Announcement of new financing tool opens up a world of funding opportunities for the dairy sector


04/11/2016


(Rightwing Government).


Opportunity close to the dairy sector to participate in carbon markets thanks to the new methodology enables farmers and project designers document their contribution in reducing harmful greenhouse gas emissions, a step that will open new funding prospects in front of the livestock sector and encourage investment in projects for small farmers.

The methodology addresses the small farmers in the dairy sector, two of the most important challenges facing the agriculture sector at present, namely the need to boost agricultural productivity by increasing yields on the one hand, and reduce carbon emissions caused by this sector.

And by opening a new source of funding, this methodology addresses the most important question is how to finance the livestock sector transformation to become a friend of the environment by finding new sources of funding.

Specifies the new methodology developed by the United Nations food and Agriculture Organization (FAO) and its partners for the first time, the areas in which they can reduce greenhouse emissions within the dairy sector, including changing composition of feed or animal feeding practices, or improve the energy efficiency of your used equipment. It also explains how you can measure that reduction and reporting.

The most important thing that this methodology got a certificate from the "gold standard" independent climate projects evaluated under the umbrella of the clean development mechanism of the United Nations and guarantee to achieve a real reduction in carbon emissions.

This certificate is of great importance as it allows dairy projects for smallholders get internationally recognized carbon credits for reducing emissions.

These assets can be sold on the carbon markets, which are a possible source to achieve the returns and financial incentives for the dairy sector to encourage him to become a friend of the environment. It also creates opportunities for small producers to obtain financing for their farms.

In this regard, said Henning Steinfeld, Chief of the Department of livestock information FAO: "investing in ways to make dairy production systems among smallholder farmers more productive is an effective way to reduce greenhouse gas emissions and enhance food security at the same time. This methodology will help direct funding for projects with real impact on the livelihoods of millions of small farmers in dairy production. "

Steinfeld predicted that milk production sector must grow at a rate of 144 million tons by 2025 to keep up with growing demand.
The solution lies in meeting these requirements at the lowest possible losses to the environment through strategic changes in the provision of animal pens and feeding, manure management and selection of strains that produce more milk, eat the same amount of food.

How would you change this methodology of game rules

Under the current carbon credits, project developers, such as Governments, corporations and non-governmental organizations, to apply for permits for emitting a certain quantity of greenhouse gases, such as carbon dioxide or methane from their projects. If the project succeeded in sending fewer emissions limit, developers can sell the rest of "carbon credits" in the open market, which means financial incentives to developers of projects for adoptable administrative practices and technologies friendly to the environment.

But for now, the climate finance instruments, particularly carbon markets, are not available to the livestock sector, owing to the lack of a methodology to calculate the balances and the amount of emissions reduced. Therefore, this new methodology to develop a global standard and fill this gap.
Improving the dairy sector in Kenya

This methodology became part of Kenya, which has been developing this methodology, to promote sustainable dairy sector has, within its climate.

Given that smallholder farmers dominate the livestock sector in Kenya, because of limited access to technologies to enhance productivity, dairy production was weak, while emissions per unit of milk. This indicates a great potential to make the dairy sector in Kenya more productive and friendly to the environment, through the introduction of new technologies and resource management practices.

The Kenyan Government became able, thanks to this new tool, follow these interventions and measured testimony confirms that its interventions have already led to reduce emissions intensity; in other words, said greenhouse gas emissions per unit of milk.

This is essential for the dairy sector in supporting the achievement of the obligations of the State of the global climate and allow Kenya to apply NAMAs on dairy sector.

Benefits not limited to reduce emissions, but there are additional benefits. For dairy farmers, who up to 750 million worldwide, changes to the farm level that increase milk products to enhance food security and increase the level of income. As a result of increased investment in the agricultural sector to promote development in rural areas as a whole.


Emissions

Greenhouse gas emissions vary from milk production varies greatly in different parts of the world; in some States does not exceed the size of the production systems emissions 1.7 kilograms of carbon dioxide equivalent per kilogram of milk, while increasing the volume of emissions at a rate five times higher than in other countries for up to 9 kg of carbon dioxide equivalent per kilogram of milk.

However, this does not show significant disparities through comparison between States, but it may vary substantially in the same State.

In Kenya, the State average emissions from milk to 3.7 kg of carbon dioxide equivalent per kilogram of milk, compared with the world average of 2.8. However, emission range between 3 to 8 kg of carbon dioxide equivalent per kilogram of milk depending on the farm. This highlights the significant impact of light can have different ways of producing milk on emissions


Carbon and climate change reduction potential

A large focus during the United Nations Conference on climate change, held in Marrakesh in Morocco, to find innovative ways to finance efforts to adapt to climate change and reduce it, besides building on commitments made during the Paris Convention for climate, which is what makes this relevant methodology.

FAO has developed this methodology in partnership with the International Livestock Research Institute, Ministry of livestock in Kenya and the unique institution of forest and land-use and Climate Corporation Check verification company.


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