
A study investigates ways to price GHG emissions from agricultural activities along the agri-food value chain and how this can be accompanied by providing farmers and other landowners with financial incentives for climate action
Read the entire study: Pricing Agricultural Emissions and Rewarding Climate Action in the Agri-food Value Chain
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The study examines strategies for pricing greenhouse gas (GHG) emissions within the agricultural sector’s value chain and explores incentivizing farmers and landowners for climate action. While agriculture plays a vital role in climate mitigation by sequestering carbon through crops, hedgerows, and soil management, it also contributes over 10% of the EU’s total GHG emissions, primarily via methane and nitrous oxide releases. With a commitment to climate neutrality by 2050, substantial emission reductions are imperative across sectors, including agriculture, which faces significant climate impacts.
The study presents five policy options for an emission trading system (AgETS) tailored for the agri-food sector, detailing design aspects and assessing their effectiveness, coherence, and value addition.
Furthermore, it explores the integration of future AgETS with financial incentives for carbon removals from Land Use, Land Use Change, and Forestry (LULUCF), offering insights into potential policy models for linking removals to AgETS.
Consultation with stakeholders and experts informed the study’s findings, emphasizing the importance of harmonized GHG reporting tools and continuous monitoring for policy success. It highlights the need for accompanying broader sectoral changes, advocating transitional aids like subsidies and grants for farms to enhance sustainability. This study sets the stage for EU climate discussions, aiming to inform future policy debates and legislative proposals toward achieving the EU’s 2040 and 2050 climate targets.

Preparing for what lies ahead, Carbonica intends to offer robust suggestions to policymakers across the three involved nations (Cyprus, Greece, and North Macedonia). These recommendations aim to streamline the integration of carbon farming practices into conventional agriculture and offer authoritative guidance for forthcoming legislative initiatives