GHG Emissions and Reduc0ons in Agriculture What is happening in the EU?

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1 GHG Emissions and Reduc0ons in Agriculture What is happening in the EU? Rob Vierhout, MSc ISCC Sustainability Conference 27 October São Paulo

2 Agenda The EU Energy & Climate policy post 2020 The Agricultural sector and its emissions Concluding remarks 2

3 Why ambikous targets are needed Source: EEA, Commission (DG CA) 3

4 Agenda The EU Energy & Climate policy post 2020 The Agricultural sector and its emissions Concluding remarks 4

5 The EU s Energy & Climate Policy: the targets In October 2014 the European Council agreed the policy framework and targets for Climate and Energy The only targets? 5

6 The EU s Energy & Climate Policy post 2020: GHG targets & instruments Sector Saving to be achieved How Overall Economy-wide At least 40% compared to 2009 Binding for the EU 28 + Norway+ Iceland ETS* High energy consuming industries 43% compared to 2005 Market-based emission rights (allowances) Non-ETS AG, waste management, transport, buildings 30% compared to 2005 NaKonally binding reduckon targets (ESD / R) * ETS stands for Emissions Trading Scheme, covering over large installakons 6

7 The EU Effort sharing policy The Effort Sharing Decision (2009) established binding annual GHG emission targets for Member States (MS) for the period Only applicable for non-ets sectors: transport (except aviakon and internakonal marikme shipping), buildings, agriculture and waste Proposal on the table to update the Effort Sharing policy with binding targets for More ambiious than the present ESD: 30% reduckon instead of 10% now Nine MS may achieve their target by covering some emissions with EU ETS allowances but no more than 100 Mtons CO 2 MS may use to a certain level savings from certain land use categories Banking and borrowing possible, as well as buying and selling between MS 7

8 GHG emission targets comparison for each MS and GHG emission % Targets Targets * Luxembourg Sweden Denmark Finland Germany France UK Netherlands Austria Belgium Italy Ireland Spain Cyprus Malta Portugal Greece Slovenia Czech Republic Estonia Slovakia Lithuania Poland CroaKa Hungary Latvia Romania Bulgaria EU total * SKll under discussion by MS & EP carbon dioxide (CO2), methane (CH4), nitrous oxide (NO2), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) 8

9 Agenda The EU Energy & Climate policy post 2020 The Agricultural sector and its emissions Concluding remarks 9

10 Global GHG emissions by economic sector (2010) Source: IPCC 2014, 5th assessment report 10

11 AG GHG Emissions in the EU (excluding LULUCF) MtCO 2eq (2012): - Manure management (CH 4, N 2 O): 16.8% - Livestock (CH 4): 31,3% - Agricultural soils (N 2O): 51.3% Source: European Environment Agency

12 Development of AG GHG emission CO 2eq in the EU ( ) Source: European Environment Agency

13 Changes in the EU-28 GHG emissions by sector ( ) Source: European Environment Agency

14 Projected emissions/ carbon sink from Land Use, Land Use Change, Forestry (LULUCF) Source: European Commission, COM(2016)479 final, IA 14

15 Reducing emissions from agriculture ExpectaKon is that by 2030 compared to 2005 AG emission reduckon will be around only -2.4% Main reason is that the cost-efficient mikgakon potenkal of non-co 2 emissions is low* However, there is more potenkal in reduckon of CO 2 emissions in AG land. Carbon sequestrakon through land-use, land-use change, crop produckon; ferklizer applicakon; zero Kllage; wetland/peatland restorakon** The role of the AG sector as food supplier makes this a long-term opkon Other sectors (transport, buildings, waste) need to deliver relakvely more GHG emissions reduckon to achieve the -30% target * An economic assessment of GHG mikgakon policy opkon for EU AG, JRC, 2016 ** EffecKve performance of tools for climate ackon policy. Ricardo-AEA,

16 ExisKng policy and policy under considerakon Greening the CAP Change in ferklizer use Beter accounkng of emissions for LULUCF and linkage to ESD 16

17 Greening the Common Agricultural Policy (CAP) 'Greening', a major innovakon brought in under the 2013 CAP reform making the direct payments system more environment-friendly: farmers who use farmland more sustainably and care for natural resources benefit financially Core elements: diversifying crops - mandatory crop rotakon (farm size-related) maintaining permanent grassland (task for authorikes) dedicakng 5% of arable land to 'ecologically beneficial elements' ('ecological focus areas ) such as: fallow land, field margins, hedges and trees, buffer strips Small-holders are excluded from greening 17

18 Land Use, Land Use Change, Forestry (LULUCF) Following the COP Paris Agreement there is a bill under discussion to have in EU law the Kyoto Protocol principle of the no debit rule by incorporakng land use and forestry into the EU's emission-reduckon efforts (excluded now from GHG emission saving targets) Ensure that GHG emissions from land use are compensated by an equivalent absorpkon of CO₂ by addikonal ackon in the sector: AccounIng instead of just reporkng The proposed measures are binding for countries not for farmers (yet) The no debit rule applies to the overall EU target and the individual MS targets LULUCF credits (net emission savings) can be used for ESD compliance; one way though 18

19 Circular economy - ferklizer December last year a major policy change was proposed to create a circular economy in Europe: resource-efficient use of materials, less waste, more re-use of waste In March this year as a first deliverable of the circular economy package was presented: a proposal on organic and waste-based ferklizers The objeckves are: a) more stringent standards for fossil-based ferklizers, and b) creakng an internal market for organic ferkliser reducing the need for fossil-based ferklizers 19

20 Agenda The EU Energy & Climate policy post 2020 The Agricultural sector and its emissions Concluding remarks 20

21 Concluding remarks The EU is on track reducing its GHG emissions as planned but ambikous post 2020 EU targets had to be agreed upon to stay on track For the non-ets sectors all MS (except Bulgaria) need to realise emission savings but under a system that allows more flexibility The EU is planning to abandon targets on transport and fuels, an excepkon is being considered for advanced biofuels but the overall objeckve is maximum flexibility of the MS to achieve GHG emission targets GHG emission savings (non-co 2 emissions) in the EU AG sector are a challenge (too costly); savings would need to come from LU, LUC and F 21

22 QuesKons What will be the future of convenkonal biofuels? What might be the impact of the new E&E policy for the agricultural sector here in South-America? 22