The land sector is essential to achieve the Paris Agreement’s goals. Agriculture and land use contribute between 20 and 25 per cent of global greenhouse gas emissions. The Paris Agreement’s aim to keep the average global temperature rise between 1.5 and 2 degrees Celsius implies that drastic emission cuts from agriculture are needed. The sequestration potential of agriculture and land use offers an important mechanism to achieve a transition to net-zero carbon emissions worldwide. So far, however, states have been reluctant to address emissions from, and sequestration by, the agricultural sector. Some states that have or are setting up a domestic emission-trading scheme allow for the generation of offsets in agriculture, but only to a limited extent. Australia is the only country that has a rather broad set of methodologies in place to award credits to farmers for all kinds of carbon-farming projects. This article reviews the experience with the Australian model so far, with the objective of articulating transferable lessons for regulatory design aimed at reducing greenhouse gas emissions from agriculture. It finds that it is possible to regulate for the reduction of emissions from agriculture
and for increased sequestration in agricultural soils and in vegetation on agricultural lands, provided that certain conditions are met. Regulation must focus on individual projects at farms, based on a long-term policy that has a wider focus than just emission reduction. Such projects must comply with climate-smart methodologies that ensure the delivery of real, additional, measurable, and verifiable emission reductions and also foster long-term innovation and create economic, social, and environmental co-benefits. Moreover, a robust and reliable mrv system must be put in place.
In the coming few decades, the world is facing three related problems.First, agriculture contributes to climate change to a considerable extent. In its Fifth Assessment Report, the IPCC's Working Group III concludes that the AFOLU sector (agriculture, forestry and other land use) is responsible for just under a quarter (∼10 – 12 GtCO2eq/yr) of anthropogenic GHG emissions. Usually, a distinction is made between non-CO2 emissions, in particular methane (NH4) emitted by livestock and rice cultivation, and nitrous oxide (N2O) caused by the use of synthetic fertilizers and the application of manure on soils and pasture. Methane and Nitrous oxide have 25 times and 300 times stronger impact on the climate than CO2 respectively. CO2 emissions from agriculture are mainly caused by deforestation and peatland drainage. Emissions from agriculture have been rising on a yearly basis since 1990, although with important regional differences (they went down in Europe and up in Asia).
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