Question Period Note: FERTILIZER EMISSION REDUCTIONS

Q1 – Will the fertilizer emissions reduction target place restrictions on how much fertilizer can be used on farm? Q2 – How will the Department ensure improved measurement of fertilizer emissions? Q3 – What are the key steps the Department is taking to achieve the fertilizer emissions reduction target? Q4 – Has the Government considered mandatory measures if the fertilizer emissions reduction target is not reached? Q5 – Why does the fertilizer emissions reduction target address absolute emissions rather than emissions intensity?

R.1 - The Government of Canada agrees that any plan to reduce agricultural emissions should not restrict the amount of fertilizer that Canadian farmers use, nor should it limit Canada’s ability to maximize food production. The fertilizer emissions reduction target is focused on reducing emissions arising from the application of synthetic nitrogen fertilizers in Canada. We are not asking farmers to reduce fertilizer use in a way that will compromise yields or profitability.
Farmers are already showing leadership and taking steps to ensure they are applying fertilizer at the right rate, at the right time, and in the right amount. The Government of Canada is committed to collaborating with the sector to expand the use of beneficial management practices and new products to achieve additional emissions reductions while maintaining or increasing yields. R.2 - The Department understands that the science and research on emissions from fertilizer application is constantly evolving, and that making improvements to data and measurement will be essential in our efforts to reach the target. The importance of improving how we collect, analyze, and report on fertilizer emissions data is widely recognized across the sector, presenting many opportunities to collaborate with farmers and industry on this issue.

At present, the National Inventory Report, Canada’s official inventory of annual greenhouse gas sources and sinks, does not account for some beneficial management practices that can reduce emissions from fertilizer application, such as enhanced efficiency fertilizers and split nitrogen application. Over the medium term, the Department plans to develop more accurate emission factors for these practices as research and activity data become increasingly available. This will not only ensure that farmers are appropriately recognized for their efforts to reduce emissions, but it will also improve the measuring of progress against the target.

In addition, data and measurement is a key area that the Fertilizer Emissions Reduction Working Group has explored over the course of its discussions since it was launched in May 2023. The insights generated from these discussions will inform the Department’s approach to improving data and measurement in relation to emissions from fertilizer application. R.3 - Since 2021, more than $1.5 billion in initiatives have been announced to help the sector in mitigating and adapting to the impacts of climate change, including the Agricultural Climate Solutions – On-Farm Climate Action Fund, Agricultural Climate Solutions – Living Labs, and Agricultural Clean Technology Program. Each of these programs can support the research, development, and adoption of beneficial management practices and technologies that can improve nutrient management and reduce emissions associated with fertilizer application.

Under the five-year, $3.5-billion Sustainable Canadian Agricultural Partnership, federal, provincial, and territorial cost-shared programs are available to assist farmers in adopting on-farm beneficial management practices, including those that can enhance nutrient use efficiency. In addition, federally-led programs such as AgriInnovate and AgriScience have supported a number of fertilizer-related projects along the innovation continuum, ranging from fundamental research on nitrogen management to the development of fertilizer alternatives.

The Department is also moving forward with science through AAFC’s new Strategic Plan for Science. Priority research areas include the development of technologies, tools, and beneficial management practices to enhance nutrient use efficiency and reduce nutrient losses in the Canadian crop production systems. The Government has also recently become a founding member of the Efficient Fertilizer Consortium, a public private partnership that funds research to advance enhanced efficiency and novel fertilizer products and practices.
Through the Sustainable Agriculture Strategy Advisory Committee, a Fertilizer Emissions Reduction Working Group was created to provide expert advice and guidance on the development of an approach to reach the target. Members representing industry, non-governmental organizations, academia, and other stakeholders have been meeting regularly since May 2023 throughout the Working Group’s initial one-year term. To date, discussions have focused on economic policy tools, innovation, research and development, beneficial management practice adoption and implementation, data and measurement, and extension and communication. R.4 - The Department has been clear from the outset that the target does not call for a ban nor a mandatory reduction in fertilizer use. Instead, we intend to support measures that farmers can take voluntarily on their farms to reduce emissions over the long term without compromising profitability or yields. Progress toward reaching the target will build upon the significant efforts already underway in the sector to maximize efficiency and optimize fertilizer use.

The Government of Canada is committed to strengthening the economy and reducing emissions to support the livelihoods of farmers and increase global competitiveness. Fertilizers are an essential input for farmers. We need to ensure that our efforts to reduce emissions do not undermine their competitiveness or their vital work, especially at a time when costs are rising, and food insecurity has reached unprecedented levels worldwide. R.5 - The fertilizer emissions target was developed based on existing approaches that, when adopted to scale, could help significantly reduce nitrous oxide emissions from fertilizer use without compromising productivity. An emissions reduction target based on absolute levels rather than intensity ensures that emissions are reduced in a concrete way that can meaningfully contribute to Canada’s overall emissions reduction commitments.
Any efforts to achieve emissions reductions will use voluntary measures developed and implemented in partnership with farmers, industry, and other key stakeholders.

The Government of Canada recognizes that the contribution of Canadian farmers to domestic and global food security has never been more important, which is why we are committed to ensuring their efforts to support sustainable food production are maintained for years to come. The Government also understands that fertilizers are an essential input for Canada’s agricultural crops and significant progress has been made by Canadian farmers in improving the efficient use of fertilizer through continued innovation and a commitment to the stewardship of their lands. Canada’s fertilizer emissions reduction target intends to build on the innovation, expertise, dedication, and ingenuity of Canadian farmers to reduce emissions while maintaining and improving the quality and yields Canadian agriculture is known for around the world.
In December 2020, the Government of Canada set a target of reducing emissions associated with fertilizer application to 30 percent below 2020 levels by 2030. Canada’s fertilizer emissions reduction target does not represent a ban nor a mandatory reduction in fertilizer use. Reducing emissions while maintaining or enhancing yields is the goal.
The fertilizer emissions target was developed based on existing approaches available that, when adopted to scale, could help to significantly reduce nitrous oxide emissions from fertilizer use without compromising productivity. As growing conditions vary across the country, beneficial management practices that improve nutrient use efficiency while reducing greenhouse gas emissions and nutrient losses must be locally selected to account for unique regional circumstances. This is why the Government is focused on voluntary efforts to improve nitrogen management and the optimization of fertilizer use, which will not only help to reduce emissions but can also result in long-term improvements in soil health and water quality.
The Government of Canada has been engaging with farmers, representatives from agriculture commodity and producer associations, provinces and territories, and members of the public to develop a collaborative approach to reduce emissions nation-wide. On March 22, 2023 the Government of Canada released the Fertilizer Emissions Reduction Target “What We Heard Report”, which summarizes input received throughout the engagement process and includes the announcement of an Industry-Government Working Group to strengthen ongoing dialogue on the target. This Working Group was launched in May 2023 and will run for a 1-year period, with a possibility of extension. Key meetings have focused on data and measurement, beneficial management practices, innovation, and extension and communication.
The Government of Canada has programs in place for producers to assist in the implementation of a wide range of beneficial management practices that can support efficient nutrient management. Since 2021, over $1.5 billion in initiatives for the agriculture sector have been announced. This includes support for the Agricultural Clean Technology Program, which focuses on the development and adoption of transformative clean technologies, and the Agricultural Climate Solutions – On-Farm Climate Action Fund. This fund aims to broaden support for practices that can reduce emissions or store carbon, including in the area of nitrogen management.
In addition, the five-year Sustainable Canadian Agricultural Partnership will inject $3.5 billion in funds over 2023-28 to support the sustainability, competitiveness, and innovation of the agriculture and agri-food sector, ensuring it can continue to feed Canadians and the world. This includes federal, provincial, and territorial cost-shared programs to support the on-farm adoption of beneficial management practices, including those that can improve nutrient management. Federally-funded programs that contribute to the research and development of fertilizer-related innovations are also included.
In 2022, AAFC released a Strategic Plan for Science, which takes into consideration the environmental, social, and economic context in which all of our scientific activities are conducted. The plan emphasizes mission-driven science to promote a variety of scientific approaches, including higher-risk transformative science. Mission-driven science will bring together multiple disciplines from across the Department and other science organizations working towards similar goals, which will lead to a competitive net-zero or low emission agriculture production system. One of the priority research areas is to increase our knowledge of nutrient cycling and to develop technology, tools and beneficial management practices to enhance nutrient use efficiency and reduce nutrient losses, leading to a profitable and resilient Canadian agriculture and agri-food sector.
In January 2023, the Government of Canada became a founding member of the Efficient Fertilizer Consortium. This is a public-private partnership that advances research in support of enhanced efficiency and novel fertilizer products and practices. As a founding member, Canada will be able to influence the strategic direction and research of the Consortium.

The Government of Canada is also developing the Sustainable Agriculture Strategy (SAS). This was highlighted in the 2030 Emissions Reduction Plan and the Strengthened Climate Plan as a means to support the agriculture sector’s actions on climate change and other environmental priorities towards 2030 and 2050.

• Taking action on climate change, and building a cleaner, greener future is a top priority for the Government of Canada. In December 2020, we set a fertilizer emissions reduction target of 30 percent below 2020 levels by 2030.
• This target does not represent a ban nor a mandatory reduction in fertilizer use. The fertilizer target will build upon the sector’s work to date and reduce fertilizer-related emissions while maintaining the sector’s competitiveness and maximizing food production.
• We are also providing significant new funding to support the sector’s efforts to reduce GHG emissions, including over $1.5 billion in new and expanded funding announced through Budget 2021 and 2022.

• We are committed to a collaborative approach and ongoing dialogue with industry, provinces, and territories to ensure the long-term competitiveness of the agriculture sector and the health of our water, air and soil for generations to come.