Question Period Note: FERTILIZER EMISSION REDUCTIONS

1. Farmers understand the importance of reducing GHG emissions as they are the first impacted by climate changes.
2. Productivity and GHG reduction are not two opposing elements.
3. Better products and better use processes increase both business and environmental performance. It is a technical challenge. Efficiency is key and we are here to help and provide financial support.

BACKGROUND:

In December 2020, the Government of Canada announced its Strengthened Climate Plan, “A Healthy Environment and a Healthy Economy.” It includes a number of measures affecting the agriculture sector, with a goal to reduce greenhouse gas (GHG) emissions, increase carbon sequestration, build resiliency, and support farmers, ranchers, and agri-food businesses as key partners and leaders in the fight against climate change. This Strengthened Climate Plan includes a national target to reduce absolute levels of GHG emissions associated with fertilizer application by 30% below 2020 levels by 2030 and a commitment to engage with the sector to achieve this target.
Agriculture and Agri-Food Canada is currently in the process of working with the sector to develop an approach to meet the target. In Spring 2021, AAFC completed the first phase of engagement on the fertilizer target, which involved preliminary engagement with 33 stakeholder organizations.

The target was developed based on scientific literature and analysis that points to the potential for optimizing Nitrogen fertilizer use with an accompanying reduction in greenhouse gas emissions, while maintaining or increasing yield. The reduction percentage of 30% was the result of weighting various factors, such as the need to be:
• Ambitious – considering climate goals and international efforts;
• Technically Achievable – technologies and know-how largely exist;
• Economically Feasible – potential cost savings and increased yield through efficiency gains and better management;
• Scientifically Defensible – supported by research findings relevant to Canadian context.

Preliminary scientific assessments by AAFC confirm that the widespread adoption of some practices associated with the principles of Fertilizer Canada’s 4R Nutrient Stewardship – right source, right rate, right time, and right place – could lead to potentially large-scale emissions reductions. In addition to the principles outlined in 4R Nutrient Stewardship, there are a number of other opportunities that can help contribute to improving nitrogen management and reducing associated GHG emissions, including enhanced conservation management practices.

The Government has recently announced over $550 million in federal investments to increase the development and adoption of clean technologies and beneficial management practices in support of Canada’s Strengthened Climate Plan and to support the sector’s efforts to reduce GHG emissions, including those related to fertilizer emissions. This includes:
- the Agricultural Climate Solutions: Living Labs program ($185 million/10 years) to develop and implement farming practices to sequester carbon and tackle climate change;
- the Agricultural Climate Solutions: On-Farm Climate Action Fund ($200 million until 2024) to reduce emissions through improved nitrogen management, increased adoption of cover cropping, and normalized rotational grazing; and
- the Agricultural Clean Technology program ($165.7 million/7 years) to help create an enabling environment for the development and adoption of clean technology. Under the program, $50 million is dedicated to supporting more efficient grain dryers and $10 million for clean energy on farms.

The Canadian Agricultural Partnership, launched on April 1, 2018, is a five year
$3 billion investment by the federal, provincial, and territorial governments and includes $438 million in cost-shared funding to support environmental programming, such as the adoption of beneficial management practices related to nutrient management.

On March 4, 2022, AAFC published a Discussion Document, launching a consultation process to help guide the development of a collaborative plan to meet the national fertilizer emissions reduction target. Comments on the discussion paper will be welcomed until June 3rd, 2022, and additional feedback and advice will be sought through dedicated townhalls and working group sessions, to be held throughout the spring and summer of 2022.

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