Question Period Note: AGRICULTURAL METHANE REDUCTION CHALLENGE

Q1 – What are the main sources of methane emissions in the agriculture sector? Q2 – What are the anticipated emissions reductions for the agricultural sector? Q3 – What federal programs and policies are there to mitigate agricultural methane emissions? Q4 – Why is the program not supporting innovations focused on manure management or livestock other than cattle?

R.1 - Methane emissions from the agriculture sector are primarily a result of biological processes from livestock, such as animal digestion and manure emissions, making them challenging to measure and address. While biological processes from livestock are a source of methane emissions, they can also positively contribute to environmental objectives for maintaining and improving soil health. R.2 - The Methane Strategy does not include any specific emission reduction targets for the agriculture sector. However, the Government of Canada has committed to emission reduction targets of 40 to 50% by 2030 and net-zero in emissions by 2050. We intend to continue working with the sector to determine the best path forward for reducing emissions. R.3 - The federal government has committed over $1.5 billion through multiple initiatives to support farmers with new technologies and farming practices to reduce GHG emissions and improve farm performance. This includes programs such as the $185 million Living Labs program and the $704.1 million On-Farm Climate Action Fund (OFCAF) under the Agricultural Climate Solutions program, the $441.4 million Agricultural Clean Technology Program including the $12 million Agricultural Methane Reduction Challenge, as well as measures under the Sustainable Canadian Agricultural Partnership. Collectively, the government estimates that by 2030 the supported activities will contribute to an overall reduction of 13Mt per year. We’re also preparing a protocol for livestock feed management, in addition to proposing a protocol for livestock manure management and anaerobic digestion, which will credit methane reduction from livestock production to farmers.

The Department continues to leverage its long-standing collaboration with the livestock sector to increase resiliency and sustainability, while maintaining the sector’s economic prosperity and Canada’s food supply. R.4 - The Challenge parameters were developed in consultation with industry experts. Manure management and non-cattle livestock contribute to agricultural methane emissions, but methane emissions from cattle digestion were identified by the sector as a key priority. This space has shown promise for low-cost and scalable innovations that make an impact on emissions within the sector.

The Challenge, launched on November 14th, 2023, aims to advance low-cost and scalable practices, processes, and technologies designed to reduce methane emissions produced by cattle. The $12 million Challenge, jointly launched between Agriculture and Agri-food Canada and the Privy Council Office’s Impact Canada, looks for solutions in three different categories:

Feed additives and related technologies, which includes feed additives, improving forage quality, precision feeding and increasing starch digestibility

Pasture and grazing management, which includes adjustments to traditional or novel grazing practices, nature-based solutions, winter feeding and improved pasture quality

Production efficiencies and animal management systems, which includes improved forage quality, feed efficiency practices, genetic selection and animal health improvements

The Challenge is divided into three stages over the course of 5 years:

Stage 1(A): Applicants are required to provide an initial proof of concept of their solution. 13 applicants have received just over $153,000 each.

Stage 1(B): Applicants must develop a prototype of their solution. Up to 13 applicants will receive up to $230,000 each.

Stage 2: Applicants must demonstrate the success of their solution through animal testing and methane emission measurements. Up to 10 finalists will receive up to $500,000 each.

Stage 3: Applicants will need to grow and scale-up their solution in the Canadian marketplace. Two (2) applicants will be announced as the Grand Prize Winners, receiving up to $1,000,000 each.

Agricultural methane emission sources

Methane is a short-lived but potent greenhouse gas (GHG) with at least 25 times the warming potential of carbon dioxide over a 100-year period. Agriculture represents 30% of Canada’s total methane emissions, mainly biological emissions from livestock production. Studies show that 86% of Canada’s agricultural methane emissions are from enteric fermentation, resulting from the digestive process in ruminants such as cattle, goats and sheep, while the remaining 14% stem from manure. Canada’s agricultural methane emissions have already decreased by 20% since 2005, mainly due to a reduction in the size of Canada’s beef and dairy herds, in addition to an overall increase in productivity per animal, resulting from improvements in nutrition, genetics and management.

Agriculture and Agri-Food Canada’s approach to agricultural methane emissions

On October 11, 2021, Canada confirmed its support for the Global Methane Pledge, which aims to reduce global methane emissions by 30 percent below 2020 levels by 2030. In support of the Pledge, which was officially launched at the UN Climate Change Conference of the Parties (COP26) in Glasgow, Canada committed to taking comprehensive domestic actions to reduce methane emissions across the broader Canadian economy. While the majority of reductions are expected to come from the oil and gas sector, methane emissions reductions will also be sought from landfills and agriculture. AAFC will continue working to assess the potential of the Canadian agriculture sector to contribute to methane reductions and will assess how current programming (e.g., Agricultural Clean Technology Program, On-Farm Climate Action Fund) could help achieve this target.

The Emissions Reduction Plan (tabled March 29, 2022) and Budget 2022 (tabled April 7, 2022) included additional investments to support the agriculture sector in reducing GHG emissions such as methane, including:

$470 million to the Agricultural Climate Solutions: On-Farm Climate Action Fund. This funding allows the program to top-up funding for some current successful applicants, broaden support to additional key climate mitigation practices, extend the program past its current end date of 2023/24, and support adoption of practices that contribute to the fertilizer emissions target and Global Methane Pledge;

$330 million to triple funding for the Agricultural Clean Technology program by broadening and expanding the scope of the program; and

$100 million to the federal granting councils to support post-secondary research to prepare the sector for net-zero emission agriculture. This funding supports fundamental and applied research supporting a path to net-zero emissions, knowledge transfer, and developing metrics.

These are part of over $1.5 billion of investments that the Government of Canada has committed to support farmers with new technologies and farming practices to reduce GHG emissions and improve farm performance. Many of the supported activities will result in gradual GHG reductions over time, and the department is still in the early phases of monitoring impacts. The Government of Canada estimates that by 2030 the supported activities will contribute to an overall reduction of 13 Mt per year of CO2 equivalent GHG emissions.

Our farmers have already come a long way in reducing methane emissions.

In October 2021, the Government of Canada confirmed our support for the Global Methane Pledge, which aims to reduce global methane emissions from all sources by 30 percent below 2020 levels by 2030.

The Challenge is a $12 million initiative to advance innovative, scalable and economically viable practices, processes and technologies that reduce methane emissions from livestock.

We launched the Agricultural Methane Reduction Challenge on November 14, 2023. The application deadline was February 7, 2024.

Thirteen semi-finalists have been selected to receive a prize of just over $150,000 to continue advancing their innovations and develop a prototype by February 6, 2025.