fao slm adoption costs and barriers july 2010
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SLM Adoption Costs and Barriers
Up-front financing costs can be high, whilst on-farm benefits not realized until medium-long term
� Local credit markets very thin
� Local insurance options very limited
� Tenure Security & Management of Common-Pool Resources
� Limited Access to Information, e.g. Research & Extension
� Risk management and need for flexibility –especially with uncertain/changing climate conditions – decisions to make permanent changes more costly
Photos: FAO Mediabase
Value of ag. mitigation potentiallysignificant
Mitigation potential from agriculture, Annex I (Developed) and Non-Annex I (Developing) countries
Developing countries: $30 billion @$20/TCO2eq from top 4 mitigation actions
Cropland Management
Grazing land Management
Restore cultivated organic soils
Restore degraded lands
But only a small share of
what is needed
Source: FAO (preliminary estimates)
0
50
100
150
200
250
300
Current
investment
Meeting demand
in 2050
Public
Private
US$ billions per year (gross)
142
209
30
Additional
Funding for
Mitigation
Options for capturing synergiesLinking mitigation finance to FS
Carbon Benefit
T/Ha/Yr
D(T/Ha/Yr)
Options for capturing synergiesMRV costs vs Ag benefits
Principles to guide crediting
� Main objective of crediting soil carbon sequestration (mitigation) in smallholder agriculture is to support food security/ag. development
� State of science, institutional capacity, buyer’s demands, high heterogeneity and needs of smallholders suggests market based offsets (CDM approach) ‘not widely applicable’
� One potential area to focus on: Pilot for scaling up based on farming systems units looking at means, costs and benefis (to productivity, resilience and sequestration) of increasing carbon in system and directly tied to agricultural financing/developmentinstitution and under umbrella of NAMA.
� Also needed: Building up coordinated set of soil carbon measurement stratified by agroecosystem and major farming system transitions another key requirement.