Agriculture and Climate Changethe UK Perspective Jeremy Eppel Deputy Director, Food and Farming, Defra OECD Policy Forum on Climate Change and Agriculture, Paris, 19 November 2008
Overview The UK context Climate Change Bill and Carbon Budgets Abatement potential and policy instruments Practical action and standards International work
Gas GHG Emissions from UK agriculture all GHGs CO2 Major sources: enteric fermentation, manure and fertiliser CH4 N2O 0 20 40 60 80 % of total from agriculture Farming for the Future
Emissions of Methane, Nitrous Oxide and Carbon Dioxide in the UK (MtCO 2 equivalent) CH 4 N 2 O CO 2 Total Source 18.3 26.9 26.1 71.3 Sink -23.7-23.7 Total 18.3 26.9 2.4 47.6 Methane emissions 1990-2005 Nitrous oxide emissions 1990-2005
Latest BAU Projections for Non- CO 2 GHGs 200 180 160 140 120 100 80 60 40 20 0 1990 1995 2000 2005 2010 2015 2020 Energy Industrial Processes Agriculture Waste Source: CCC
Legislative framework - Climate Change Bill To strengthen the international and domestic policy framework through: providing strong UK leadership internationally creating a framework to improve carbon management in the UK
Key elements of the Climate Change Bill Targets Budgets and accountability Committee on Climate Change Measures to reduce emissions Adaptation Long and medium term targets: reductions of at least 80% by 2050 against all Kyoto greenhouse gases and by at least 26% by 2020, through action in the UK and abroad Set over five-year periods, Five-year carbon budgets with three budgets set ahead to set out our trajectory and help long-term business planning and investment, backed by annual progress reporting to Parliament New independent body to advise Government on carbon budgets and where the least-cost savings could be made: 1 st Report in December 2008 Powers to introduce emissions trading schemes more quickly and easily, including new Carbon Reduction Commitment. Biofuels. Waste. Government to report at least every five years on climate change risks, and programme to address them
Agriculture s role in addressing climate change Climate change mitigation Practices to reduce GHG emissions Production of crops for energy Production of biogas (anaerobic digestion) Protecting carbon stores Climate change adaptation Managing impacts Helping society and natural environment to adapt (e.g. flood management) Making the most of new opportunities
Priorities for UK Government Action Building awareness and encouraging good practice among farmers Agriculture s role in adaptation Role of agri-environment schemes (public payments) in reducing emissions and supporting adaptation Considering potential for new policy instruments Support for anaerobic digestion (biogas) R&D on both mitigation and adaptation Showing international leadership
UK Potential for GHG Abatement Agriculture, forestry and land management (AFLM) sector will need to play its part in meeting UK targets IGER/ADAS study for Defra in 2007suggested realistic abatement potential of 10% to 15% by 2022 Committee on Climate Change currently developing more sophisticated Marginal Abatement Cost Curves CCC Final report due shortly but expecting realistic potential to be of similar magnitude
Potential for GHG Abatement Improved crop and grazing land management to improve soil carbon Restoration of peat soils and degraded land Improved rice cultivation techniques Manure management to reduce CH 4 emissions Improved fertiliser application to reduce N 2 O emissions Dedicated energy crops to replace fossil fuels Improved energy efficiency Sources: IPCC 4 th Assessment Report; IGER / ADAS (report for Defra)
Challenges to unlocking AFLM sector s potential in UK Existing policy framework is limited and primarily focuses on other objectives UK inventory s not sophisticated enough to record some savings (based on livestock numbers and fertiliser use) Smarter inventory research due March 2009: to allow credit for changes in management practice Is emissions trading practicable for AFLM sector?
Emissions trading for AFLM sector? 2007 NERA study for Defra looked at potential of emissions trading for AFLM sector Characteristics of sector make ET difficult and expensive to administer and monitor, because Lots of small units - 90% of holdings emit 600 tco 2 e or less per year (very small in ET terms) and account for two-thirds of total emissions Very different to other ET schemes where smallest 80% emitters only contribute to 5% emissions Emissions also depend on what boundaries are set e.g. should emissions from cattle include N 2 O emissions associated with feed? Where should point of obligation lie? (farmers, manufacturers, supermarkets)
GHG Policy Instruments Project New study by ADAS for Defra, to: Analyse the abatement potential, relative to the baseline, of current, extended and potential new policy instruments, including: Regulatory Economic (cap-and-trade, project based schemes, price based changes, grants, environmental stewardship) Voluntary (advice / communication campaigns, voluntary codes, farm assurance schemes etc) Identify most cost-effective package of policy instruments (taking account of interactions) Develop detailed options for the design and implementation of these instruments Due to report in Spring 2009
Climate Change Adaptation Defra project to : help agricultural businesses adapt to a changing climate protect, restore and enhance agricultural ecosystems, to help manage the broader impacts of climate change on the natural environment and society.
Climate Change Adaptation Successful adaptation is likely to involve a mixture of five broad types of response: 1. Building/restoring adaptive capacity of the agriculture sector and the natural environment. 2. Reducing sensitivity to climate impacts. 3. Reducing exposure to impacts. 4. Exploiting positive opportunities. 5. Accepting change and potential losses.
Rural Climate Change Forum Established in 2005 High level Forum for dialogue on GHG mitigation & Climate Change adaptation Advises on Research, Policy and Communications to Government & Rural Stakeholders Membership - Leaders from the breath of Rural Stakeholder Organisations Helps steer the delivery of commitments in UK Climate Change Programme & liaise with new Committee on Climate Change.
Engaging the Sector Farming Futures Project Defra funded but led by sector (NFU, CLA, AIC, AHDBs) Provides trusted advice to farmers and land managers through short, concise factsheets, workshops, trade stands etc Industry led action Climate Change Task Force (Part of the Solution report, and Milk Roadmap)
International Collaboration Multilateral engagement: OECD Joint Working Party on Agriculture & Environment Methane to Markets partnership UNFCCC Ad hoc Working Group for Long-term Cooperative Action - paper on mitigation from agriculture for the Poznan COP14 Bilateral engagement: China joint Work Programme on Sustainable Agriculture & Fisheries, and Sustainable Agriculture Innovation Network (SAIN) Germany experts seminar in February 2008 France experts seminar in 2009 New Zealand collaboration on R&D and emissions trading