Background Paper 1: Agricultural Biodiversity Background Paper 2: Bioenergy Background Paper 3: Drylands Background Paper 4: Environment and Trade Background Paper 5: Research and Technology Background Paper 6: Water Background Papers – Introduction FAO/Netherlands Conference on the Multifunctional Character of Agriculture and Land INTRODUCING THE SIX BACKGROUND PAPERS The FAO/Netherlands Conference on the Multifunctional Character of Agriculture and Land (MFCAL) will take place in Maastricht, the Netherlands from 12-18 September, 1999. Discussion will be based on a series of specially-prepared case studies and two main technical documents - Issues Paper: The Multifunctional Character of Agriculture and Land and Taking Stock of The Multifunctional Character of Agriculture And Land. The six Background Papers in this volume provide an additional source of information and reference. Their purpose is to stimulate thought and to illuminate the very real value of what could be called “the MFCAL Approach” for the study and analysis of specific subject areas and themes. They also demonstrate the two-way value flow, showing how the MFCAL Approach can be enriched through reference to specific examples, but similarly, highlighting the valuable contribution that the approach can make to individual subject areas and issues. The production of the papers has been overseen and coordinated by the Executive Bureau of the Conference. Each paper has been prepared by an independent group of authors and technicians from within and beyond FAO. Indeed, in providing these papers, it is important to note that the designations employed and the presentation of material do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations or the Ministry of Agriculture, Nature Management and Fisheries, The Netherlands, concerning the legal status of any country or its authorities or concerning the delimitation of its frontiers or boundaries. We are certain that each paper provides a valuable contribution to the ongoing development of our understanding of the Multifunctional Character of Agriculture and Land and to the discussions at the Conference in September. For reasons of both cost and time, it has not been possible to translate the six Background Papers. Summaries in French and Spanish will be available on the internet prior to the Conference in Maastricht (http://www.fao.org/mfcal) and will be available at the Conference venue. i Background Papers – Acknowledgements FAO/Netherlands Conference on the Multifunctional Character of Agriculture and Land ACKNOWLEDGEMENTS The six Background Papers have been prepared under the overall direction of the Executive Bureau of the FAO/Netherlands Conference on the Multifunctional Character of Agriculture and Land, based at FAO in Rome, Italy. Richard Trenchard of the Executive Bureau, coordinated the production of the six documents and was responsible for their final editing and incorporation into a single volume. Louise Fresco, Director, Research, Extension and Training Division (SDR) and Gustavo Best, Head, Executive Bureau provided overall supervision and guidance. Most importantly, thanks must go for the people who acted as technical focal points for the production of the six individual documents (FAO, unless otherwise indicated): Linda Collette (Agricultural Biodiversity); Gustavo Best (Bioenergy); Dominque Lantieri and Francois Lemmans (IFAD) (Drylands); Terri Raney and Jeff Tschirley (Environment, Trade and SARD), Eric Kueneman, Michael Zoebisch(ICARDA), John Dodds (ICARDA) (Research and Technology) and Wulf Klohn (Water). They all embraced the challenge with enthusiasm, efficiency and utmost professionalism. A large and distinguished team from within FAO, the Ministry of Agriculture, Nature Management and Fisheries, The Netherlands, throughout the CGIAR System and from a number of universities and research institutions provided important inputs to the Background Papers. Their individual contributions are recognised in the individual acknowledgements of each paper. Important technical support and guidance was provided by the Ministry of Agriculture, Nature Management and Fisheries, The Netherlands. The production of the Background Papers would not have been possible without the valuable and generous financial support of the Netherlands Ministry of Foreign Affairs, Directorate-General for International Cooperation. In addition, both ICARDA (Background Paper 5) and IFAD (Background Paper 3) made important financial contributions towards the production of individual papers. ii Background Papers –Contents FAO/Netherlands Conference on the Multifunctional Character of Agriculture and Land INTRODUCING THE SIX BACKGROUND PAPERS I ACKNOWLEDGEMENTS II SUMMARY BACKGROUND PAPER 1 - AGRICULTURAL BIODIVERSITY III SUMMARY BACKGROUND PAPER 2 - BIOENERGY VIII SUMMARY BACKGROUND PAPER 3 - DRYLANDS. X SUMMARY BACKGROUND PAPER 4 - ENVIRONMENT AND TRADE. XII SUMMARY BACKGROUND PAPER 5 - RESEARCH AND TECHNOLOGY XII SUMMARY BACKGROUND PAPER 6 - WATER XIV 1 - SUSTAINING THE MULTIPLE FUNCTIONS OF AGRICULTURAL BIODIVERSITY. BACKGROUND PAPER 1: AGRICULTURAL BIODIVERSITY: 1 INTRODUCTION 3 THE MFCAL APPROACH 3 THE MULTIPLE FUNCTIONS OF AGRICULTURAL BIODIVERSITY 4 II) AGRICULTURAL BIODIVERSITY'S CONTRIBUTIONS TO PRODUCTION AND ENVIRONMENTAL SUSTAINABILITY 10 III) AGRICULTURAL BIODIVERSITY'S CONTRIBUTIONS TO RURAL DEVELOPMENT 18 UNDERLYING CAUSES OF AGRICULTURAL BIODIVERSITY LOSSES 20 THE NEGLECT OF INDIGENOUS KNOWLEDGE, LOCAL INSTITUTIONS AND MANAGEMENT SYSTEMS 20 THE DOMINANCE OF BLUEPRINT PARADIGMS AND POLICIES 20 CORPORTE INTERESTS 22 INEQUITABLE TENURE AND CONTROL OVER RESOURCES 23 MARKET PRESSURES AND THE UNDERVALUATION OF AGRICULTURAL BIODIVERSITY 23 DEMOGRAPHIC FACTORS 24 OPTIONS FOR SUSTAINING AGRICULTURAL BIODIVERSITY AND ITS MULTIPLE FUNCTIONS 24 1. EXPAND KNOWLEDGE ON THE DYNAMICS OF AGRICULTURAL BIODIVERSITY 26 2. INCREASE THE EFFECTIVE USE OF AGRICULTURAL BIODIVERSITY IN FOOD AND FIBRE PRODUCTION 27 3 PROMOTE LOCAL ADAPTIVE MANAGEMENT OF AGRICULTURAL BIODIVERSITY 28 4. SUPPORT LOCAL PARTICIPATION IN PLANNING, MANAGEMENT AND EVALUATION 29 5. TRANSFORM BUREAUCRACIES AND PROFESSIONAL PRACTICE 30 6. STRENGTHEN LOCAL RIGHTS AND SECURITY OF TENURE 31 7. REFORM TRADE-RELATED POLICIES, MARKETS AND ECONOMIC INCENTIVES 32 REFERENCES 34 2 - THE MULTIFUNCTIONAL CHARACTER OF AGRICULTURE AND LAND: THE ENERGY FUNCTION. BACKGROUND PAPER 2: BIOENERGY. 43 1. BIOMASS ENERGY 45 1.1 TRENDS IN PER CAPITA TOTAL BIOMASS USE. 46 1.2 THE AGRICULTURAL ROLE: PAST AND PRESENT. 47 2. BIOENERGY AND THE ROLE OF AGRICULTURE IN THE INTERNATIONAL ENERGY SCENARIO. 48 3. THE ROLE OF AGRICULTURE IN ENERGY CONSUMPTION, PRODUCTION, AND CO2 MITIGATION. 50 3.1 THE TECHNICAL DIMENSION – INCLUDING NEW PATHS 51 4. ENERGY CROPS AND RESIDUES. 53 4.1 AGRICULTURAL RESIDUES 53 4.2 ENERGY CROPS 53 4.3 FORESTRY RESIDUES 54 4.4 LIVESTOCK RESIDUES 55 5. ENVIRONMENTAL, HEALTH AND SOCIO-ECONOMIC ASPECTS 55 5.1. ENVIRONMENT. 55 5.1.1 The implications of the Kyoto Protocol (KP). 56 5.2 SOCIO-ECONOMICS. 57 5.2.1 Rural infrastructure support. 59 5.2.2 Employment 59 6. AGRICULTURE AND CLIMATE CHANGE IMPLICATIONS 60 7. LAND REHABILITATION, FOOD PRODUCTION AND BIODIVERSITY. 61 7.1 FOOD VERSUS FUEL PRODUCTION. 62 8. POLICY APPROACHES TO AGRICULTURE AND ENERGY 63 iii Background Papers –Contents FAO/Netherlands Conference on the Multifunctional Character of Agriculture and Land 8.1 SUSTAINABLE AGRICULTURE AND BIOENERGY 64 8. 2 BIOENERGY AND RURAL DEVELOPMENT 66 9. CONCLUSIONS AND POLICY RECOMMENDATIONS. 66 9.1 POLICY RECOMMENDATIONS 68 Policies and institutions 68 Research, development and extension 68 Projects and financing 69 REFERENCES. 77 3 - DRYLANDS AND THE MFCAL APPROACH. BACKGROUND PAPER 3: DRYLANDS. 79 INTRODUCTION 81 1. MFCAL AND DRYLANDS: THE ISSUES AT STAKE 81 THE MFCAL APPROACH 81 1.2 THE CHARACTERISTICS OF DRYLANDS 83 . FAO CLASSIFICATION OF DRYLANDS 84 1.3 AGRICULTURE AND LAND USES IN DRYLANDS 84 1.4 DESERTIFICATION: PROBLEMS AND RESPONSES 88 1. IDENTIFYING THE PROBLEM 88 2. DESCRIBING THE RESPONSES 89 TABLE 3: CCD PRINCIPLES 90 1.5 MFCAL CHALLENGES FOR DRYLANDS DEVELOPMENT 90 TABLE 4:STRATEGIES FOR DRYLANDS DEVELOPMENT 91 2. THE ASSESSMENT OF CASE STUDIES 93 2.1 PRESENTATION OF CASE STUDIES 93 2.1.1 SELECTION AND ASSESSMENT CRITERIA 93 2.1.2 GENERAL OVERVIEW OF SELECTED CASE STUDIES 95 2.2 ANALYSIS OF CASE STUDIES 96 2.3 LESSONS LEARNT FROM CASE STUDY ASSESSMENT 106 3. THE MFCAL APPROACH AND DRYLANDS DEVELOPMENT: LOOKING TO THE FUTURE107 3.1 PROJECT MANAGEMENT LEVEL 107 3.2 MACROECONOMIC AND POLICY LEVEL 109 3.3 CONCLUSIONS AND RECOMMENDATIONS 110 REFERENCES 113 4 - ENVIRONMENT, TRADE AND SARD: CONCEPTS, ISSUES AND TOOLS. BACKGROUND PAPER 4: ENVIRONMENT AND TRADE. 115 INTRODUCTION 117 TRADE POLICY AND SUSTAINABLE AGRICULTURE AND RURAL DEVELOPMENT 117 INTERNATIONAL AGREEMENTS ON TRADE, ENVIRONMENT AND SARD 120 THE WORLD TRADE ORGANIZATION AND THE URUGUAY ROUND AGREEMENTS 121 GATT/WTO Principles Regarding Trade-Related Environmental Measures 121 The Agreement on Agriculture 122 Other WTO Agreements Related to Trade and the Environment 127 The Committee on Trade and the Environment 129 MULTILATERAL ENVIRONMENTAL AGREEMENTS 130 The Montreal Protocol on Substances that Deplete the Ozone Layer 130 The Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) 130 The Convention on Biological Diversity (CBD) 130 Convention on Climate Change 131 POTENTIAL CONFLICTS BETWEEN MEAS AND THE