“Enabling Measures to Mitigate Greenhouse Gas (GHG) Emissions Toward Resilient Agriculture and Sustainable Rural Development” As-delivered Keynote Speech of NEDA Secretary Arsenio M. Balisacan at the 2023 Asia Pacific Agricultural Policy (APAP) Virtual Roundtable

I thank the Global Agricultural Policy Institute (GAPI) for inviting the National Economic and Development Authority or NEDA to co-organize this event and set the tone for this year’s forum. As head of the Philippines’ premier socioeconomic planning body, I earnestly support efforts to tackle climate change – one of today’s most critical development issues that necessitate urgent and collective action among stakeholders.

I am pleased to say that we are very fortunate to have an esteemed roster of experts with us, whether in person or virtual, who will be presenting and sharing their insights on the impacts of climate change on food security, existing and emerging investments, and initiatives to mitigate emissions in the agriculture sector, and persisting threats and challenges.

Climate Change in Asia and the Pacific

Let me begin by setting the context. Climate change is one of the most serious challenges adversely affecting today’s global economy, especially developing economies. Over the years, we have seen how sea level rise and the increased intensity and volatility of extreme weather events resulted in significant damage to properties and crops and put lives and livelihoods at risk. Rising temperatures, as well as changing and increasingly unpredictable rainfall patterns, also threaten water availability and agricultural production in most countries. As you all know, climate change further affects marine ecosystems and biodiversity due to ocean acidification and habitat loss. Indeed, the science is clear: we cannot downplay the effects of climate change, especially as nations grapple with its associated challenges while simultaneously navigating their way to full recovery from the economic scarring brought about by the pandemic.

In the agriculture sector, the nature of the production system makes it more vulnerable to climate change impacts. Low productivity and value-added typically characterize conventional agri-food systems in developing economies. The multidimensional shocks that include climate change risks and disease outbreaks such as the African Swine Fever and Avian Influenza that continue to disrupt global livestock and poultry production further dampen the sector’s performance.

Due to its geography, densely populated coastal areas, persisting poverty, and dependence on natural resources and agriculture, the Asia Pacific region remains more susceptible to the impacts of climate change.1 This further threatens countries’ efforts to make a dent in food insecurity, which remains prevalent at 10.5 percent in 2021.2 Strengthening the resilience of the sector is therefore crucial to achieving a more stable and affordable supply of food. With around 30 percent of total employment in the Asia Pacific region engaged in agriculture,3 addressing the sector’s vulnerabilities of the sector is imperative in improving the welfare of farmers and reducing poverty in rural areas.

There are hardly any objections to the importance of adaptation measures to increase the resilience of the agriculture sector. However, climate change mitigation in agriculture also deserves attention, especially since the sector substantially contributes to global emissions.

Based on the latest report of the Intergovernmental Panel on Climate Change (IPCC),4 global GHG emissions continued to rise, albeit at a slower rate, reaching 59 gigaton carbon dioxide equivalent (GtCO2e) in 2019 from 53 GtCO2e in 2010. Asia contributed significantly to this increase, with East Asia accounting for 27 percent and Southeast Asia and the Pacific contributing 9 percent of the global emissions in 2019. In Asia and the Pacific, agriculture sector emissions are primarily from rice production, increased use of synthetic fertilizers and energy for irrigation, and livestock production.5 Next to energy and transport, the agriculture sector is the second largest GHG emission source in the Philippines, accounting for 29.9 percent of emissions in 2010. Rice cultivation is likewise one of the country’s drivers of agricultural emissions.

Mitigation trade-offs and synergies

While beneficial in the long run, measures to reduce emissions in the agriculture sector have been met with hesitation, given its trade-offs with other development priorities and the significant investment requirements. For example, reducing energy use for irrigation and synthetic fertilizers can help reduce emissions but can also result in lower agricultural yield. Uncontrolled and unregulated expansion of croplands and grazing areas to boost crop and livestock production can lead to deforestation and conversion of natural ecosystems, which releases carbon emissions. In contrast, land use changes to mitigate greenhouse gas emissions, such as reforestation or adopting conservation agriculture practices, can reduce the land available for agricultural production.

However, I remain optimistic about the potential synergies between mitigation and agricultural productivity. Existing crop management practices – such as crop rotation, intercropping, alternate wetting and drying (AWD), and precision agriculture – can reduce emissions while improving soil health and crop yields.

With the growing population and rising incomes in Asia and the Pacific, demand for food, particularly protein sources, also escalates. To meet this demand while minimizing emissions, low-carbon interventions at all stages of the food system – from production to consumption – would therefore be critical.

Potential supply and demand side interventions

On the supply side, technology plays a considerable role in improving existing production processes. These include climate-resilient crop varieties and animal breeds, water-saving irrigation systems, and alternatives to synthetic fertilizers. Controlled environment crop production systems should also reduce natural resource use and production costs. Common interventions include water management practices like AWD, improved fodder and feed management for livestock, and site-specific nutrient management for crops.

Improving the agriculture sector’s access to decentralized low-carbon energy sources will also be crucial to enable countries in the region to increase their level of mechanization. The increase in processing and packaging of agricultural commodities to increase value-added and reduce food loss and waste may also lead to a surge in emissions unless alternative energy sources are available.

Nonetheless, developing these technologies requires strengthening research and development and substantial funding and investment, often limited by constraints in most developing countries in the region. Considering this, improved collaboration among countries is crucial to mobilize much-needed investment. Supporting policies and robust extension services are also necessary to increase the uptake of new technology and production practices, especially among small farmers.

Lastly, continuously integrating climate risks and sustainability in crafting and implementing agricultural productivity measures is necessary to strengthen the sector’s resilience and profitability. This process would entail the regular conduct and integration of climate risk and vulnerability assessments in sectoral plans for agriculture.

To complement supply-side measures, interventions encouraging more sustainable consumption, including reducing food loss and waste, should also be pursued. Demand-side interventions are usually limited to promotion and information dissemination, given regulatory measures’ inefficiency in influencing consumer behavior. However, introducing and implementing sustainability/eco-labeling and providing appropriate incentives are potential mechanisms that can further promote low-carbon consumption.

Climate Change in the Philippine Context

Climate change has always been a pressing issue in the Philippines that the country must contend with as it is one of the most vulnerable to its impacts. From 2000 to 2019, on average, the Philippines ranked as the 4th most affected by extreme weather occurrences. This reality underscores the need to integrate climate action into our development plans, policies, and programs. Chapter 15 of the Philippine Development Plan (PDP) 2023-2028 – which serves as the country’s socioeconomic blueprint for the medium term – contains strategies for accelerating climate action, strengthening communities’ disaster resilience, and growing a robust agriculture value chain.

To realize these strategies, the Philippines seeks to prioritize investment in research, development, and extension of climate-smart and resilient technologies, including nature-based solutions. The country also aims to improve the marketability and profitability of low-carbon technologies and products by facilitating linkages and collaboration among innovators, entrepreneurs, and industries. Early warning systems, national and local climate and risk data, and information management systems will also be improved and integrated to provide timely and accurate data crucial to informing appropriate risk mitigation measures, including addressing potential supply chain disruptions.

Given the limited fiscal space, the Philippine government will pursue policies and mechanisms to incentivize private sector participation and develop attractive financing schemes. The strategy includes establishing local carbon markets for the agriculture and forestry sectors to tap private sector financing, including foreign investments.

Closing

Studies and reports have identified potential mitigation interventions to improve agricultural productivity. These interventions are probably familiar to most of you. However, given the complexity and context-specific nature of the trade-offs and synergies between climate change mitigation and agricultural production, we must consider food security, rural livelihoods, and economic development in identifying and implementing mitigation strategies.

This event will deepen current understandings of these complexities, enabling countries to identify better effective policy measures, technology, and sustainable practices to mitigate emissions in agriculture while strengthening their resilience to climate change risks.

As the region continues its recovery from the impacts of the COVID-19 pandemic, this year’s forum, “Enabling Measures to Mitigate Greenhouse Gas (GHG) Emissions Toward Resilient Agriculture and Sustainable Rural Development,” serves as a timely opportunity to think about how we can move beyond business as usual and towards a better, more resilient, and low-carbon economy.

Again, I thank GAPI for engaging NEDA and inviting me to deliver the keynote address for this forum. I also look forward to listening and discussing with distinguished new and old colleagues who share the same vision of resilient agriculture and sustainable rural development in the Asia Pacific.

Let’s have a fruitful and meaningful discussion ahead.

Thank you, and have a good day.

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