AGRICULTURE

THE STATE OF FOOD AND AGRICULTURE 2016
Existing trade policy frameworks are far from
being “climate-compatible”. For instance, the
role of trade measures in international
negotiations on climate change stabilization
is unclear. There is no consensus as to
whether current World Trade Organization
(WTO) trade rules can promote adherence to
climate goals, or are a threat to mutually
agreed climate solutions (Early, 2009). In fact,
various forms of climate change mitigation
policies could be challenged under WTO rules
if they were deemed to be trade distorting.
This could apply, for example to: payments for
environmental services, such as forest and
soil carbon sequestration; policies
implemented as unilateral measures, such as
carbon taxes or cap-and-trade regimes; and
related border adjustment measures that place
duties on imports from countries not
undertaking comparable mitigation efforts
based on the carbon-content of products or
production methods.
A key step towards reaching an international
agreement on the harmonization of trade
rules with climate objectives will be to tackle
concerns that climate measures may distort
trade, or that trade rules could stand in the
way of greater progress on climate change
(Wu and Salzman, 2014). •
CONCLUSIONS
In the Intended Nationally Determined
Contributions submitted in preparation for
COP21, a large number of developed and
developing countries clearly expressed their
determination to ensure an effective
response by the agriculture sectors to climate
change, in terms of both adaptation and
mitigation. This determination needs to be
translated into concrete action with the
support of an enabling policy and an
institutional environment, as well as regional
and international cooperation. Action plans
should now build on a recognition that there
are important synergies and trade-offs
between mitigation, adaptation, food
security and the conservation of natural
resources. Creating co-benefits requires
coordination across all relevant domains.
Unfortunately, there is a general lack of
coordination and alignment of agricultural
development plans and actions that address
climate change and other environmental
problems. This is leading to the inefficient
use of resources and is preventing the
integrated management required to address
climate change threats, ensure productivity
improvement in food production and
enhance the resilience of vulnerable
households. At the same time, it should be
recognized that assessments of the impacts
of climate change are surrounded by
uncertainty and hampered by large
knowledge gaps. To better inform policy
action, much greater efforts are needed to
improve assessment tools and close
knowledge gaps, for example by
strengthening statistical systems and climate
forecasting and monitoring capacity (Box 24).
Breaking down the silos between policies on
adaptation, mitigation, food security,
nutrition and natural resources is essential
also when determining the financing needed
to support the transition towards sustainable,
climate-smart food systems. The next chapter
turns to the issue of linking climate change
action and agricultural finance.