Towards Sustainable Agriculture: the OECD Green Growth Strategy
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1 Towards Sustainable Agriculture: the OECD Green Growth Strategy Dale Andrew Head, Environment Division OECD Trade and Agriculture Directorate Sustainable Development Network Washington, D.C. 23 February 2012
2 The image part with relationship ID rid3 was not found in the file. Higher average commodity prices but many pressures on agriculture Greater market volatility Resource constraints Environmental pressures Slowing productivity gains OECD Trade & Agriculture 2
3 and facing a multitude of challenges Demand side challenges Food security Population growth Changing pattern of demand driven by increased income The growing pressure from biofuels. Supply side challenges Limited availability of land Water Mineral inputs Rural labour Increasing vulnerability of agriculture to climate change Pre-harvest and postharvest losses. OECD Trade & Agriculture 3
4 Business as Usual is not an option % -50% -15% +15% +35% OECD Trade & Agriculture 4
5 OECD Green Growth Strategy Multi-disciplinary inter-governmental process, involving 25 OECD Committees: delegates from Ministries of Finance, Economy, Environment, Agriculture, Development Co-operation, Industry, etc. Our work starts with the premise is that there is no necessary conflict between pursuing economic growth and doing so in a green way. We need growth and it needs to be green. OECD Trade & Agriculture 5
6 What is green growth? Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Green growth focuses on fostering innovation, investment and competition that can give rise to new sources of economic growth OECD Trade & Agriculture 6
7 Green growth in agri-food is desirable and achievable Green growth in the agriculture sector means : providing enough food, feed, fibre and fuel for 9 billion people in 2050 in the context of greater pressure on land, water, fish stocks and biodiversity resources - and the impact of climate change and the need to limit the harmful and enhance the beneficial environmental impacts and reduce waste in the food supply chain OECD Trade & Agriculture 7
8 Supporting green growth for food and agriculture: Increasing productivity in a sustainable manner from research and development, innovation, to uptake all along the food supply chain Ensuring well-functioning markets provide the right price signals taking account of non-market values Establishing and enforcing well defined property rights to ensure optimal resource use, especially as many of them are global and not domestic OECD Trade & Agriculture 8
9 Australia: Carbon Farming Initiative OECD Trade & Agriculture 9
10 Clean Energy Future 1. Introduce a carbon price: ease the transition 2. Promote innovation and investment in renewable energy 3. Encourage energy efficiency 4. Create opportunities in the land sector to cut pollution. OECD Trade & Agriculture 10 10
11 Carbon Farming Initiative CFI non- Kyoto Carbon Fund Indigenou s Carbon Farming Fund Carbon Farming Futures Carbon Farming Skills Regional NRM Planning for Climate Change Biodiversi ty Fund OECD Trade & Agriculture 11
12 CFI Integrity Principles Measurable Conservative Based on peer-reviewed science Internationally consistent Avoidance of leakage Permanent Additional OECD Trade & Agriculture 12 12
13 Potential offset activities SEQUESTRATION EMISSIONS REDUCTION Reforestation Fertiliser Revegetation management Managed regrowth Manure forests management Rangelands restoration Reduced enteric fermentation Soil carbon Feral camel culling Native forest protection Landfill gas flaring Savanna fire management Native forest 13 protection OECD Trade & Agriculture 13
14 FRANCE: Ppe : Le Plan performance energétique OECD Trade & Agriculture 14
15 2. Objectives Plan performance energétique aims at : => increasing awareness of energy consumption on farms => reducing energy consumptions => enhancing energy efficiency in agriculture => producing renewable energies => enhancing farmers' competitiveness 15 OECD Trade & Agriculture 15
16 An 8-part plan 1 Gain better knowledge of energy consumption and production on French farms -> national energy surveys on farms to improve the statistical basis 2 Conduct farm energy audits in great numbers => a huge opportunity on the farm to save energy and money by assessing current energy use and developing a cost-effective plan to upgrade or add energy efficient equipment. to implement the farm energy audits system to further the spread of farm energy audit tools to offer grants to farmers who want to have an energy audit done OECD Trade & Agriculture 16 16
17 3. An 8-part plan 3. Improve energy efficiency of tractors 4. Improve energy efficiency of farms -> offer grants to farmers who install energy efficient equipment -> encourage field operations designed to reduce consumption of inputs (such as nitrogen fertilization) -> develop the use of Energy Performance Certificates 17 OECD Trade & Agriculture 17
18 An 8-part plan 5 Develop renewable energy production methanization on farms other equipment => grants to farmers who install renewable energy equipment such as biomass heating systems & solar heating 6 Take into account special characteristics of the overseas french territories 7 Promote research and innovation 8 Monitor and assess the PPE and communicate results OECD Trade & Agriculture 18 18
19 PPE : Assessment after 2 years => more than 5000 farm energy audits => 530 trained auditors registered by the State services => 10 test benches for tractors engines (+5) => More than 120 methanization units numerous R&D projects and studies about energy efficiency on farms => grants offered for energy audits and energy efficient/ renewable energy equipment : => + grants from EU, local authorities and national agencies (ADEME) OECD Trade & Agriculture 19 19
20 PPE : Assessment after 2 years => grants offered for energy audits and energy efficient/ renewable energy equipment ( ) : and grants from the EU, local authorities and national agencies such as ADEME OECD Trade & Agriculture 20 20
21 Denmark OECD Trade & Agriculture 21
22 Green Growth Plan (2009) Energy in all farm animal manure must be used 40% of farm animal manure must be used for green energy in 2020 and in due course all farm animal manure must be used as a source of energy. Doubling of organic farming area Efficient organisation of R&D CAP Pillar II funding Pesticide tax (January 2012) OECD Trade & Agriculture 22
23 JAPAN: RENEWABLE ENERGY IN RECOVERY AND RECONSTRUCTION FOLLOWING THE EARTHQUAKE AND TSUNAMI OECD Trade & Agriculture 23
24 Temporary Storage Space for Rubble(Itagiyama, Kamaishi-City, Iwate) OECD Trade & Agriculture 24 8
25 Wood waste crushing operation (Sendai-city, Miyagi) OECD Trade & Agriculture 25 9
26 Wood waste conversion to biomass energy in the great earthquake in East Japan OECD Trade & Agriculture 26
27 Realization of village energy self sufficiency OECD Trade & Agriculture 27
28 Potential rural renewable energy in Japan OECD Trade & Agriculture 28
29 An Example of Multiple Utilization of Biomass OECD Trade & Agriculture 29
30 Korea OECD Trade & Agriculture 30
31 Revitalize 4 Major Rivers with Agricultural Areas Continue to carry out the reservoir bank project (113 reservoirs) * Possible to secure 48.7% for required amount of agricultural water as compared to 2020 (0.28 billion tons) Create reservoir waterfront as a rural-cultural space Support Environment-Friendly Fertilizers Produce resources with byproducts from agriculture, forestry and livestock farming, improve acid soil, reduce chemical fertilizer * Supply organic fertilizer of 2,500 tons, soil improver of 806,000 tons, and customized fertilizers of 656,000 tons OECD Trade & Agriculture 31
32 Create Sea Forest Create sea forest of 651ha in fishing grounds in costal villages across the country Enhance coastal productivity by recovering spawning places and habitats Develop future-oriented management system Move from conservation & regulation to Forest use in a nature=friendly way' Develop standards for ecological use of forest (2011), introduce exclusive forest use trade system (outsource research) Create a base for managing forests, including major mountain ranges, etc. OECD Trade & Agriculture 32
33 United Kingdom OECD Trade & Agriculture 33
34 Natural Environment White Paper (NEWP) Areas covered by NEWP Climate change, biodiversity, water, air quality, soils Two Specific Projects Related to Agriculture (i) Green Food Project (ii) Advice and Incentives for farmers OECD Trade & Agriculture 34
35 Switzerland OECD Trade & Agriculture 35
36 Governmental action plan on Green Economy Six priority fields of action : 1.Masterplan Cleantech Switzerland 2.Resource efficient information and communication technology 3.Better information about the environmental impact of products OECD Trade & Agriculture 36
37 Governmental action plan on Green Economy Six priority fields of action : 4. Developing elements for an ecological tax reform 5. Development of a more comprehensive measurement of welfare by integrating ernvironmental information 6.Systematic assessment of resource efficiency and compatibility of proposed rules and regulations OECD Trade & Agriculture 37
38 Ecological sustainability Ecological services Cross compliance 98% of UAA Organic farms 11% of UAA Eligible ecological compensation areas 12% of UAA Reduction in environmental loads N-surplus - 25% since 1985 P-surplus - 65% since1990/92 Pesticides (active substance) - 35% since 1990 OECD Trade & Agriculture 38
39 Strategy 2025: Key challenges - Mitigate negative effects of price volatility - Enhance soil conservation - Improve resource efficiency - Raise awareness of consumers - Promote diversity of landscape - Slow down loss of agricultural land - Give value to quality - Reduce production costs - Facilitate transition to more open markets - Strengthen entrepreneurship OECD Trade & Agriculture 39
40 For more information Trade and Agriculture Directorate Visit our website: contact : dale.andrew@oecd.org follow us on OECD Trade & Agriculture 40 40
41 Framework for green growth indicators Economic activities (production, consumption, trade) Consumption Households Governments Investments Outputs Income Goods& services Residuals Production Recycling, re-use, re-manufacturing, substitution Multi-factor productivity Inputs Labour Capital Resources Policies, measures, opportunities 4 Taxes Subsidies, Regulations 3 Amenities, health & safety aspects Pollutants waste 1 Energy & raw materials water, land, biomass, air Investments Innovation Trade Education & training Sink functions The natural asset base 2 Resource functions The socio-economic context and characteristics of growth 1: Indicators monitoring environmental and resource productivity 2: Indicators monitoring the natural asset base 3: Indicators monitoring the environmental quality of life 4: indicators monitoring economic opportunities and policy responses OECD Trade & Agriculture 41
42 Green Growth Indicators OECD Trade & Agriculture 42
43 MONITORING progress in greening the agri-food sector No single indicator to track environmental or social impact of agriculture Economic, agri-environmental, natural resource stocks and social indicators exist - at various stages of development. They Illustrate issues such as: relationship between agriculture production and land area use of irrigated water in agriculture; nutrient balances (N and P) GHG emissions in relation to agriculture production OECD Trade & Agriculture 43
44 MONITORING progress in greening the agri-food sector What are needed are resource intensity indicators at different production stages and Valuation of environmental externalities supplemented by case studies to capture food system governance, institutions, changes in policy directions and management approaches OECD Trade & Agriculture 44
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