28th United Nations Climate Change Conference (COP28)
COP28 proved a decisive moment in bringing food security front-of-mind to governments worldwide, with the dependency between climate change and food security increasingly apparent.
This has necessitated the need to prioritise food and agriculture and for producers to be at the frontline of solutions.
Close to 160 countries (including Australia) endorsed the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems and Climate Action. The declaration commits countries to work collaboratively to achieve five objectives:
- Increasing adaptation and resilience activities to reduce the vulnerabilities of all farmers
- Promoting food security and nutrition by increasing efforts to support vulnerable people
- Supporting workers in agriculture and food systems
- Strengthening integrated management of water in agriculture and food systems
- Maximising climate and environmental benefits while reducing harmful impacts.
The declaration will expediate the integration of agriculture and food systems into climate action and mainstream climate action across policy agendas relevant to agriculture and food systems. The commitment to adaptation and transformation of food systems includes the provision of food and land use targets in Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) by 2025.
COP28 saw the UN Food and Agriculture Organisation (FAO) release its Pathways towards lower emissions report – a global assessment of the greenhouse gas emissions and mitigation options from livestock agrifood systems. The roadmap highlights the need to chart pathways to lower greenhouse gas emissions produced by global livestock systems in the face of a growing global population, with a forecast 20% increase in demand for terrestrial animal products by 2050.
The roadmap focuses on mitigation efforts to enable the livestock sector to contribute to the efforts of delivering global food systems against the realities of the Paris Agreement. The report details options to produce more food with fewer emissions available to all regions and production systems.
COP28 delivered an unprecedented mobilisation of funding support, with more than $2.5 billion mobilised to support the food-climate agenda and $3.1 billion for sustainable food systems, including $890 million to the Consultative Group on International Agricultural Research (CGIAR) to be used to support smallholder farmers, through the adoption of research, technologies and adoption practices able to deliver resilient and sustainable food systems.
Kunming-Montreal Global Biodiversity Framework
The Australian Government has begun implementing its nature positive commitments following the 2022 UN Biodiversity Conference in Montreal. Australia was one of 167 countries to sign the Kunming-Montreal Global Biodiversity Framework in Montreal, committing nations to halt and reverse nature loss by 2030.
The Framework aims to halt the extinction of known threatened species, significantly reduce extinction risk and reduce the rates of introduction of invasive species by at least 30% by 2030.
Participating nations have agreed to ensure at least 30% of terrestrial land, inland water and marine resources are conserved and managed by 2030, to reduce the impact of climate change on biodiversity and to mainstream biodiversity into government and business decision making.
The Australian Government has committed to protect and conserve 30% of land by 2030, to zero new extinctions, to enact significant climate action and to establish a nature repair market. Australia has committed to hosting the first Global Nature Positive Summit in October 2024.
The European Green Deal
The EU Green Deal introduced by the European Union to tackle climate change and promote sustainable growth continued to march forward.
The deal aims to transform the EU into the world’s first climate-neutral continent by 2050. Policies developed under the plan include the EU Sustainable Finance Strategy, the Farm to Fork Strategy, the Carbon Border Adjustment Mechanism and new regulations including the EU deforestation-free supply chain regulation and the Corporate Sustainability Reporting Directive.
The Farm to Fork strategy is a key plank in the EU Green Deal, focusing on creating a sustainable food system. It aims to promote sustainable agriculture, reduce waste, improve labelling and encourage healthy diets. The deal supports the implementation and enforcement of stricter regulations relating to the treatment of animals, including improved living conditions and husbandry practices and enhancing traceability throughout the supply chain.
European Union Deforestation Regulation
The European Union Deforestation Regulation will apply to exporters of cattle, cocoa, coffee, palm oil, soya and wood (or products derived from these commodities) and is currently scheduled to take effect from 30 December 2024.
The new regulation sets strong mandatory due diligence requirements, including the demonstration of geographic location where goods have been sourced and evidence that produce is deforestation-free.
Importers will need to provide the EU-competent authorities with a due diligence statement to demonstrate imports have not been sourced from deforested land prior to the product’s arrival.
European Union Environmental Labelling and Product Environmental Footprint
The Product Environmental Footprint (PEF) is a multi-criteria measure of the environmental performance of a good or service throughout its lifecycle. The PEF aims to direct consumers towards more sustainable purchasing options by increasing information and transparency around product sustainability credentials. The current methodology does not consider the renewable, biodegradable and circular economic benefits of wool in its lifecycle analysis and does not account for the lifecycle of fossil fuels prior to product creation.
PER’s transition phase is planned for completion by the end of 2024.
US Inflation Reduction Fund
The United States Government has accelerated investments to achieve its emissions reduction target of 50% below 2005 levels by 2030 and net zero by 2050. The US administration has signed into law the Inflation Reduction Act. The Act aims to accelerate the decline in greenhouse gas emissions through the development and deployment of clean energy technologies and investments to decarbonise the US economy. The bill aims to lower energy costs, address the climate crisis through investments in clean energy, agriculture and forestry and create new economic opportunities while fostering equity and inclusion.
Nationally Determined Contributions commitment
As part of its commitment to address climate change, the Australian Government revised its Nationally Determined Contributions to a more ambitious emissions reduction target of 43% below 2005 by 2030 and net zero by 2050, which has now been included in legislation.
Major emissions commitments and investments include the Rewiring the Nation initiative, the National Electric Vehicle Strategy and the National Reconstruction Fund. The most recent commitment to the Future Made in Australia initiative commits to providing new public investments and incentives for private investment into the new global economy in Australia.
Nature Repair Market
The Nature Repair Act 2023 came into effect on 15 December 2023 and establishes a legislative framework for a national, voluntary biodiversity market. The market will allow for a broad range of different types of nature repair, protection and restoration activities on Australian land and waters and will support finance to repair and protect unique natural environments. Landholders – including First Nations people and organisations, conservation groups and producers – will be eligible to participate in the scheme.
Over the next 12 months the Australian Government and the Clean Energy Regulator will be developing processes and systems to administer the scheme with key elements including the establishment of an Expert Reference Group, consulting on subordinate legislation and legislative rules and developing biodiversity assessment instruments and methods.
Australian Treasury – Climate-Related Financial Disclosures
The Australian Treasury has released the Exposure Draft legislation on Climate-related Financial Disclosures, due to come into effect from January 2025. The legislation seeks to amend parts of the Australian Securities and Investment Commissions Act 2001 and the Corporations Act 2001 to introduce mandatory requirements for large businesses and financial institutions to disclose their emissions, climate-related plans and financial dependencies.
The legislation mandates reporting for large listed and unlisted companies and financial institutions and introduces phased implementation over three reporting periods starting in 2025–26. Reporting covers Scope 1 and 2 emissions, with more gradual implementation for Scope 3 emissions.
Reporting is based on the International Financial Reporting Standards. The Australian Accounting Standards Board has published its draft Australian standard for Climate-related Financial Disclosures which is expected to be finalised by August 2024.
Australian Sustainable Finance Institute
The Australian Sustainable Finance Institute has been established to ensure finance flows into activities that will create a resilient, sustainable and prosperous financial system benefiting people and the planet.
The Institute’s roadmap includes 37 recommendations aimed at reshaping the financial system by 2030. It emphasises the integration of sustainability into financial practices, regulatory guidance and product design, aiming to foster a prosperous and sustainable future for all Australians. The Institute, in partnership with Treasury, is currently developing a sustainable finance taxonomy for Australia which will provide a set of common definitions for sustainable economic activity.
The initial phase of this work, which commenced in July 2023, runs for 12–18 months and will cover climate mitigation criteria for six priority sectors, including agriculture.
Environment Protection Australia
The Australian Government has announced plans to create Environment Protection Australia (EPA), Australia’s first independent national environmental protection agency. EPA is a new authority that is part of the Nature Positive law reforms. EPA will administer Australia’s environmental protection laws to better protect nature, while supporting sustainable development, including stronger powers to ensure effective compliance and enforcement.
Australian Agriculture and Land Net Zero Plan
The Australian Government began releasing its net zero plans across six key sectors to prioritise investments that reduce emissions across each sector, to ensure Australia can deliver against its 2050 net-zero target. The Australian Government’s Agriculture, Land and Emissions Plan was the first to be released and industry submissions highlighted the importance of agriculture to food production and the national emissions solution, given the sector’s leadership and significant investment in research, development and adoption to mitigate its negative impacts on the climate. Following shortly after came the announcement of the Zero Net Emissions Agriculture Cooperative Research Centre, a multi-stakeholder commitment to accelerate Australian agriculture’s transition to net zero emissions by 2050. MLA is a contributing partner with livestock emissions one of four investment priorities.
Global Reporting Initiative
The Global Reporting Initiative (GRI) is the world’s most widely used and accepted standard for sustainability reporting. The GRI is focused on how organisations communicate and demonstrate accountability for their impacts on the environment, economy and people. It is the first global entity to release an agricultural specific sector standard – GRI 13: Agriculture, Aquaculture and Fishing Sectors, which lists the specific topics relevant to agriculture such as food security, animal health and welfare, soil health and pesticide use, that require consideration as material topics for disclosure by reporting organisations. The GRI this year published a revised version of its biodiversity topic standard – GRI 101 to support disclosure of an entity’s biodiversity impacts.
EU Corporate Sustainability Due Diligence Directive
The first reports from companies caught under the European Union’s Corporate Sustainability Due Diligence Directive are scheduled for 2025. The directive requires companies operating in member states to identify and account for human rights protections, reduce pollution and biodiversity loss. Companies are responsible for their own operations as well as those of any subsidiaries or suppliers into their supply chain.
The due diligence rules will apply to all companies with more than 500 employees and 150 million euros in sales worldwide, with companies with more than 250 employees and 40 million euros in sales required to comply in two years. Member states have two years to transpose the directive into national law.
Taskforce for Nature-related Financial Disclosures
In September 2023, the Taskforce on Nature-related Financial Disclosures released draft guidance and a set of disclosure recommendations for organisations to act on their nature-related dependencies and impacts, risks, and opportunities. These voluntary recommendations support organisations and financial institutions to integrate nature into decision making, with the end goal of supporting a shift in global financial flows away from nature-negative outcomes.
Australian Beef and Sheep Sustainability Frameworks
The Australian Beef Sustainability Framework (ABSF) and Sheep Sustainability Framework (SSF) were developed by the livestock industry to meet changing market expectations around sustainability and ensure industry’s ongoing market advantage. The ABSF is led by the Red Meat Advisory Council (RMAC) and the SSF by the SSF Board representing Sheep Producers Australia (SPA) and Wool Producers Australia (WPA). The frameworks are delivered by independent Sustainability Steering Groups who represent the Australian beef, sheepmeat and wool value chains respectively. The ABSF and SSF are industry-led but investor and customer focused frameworks. They reduce risks and leverage opportunities by managing disclosures on sustainability topics that are most important to Australian beef, sheepmeat and wool industry stakeholders. The Frameworks transparently track performance annually against key sustainability topics as aligned to the four themes of:- Best animal care
- Environmental stewardship
- Economic resilience
- People, customers, and community.
The Australian sheepmeat and wool industry has identified key sustainability priorities and reports annually on performance and progress:
Within these themes, the most critical priorities and aligned indicators are defined, and their progress tracked using best available, verifiable metrics and data sources, reported annually.
The ABSF and SSF undertake extensive engagement with internal and external stakeholders, which builds trust, enabling industry to lead a whole of supply chain commitment to sustainability and continuous improvement.
The 2023 ABSF and SSF Consultative Committee Forums attracted capacity crowds of investors, customers, and industry stakeholders, with participants highly ranking the overall progress of the frameworks as delivered through the annual reports, with stakeholders utilising the insights and data generated to inform their own decision making.
The Framework’s principles, sustainability themes and priorities are being utilised by supply chain stakeholders to align to their own sustainability claims and the insights and data contained in the annual reports is invaluable to demonstrating the Australian beef industry’s sustainability credentials and claims in international and national dialogues.