Identifying and Tackling Environmentally Harmful Agricultural Subsidies in the WTO

This briefing note by the Forum on Trade, Environment, & the SDGs (TESS) examines the role of agricultural subsidies in driving greenhouse gas (GHG) emissions. It analyzes the sources of emissions within the agricultural sector, the regional variations in emission intensities, and provides policy recommendations for reforming subsidies to align with climate goals while balancing food security and livelihoods.

• Agriculture, forestry, and other land use generated 10.9Gt CO2eq in GHG emissions in 2022, which is approximately 20% of all global anthropogenic GHG emissions. On-farm emissions accounted for 7.8 Gt CO2eq, while agricultural land use change contributed 3.1Gt CO2eq. Since 2000, on-farm emissions have increased by 14%, whereas emissions from land use change have decreased by 30%.
• The primary drivers of agricultural GHG emissions in 2022 were CO2 from deforestation and CH4 from ruminant livestock, each contributing 2.9Gt CO2eq and together representing 54% of total emissions. Other significant contributors included livestock manure (12.3%), on-farm energy use (8.5%), and the draining of organic soils (8.5%).
• GHG emission intensities vary significantly by commodity and region. In 2022, beef had the highest intensity at 28kg CO2eq/kg globally, but this varied by region, peaking in Africa at 59 kg CO2eq/kg and reaching its lowest in North America at 13kg CO2eq/kg. Similarly, cow milk emission intensity in Africa (3.2kg CO2eq/kg) was approximately three times higher than in other regions.
• Agricultural support is at a historical high, totaling $851 billion per year for 54 analyzed countries between 2020–22. The majority of this support ($630 billion, or 74%) is provided directly to producers through government budgets or market price support, with the highest concentrations of support found in the European Union, the United States, India, and China.
• Coupled subsidies and market price support are identified as particularly harmful to the environment because they incentivize the intensification of input use and the expansion of land into the agricultural sector. Specifically, input subsidies for synthetic fertilizers, feed, and fuel totaled $68 billion per year from 2020–2022 and contribute to increased N2O, CH4, and CO2 emissions respectively.
• The document recommends repurposing agricultural subsidies away from emission-intensive products and unconstrained land expansion toward sustainable management, innovation, and environmental public goods. Priority areas for reform include reducing support for ruminant livestock—which has the highest implicit carbon subsidy—and redirecting funds toward precision agriculture, methane inhibitors, and carbon sequestration through agroforestry and afforestation.

APA

Cox, A. (2025). Identifying and Tackling Environmentally Harmful Agricultural Subsidies in the WTO. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-GHG-Emissions-in-Agricultural-Sector.pdf?dm=1746526911

Chicago

Cox, Anthony. Identifying and Tackling Environmentally Harmful Agricultural Subsidies in the WTO. Forum on Trade, Environment, & the SDGs, 2025. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-GHG-Emissions-in-Agricultural-Sector.pdf?dm=1746526911.

Wikipedia

{{cite report |last1=Cox |first1=Anthony |title=Identifying and Tackling Environmentally Harmful Agricultural Subsidies in the WTO |publisher=Forum on Trade, Environment, & the SDGs |date=May 2025 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-GHG-Emissions-in-Agricultural-Sector.pdf?dm=1746526911 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cox2025identifying, author = {Cox, Anthony}, title = {{Identifying and Tackling Environmentally Harmful Agricultural Subsidies in the WTO}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2025}, month = may, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-GHG-Emissions-in-Agricultural-Sector.pdf?dm=1746526911}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }