Food exporters are increasingly being asked by retailers to measure and reduce the greenhouse gas (GHG) emissions of their products, and new market requirements have emerged, mainly in the form of standards on ‘product carbon footprinting’ (PCFs). The current policy brief indicates that PCF standards have gained significant traction in the agri-food sector, and they can create new potential opportunities for exporters in the transition to a green economy.
The policy brief introduces the following findings:
- through measuring the GHG profile of their production practices, emission reduction and cost saving opportunities can be identified and implemented
- PCFs offer small-scale farmers in developing countries the opportunities to differentiate their products among climate-conscious consumers in export markets
- however, PCF standards can prove to be particularly burdensome for small- and medium-sized enterprises (SMEs) who often face relatively high technical and financial compliance challenges
- in addition, the lack of a single internationally agreed PCF methodology is a barrier, where different stakeholders are developing and adopting different analytical methods for calculating PCFs
The author concludes that PCF initiatives are becoming an increasingly important tool in terms of agriculture-led climate change mitigation. Yet, over the next few years, as carbon accounting becomes increasingly widespread, it will be important to keep a number of issues in mind:
- developing country stakeholders need to be actively engaged in the international standard-setting process to ensure that these standards accurately reflect their economic, social and environmental realities
- developing countries face the risks and pitfalls of multiple certification requirements in order to access export markets; a solution is required
- considering the complex calculation, verification and certification which PCF analyses involve, it is important that SMEs receive adequate technical assistance and guidance to meet these new market requirements.