World Bank calls for sharp increase in investment to halve agrifood emissions

6 months ago 32

Money invested in cutting agrifood emissions should increase 18-fold and reach around €240 billion per year if we want to halve emissions and put the world on track for net zero emissions by 2050, according to a World Bank study published on Tuesday (7 April).

The report describes the agri-food sector, which accounts for almost a third of global greenhouse gas emissions, as an “untapped source” of climate change action.

“Too little money is currently invested in cutting agrifood emissions,” it said, adding that annual investment should increase “by an estimated 18 times” to reach around €240 billion per year.

The EU aims to cut greenhouse gas emissions by 55% from 1990 levels by 2030 and achieve climate neutrality by 2050.

According to the study, the biggest opportunities for reducing emissions from the food system in high-income countries lie in switching to low-emission energy sources, decreasing their own demand of emission-intensive foods through pricing, and providing financial assistance to other countries to support their transition.

“The food industry has the slowest progress in energy efficiency among economic sectors,” the report warned, calling on countries to do more to promote renewable energy in the agri-food system.

Similarly, a report published in January by the European Scientific Advisory Board on Climate Change (ESABCC) said EU policies fell short of meeting the bloc’s climate goals and called for a carbon pricing system to put a price on emissions. The EU carbon market, the Emission Trading System (ETS), does not cover agriculture.

Sustainable diets

The World Bank study pointed out that, while middle-income countries are the biggest contributors to global emissions from the agri-food system, the highest emissions per person are found in high-income countries.

According to the authors, this is due to “heavy consumption of meat and dairy” and an increase in food transport, processing, packaging.

To reverse this trend, the report called for shifting subsidies for red meat and dairy products “towards low-emission foods such as poultry or fruits and vegetables”.

Potential trade-offs

The authors also warned of potential short-term risks – such as disruptions to the labour market and food supply – if the transition to a low-emission agri-food sector is not done “carefully”.

“Likewise, emissions pricing schemes would inherently increase prices for high-emitting foods, disproportionately affecting low-income families,” the report said.

But the costs of inaction outweigh the potential economic and social obstacles, the study stressed.

“Not only would inaction also bring job losses and disrupt food supplies, it would also make our planet unlivable.”

[Edited by Angelo Di Mambro and Zoran Radosavljevic]