Science Based Targets for the forest, land and agriculture sector

The forest, land and agriculture (FLAG) sector accounts for around 25% of net anthropogenic GHG emissions. Resulting from this, mitigation efforts in this sector are crucial to meet the target of the Paris Agreement to limit global warming to 1.5°C or at least well below 2°C by the end of the century. According to the World Resources Institute (WRI), GHG emissions from the sector must be halved by 2050. Nevertheless, given a lack of regulatory efforts and standardized frameworks, progress has been slow.

The Science Based Target (SBT) setting guidance in conjunction with the forthcoming GHG protocol Land Sector and Removals guidance can help overcome these barriers.

Covered FLAG emissions

GHG emissions covered by FLAG emissions can be separated into three categories: Land use change emissions, land management and carbon removals & storage.

Land use change (LUC) emissions. This category covers CO2 emissions both from direct and indirect LUC in the context of deforestation and forest degradation.

Land management. Here three types of GHGs are relevant. Firstly, CH4 emission from manure management, waste burning and enteric emissions from meat and dairy production. Secondly, N2O emissions again both from manure management and waste burning, and fertilizer use both directly from soil and indirectly from leaching and runoff. Thirdly, CO2 emissions from agricultural machinery and fertilizer production.

Carbon removals & storage. In this category the focus lies on mitigation practices for GHG emission reduction. This can be achieved through improved forest management, afforestation, and reforestation, thereby increasing their carbon sequestration capacity. Furthermore, agroforestry practices can also greatly help in this context. Finally, switching to no-tilling increases the carbon sequestration capacity of soils.

To which sectors FLAG emissions apply

The SBT initiative distinguishes between two types or companies required to set a FLAG target.

Firstly, companies with land intensive activities in their value chains. This applies to the following sectors:

·      Forest and paper products – Forestry, timber, pulp and paper, rubber

·      Food production – Agricultural production

·      Food production – Animal source

·      Food and beverage processing

·      Food and staples retailing

·      Tobacco

Secondly, companies in another sector covered by the SBT initiative. Hereby two further distinctions apply. Either if at least 20% of revenues stem from the FLAG sector or if GHG emissions across scope 1, 2 and 3 account for more than 20% of overall GHG emissions.

How to account for FLAG emissions

Accounting standard. As mentioned in the beginning, the SBT setting guidance for the FLAG sector in conjunction with the GHG protocol Land Sector and Removals guidance provide a standardized framework to account for GHG emissions from the sector. Please note that the latter framework has not been published yet but is scheduled to be available early next year.

Pathway options. The SBT initiative lists two potential pathways for FLAG target setting. Firstly, the FLAG sector approach. This approach is recommended to companies with diversified land-intensive activities in their value chain, where data access from suppliers might be difficult. Secondly, the commodity approach. This approach applies to companies where one commodity accounts for more than 10% of overall GHG emissions. Currently the commodity approach is available for beef, chicken, dairy, maize, palm oil, pork, rice, soy, wheat, timber & wood fiber.

Required data. In a first step, the year for both base year and target year emissions must be selected, whereby the earliest base year can be 2015 and the target year must not be more than 10 years ahead. Moreover, depending on if the FLAG sector approach or the commodity approach applies, the type of emission reduction calculation method differs. As for the former, emissions reductions are calculated in terms of absolute contraction. As for the latter, emission reductions can be calculated taking an intensity-based perspective.