Carbon tax thinking could be about

FEEDING the world’s growing population while minimising the negative impact of agriculture on the environment is one of the greatest challenges facing modern society.

Livestock-based agriculture is a major emitter of methane, a greenhouse gas which contributes to global warming. In an attempt to tackle climate change, the Irish Government has committed, through international agreements, to reducing emissions by 30pc by 2030.

This is a major concern for agriculture in Ireland as over 30pc of our emissions emanate from the farm sector.

Our commitments to reduce emissions run counter to our ambitions to grow the output of our agricultural sector.

Current climate change policy aims to reduce emissions by counting carbon where it is produced and placing national limits to force reductions.

However, experts are now beginning to question the effectiveness of this policy.

Writing in the Financial Times, Professor Dieter Helm of the University of Oxford recently referred to a “fiddle”, whereby developed countries have exported their emissions to the developing world.

Given that the current climate policy counts carbon where it is emitted rather than where the final products are consumed, this allows developed countries to record a reduction in their emissions without reducing their consumption or, in other words, to export the problem of climate change.

A rethinking of climate policy is required, Prof Helm argues.

Proposals to count carbon where it is consumed rather than where it is produced are gaining traction, or, as it has been put in the Financial Times, “make Western consumers pay for the carbon used to make the cars, electronics and clothes they consume from abroad”.

What would the implications of such a policy be for Irish agriculture? With over 90pc of the food we produce consumed overseas, the benefits of such a policy are obvious.

We would see the carbon associated with food produced in Ireland counted where it is consumed, rather than here.

Carbon leakage

One might ask, “Isn’t that just exporting the problem of tackling climate change?” Well, that brings us to the concept of carbon leakage.

Demand for food is rising and so too is supply. Carbon leakage arises when the food production reduces in one country to meet climate change targets but increases in another country that has less stringent targets.

If the country that increases production is less carbon efficient, i.e. produces more carbon per calorie of food, then, globally, emissions have increased and we are no better off.

Independent evidence has shown that Ireland has the lowest carbon footprint for milk production in Europe and one of the lowest in beef.

We need a global climate change policy that encourages the