Sustaining our future

Food and water supplies are under threat from climate change

As the world grapples with climate change, food, agriculture, and water have taken centre stage at COP29. Addressing the climate-related challenges in these sectors is crucial as they support life on earth.

Recent years have seen policy finally starting to address sustainability in these sectors. EU’s Common Agricultural Policy (CAP): 2023-27 supports sustainable farming practices and aligns with the European Green Deal which aims to create a sustainable food system for instance through reducing the environmental footprint of food production, promoting biodiversity through the establishment of protected areas and nature restoration targets, as well as reducing pesticide use.

The Farm to Fork Strategy, a core component of the Green Deal, targets a 50% reduction in the use and risk of chemical pesticides by 2030. New regulations such as the European Deforestation Regulation (EUDR) and Water Framework Directive further the practice of sustainable land use and water management, aligning with broader environmental goals.[1]

Ireland’s agriculture sector adopts sustainability measures

In Ireland, the domestic agri-food sector is working to reduce emissions to comply with national and EU regulations and supply chain pressures. The sector has adopted innovative practices like using natural fertilisers, locally sourced livestock feed, and a nationwide carbon farming scheme.

This scheme incentivises sustainable practices to enhance carbon sequestration, particularly through forests and grasslands. [2] Despite an increase in herd sizes in 2022, total and per hectare greenhouse gas emissions on average dairy, cattle, sheep, and tillage farms declined due to reduced use of chemical nitrogen fertilisers.[3]

However, the sector still faces challenges with an aging farmer population, low-income levels[4], and the need to further decarbonise. In 2023, the sector was responsible for 37.8%[5] of Ireland’s greenhouse gas emissions, which must be reduced by 25% by 2030.

Ireland’s Food Vision 2030[6] and Climate Action Plan 2024[7] aim to establish sustainable food systems and achieve climate neutrality by 2050. These initiatives focus on climate-smart agriculture, biodiversity, water quality (supported by the Nitrates Action Programme[8]) and reducing greenhouse gas emissions.

The Water Action Plan 2024, Ireland’s third River Basin Management Plan, outlines strategies to protect and improve water quality. [9] Ireland’s Land Use Review aligns with global efforts to transform agrifood systems and emphasises the importance of financial investment in achieving climate goals.

Phase 1 assessed current land use practices and their environmental impacts, while phase 2 explores the role of private finance in delivering sustainable land use outcomes. [10],[11]

Placing the Irish agri-food industry on a sustainable pathway will enhance its resilience against climate risks and contribute to Ireland’s overall emissions reduction efforts. By decarbonising its agricultural products, Ireland can support the global decarbonisation of agricultural consumption.

Insights from COP29

Tuesday, 19 November, focused on Food, Agriculture & Water at COP29 in Baku. The host urged world leaders to address global warming and transform agrifood systems for sustainability, resilience, and food security.

The COP29 Presidency launched the Baku Harmoniya Climate Initiative for Farmers to promote resilience, biodiversity, and lower environmental impacts, supporting farmers and fishers, especially women and youth, in adapting to climate change. There is also a push to integrate climate resilience into national adaptation plans.

A high-level event on “Reducing Methane from Organic Waste (ROW) for climate action” highlighted the importance of reducing methane emissions from organic waste. Several positive announcements on progress were also made during the day: The US and UAE announced that funding for the Agriculture Innovation Mission for Climate (AIM for Climate) has reached $29.2 billion (€27.6 billion), supporting projects to reduce agriculture’s climate impact and enhance farming resilience.

Furthermore, Denmark presented plans to transform 15% of its farmland into forests and natural habitats to decrease fertiliser use, serving as a model for balancing agricultural productivity with ecological preservation.

Action is needed in agriculture and water management

The discussions and actions from the Food, Agriculture, and Water Day at COP29 highlighted the need to transform these sectors to address climate change. This includes adopting sustainable agricultural practices, improving water management, and reducing emissions. COP29 must provide financial support to countries whose agricultural sectors are severely impacted by the climate crisis.

The Loss and Damage Fund, agreed upon at COP27, aims to assist vulnerable nations and support smallholder farmers in low- and middle-income countries.[12]

These initiatives are highly relevant to Ireland, which is already making progress by integrating sustainable practices into its agricultural policies and enhancing water conservation efforts. By focusing on these areas and strategically allocating resources, Ireland can ensure food security, facilitate a fair transition to a sustainable food system, cut emissions, and enhance resilience to future climate shocks.

For more insights and to explore how KPMG can support your business in navigating the evolving regulatory landscape and developing a meaningful sustainability journey, get in touch with our team below today.