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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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