Agriculture Production Background Paper (Crop and Livestock)

The report outlines the development of updated eligibility criteria for agriculture production (crop and livestock) under the Climate Bonds Standard. It establishes a science-based framework for transition finance, focusing on absolute intensity pathways to reach net-zero by 2050. The document details mitigation strategies, including the reduction of methane and nitrous oxide and the enhancement of carbon sequestration, while introducing safeguards for adaptation, biodiversity, water, and animal welfare.

• Crop and livestock production, including land use change and inputs, are responsible for approximately 71% of total food system emissions, amounting to 12.8 GtCO2e/year.
• The updated criteria shift from focusing solely on Use of Proceeds (UoP) bonds to include sustainability-linked bonds (SLBs), sustainability-linked loans (SLLs), and entity-level certification for transition plans.
• To align with a 1.5°C pathway, the document adopts the IPCC's Sustainable Development Pathway (IMP-SP), which requires a combined emissions reduction rate of 5.5%/yr between 2020 and 2030, and 4.6%/yr between 2030 and 2050.
• The proposed emissions pathway uses an absolute intensity metric (kg CO2eq per kg of product) rather than relative percentage reductions to avoid rewarding companies that reduce emissions simply by contracting their activity.
• The criteria propose updating the deforestation cut-off date from 2010 to 2020 to align with other market standards, despite risks that this may reduce overall ambition.
• Carbon sequestration measures, such as agroforestry, biochar application, and improved soil carbon management, are positioned as a second tier of mitigation, with absolute emission reductions serving as a prerequisite to avoid internal offsetting.
• The document identifies a significant funding gap in the sector, noting that financial flows into Agriculture and Forestry need to increase by 10-29 times to meet investment needs by 2030.
• Animal welfare requirements for certification will mandate adherence to specific high-standard schemes, such as Certified Humane, RSPCA Assured, or Animal Welfare Approved, or the FARMS Initiative Responsible Minimum Standards where those schemes are unavailable.

APA

Climate Bonds Initiative (2024). Agriculture Production Background Paper (Crop and Livestock). https://www.climatebonds.net/files/drupal-files/files/DRAFT-Background-Document-Agriculture-Production-Criteria-July-2024.pdf

Chicago

Climate Bonds Initiative. Agriculture Production Background Paper (Crop and Livestock). 2024. https://www.climatebonds.net/files/drupal-files/files/DRAFT-Background-Document-Agriculture-Production-Criteria-July-2024.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Agriculture Production Background Paper (Crop and Livestock) |date=8 July 2024 |url=https://www.climatebonds.net/files/drupal-files/files/DRAFT-Background-Document-Agriculture-Production-Criteria-July-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2024agriculture, author = {{Climate Bonds Initiative}}, title = {{Agriculture Production Background Paper (Crop and Livestock)}}, institution = {Climate Bonds Initiative}, year = {2024}, month = jul, url = {https://www.climatebonds.net/files/drupal-files/files/DRAFT-Background-Document-Agriculture-Production-Criteria-July-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }