Incentivising a shift to green products/production

26 Oct 2018

Agriculture is responsible for 25% of greenhouse emissions worldwide. The production of more sustainable agricultural products is not only technically possible but could drastically reduce the carbon footprint of agriculture. For example, green fertilisers could reduce the carbon footprint of nitrogen products for fertiliser and industrial use up to 80%, but in many cases the associated high cost inhibits widespread adoption.

From the production perspective, regulatory uncertainty makes it difficult to make the large, long-term investments in green production that are necessary to reach economies of scale. Current demand is also suppressed by the lack of customer awareness, scale of implementation (manufacturing equipment and renewable energy), regulatory mechanisms, and the lack of incentives to pay a premium for a cleaner product. The challenge: How might we develop new business models and identify key drivers to incentivise a shift to implement and scale sustainable agricultural technologies and facilitate risk-sharing across the value chain, from inputs (such as fertilisers), to finished (food) products?