The Emerging International Climate Change Regime: Opportunities and challenges for the Canadian agricultural sector

This report examines the opportunities and challenges for the Canadian agricultural sector within evolving national and international climate change regimes. It analyzes the sector's mitigation potential, the role of bioenergy, the development of agricultural carbon offsets, and the impact of climate policies on international competitiveness and trade.

• Canada's agricultural sector emitted 60 Mt of greenhouse gases in 2007, representing a 23 per cent increase from 1990 levels. The sector accounted for approximately 8 per cent of Canada's total GHG emissions in 2007, with significant contributions from enteric fermentation, manure management, and agricultural soils.
• Canada faces a 'saturation' issue where cropland carbon storage may reach equilibrium in the coming decades. Under current net-net accounting rules for the Kyoto Protocol, this could lead to Canada being debited if sequestration rates fall below the 1990 base year, even if management practices remain unchanged.
• While bioenergy offers potential for GHG reductions—with estimates suggesting Canada could provide 20 per cent of its energy needs from bioenergy by 2020—there is significant scientific controversy regarding the carbon neutrality of biofuels. Some corn-based ethanol produced with coal-fired electricity may result in higher emissions than gasoline.
• Public financing for liquid biofuels in Canada is identified as highly expensive compared to other renewable technologies. Government incentives for ethanol and biodiesel are estimated to range between $122 and $580 per tonne of CO2e, whereas renewable heat and power technologies can be realized at $10 to $60 per tonne.
• The proposed federal offset system's 25-year liability period for carbon reversals is viewed by agricultural representatives as unreasonably strict. Alternatives such as Alberta's buffer reserve or the Voluntary Carbon Standard (VCS) approach, which use assurance factors or shared buffer pools to manage risk, are suggested as more suitable.
• Canadian agricultural competitiveness may be influenced by the U.S. climate regime. Proposed U.S. legislation, such as the Kerry-Lieberman bill, includes an agricultural and forestry offsets program allowing up to 2 billion tonnes of offsets annually, with 75 per cent required to be from domestic sources.
• There are concerns that Canadian agricultural offsets could face competition from lower-cost credits from developing countries. Current proposed Canadian regulations limit the use of Clean Development Mechanism (CDM) credits to 10 per cent of a firm's regulatory obligation and exclude sinks projects.

APA

International Institute for Sustainable Development (n.d.). The Emerging International Climate Change Regime: Opportunities and challenges for the Canadian agricultural sector. https://www.iisd.org/system/files/publications/emerging_int_climate_regime_can_agri.pdf

Chicago

International Institute for Sustainable Development. The Emerging International Climate Change Regime: Opportunities and challenges for the Canadian agricultural sector. n.d. https://www.iisd.org/system/files/publications/emerging_int_climate_regime_can_agri.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=The Emerging International Climate Change Regime: Opportunities and challenges for the Canadian agricultural sector |url=https://www.iisd.org/system/files/publications/emerging_int_climate_regime_can_agri.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndemerging, author = {{International Institute for Sustainable Development}}, title = {{The Emerging International Climate Change Regime: Opportunities and challenges for the Canadian agricultural sector}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/emerging_int_climate_regime_can_agri.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }