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MICCA – mitigation of climate
change in agriculture programme




    Marja-Liisa Tapio-Biström
          Senior Climate Change Officer
 Natural Resources Management and Environment
                   Department
                      FAO
Outline

1.    MICCA project
2.    Agriculture and cc mitigation
3.    Agriculture and practice based mitigation
      financing
4.    Conclusions
MICCA (Mitigation of Climate Change in
Agriculture) - Program Goal




Support of efforts for climate change mitigation
  through agriculture by moving towards
  carbon friendly agricultural practices and
  climate smart agriculture



                                 Residue management
Output

    Development of emissions database and life cycle
     analysis (LCA) & mitigation potentials and costs
    Global economic analysis of mitigation policy options
    Analysis of potential of different practices/technologies/
     investments to enhance food security, adaptive
     capacity and mitigation benefits
    Technical support to UNFCCC negotiations and
     capacity building of developing countries
    Establishment of communities of practice
    Development of 5 smallholder pilot projects
Background

    Foundation is a 5 year multi-donor trust fund,
     2010-2014 , 10 million US$
    3.8 million US$ for 2 years by Finland
    3 million for three years from Norway for
     emission statistics
    Involvement of different technical
     departments of FAO
2. AG mitigation basics

    the aim of agriculture is to produce food and
     other necessities and livelihoods

    the demand of food will increase some 70 %
     by 2050

    GHG are emitted in natural production
     processes
Basics

    the main goal of agriculture is never to
     mitigate climate change
    a major challenge to adapt to weather
     variability and in longer term changing
     climate
    a very large mitigation potential which should
     be tapped – requires adaptation to cc
We need


  to
    transform agricultural production
  systems so that they are more
  productive, resilient and minimize
  their net emissions per produced
  units = climate smart agriculture
Agriculture, land use change and forest
degradation - a landscape approach



    increased productivity on existing farming
     areas prevents deforestation - with a caveat
     – needs carrots and whips

    need to develop integrated food-and energy
     systems to reach food and energy security –
     prevents forest degradation
We need climate smart agriculture

    technical knowledge exists for increased
     productivity, resilience and reduction of net
     emissions
    we need incorporation of cc issues in
     agricultural policies
    we need a lot more investments in agriculture
     – BUT to climate smart agriculture
Financing for mitigation -The
question:

    How could                What kind of
     agriculture tap           mechanisms would
     existing financing        support integration
     mechanisms?               of mitigation
                               considerations into
                               small scale
                               farming?
Logic of mitigation financing

    ex-post payments
    rigorous MRV
    additionality
    separation of mitigation and adaptation
Specific for soil-carbon
sequestration

    carbon sequestration is a long process, the
     results come gradually- a saturation point
    the impetus for continuing practices that
     sequestrate must come from improved
     productivity
Climate financing for agriculture

    climate financing which support transformation to
     climate smart agriculture
    specific funds designed for agriculture and based on
     the logic of farming
    investment support to transform practices and tide
     farmers over a period of reduced output
    credit systems, support for research, extension etc.
    creative combination of different financing sources
What about carbon markets and
small farmers – what could work?

    practice based approach – monitor practices,
     which are transformed to emission factors

    aggregation mechanisms key for
     management of transaction costs (down)

    we are talking about contracts
Actors in mitigation financing

  “C MARKET”


  “BUYERS”


  PRODUCERS
MRV- Emission factors with
practice based packages
  emission factor is based on practice
   package, soil type, agro-ecological zone and
   land use history
  for ex. a package might include for coffee
leguminous shade trees, mulching, fertilizer use
   instructions or compost
  different tools have been developed like cool
   farm tool, for monitoring purposes the
   packages must be well defined
How do we establish the emission
factors

    we need better data on emissions from
     different farming practices
    we need long term research sites with careful
     measurements (USA OK, Africa not)
    we need databases for storing the
     information systematically(regional)
    we need development of practice packages
     (LCA)
Transaction costs - contracts

    existing contract systems as models and
     means to decrease transaction costs
    for ex. contract farming, certification systems
     for organic agriculture, fair-trade, c-smart
     brand
    credit systems – payments back in carbon?
    conditionality for aid
    carbon tax?
A bundled contract

    net emissions reduction
    water shed management
    biodiversity
Remuneration for farmers

    increased production per unit
    reduced risk
    better price
    new market opportunities
    investment support /credit
    extension service
    better varieties/animal breeds
    investment for irrigation systems
    tenure security
Barriers for adoption of cc
practices

    lack of knowledge (extension system)
    lack of suitable genetic material (research extensions
     linkages)
    lack of tenure security (long term land use right
     arrangements)
    lack of investments (credit, investment support)
    lack of infrastructure (strategic public investment)
    weak farmer organizations (supportive policies)
    lack of market access
Buyer perspective

    a ‘coffee company’ can establish a brand –
     better price
    can sell the carbon in off-set or voluntary
     markets
    off-set its own emissions
    credit institutions can have public or private
     funding as capital , can also sell the carbon
    donors can create a climate smart
     “conditionality”
5. Conclusions

       agriculture is part of the problem and the
        solution to climate change
       climate change and food security must be
        addressed together –adaptation and
        mitigation are linked
       investments to agriculture must be climate
        smart.
       better data on emissions based on farming
        practices must be produced
KNOWLEDGE GAPS 1

      Lack of statistics and analysis on
       emissions and mitigation potential
       What kind of financing systems will enable
       climate smart agriculture?
       What is needed to increase mitigation and
       adaptation financing links to agricultural
       systems?
KNOWLEDGE GAPS 2

    How can REDD systems be designed to be
     compatible with country dev. objectives/
     capacity?
    What are the changes in cropping, livestock,
     forestry and fishery systems and policies
     needed for adaptation?
    What are the implications for mitigation of
     changes to achieve food security from
     agricultural systems?
KNOWLEDGE GAPS 3

    Where are synergies between food security,
     adaptation and mitigation in smallholder
     agriculture?

     What institutions and policies are needed at
     international, national and local levels to
     capture potential synergies?

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Tapio-Bistrom - Mitigation of Climate Change in Agriculture Programme

  • 1. MICCA – mitigation of climate change in agriculture programme Marja-Liisa Tapio-Biström Senior Climate Change Officer Natural Resources Management and Environment Department FAO
  • 2. Outline 1.  MICCA project 2.  Agriculture and cc mitigation 3.  Agriculture and practice based mitigation financing 4.  Conclusions
  • 3. MICCA (Mitigation of Climate Change in Agriculture) - Program Goal Support of efforts for climate change mitigation through agriculture by moving towards carbon friendly agricultural practices and climate smart agriculture Residue management
  • 4. Output   Development of emissions database and life cycle analysis (LCA) & mitigation potentials and costs   Global economic analysis of mitigation policy options   Analysis of potential of different practices/technologies/ investments to enhance food security, adaptive capacity and mitigation benefits   Technical support to UNFCCC negotiations and capacity building of developing countries   Establishment of communities of practice   Development of 5 smallholder pilot projects
  • 5. Background   Foundation is a 5 year multi-donor trust fund, 2010-2014 , 10 million US$   3.8 million US$ for 2 years by Finland   3 million for three years from Norway for emission statistics   Involvement of different technical departments of FAO
  • 6. 2. AG mitigation basics   the aim of agriculture is to produce food and other necessities and livelihoods   the demand of food will increase some 70 % by 2050   GHG are emitted in natural production processes
  • 7. Basics   the main goal of agriculture is never to mitigate climate change   a major challenge to adapt to weather variability and in longer term changing climate   a very large mitigation potential which should be tapped – requires adaptation to cc
  • 8. We need   to transform agricultural production systems so that they are more productive, resilient and minimize their net emissions per produced units = climate smart agriculture
  • 9. Agriculture, land use change and forest degradation - a landscape approach   increased productivity on existing farming areas prevents deforestation - with a caveat – needs carrots and whips   need to develop integrated food-and energy systems to reach food and energy security – prevents forest degradation
  • 10. We need climate smart agriculture   technical knowledge exists for increased productivity, resilience and reduction of net emissions   we need incorporation of cc issues in agricultural policies   we need a lot more investments in agriculture – BUT to climate smart agriculture
  • 11. Financing for mitigation -The question:   How could   What kind of agriculture tap mechanisms would existing financing support integration mechanisms? of mitigation considerations into small scale farming?
  • 12. Logic of mitigation financing   ex-post payments   rigorous MRV   additionality   separation of mitigation and adaptation
  • 13. Specific for soil-carbon sequestration   carbon sequestration is a long process, the results come gradually- a saturation point   the impetus for continuing practices that sequestrate must come from improved productivity
  • 14. Climate financing for agriculture   climate financing which support transformation to climate smart agriculture   specific funds designed for agriculture and based on the logic of farming   investment support to transform practices and tide farmers over a period of reduced output   credit systems, support for research, extension etc.   creative combination of different financing sources
  • 15. What about carbon markets and small farmers – what could work?   practice based approach – monitor practices, which are transformed to emission factors   aggregation mechanisms key for management of transaction costs (down)   we are talking about contracts
  • 16. Actors in mitigation financing “C MARKET” “BUYERS” PRODUCERS
  • 17. MRV- Emission factors with practice based packages   emission factor is based on practice package, soil type, agro-ecological zone and land use history   for ex. a package might include for coffee leguminous shade trees, mulching, fertilizer use instructions or compost   different tools have been developed like cool farm tool, for monitoring purposes the packages must be well defined
  • 18. How do we establish the emission factors   we need better data on emissions from different farming practices   we need long term research sites with careful measurements (USA OK, Africa not)   we need databases for storing the information systematically(regional)   we need development of practice packages (LCA)
  • 19. Transaction costs - contracts   existing contract systems as models and means to decrease transaction costs   for ex. contract farming, certification systems for organic agriculture, fair-trade, c-smart brand   credit systems – payments back in carbon?   conditionality for aid   carbon tax?
  • 20. A bundled contract   net emissions reduction   water shed management   biodiversity
  • 21. Remuneration for farmers   increased production per unit   reduced risk   better price   new market opportunities   investment support /credit   extension service   better varieties/animal breeds   investment for irrigation systems   tenure security
  • 22. Barriers for adoption of cc practices   lack of knowledge (extension system)   lack of suitable genetic material (research extensions linkages)   lack of tenure security (long term land use right arrangements)   lack of investments (credit, investment support)   lack of infrastructure (strategic public investment)   weak farmer organizations (supportive policies)   lack of market access
  • 23. Buyer perspective   a ‘coffee company’ can establish a brand – better price   can sell the carbon in off-set or voluntary markets   off-set its own emissions   credit institutions can have public or private funding as capital , can also sell the carbon   donors can create a climate smart “conditionality”
  • 24. 5. Conclusions   agriculture is part of the problem and the solution to climate change   climate change and food security must be addressed together –adaptation and mitigation are linked   investments to agriculture must be climate smart.   better data on emissions based on farming practices must be produced
  • 25. KNOWLEDGE GAPS 1   Lack of statistics and analysis on emissions and mitigation potential   What kind of financing systems will enable climate smart agriculture?   What is needed to increase mitigation and adaptation financing links to agricultural systems?
  • 26. KNOWLEDGE GAPS 2   How can REDD systems be designed to be compatible with country dev. objectives/ capacity?   What are the changes in cropping, livestock, forestry and fishery systems and policies needed for adaptation?   What are the implications for mitigation of changes to achieve food security from agricultural systems?
  • 27. KNOWLEDGE GAPS 3   Where are synergies between food security, adaptation and mitigation in smallholder agriculture?   What institutions and policies are needed at international, national and local levels to capture potential synergies?