductions in emissions from the agricultural sector

5 Impact to Agricultural Pro ducers The Federal Government will impose a price on carbon, or a top up to meet minimum price if it deems necessary. Concerns regarding competitiveness issues when costs of production are rising in a number of areas, but commodity prices are set at the global level. Competitiveness issues inter-provincially is also a rising concern. Some will have to pay a carbon price on fuels, while others will not. Our position as price takers in the market will result in downloading of carbon pricing costs from the supply chain with no opportunity to pass it on. Other policies such as developing a national Clean Fuel Standard may further incentivize renewables and be an opportunity for some sectors.

6 Canadian Offset Protocols

7 Offsets Relevant to Agriculture Agriculturally relevant offsets in Alberta: Conservation Cropping Nitrous Oxide Emissions Reduction (fertilizer management) Dairy Beef (Low-Residual Feed Intake, reduced age of harvest and emissions from fed cattle) Micro-Generation Biomass Biogas Efficiency Since 2002 Alberta producers and aggregators have received $170 million through offsets. Some have estimated with greater adoption of these protocols, it could be close to $100 million/year.

8 Offsets Relevant to Agriculture Ontario and Quebec have 13 under development including: Fertilizer management Livestock Organic waste digestion Organic waste management Grasslands Conservation cropping Forest Afforestation Quebec has one in place: Biogas capture

9 Adaptation

10 Adaptation Emphasizing Adaptation and Agriculture as Providing Solutions Agricultural producers are inherently adaptable. Better knowledge of the impacts of climate change at the local level remain needed. Some provinces have a program to engage producers at a regional level to identify climate change impacts and the most effective and relevant actions to take. Active policy areas in Canada such as clean technology, green infrastructure, innovation and robust business risk management can all improve resiliency and adaptation in the agricultural sector. The remains a need for tools and incentives to incorporate adaptation into business decision-making.

11 Some C onclusions Additional investments in research, innovation and commercialization are needed to both increase resiliency and reduce emissions. The agricultural industry deserves better recognition in improving the carbon intensity of production and should be recognized for its uniqueness as both a food producer and contributing to the bioeconomy. Smart agriculture, innovation and technology will continue to decrease emissions and improve carbon sequestration. Current national and provincial approaches to mitigation will disadvantage Canadian producers who are already some of the most efficient producers in the world. Increased outreach and extension services to provide the tools needed for producers to reduce emissions and support adaption.

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