Decarbonising Asia’s Agri-Food Chain

It is estimated that 30% of global GHG emissions come from food production. 

Article by: Rethink Events

The entire agri-food value chain needs to work in unison to make a net-zero food system a reality. Investment, low-carbon practices, technology and shifting diets could complete the journey.

To gain insights into the changes required, we spoke to four industry experts. Ling Min Hoon (GenZero), Dhruv Sawhney (Rize), Bruce Gregory Friedrich (GFI) and Jeff Tripician (Meatable) will speak at the Asia-Pacific Agri-Food Innovation Summit this October and generously shared their thoughts ahead of the conference in Singapore.

Closing the Investment Gap

According to the World Economic Forum, 63% of APAC’s GDP is at risk from nature loss. We cannot continue the way we are going.

Financial frameworks must adapt to protect and restore Asia’s natural capital. Companies need to invest in Asia’s natural capital and emissions reduction.

Ling Min Hoon leads GenZero‘s investment in nature-based solutions. She views investment as crucial for decarbonising the agri-food chain as well as a significant opportunity.

“We need to close an annual financing gap of approximately $260 billion in order to cut agri-food emissions in half by 2030” Ling Min states before pinpointing markets and private financing as the most critical players in mobilising capital, “they will plug the gap for decarbonising agri-food.”

It is clear that decarbonisation presents a huge investment opportunity.

As industries and governments aim for net-zero emissions, demand for innovative carbon-reducing technologies is growing. What frameworks are being set up to support this shift?

Carbon Markets: “Placing a Price on Carbon”

Carbon markets are trading platforms where carbon credits are bought and sold. Companies or individuals can offset their greenhouse gas emissions by purchasing credits from organisations that reduce or eliminate these emissions.

This is a promising model for strengthening the investment case for nature.

“Carbon markets place a price on carbon”, Ling Min outlines the benefits, “This provides agri-food players with an economic incentive to apply regenerative agriculture practices. This in turn will reduce emissions.”

Placing a clear value on carbon simplifies its measurement, tracking, and trade. Ling Min trusts this will incentivise companies and farms to implement regenerative practices, “Carbon markets will drive private investment into innovative climate solutions through the purchase of carbon credits.”

Data and Technology: “What gets measured, gets managed”

Measuring carbon is integral to decarbonisation.

Technology enables farmers to measure, quantify, better understand and reduce their emissions. “What gets measured gets managed” Ling Min states simply.

“Technology plays an important role in accurately measuring and quantifying carbon emissions” she says, emphasising how important it is to integrate technology with nature-based solutions to scale up sustainable, decarbonised agri-food systems.

The Race to Decarbonise Rice

Rice is central to food security in Asia. Implementing sustainable farming strategies will be integral to maintaining yields.

Rize is a start-up with a mission to decarbonise rice cultivation in Asia through data.

We spoke to Dhruv Sawhney, Founder and CEO of Rize about his mission to “empower farmers to make rice green again”.

“The platform identifies strategies and economic incentives to encourage the adoption of sustainable farming techniques.” Druv shares, “and then the digital workflows enable agronomists to drive the adoption of sustainable cultivation techniques.”

Rize captures vital agricultural data essential for implementing sustainable farming practices. In turn, rice farmers become more climate resilient, increase their crop yields and lower costs. Druv is excited by what he calls ‘multi-pronged success’, insisting that “Higher transparency leads to realistic projections and improved confidence for investors. Therefore, farmer access to finance is increased.”

Collecting carbon data is key to decarbonising the agri-food value chain in Asia. Technology like Rize leads to better optimisation, transparency and trust. This leads to better investment prospects down the line.

Novel Foods: “the biggest opportunity for climate mitigation”

Decarbonising Asia’s food system can’t be discussed without considering the alternative protein sector.

Bruce Gregory Friedrich, Co-Founder and President of GFI, calls alternative proteins “the only way to meet humanity’s protein needs without harming climate goals”. He is sure that alternative proteins present the largest climate mitigation opportunity in the agri-food sector, potentially offsetting 6.1 billion tonnes of annual emissions – “no other ag-based intervention comes close to that.”

Bruce cites an analysis by Asia Research & Engagement (ARE) which reveals that conventional protein production could jeopardise Asia’s emissions reduction targets.

“To decarbonise Asia’s protein supply,” he explains,  “ARE advises peaking industrial animal production within six years and scaling up alternative proteins. By 2060, over half of Asia’s protein must come from alternatives.”

Conventional protein production is harming the environment and contributing to global warming. It is clear that a change in dietary habits is required if we are to decarbonise food systems. What are the options?

Cultivated Meat Over Traditional Livestock Production

Cultivated meat, or cultured meat, is real animal meat produced from animal cells, eliminating the need for farming. It replicates the structure, taste, and nutrition of conventional meat.

Jeff Tripician is the CEO of cultivated meat pioneer Meatable. He concurs with Bruce that we need to revolutionise protein production to decarbonise.

“The FAO estimates that livestock farming accounts for over 15% of global greenhouse gas emissions.” Jeff begins, “Innovation in the meat industry is essential if we want to safeguard our food supply.”

“Cultivated meat could cut the industry’s GHG emissions by 92%” He says before pointing out other obvious benefits that a reduction in livestock farming could bring – land use, water use and animal welfare.

Meatable offers high-quality cultivated meat with minimal emissions compared to traditional livestock production, but Jeff is clear that there can (and should) be partnerships between traditional and cultivated meat producers as consumer appetite for meat products continues to rise.

“Cultivated meat supports meat companies. It remove product variables, such as long lead times and livestock disease that can affect supply and carcass balance.” Finally, Jeff shares that “by investing in cultivated meat, food companies can leverage the industry’s technology. It can integrate into their supply chain to package, market and sell the final product.”

Alternative Proteins: Government Action for Economic Gain

Like many ground-breaking technologies, regulation poses a challenge for alternative proteins.

The most important move to driving forward action is having governments on board. Governments should be aware of the financial and societal benefits of a strong alternative proteins sector.

Bruce Gregory Friedrich says “The Center for Strategic and International Studies in the U.S. has pointed out that the economic benefits to countries with robust alt proteins sectors will be close to $700 billion globally at 50 percent penetration.”

“Governments should support alternative protein industries,” he continues, “those that do will create millions of jobs and offer new opportunities for farmers.”

Bruce is quick to point out the other plus point of alternative proteins – a reduced need for antimicrobials that could combat risks to human health as well as animal health, “these are all strong reasons for governments to go all-in supporting their alt protein industries.”

Governments are already grasping the value of alt proteins and incentivising investment. Singapore has taken the lead by investing in protein diversification.

“Asia has been instrumental in the global shift towards renewable energy and electric vehicles.” Bruce concludes, “now it can play that same role with regard to plant-based and cultivated meat.”