Rein van der Hoek,
Peter Läderach, Lucía
Gaitán, Lisette
Phelan, Alexandra
Köngeter, Martín
Mena
Carbon insetting in the dual purpose
cattle value chain in Nicaragua
International
Conference of
Agricultural
Economists (ICAE)
Milan, Italy, 9-14
August 2015

PIGS
AQUACULTURE
SMALL RUMINANTS
DAIRY
CATTLE
DUAL PURPOSE
CATTLE
CGIAR Reseach Program Livestock and Fish
9 Target Value Chains

• Climate change
• Low productivity, quality issues, and
low income
• Low stocking rate, unsustainable land
use
• Increasing demand high quality
animal products
• Lack of incentive mechanisms for
farmers, related to production
(quality), environment
Nicaragua – Dual purpose cattle

BY THE POOR
• Sustainable intensification – increased productivity and natural resource
integrity
• Higher income through higher quality products, ecosystem services and
enhanced value chains
• Emphasis on female-led households
FOR THE POOR
• Improved productivity, lower production costs, increased access to animal
source food (emphasis on poor women, children)
• Improved product quality and food safety
Transformation of Dual Purpose Cattle Value Chain

“CARBON INSETTING” as a triple win : climate change
mitigation, adaptation and livelihood benefits
Carbon insetting:
• Integrating carbon credit purchases
into a company’s own supply chain
• Paying farmers for sequestering
carbon at origin
• Carbon credits by livestock farmers
marketed directly to buyers
• Buyers reduce overall greenhouse
gas emissions
• Farmers encounter a new source of
income: livelihoods, resilience

“CARBON INSETTING” as a triple win : climate change
mitigation, adaptation and livelihood benefits
Background
• Emissions Agriculture 14% (Livestock 7%), Land use change
17%
• Forage-based systems can contribute to improved livelihoods
AND environment
• Improved feeds, including sown forages, significantly reduce
GHG and enhance livelihoods
Activities
• Prediction of climate impacts and adaptation needs
• Assessment of greenhouse gas emissions, carbon stocks /
sequestration potential from livestock related practices
• Socio-economic potential of carbon efficient livestock
practices
• Feasibility of carbon insetting

“CARBON INSETTING” as a triple win : climate change
mitigation, adaptation and livelihood benefits
GHG emissions
• Well-managed forage-based mixed crop-livestock systems
increase animal feed quality and reduce methane and nitrous
oxide emissions
• Land-use conversion is a main contributor
Carbon stocks
• Soil organic carbon major contributor
• Improved pasture systems significantly higher values
• Tree presence in pastures
• Secondary forest highest, vital for ecosystem services

“CARBON INSETTING” as a triple win : climate change
mitigation, adaptation and livelihood benefits
Feasibility of carbon insetting schemes with private sector
involvement
• ‘Triple-win’ benefits for the buyers and providers
• Willingness to pay for ecosystem services
• If adopted, carbon insetting would add value by:
o enhancing the quality and quantity of products
o facilitating access to new markets
o improving commercial relationships
o generating profits to be shared / reinvested
o increasing the resilience of the value chain
o improving livelihood security and sustainability

“CARBON INSETTING” as a triple win : climate change
mitigation, adaptation and livelihood benefits
• Different priorities and incentives
• Large producers:
• Secure niche markets
• „positive experiences“ & foster dialogue, networking
• Smallholders
• Financial payment, in-kind payment (seeds) and technical
assistance
• How to contribute to gender equality? (male dominance in
livestock sector)

Thank you