Biofertilizers for Climate-friendly agriculture the Greater Mekong Subregion (GMS)

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1 Biofertilizers for Climate-friendly agriculture the Greater Mekong Subregion (GMS) Sununtar Setboonsarng, Southeast Asia Department Asian Development Bank Workshop on Biofertilizer and Soil Management for Sustainable Agriculture Development in the GMS, Land Development Department, Bangkok, Thailand

2 Outline ADB and GMS regional cooperation in agriculture sector Agriculture and climate change Soil as carbon sink Incentives for transformation

3 Asian Development Bank and GMS Regional Cooperation

4

5 Asian Development Bank An international development finance institution established in 1966 Owned by 67 member governments of which 48 are regional members Headquarters in Manila, Philippines Public sector funding and private sector funding operated under one corporate umbrella and strategy

6 Greater Mekong Subregion Regional Cooperation Program Sectors 1.Agriculture 2. Energy 3. Environment 4. Human Resource Development 5. Tourism 6. Trade and Transport Facilitation

7 Core Agriculture Support Program (CASP) (Phase II)

8 Vision for the GMS Agriculture Sector The Greater Mekong Subregion is recognized globally as the leading producer of safe food, using climate-friendly agricultural practices and integrated into global markets through regional economic corridors. 8

9 Vision The Greater Mekong Subregion is recognized as the leading producer of safe food, using climate-friendly agricultural practices and integrated into global markets through regional economic corridors. Pillar 1: Food Safety Trade Modernization Pillar 2: Climate Friendly Agriculture Pillar 3: Bioenergy and Biomass Management Agricultural Research and Development Private Sector Involvement Institutional Mechanisms for Regional Cooperation

10 RETA 8163: Implementing the Core Agriculture Support Program in the GMS (Phase II) Budget: $14 M(7.5M from Sida,5M from NDF, 1M from Swiss Gov, 0.5M from ADB Impact: A more integrated, climate friendly agricultural sector in the GMS Outcome: Enhanced market access for environmentally friendly agricultural products produced by smallholders

11 Outputs 1.Strengthened regional framework and capacity for agri-food quality management 2.Established e-trade on eco-friendly agri-food production for smallholders 3.Increased adoption of gender-responsive and climate-friendly agriculture 4.Knowledge management and dissemination 5.Strengthened regional cooperation on agriculture

12 Biofertilizer related outputs (i) Regional policies and regulatory framework on on N-cycle management, use of synthetic nitrogen fertilizer, and carbon financing; (ii) pilot investment to scale up climate friendly agriculture, particularly on efficient N-cycle management (iii) Capacity building on above activities

13 Climate Change will Bring: Longer dry seasons and drought Floods Increased temperature New diseases and pests Disruption to trade, transport and distribution of inputs/outputs

14 Climate Change Threatens Food Security Has the potential to undermine advances in poverty reduction and sustainable development increase hunger and malnutrition Potential social unrests

15 Food and Oil Price

16 Fossil Fuel Based Agriculture Conventional agriculture is fossil fuel based. The Green Revolution increased the energy flow to agriculture by an average of 50 to 100 times the energy input of traditional agriculture.

17 Agriculture and Green House Gas

18 Green House Gas Contribution of Agriculture Sector 14% Production 35% Forestry Burning of biomass >45% Transport Agro-chemicals

19 Methane Sources BURP! Livestock enteric fermentation and manure Paddy fields

20 Nitrous Oxide Sources Production and use of chemical fertilizers Nitrogen cycle processes

21 Black Carbon Sources Burning of agricultural waste and traditional cook stoves emitting smoke, soot, and carbon dioxide

22 Heat-Trapping Ability Carbon dioxide is baseline GHG One unit of CO2 = 1 Methane is 23 times of CO2* Nitrous oxide is 298 times of CO2* Black carbon is 10,000 times of CO2 *100-year Global Warming Potential (GWP) based on IPCC Assessment Report 2007 (AR4)

23 Carbon World Carbon Reservoirs Sizes of World Carbon Reservoirs 500 Forests Atmosphere Soil Fossil Fuel Reserve Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve

24 Carbon Changing Carbon Balance Sizes of World Carbon Reservoirs Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve

25 Soil Carbon Sequestration Process of transferring CO2 into soil through crop residues and other organic solids Helps off-set emissions Enhance soil fertility/productivity Improve soil water retention Enhance soil fauna activity

26 Soil organic matter Holds water Electron micrograph of soil humus Cements soil particles Reduces acid soil toxicity through natural liming Increases micronutrient availability

27 Increase in crop yield Increase in carbon stocks results in increase in soil fertility, decrease in soil erosion, which in turn could lead to improved yield. 1 ton increase in soil carbon pool kg per ha for wheat kg per ha for maize Source: R. Lal, 2004

28 Carbon Refill Soil Reservoir Sizes of World Carbon Reservoirs Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve

29 GMS is rich in Biomass Abundant biomass residues in the GMS include: rice husk and rice straw, sugarcane and maize crop residues, crude palm oil waste, wood waste, and animal manure are currently underutilized.

30 Biomass for Food Security Ensure that biomass for bioenergy will not come at the expense of food security Promoting biofertilizer and soil amendment Promoting health soil for production of healthy food for healthy people

31 Biogas- Fuel for Cooking cook stove using biogas

32 Bioslurry as Organic Fertilizer Extension worker monitor experimental plot Farmer showing the effect of slurry

33 Biochar for Energy and for Carbon Sequestration Biochar (charcoal from biomass) is produced by baking biomass at about ºC under low or no oxygen (pyrolysis) Biochar remains stable in soils for hundreds to thousands of years. FAO (2009)

34 Effects of Biochar

35 Incentives for Adoption: Empirical Evidence Conventional vs Organic Agriculture

36 OA generates higher profit than CA N Crop Profitable? p- value Thailand, Rice Yes Thailand, Rice Yes Thailand, Banana Yes Thailand, Asparagus Yes PRC, Tea Yes PRC, Horticulture Yes Sri Lanka, Tea Yes Cambodia, 2005* 615 Rice Yes Lao PDR, 2005* 368 Rice Yes *Note: Cambodia and Lao PDR are non- certified organic.

37 Lower Production Cost Production cost of Tea, Sri Lanka OA CA Household income (SLRs.) 144, ,089 Total Variable cost (SLRs.) 6,982 33,183 * Net profit (SLRs.) 24,451 23,774

38 Higher Profit for Small Farm Profitability by Farm Size in Thailand (Baht/rai) Land category All farms CA farmers OA farmers p-value* 0-5 rai 1,719 1,374 2, rai 1,744 1,413 2, rai 1,723 1,337 2, >20 rai 1,646 1,276 1, Total 1,721 1,369 2,

39 Medical Expenditure of Rice Farmers, Thailand % of Household 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 5% 10% 15% Threshold: Medical expenditure as a % of HH expenditure 20% 25% Organic Total sample Conventional

40 OA and General Health Family s health related symptoms after conversion in North and Northeast Thailand the same 7.5 % North, Thailand worst 0 % North-East, Thailand the same 2.4 % worst 0 % n= 80 better 91.3 % n= 248 better 96.4 %

41 Poverty Reduction Cost Cost/person Existing strategy: invest in health, water, sanitation* US$ Organic agriculture** US$ *World Bank, 2002 ** preliminary findings from Thailand, Sri Lanka, PRC by ADBI

42 Hitting Many Birds with One Stone Addressing root cause of food security Mitigating GHG: N20, CH4, and CO2 Reversing climate change Waste and waste management Investing in preventive health Reducing poverty and inequality

43 Thank you for your kind attention

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