Climate Change Mitigation in Agriculture beyond 2030: Options for Carbon Pricing and Carbon Border Adjustment Mechanisms

Spiegel, Alisa; Heidecke, Claudia; Fournier Gabela, Julio G.; Stepanyan, Davit; Söder, Mareike; Freund, Florian; Gocht, Alexander; Banse, Martin; Osterburg, Bernhard

doi:10.1111/1746-692x.12425

Cited by 2 publications

(2 citation statements)

References 8 publications

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“…The possibility of carbon leakage arises whenever policies are regionally heterogeneous. The most direct concern is that climate policies increase the cost of production in abating regions, thus increasing the competitiveness of foreign producers (Spiegel et al 2024). The loss of competitiveness in the abating regions could result in the displacement of domestically produced agricultural goods by imported goods in both domestic and foreign markets 4 .…”

Section: Climate Policy International Trade and Carbon Border Adjustm...mentioning

confidence: 99%

“…Agriculture remains so far excluded from carbon taxes or carbon pricing mechanisms, partly due to the concern of carbon leakage (Spiegel et al 2024). High exposure to trade in abating regions coupled with a higher carbon intensity of agriculture in non-abating regions make leakage especially likely in the agricultural and food sectors (Fournier Gabela and Freund 2023).…”

Section: Conclusion and Directions For Further Researchmentioning

confidence: 99%

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The roles of agricultural trade and trade policy in climate change adaptation and mitigation

Villoria,

Arita,

Sydow

2024

Environ. Res.: Food Syst.

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This article examines how international trade and policy shape the economic consequences of climate-induced changes in crop productivity, considering both adaptation and mitigation. International trade serves as a global risk-sharing mechanism with the potential of ameliorating the adverse impacts of climate-induced crop shortages by allowing regions with agricultural surpluses to provide for those facing shortages. However, the effectiveness of trade in adaptation depends on whether changes in productivity occur in the short- or the long-run, the structure of tariffs and subsidies, and whether a country is a net importer or exporter of affected products. The most recent evidence on long-term adaptation suggests that the changes in domestic crop portfolios and a diversified set of suppliers are the most effective ways for food-dependent countries to adapt to projected changes in climate toward the mid-century. In the short term, trade helps to buffer against seasonal price shocks, offering relief from sudden price spikes in food staples. Concerns about importing price volatility have little support in the historical record. Still, they may be justified as shifts in climate may result in more frequent extreme events affecting large producing regions of the world. Emerging international trade policies aimed at climate change mitigation, such as carbon border adjustments and laws banning trade in products associated with deforestation, are gaining traction. The adaptability of the international trade regime to these policies remains uncertain. Critical areas for further research include moving from impact assessment to analyzing how the current structure of farm programs worldwide interacts with adaptation and mitigation strategies, expanding the range of crops, and including livestock products in the analysis.

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Section: Climate Policy International Trade and Carbon Border Adjustm...mentioning

confidence: 99%

Section: Conclusion and Directions For Further Researchmentioning

confidence: 99%

The roles of agricultural trade and trade policy in climate change adaptation and mitigation

Villoria,

Arita,

Sydow

2024

Environ. Res.: Food Syst.

View full text Add to dashboard Cite

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The Vikings have landed – Denmark's decision to tax livestock emissions as a ‘game changer’

Blandford

2024

EuroChoices

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SummaryFrom 2030, Denmark will impose a carbon tax on livestock emissions as part of a package of measures to address climate change mitigation and adaptation in agriculture. The Danish scheme is particularly noteworthy in being designed with the cooperation of farmers, as well as industry and environmental groups. Revenue generated from the tax will be used to help finance adaptation components of the package. Although the size of the tax is not large, it will have important implications. It increases pressure for a unified EU policy response to the use of carbon taxes for agriculture. Future policy fragmentation may increase tensions among Members over potential ‘carbon leakage’ through the free movement of agricultural products in the single market; not just through imports from third countries. The Danish action opens the door to the commercialisation of ‘green credentials’ for well‐known Danish brands of livestock products. This could have implications for the competitive position of other important suppliers of such products. Without a shared collective response to internalising the costs of greenhouse gas emissions from agriculture, it will be difficult for the EU to chart a harmonious path to achieving its ambitious climate goals for 2030 and beyond.

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Climate Change Mitigation in Agriculture beyond 2030: Options for Carbon Pricing and Carbon Border Adjustment Mechanisms

Cited by 2 publications

References 8 publications

The roles of agricultural trade and trade policy in climate change adaptation and mitigation

The roles of agricultural trade and trade policy in climate change adaptation and mitigation

The Vikings have landed – Denmark's decision to tax livestock emissions as a ‘game changer’

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