We recently had the pleasure of welcoming Anél Blignaut, Blue North Senior Commercial Manager, to address the attendees of our Responsible Business Forum for the Agriculture Industry in Cape Town, South Africa.
Anél reflected on the fact that humans are part of the Earth system, yet modern living often disconnects us from nature – the source of our food systems. This disconnect has led to a lack of understanding about where our food comes from and the science, dedication, and hard work that goes into producing it. Today, however, we can see the impact of our actions and have the ability influence the extent of our impact.
One of the major problems we face is the significant increase in population since the 1960s, which has led to a 130% increase in pesticide purchases, along with many more alarming stats. Agricultural productivity is heavily subsidised by fossil fuel inputs, which has devastating consequences for the environment.
“Since the 1980s, the increase in CO2 in the atmosphere has led to a 1.1-degree increase in temperature. We are aiming to keep the temperature increase to 1.5 degrees, but currently, this looks unlikely, so we need to change the way we do things”
Although this is not done with bad intent, we are now seeing the impacts and need to take action. “Since the 1980s, the increase in CO2 in the atmosphere has led to a 1.1-degree increase in temperature. We are aiming to keep the temperature increase to 1.5 degrees, but currently, this looks unlikely, so we need to change the way we do things,” says Anél.
Key Insights and Emerging Trends
- The EU Green Deal is leading the way in policies, featuring four broad pillars: consumer demand, food production, industry behavior, and trade policy. The pressure is building, and if we are not addressing carbon emissions, it will be harder to ignore. Carbon border adjustments also seem to be coming into play sooner rather than later, and it is essential to align our targets to these markets to reduce emissions and remain able to trade.
- South Africa has also made commitments to reduce emissions as a country, and many tools are in place, such as increased taxes and the removal or reduction of tax-free allowances. Regenerative agricultural practices can be used to earn more income or offset losses through the use of carbon credits.
- Understanding the carbon landscape is critical, with product carbon footprints for the entire lifecycle becoming increasingly important. The EU is specifically working on product environmental footprint category rules, which will be used to inform labeling on products in the future. Wine companies, for example, are interested in fulfilling supermarket requests for carbon-neutral wine.
- The carbon border adjustment mechanism (CBAM) currently applies to cement, fertilizer, steel, aluminum, iron, and electricity but not yet agriculture. When the farm-to-form strategy comes into place in 2026, agricultural exports may become liable for taxation.
- The first step towards addressing the issue is to change the way we do things and reduce emissions. This is more beneficial than carbon removal.
Businesses are advised to:
- Continue to measure and monitor to show improvements
- Enhance carbon removals to neutralise emissions that cannot be reduced
- Set science-based targets
