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FAO SLM adoption costs and barriers july 2010

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FAO SLM adoption costs and barriers july 2010

  1. 1. SLM Adoption Costs and Barriers Up-front financing costs can be high, whilst on-farm benefits not realized until medium-long term Local credit markets very thin Local insurance options very limited Tenure Security Management of Common- Pool Resources Limited Access to Information, e.g. Research Extension Risk management and need for flexibility – especially with uncertain/changing climate conditions – decisions to make permanent changes more costly Photos: FAO Mediabase
  2. 2. Value of ag. mitigation potentially significant Mitigation potential from agriculture, Annex I (Developed) and Non-Annex I (Developing) countries Cropland Management Grazing land Management Restore cultivated organic soils Restore degraded lands Developing countries: $30 billion @$20/TCO2eq from top 4 mitigation actions
  3. 3. But only a small share of what is needed Source: FAO (preliminary estimates) 300 250 200 150 100 50 0 Current investment Meeting demand in 2050 Public Private US$ billions per year (gross) 142 209 30 Additional Funding for Mitigation
  4. 4. Options for capturing synergies Linking mitigation finance to FS Carbon Benefit T/Ha/Yr D(T/Ha/Yr)
  5. 5. Options for capturing synergies MRV costs vs Ag benefits
  6. 6. Principles to guide crediting Main objective of crediting soil carbon sequestration (mitigation) in smallholder agriculture is to support food security/ag. development State of science, institutional capacity, buyer’s demands, high heterogeneity and needs of smallholders suggests market based offsets (CDM approach) ‘not widely applicable’ One potential area to focus on: Pilot for scaling up based on farming systems units looking at means, costs and benefis (to productivity, resilience and sequestration) of increasing carbon in system and directly tied to agricultural financing/development institution and under umbrella of NAMA. Also needed: Building up coordinated set of soil carbon measurement stratified by agroecosystem and major farming system transitions another key requirement.

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