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Feast Or Famine: Impacts of Climate Change and Carbon Pricing on Agriculture, Agri-Food and Forestry

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Feast Or Famine: Impacts of Climate Change and Carbon Pricing on Agriculture, Agri-Food and Forestry Feast or Famine: Impacts of climate change and carbon pricing on agriculture, agri-food and forestry Senate Committee on Agriculture and Forestry The Honourable Diane F. Griffin, Chair The Honourable Ghislain Maltais, Deputy Chair DECEMBER 2018 For more information please contact us: by email: [email protected] toll-free: 1-800-267-7362 by mail: The Standing Senate Committee on Agriculture and Forestry Senate, Ottawa, Ontario, Canada, K1A 0A4 This report can be downloaded at: sencanada.ca/agfo The Senate is on Twitter: @SenateCA, follow the committee using the hashtag #AGFO Ce rapport est également offert en français Table of contents MEMBERS ...............................................................................................................................................5 ORDER OF REFERENCE ....................................................................................................................... 6 FOREWORD ............................................................................................................................................. 7 ACRONYMS AND ABBREVIATIONS ................................................................................................ 8 EXECUTIVE SUMMARY ....................................................................................................................... 9 RECOMMENDATIONS .......................................................................................................................11 INTRODUCTION ...................................................................................................................................13 CONTEXT AND BACKGROUND .......................................................................................................14 Climate change in Canada: Overview .......................................................................................14 Forestry: Impacts of climate change .................................................................................15 Agriculture and agri-food: Impacts of climate change ......................................................17 Canada’s greenhouse gas emissions ........................................................................................18 Greenhouse gas emissions from agriculture ....................................................................20 Greenhouse gas emissions from Canada’s forestry sector ..............................................22 Legislative and policy frameworks ............................................................................................23 The Pan-Canadian Framework on Clean Growth and Climate Change ...........................................................................................................23 Federal Climate Change Adaptation Policy Framework....................................................24 Canada’s regulatory and policy framework for forest management ................................25 Canadian Agricultural Partnership .....................................................................................26 ADAPTATION AND RESILIENCE IN THE AGRICULTURE, AGRI-FOOD, AND FORESTRY SECTORS ...............................................................................................................27 Adaptation and resilience in agriculture and agri-food ...........................................................28 Improved crops and animals..............................................................................................28 Good management practices.............................................................................................28 Adaptation and resilience in forestry ........................................................................................31 Measures to support adaptation and resilience .......................................................................32 Research and extension .....................................................................................................32 Measurement and monitoring ...........................................................................................34 Incentives for sustainable, resilient practices and ecosystem services .....................................................................................................34 Maintenance of biodiversity ...............................................................................................35 Water management solutions ............................................................................................35 Strengthening of relationships that build resilience .........................................................35 Risk management support .................................................................................................36 IMPACT OF CARBON PRICING MECHANISMS ON COMPETITIVENESS IN THE AGRICULTURE, AGRI-FOOD, AND FORESTRY SECTORS .......................................................38 Economic importance of the agriculture, agri-food, and forestry sectors in Canada .................................................................................................39 Carbon pricing mechanisms ......................................................................................................39 Anticipated impacts of carbon pricing on competitiveness....................................................40 Sustainability improvements that also increase competitiveness .........................................43 Reducing the impact of carbon pricing on the competitiveness of the sectors ....................44 Exemptions .........................................................................................................................44 Eco-system services: Recognition and reward for the multiple contributions of agricultural and forest landscapes ................................................................................46 Staying competitive through building reputation and public trust ....................................47 Carbon credits ....................................................................................................................47 MEETING CANADA’S EMISSIONS-REDUCTION TARGETS: ROLES OF FEDERAL AND PROVINCIAL/TERRITORIAL GOVERNMENTS .........................51 Federal and provincial/territorial responsibilities ....................................................................51 Federal-provincial/territorial collaboration for mitigation ......................................................52 Areas for government action on climate change mitigation ..................................................54 Research and extension .....................................................................................................54 Incentives for good management practices in forestry and agriculture ..........................54 Regulatory measures .........................................................................................................55 Employing new technologies and materials ......................................................................55 Collaborative processes .....................................................................................................56 CONCLUSION .......................................................................................................................................57 APPENDIX A: SOIL ORGANIC CARBON CHANGE INDICATOR ............................................58 APPENDIX B: WITNESSES ...............................................................................................................60 APPENDIX C: FACT-FINDING MISSIONS .....................................................................................71 APPENDIX D: WRITTEN SUBMISSIONS RECEIVED BY THE COMMITTEE .......................74 Members The honourable The honourable Diane F. Griffin Ghislain Maltais Chair Deputy Chair THE HONOURABLE SENATORS Salma Ataullahjan Wanda Elaine Douglas Black Robert Black Jean-Guy Dagenais Thomas Bernard Norman E. Doyle Terry M. Mercer Julie Miville-Dechêne Victor Oh Ex-officio members of the committee: The Honourable Senators Peter Harder, P.C. (or Diane Bellemare or Grant Mitchell), Larry W. Smith (or Yonah Martin), Joseph A. Day (or Terry M. Mercer), Yuen Pau Woo (or Raymonde Saint-Germain) Other Senators who have participated from time to time in the study: The Honourable Senators Lynn Beyak, Pierre-Hugues Boisvenu, Patricia Bovey, Nicole Eaton, Raymonde Gagné, Marc Gold, Frances Lankin, P.C., Mary Jane McCallum, Sabi Marwah, Paul E. McIntyre, Kelvin Kenneth Ogilvie (retired), Ratna Omidvar, Chantal Petitclerc, André Pratte, Bob Runciman (retired), Scott Tannas, Claudette Tardif (retired), Yuen Pau Woo Parliamentary Information and Research Services, Senate Committees Directorate: Library of Parliament: Kevin Pittman, Clerk of the Committee Alison Clegg, Analyst Annie Trudel, Administrative Assistant Corentin Bialais, Analyst 5 SENATE COMMITTEE ON AGRICULTURE AND FORESTRY Order of Reference Extract from the Journals of the Senate, Extract from the Journals of the Senate, Thursday, March 9, 2017: Thursday, June 14, 2018: The Honourable Senator Maltais moved, seconded by The Honourable Senator Griffin moved, seconded by the the Honourable Senator Dagenais: Honourable Senator Dean: That the Standing Senate Committee on Agriculture That, notwithstanding the order of the Senate adopted and Forestry be authorized to examine and report upon on Thursday, March 9, 2017, the date for the final report the potential impact of the effects of climate
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