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

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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

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

Asian Development Bank and GMS Regional Cooperation

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

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

Core Agriculture Support Program (CASP) (Phase II) http://www.adb.org/publications/core-agriculture-support-programphase-ii-2011-2015

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

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

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

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

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

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

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

Food and Oil Price

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.

Agriculture and Green House Gas

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

Methane Sources BURP! Livestock enteric fermentation and manure Paddy fields

Nitrous Oxide Sources Production and use of chemical fertilizers Nitrogen cycle processes http://www.bangkokpost.com/business/economics/238364/campaign-in-pipeline-tohalve-chemical-fertiliser-use

Black Carbon Sources Burning of agricultural waste and traditional cook stoves emitting smoke, soot, and carbon dioxide http://en.wikipedia.org/wiki/cook_stove

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)

Carbon World Carbon Reservoirs 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Sizes of World Carbon Reservoirs 500 Forests Atmosphere Soil Fossil Fuel Reserve 780 1580 5000 Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve

Carbon Changing Carbon Balance 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Sizes of World Carbon Reservoirs Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve

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

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

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 20-40 kg per ha for wheat 10-20 kg per ha for maize Source: R. Lal, 2004

Carbon Refill Soil Reservoir 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Sizes of World Carbon Reservoirs Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve

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.

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

Biogas- Fuel for Cooking cook stove using biogas http://www.solarpowerwindenergy.org/in_renewable_energy/grass http://www.nbp.org.kh/gallery.php http://www.inverter-china.com/blog/articles/green-energy/what-is-biogas.html

Bioslurry as Organic Fertilizer Extension worker monitor experimental plot http://www.nbp.org.kh/page.php?id=9 Farmer showing the effect of slurry

Biochar for Energy and for Carbon Sequestration Biochar (charcoal from biomass) is produced by baking biomass at about 320-500ºC under low or no oxygen (pyrolysis) Biochar remains stable in soils for hundreds to thousands of years. FAO (2009)

Effects of Biochar

Incentives for Adoption: Empirical Evidence Conventional vs Organic Agriculture

OA generates higher profit than CA N Crop Profitable? p- value Thailand, 2003 443 Rice Yes 0.000 Thailand, 2005 243 Rice Yes 0.723 Thailand, 2005 110 Banana Yes 0.118 Thailand, 2005 148 Asparagus Yes 0.119 PRC, 2006 240 Tea Yes 0.013 PRC, 2006 220 Horticulture Yes 0.851 Sri Lanka, 2006 200 Tea Yes 0.250 Cambodia, 2005* 615 Rice Yes 0.141 Lao PDR, 2005* 368 Rice Yes 0.030 *Note: Cambodia and Lao PDR are non- certified organic.

Lower Production Cost Production cost of Tea, Sri Lanka OA CA Household income (SLRs.) 144,074 141,089 Total Variable cost (SLRs.) 6,982 33,183 * Net profit (SLRs.) 24,451 23,774

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 2,432 0.0000 6-10 rai 1,744 1,413 2,076 0.0000 11-20 rai 1,723 1,337 2,021 0.0000 >20 rai 1,646 1,276 1,866 0.0057 Total 1,721 1,369 2,072 0.0000

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

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 %

Poverty Reduction Cost Cost/person Existing strategy: invest in health, water, sanitation* US$ 633-877 Organic agriculture** US$ 32-38 *World Bank, 2002 ** preliminary findings from Thailand, Sri Lanka, PRC by ADBI

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

Thank you for your kind attention www.adb.org