Carbon Footprinting and Other factors affecting our Trade

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Carbon Footprinting and Other factors affecting
our Trade
Caroline Saunders Professor Trade and the
Environment Director AERU Commerce Division,
Lincoln University
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Energy, carbon emissions and our trade Risks and
opportunities for our exports

• Energy consumption and emissions are of growing
  importance
• Internally through cost and efficiency
• Climate change concerns
• Also market access - to access premium market
  segments have to consider environmental factors
• Also be prepared to ensure these environmental
  criteria are defensible and not pseudo
• Food miles..

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Food Miles

• the number of miles (kilometres) a product has
  to be transported from the farmer/grower to
  various stages of production until it reaches the
  supermarket and finally the plate of the
  consumer.
• Simplistic concept .. But traction with popular
  press and some environment and other groups
• Ignores energy use and emissions in production
• We compared UK produce to NZ produce delivered to
  UK market

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Dairy NZ and the UK
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Dairy total GHG NZ and the UK
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Dairy NZ - UK

• NZ uses under half energy than the UK does
• Even despite not being able to obtain as detailed
  data on UK capital inputs
• Even when methane and nitrous oxide included the
  UK produces 34 more GHG emissions per kgMS and
  30 more per ha

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Lamb NZ versus UK
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Lamb NZ versus UK

• NZ is 4 times more energy efficient that the UK
  in lamb production
• Information on production system for UK not as
  comprehensive as dairy so the 4 times could be
  higher!!!
• Reflects different production systems!!!

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Apples NZ versus the UK
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Apples NZ versus the UK

• NZ more energy efficient by 10 even including
  transport
• Could be sensitive to yield in UK (only 14 tonnes
  compared to 50 in NZ) however this is realistic
  yield
• Data on UK production system not good so we did
  exclude more items from UK system
• (further work could compare NZ with other
  exporting countries to UK such as France and /
  South Africa)

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Onions NZ versus UK
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Onions NZ versus UK

• NZ is less energy efficient in production of
  onions than the UK
• But when storage and transport costs added NZ is
  more energy efficient
• This is assuming that the UK can actually store
  the onions, this is new technology!!!

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Further research

• Calculate energy and emissions from alternative
  sources of supply for comparison
• More detailed analysis of refrigeration
• More products
• Sensitivity analysis especially between different
  methods
• Different production systems

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Air Miles

• Soil association banning certification to air
  freighted product
• Air 10 of UK food transport emissions
• Consumer shopping trip to get product maybe more
  than air freight emissions
• Air freighted roses from Kenya less emissions
  than Dutch hot house ones
• Soil association will certify air freighted
  products if social criteria met

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Carbon Footprinting

• Lot of debate about what should be included
• A standard methodology being developed by DEFRA,
  Carbon Trust and BSI (under trial)
• Offsetting not allowed reduction is key
• Carbon Reduction Label UK Carbon Trust
• Climatop in Switzerland indicating product
  less damaging to the climate
• Canada, Australia, Japan and Sweden are exploring
  schemes

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Policy context

• Kyoto protocol- excludes air travel and shipping
• Climate Change bill in UK reduce emissions by
  60 1990-2050 (13 from food in the UK (19
  recreation))
• EU proposes reduction of emissions by 20 by 2020
  and between 60and 80 per cent by 2050
• US reduce GHG intensity by 18 by 2012 (ratio of
  ghg to output)
• California reduce GHG to 1990 levels by 2020 and
  80 by 2050
• NEG-ECP (Eastern US and Canada) reduce GHG 10 by
  2010
• Japan - reduction in Carbon emissions by 50 by
  2050
• Carbon committee in UK independent and ensures
  reductions take place

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Attitudes

• 94 UK population believes climate change real
  and 66 altering behaviour
• Awareness of food miles up from 36 in 2006 to
  59 in 2007
• 50 buy British fruit and veg up from 38 in 2006
• 51 unconcerned about source of food, down from
  61
• 61 thought should import less so environment
  less damaged, up from 51
• 35 supporting local farmers important 54 not
  enough local food in supermarkets
• Quality (75) highest ranking attribute followed
  by freshness and then value

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Whos doing what

• Tescos carbon footprint of 70,000 products!
  Setting up 8 local source buying offices
• M S investing 200 million pounds double
  regional food sourcing by 2012
• Sainsburys reduce carbon emissions per case
  transported by 5 2005/6 2009 cease sale of
  caged birds by 2009
• Waitrose - reduce emissions by 10 by 2010
  reduce waste
• ASDA promote local produce, cut food miles and
  extend British growing season - increase British
  farmers from 2500 to 3500 and increase local food
  hubs

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Market Access issues

• Carbon emissions and Food miles
• Lower meat and dairy consumption
• Local food and seasonal consumption
• Traceability
• Health and nutrition
• Ethical food - fair trade and organic!
• Biodiversity and wildlife
• Water quality and quantity

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EUREPGAP (Cattle and Sheep)

• Traceability
• Stock management
• Environment and hygiene
• Environmental management including wildlife
  policy, groundwater
• Staff facilities, training and health and safety
• Feed composition storage and use
• Housing and handling facilities

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Changing policy

• EU Single Farm Payment subsidises farmers to
  comply with environmental criteria and will
  include carbon footprinting
• EU also pays extra for farmers to comply with
  market assurance schemes - including animal
  welfare
• Market assurance schemes already asking for
  various requirements and recommendations
  biodiversity and environmental criteria generally
  not compulsory yet but will be soon given the
  subsidises

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Conclusion

• Threats to trade changing from regulatory to
  access-to-market from retailers
• This has been developing over time
• Carbon footprints are an example of this
• Not just EU markets it is spreading elsewhere
• However win-win more returns for exports and more
  sustainable production