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ClimateDisclosure
andTargetSettingintheAgricultureSector
LessonsfromtheCanadianMarket
Report/December2024
Disclaimer
Thispaperisforinformationalpurposesonlyanddoesnotcomprise,constitute,orprovide,norshoulditberelieduponasinvestmentorfinancialadviceoranendorsementorrecommendationofanyof
theparties,products,ortransactionsmentioned.Thispaperisintendedasageneralguideforeffectivepracticesandisnotprescriptiveastoactionsordecisionstobetaken.AnyviewsexpressedinthispaperdonotnecessarilyrepresenttheviewsofeachindividualmemberintheRMIAgricultureInitiativethatassistedinthepreparationofthepaper.ThemembersoftheRMIAgricultureInitiativesetindividual
targetsandmaketheirownunilateraldecisionsinlinewiththeirownbusinessgoals(subjectto,andconsistentwith,allfiduciaryandcontractualduties,laws,andregulations).
Thispapercontainspubliclyavailableinformationprovidedormaintainedbythirdparties.RMIhas
notindependentlyverifiedandcannotguaranteetheaccuracyofdatafromthird-partyprovidersanddisclaimsanyresponsibilityorliabilityrelatedtothird-partycontentoranyotherinformationprovidedduringthispresentation.
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/2
AuthorsandAcknowledgments
Authors
AubreyMcKinnon
JadeJoleneVerheije
Authorslistedalphabetically.AllauthorsfromRMIunlessotherwisenoted.
Contacts
JadeJoleneVerheije,jverheije@
AubreyMcKinnon,aubrey.mckinnon@
CopyrightsandCitation
JadeJoleneVerheijeandAubreyMcKinnon,ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket,RMI,2024,
/insight/climate-disclosure-and-target
-
setting-in-the-agriculture-sector-subtitle-lessons-from-the-canadian-market.
RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeand
insights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.
/licenses/by-sa/4.0/
.
AllimagesusedarefromiSunlessotherwisenoted.
Acknowledgments
RMIwouldliketothanktheCanadianfinancialinstitutionsthatcontributedtothispaper.
hRMl
AboutRMI
RMIisanindependentnonprofit,foundedin1982asRockyMountainInstitute,thattransformsglobalenergysystemsthroughmarket-drivensolutionstoalignwitha1.5°Cfutureandsecureaclean,
prosperous,zero-carbonfutureforall.Weworkintheworld’smostcriticalgeographiesandengage
businesses,policymakers,communities,andNGOstoidentifyandscaleenergysysteminterventionsthatwillcutclimatepollutionatleast50percentby2030.RMIhasofficesinBasaltandBoulder,Colorado;NewYorkCity;Oakland,California;Washington,D.C.;Abuja,Nigeria;andBeijing.
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/3
Contents
1.Introduction 7
1.1.Net-ZeroBankingAlliance 8
1.2.ComplexitiesofDecarbonizingAgriculture 9
1.3.Canada’sProgressonDecarbonizingAgriculture 10
2.CanadianAgriculture 11
2.1.SubsectorsandMarketStructure 11
2.2.On-FarmAgricultureEmissions 13
EntericFermentation 15
ManureManagement 15
AgriculturalSoils 15
Liming,Urea,andOtherCarbon-ContainingFertilizer 16
TransportandStationaryFuelCombustion 16
2.3EmissionsBasedonCommodity 16
2.4LandUse,LandUseChange,andForestry 17
2.5The2030EmissionsReductionPlan:Canada’sNextSteps
forCleanAirandaStrongEconomy 18
3.Target-SettingBuildingBlocks 20
3.1.Boundary 20
3.2.Methodology 20
3.3.Roadmaps 21
3.4.Data 21
4.SelectingaBoundary 22
4.1TheAgricultureValueChain 22
4.2UpstreamEmissions 22
4.3DownstreamEmissions 22
FertilizerManufacturing 22
MachineryManufacturing 22
PesticideManufacturing 23
FoodTransport 23
FoodRetail 23
FoodProcessing 23
FoodWaste 23
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/4
5.Target-SettingMethodology 25
5.1.ExistingMethodologiesfortheAgricultureSector 25
5.2.SBTiFLAG 25
5.3.FLAGTarget-SettingOptions 25
5.4FLAGEmissions 26
LandUseChange 26
Non-LandUseChangeorLandManagement 26
CarbonRemovalsandStorage 26
WhoShouldSetFLAGTargets? 27
TheSectoralDecarbonizationApproach 27
HowtheSBTiFLAGCommoditySDADiffersfromtheTraditionalSDA 28
HowAreRemovalsCalculated? 30
6.Roadmaps 31
6.1.KeyCriteriaforAssessingRoadmaps 31
6.2.ExistingRoadmapsfortheAgricultureSector 31
IntegratedModeltoAssesstheGlobalEnvironment 32
“ContributionoftheLandSectortoa1.5°CWorld,”byRoeetal.andSBTiFLAG 34
NetworkforGreeningtheFinancialSystemNetZero2050 35
OneEarthClimateModel 37
6.3.SubsectorRoadmapsSpecifictoCanadianAgriculture 37
DairyFarmingForwardto2050:DairyFarmersofCanada’sNet-ZeroStrategy 37
CanadianBeefAdvisors—IndustryGoalsto2030 38
7.Data 40
7.1.FinancedEmissionsandOtherMetrics 40
7.2.CurrentChallenges 42
7.3.CalculatingaPortfolioAlignmentScore 43
OptionsforGeneratinganEmissionsIntensityBaseline 43
7.4ExampleofCalculatingaPortfolioAlignmentScore 44
7.5.AnalysisofDataOptionsandTools 46
8.OpportunitiesandChallenges 47
9.ConclusionandPotentialFutureWork 49
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/5
AppendixA.Glossary 50
AppendixB.AtmosphericEmissionsCalculatedinIMAGE,
bySourceandMethodApplied 51
AppendixC.OverviewofMitigationOptionsinGCAM,
MESSAGEix-GLOBIOM,andREMIND-MAgPIE 52
AppendixD.OverviewofKeyModelCharacteristics 53
AppendixE.WorkedexampleswithMarketShareParameter 54
Endnotes 64
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/6
1.Introduction
Thepurposeofthispaperistoprovideananalysisofthekeycomponents,opportunities,andchallengesfordisclosureandtargetsettingintheagriculturesector,specificallytheCanadianagriculturesector.
Financialinstitutionscanplayanimportantroleinsupportingandfacilitatingtheagriculturesector’s
transitiontonetzero.However,thereisarecognizedneedforthedevelopmentofmorecomprehensiveguidanceonhowtheseinstitutionscaneffectivelyestablishbaselinesfortheiremissions,settargets,andtransparentlydisclosetheemissionsattributabletotheiragricultureportfolios.
Thispaperdoesnotprovideastep-by-stepguideforsettingtargetsforfinancialinstitutionsactiveintheCanadianagriculturesector;rather,itisdesignedtolayafoundationalframework.Itanalyzesandbuildsonexistingframeworksandstandardsforemissionsaccountingandnet-zerotargetsetting,consolidatingwaysfinancialinstitutionscanmanageanddiscloseemissionswithintheiragricultureportfoliosand
approachthesettingoftargets.
InputforthispaperwassolicitedfromagroupofCanadianfinancialinstitutions,amongwhichwereseveralCanadianBankersAssociationbanksandFarmCreditCanada,afederalCrowncorporation,ensuringthatitisreflectiveofindustryperspectivesandpractices.RMIwouldliketothanktherepresentativesfrom
thesebanksfortheircontribution.Thescopeoftheinputfromthebanksincludedanalysisofpathwaysforfarming,focusingontheon-farm,orfarmgate,sectionofthevaluechain,inalignmentwiththeWorldBusinessCouncilforSustainableDevelopment’sBankingforImpactonClimateinAgriculture(B4ICA)
recommendations.Thecommodityfocuswasbeef,dairy,andcrops(specificallyoilseeds).
AlthoughcraftedwithafocusontheCanadianagriculturesector,theprinciplesandrecommendationsoutlinedarebroadlyapplicabletoothercountriesandsectors.
Thispaperwasdevelopedinresponsetotheevolvinglandscapeofclimate-relatedregulatorydisclosurerequirementsandtheestablishmentoftarget-settingdeadlinesbyentitiessuchastheNet-ZeroBankingAlliance(NZBA).
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/7
1.1.Net-ZeroBankingAlliance
NZBAisabank-specificcommitmentplatformthatbringstogetherbanksfromdiverseregions,
representingmorethan40%ofglobalbankingassets.NZBAmemberscommittotransitioningthe
operationalandattributablegreenhousegas(GHG)emissionsfromtheirlendingandinvestmentportfoliosinlinewith1.5°C-alignedpathwaysby2050orsooner.TheGuidelinesforClimateTargetSettingforBanksoutlinekeyprinciplestounderpinthesettingofcredible,robust,impactful,andambitioustargetsinlinewithachievingnetzeroby2050GHGemissionsgoals,includingthesefouroverarchingprinciples:
?Banksshallindividuallyandindependentlysetandpubliclydiscloselong-termandintermediatetargetstosupportmeetinganetzeroby2050GHGemissionsgoal.
?Banksshallestablishanemissionsbaselineandannuallymeasureandreporttheemissionsprofileoftheirlending,investment,andcapitalmarketsactivities.
?Banksshallusewidelyacceptedscience-baseddecarbonizationscenariostosetbothlong-termandintermediatetargetsthatarealignedwithanetzeroby2050goal.
?Banksshallregularlyreviewtargetstoensureconsistencywithcurrentclimatescience.Specificguidanceontargetsincludes:
?TargetsmustincludeScope1,2,and3emissionswheresignificantandwheredataallows.
?Targetsmustbebasedonabsoluteemissionsoranemissionsintensitymeasure.
?Targetsmustbebasedonno-orlow-overshootscenariosalignedwith1.5°C.
?Targetsmustcoverlendingandcapitalmarketsactivities;coverageofinvestmentactivitiesisstronglyrecommended(effectiveNovember2025).
?Banksmustreportontargetsannually.
NZBAsignatorybanksreporttheirprogressinlinewiththeseguidelines,adheringtothecomply-or-explainprinciple.Iftargetscannotbefullymetorcertaininformationisomittedordisclaimersprovided,signatorybanksmustexplainanydeviations.Thisapproachencouragesprogresswhileallowingforreasonable
adjustments.
TheanalyticalprocessunderpinningthispaperwasconductedwiththeaimtoalignwithNZBAguidelines;however,thefindingsareintendedtoserveasareferencetoolforanyfinancialinstitutionseeking
guidanceondisclosureandtargetsetting.
Thispaperseekstofostercollaborationandadvancethecollectiveapproachtotargetsettingintheagriculturesector,addressingcriticalsustainabilitychallengesinthiscrucialindustry.
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/8
1.2.ComplexitiesofDecarbonizingAgriculture
Decarbonizingagriculturepresentsamultifaceted,complexsetofchallenges,basedonthesector’sinherentcharacteristicsandsocioeconomicimportance.
Thediversityofagriculturalpracticesandthevariabilityofagriculturalecosystemsposesignificant
obstacles.Agriculturalpracticesvarywidelyacrossdifferentregions,influencedbylocalclimate,soiltypes,wateravailability,andsocioeconomicconditions.Thisheterogeneitymakesitchallengingtodevelopandimplementstandardizeddecarbonizationstrategiesthatareeffectiveacrossallcontexts.
Furthermore,theeconomicimplicationsforfarmersandruralcommunitiesmustbecarefullymanaged.Manyfarmersoperatewithslimprofitmarginsandhavelimitedfinancialresourcestoinvestinnewtechnologiesorpractices.Transitioningtolow-carbonagriculturalmethodsoftenrequiressignificantup-frontinvestmentsinequipment,training,andinfrastructure,whichcanbeprohibitiveforsmallholderfarmers.
Farmanimalsinmanyagriculturalsystemspresentaspecificchallenge.Livestock,especiallyruminants
likecattle,aresignificantsourcesofmethane(CH4),apotentGHG.Reducingemissionsfromlivestock
farmingnecessitateschangesinanimalhusbandrypractices,dietaryadjustments,andpotentiallyreducedherdsizes,allofwhichcanbecontentiousanddisruptivetolivelihoods.Additionally,giventhenecessitytoreduceemissionsrelatedtotheuseofchemicalfertilizers,thereiscorrespondingneedtoincreasetheutilizationofanimalwaste-basedfertilizers.
Theneedforfoodsecurityfurthercomplicatesthedecarbonizationagenda.Astheglobalpopulation
continuestogrow,thedemandforfoodisincreasing,placingpressureonagriculturalsystemstoenhanceproductivity.Resilienceindomesticfoodproductioncanimprovefoodsecuritybyreducingtheimpactofglobaleconomicandpoliticalshocks.Balancingthedualobjectivesofreducingemissionsandincreasingfoodproductionrequiresinnovativeapproachesthatcanimproveyieldefficiencywhileminimizing
environmentalimpact.
Technologicalandinfrastructuralconstraintsalsoplayacriticalrole.Manylow-carbonagricultural
technologiesarestillindevelopmentalstagesorarenotwidelyaccessible.Scalingthesetechnologies
requiresinvestmentinresearchanddevelopment,aswellasinthecreationofsupportiveinfrastructures.
Policyandregulatoryframeworkswouldalsoneedtoevolvetosupportthetransitiontolow-carbon
agriculture.Effectivepoliciesmustincentivizesustainableagriculturepractices,providefinancialandtechnicalassistancetofarmers,andensurethatthebenefitsandburdensofdecarbonizationareequitablydistributed.
Further,anyclimateordecarbonizationinitiativeandtargetsettingmustconsidertheintricatebalanceofecosystemsandstriveforanature-basedsolution.Thismeansnotonlymitigatingharmbutalsoenhancingandrestoringnaturalhabitats,therebysupportingbiodiversityandensuringsustainableagriculture
practicesthatcoexistharmoniouslywiththeenvironment.
Decarbonizingagricultureisacomplexendeavorthatrequirescoordinatedeffortsacrossmultiple
dimensions,includingtechnologicalinnovation,economicsupport,policyreform,and(international)cooperation.Animportantstepforfinancialinstitutionstosupportthistransitionistogaininsights
intotheirportfolioemissionsandthenconductconstructiveconversationswiththeirclientstogain
understandingofhowthefinancialsectoranditsclientscancollectivelyworktowardasustainableandequitabletransition.
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/9
1.3.Canada’sProgressonDecarbonizingAgriculture
Canadahasalreadymadesignificantstridesinthedecarbonizationofitsagriculturalsector,including
thedevelopmentoftechnologicalinnovations,policyinitiatives,andcollaborativeprogramsdesignedtotransformagriculturalpracticesandmitigateenvironmentalimpacts.Thisisshowninnumerouslife-cycleassessments(LCAs)ofCanadianagriculturalcommodities,whichindicatethattheemissionsintensity
ofsomeagriculturalcommoditiesisdecreasing.IntheirLCA,DairyFarmersofCanadadocumenteda
decreasefrom1.03kgCO2perliterofmilkin2011to0.94kgCO2perliterofmilkin2016.1ForCanadianbeef,adecreaseinemissionsintensitywasfoundduringa2021LCA,fallingfrom12.6kgCO2perkgofliveweightin2013to10.4kgCO2perkgofliveweightin2021.2Onekeyreasonforthiswasthereductionintimetakentoraisecalvesfrombirthtofinish(marketweight),whichreducestheamountofCH4asinglecowproducesoveritslifetime.TheGlobalInstituteforFoodSecurityalsofound,innumerousLCAsconductedin2022,
thatCanadiancanola,wheat,lentils,andpeasarelesscarbon-intensivethanthesamecropgrowninFrance,Germany,ortheUnitedStates.3
TheseeffortsreflectacomprehensiveapproachtoreducingGHGemissionswhilemaintainingagriculturalproductivityandresilience.Continuedcommitmenttoinnovation,investment,andcollaborationwillbeessential,andfinancialinstitutionscouldplayanimportantrole.
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/10
Exhibit1
2.CanadianAgriculture
2.1.SubsectorsandMarketStructure
TheagricultureindustryofCanadaisimportantbothdomesticallyandinternationally.
Internationally,Canadaisaleadingexporterofagriculturalproducts,rankingamongthetopfiveglobal
exportersofcommoditieslikewheatandcanola.In2022,Canada’sagri-foodexportsreachedarecordhighof$82billion,reflectingitscriticalroleintheglobalfoodsupplychain.In2022,thewholeagricultureandagri-foodsystememployed2.3millionpeople(oneinninejobsinCanada)andgenerated$143.8billion(around7.0%)ofCanada’sgrossdomesticproduct(GDP).4Canadaproducesawidevarietyofcropsandlivestock,
butonlyahandfulofthesevarietiesareresponsibleforalargeamountofthefarmcashreceiptsinthesesubsectors.Forexample,forcrops,thetopfivecontributeto62%ofthetotal,ascanbeseeninExhibit1.
FarmreceiptsforselectedCanadiancropcategories
2023cashreceipts
%oftotal
Crops
(millionsofdollars)
cropreceipts
Canola
13,663
25%
Wheat(exceptdurumwheat)
10,255
19%
Soybeans
3,941
7%
Cornforgrain
3,399
6%
Cannabis
2,818
5%
Total34,07662%
RMIGraphic.Source:StatisticsCanada
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/11
livestock,asseeninExhibit2.
Exhibit2FarmreceiptsforselectedCanadianlivestockcategories
Livestock
2023cashreceipts(millionsofdollars)
%oftotallivestockreceipts
Cattle
13,525
36%
Unprocessedmilk
8,555
23%
Hogs
5,855
16%
Total
RMIGraphic.Source:StatisticsCanada
27,935
75%
Despitethehighconcentrationofspecificcropsandlivestockaccountingforthemajorityoffarmreceipts,theownershipstructurewithinthesectorisextremelyfragmented.Mostfarmsoperateundersole
proprietorships,orpartnerships,orarefamily-ownedcorporations(seeExhibit3).
Exhibit3Farmownershipstructure
OperatingarrangementNumberoffarmsin2021
Soleproprietorship
96,702
Partnership
45,059
Familycorporation
43,233
Other
4,880
Totalnumberoffarms189,874
RMIGraphic.Source:StatisticsCanada
/12
Thispresentsasignificantchallengefromanemissionsaccountingperspectivebecauseitiseasierto
accountforemissionswhentheyoriginatefromalimitednumberofactorswithinasector.Despite
thelargenumberoffarmsandranches,productionissomewhatconcentratedwithinkeyagriculture
subsectorsinCanada.Forinstance,inthebeefsector,only1%offarmshavemorethan500cattle,yettheyareresponsiblefor13%oftheCanadianherd.5Asimilarsituationexistsfordairy,whereapproximately1%offarmsareresponsiblefor10%ofthedairyherd.6
Keytakeaways
Therearejustunder200,000farmoperatorsinCanadianagriculture—makingitunrealisticto
directlyengageallonemissions.However,theCanadianagricultureindustrycanbecharacterizedbyahighdegreeofconcentrationoffarmreceiptsincertaincropsandlivestocksubsectors.Duetotheconcentratednatureofthesector,thereisanopportunitytofocusonmaterialitybybetterunderstandingtheemissionsofthelargestproducers.Regardlessofsize,therearealsotools
availableatthefarmlevelthatcanassistfarmersinmeasuringtheiremissions,especiallyiftheyhavegooddigitalfarmrecords.Thesetoolswillbediscussedinsubsequentsections.
2.2.On-FarmAgricultureEmissions
InCanada’sNationalInventoryReport1990–2021(NIR),theagriculturesectorwasreportedasthefifth
largestsourceofGHGemissions,accountingfor10%ofthetotalnationalemissionswithapproximately69megatonsofcarbondioxideequivalent(MtCO2e)emittedin2021.7However,theNIRoutlinestwomethodsofallocatingemissionsfromthesector.ThefirstfollowstheIntergovernmentalPanelonClimateChange(IPCC)categoriesasdefinedby2006GuidelinesforNationalGreenhouseGasInventories.8ThesecondusesCanadianeconomicsectorcategories.
Forthepurposesofanalyzingeconomictrendsandpolicies,itisusefultoreallocateemissionstothe
economicsubsectorfromwhichtheyoriginate.Thisreallocationsimplyrecategorizesemissionsunder
differentheadingsanddoesnotchangethetotalmagnitudeofCanadianemissionsestimates.The69MtCO2efigureoriginatesfromusingtheeconomicsectorallocationapproach.Thethreeeconomicsubsectorsofagricultureareanimalproduction,cropproduction,andon-farmfueluse.Emissionsfromthesethree
economicsubsectorsaredepictedinExhibit4.Between1990and2021,emissionsincreased35%,from51MtCO2eto69MtCO2e.Thisincreaseisprimarilyattributabletothedoublingofcropproductionemissions:since2005,theproportionofemissionsfromcropproductionhasrisenfrom16%ofsectoremissionsto
25%in2021.Emissionsfromanimalproductionhaveconsistentlycontributedatleasthalfofthetotal
agricultureGHGemissions.Thisshiftinsectoralemissionscanbeattributedtosmallercattlepopulationscombinedwithacontinuedincreaseofcropproductionandfertilizeruse.
Itisnotsufficienttoanalyzeemissionssolelyfromtheperspectiveoftheseeconomicsectorsbecause,
unlikeotherindustries,agriculturalemissionsareprimarilyfromCH4andnitrousoxide(N2O).In2021,
CH4emissionsconstituted41%oftheCanadianagriculturesector’semissions,N2Ocontributed33%,andcarbondioxide(CO2)accountedfor26%.ThebreakdownofemissionsbasedonGHGtypeandactivityis
illustratedinExhibit5.Itishelpfultoexploreindetailthespecificactivitiesresponsiblefortheseemissions,aswellasidentifythecroppingorlivestockactivityprimarilycontributingtothemtounderstandhowtheycontributetotheoverallemissionsprofileoftheCanadianagriculturesector.
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/13
Exhibit4EmissionsfromCanadianagriculturaleconomicsectors,1990–2021
MtCO2e
60
On-farmfueluse
Cropproduction
40
20
Animalproduction
1990199520002005201020152020
RMIGraphic.Source:EnvironmentandClimateChangeCanada
Exhibit5SourceofemissionsfromCanadianagriculturebyGHGtype
andactivity,2000–21
CH4-EntericFermentationwN2O-ManureManagementwCH4-ManureManagement
N2O-AgriculturalSoils-DirectN2O-AgriculturalSoils-IndirectCO2-Liming,UreaApplication,andOtherCarbon-ContainingFertilizersCO2-On-FarmTransportCO2-StationaryFuelCombustion
MtCO2e
70
60
50
40
30
20
10
0
20002002200420062008201020122014201620182020
RMIGraphic.Source:Canada’sNationalInventoryReport
ClimateDisclosureandTargetSettingintheAgricultureSector:LessonsfromtheCanadianMarket/14
EntericFermentation
Entericfermentationoccurswhenthemicrobespresentinananimal’sdigestivesystemfermentthefeed
consumedbytheanimal,producingCH4asaby-product.ThisCH4istheneructated,orexhaledbythe
animal.9Thisphenomenonisspecifictoruminantanimals,whichpossessaforestomach(calledarumen)thatessentiallyfunctionsasalargefermentationvat.Cattle,buffalo,sheep,andgoatsareallruminant
animals.AsindicatedinExhibit2,beefanddairyaresignificantsubsectorswithintheCanadianagricultureeconomy.EmissionsfromentericfermentationinCanadaoriginatealmostentirely(96%)fromcattle
productioninCanada.Beefcattlearethemaincontributortotheseemissions(81%),followedbydairy
cattle(15%)andotherspecies(5%).10Inaddition,CH4isapotentGHG,with27–30timestheglobalwarmingpotentialasCO2.11
ManureManagement
Livestockmanureisprimarilycomposedoforganicmaterialandwater.Underanaerobicconditions,where
oxygenisabsent,theorganicmaterialisdecomposedbybacteria.TheendproductsofthisdecompositionareCH4,CO2,andresidualorganicmaterial.ManurestorageresultsinproductionofCH4andN2O.N2O
isproducedfromnitrificationanddenitrificationprocessesactingonthenitrogeninmanure.The
managementofcattleandpoultrymanureproducespredominantlyN2O,whereasporkmanureproducespredominantlyCH4.Thisdifferencearisesbecauseruminantsareinefficientnitrogenconverters,withonly5%–30%ofingestednitrogenbeingassimilatedbytheanimal,whiletheremaining70%–95%isexcretedviafecesandurine.Consequently,ruminantscreatemanurethatisdisproportionallynitrogenheavy.12
AgriculturalSoils
Directemissionsfromagriculturalsoilsarisefromtheapplicationofnitrogenfertilizerstoannual
andperennialcropland.Theprocesseso
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