October 03, 2023 | Royal Bank of Canada |
The Royal Bank of Canada (RBC) collaborated with BCG's Centre for Canada’s Future and the Arrell Food Institute at the University of Guelph to explore Canada's potential "moonshot": producing 26% more food by 2050 with fewer emissions, contributing to global population growth. The findings emphasize Canada's unique position to lead in climate-smart agriculture, given its unparalleled assets, but stress the need for increased investments, accurate measurement technology for emissions, cross-sector collaboration, enhanced private sector research and development (R&D), addressing skills gaps, and rewarding early adopters of sustainable practices.
RBC then published a comprehensive plan for transforming Canada's agriculture sector into a leader in climate-smart and sustainable practices. The plan is organized into nine policy recommendations across five key areas: soil, methane, fertilizers, talent and technology, and consumers:
1. Build Standards To Support Carbon Markets: Establish a solid system for measuring and reporting soil carbon and emissions to support a viable carbon market. Proposes methodologies for creating offsets and insets, with a focus on scientific measurement and reporting.
2. Create A Climate-Smart Database To Help Farmers: Develop a national soil database to collect data critical for understanding soil health, nitrous oxide emissions, carbon sequestration, and organic carbon stock patterns. Calls for real-time, downloadable economic intel to empower farmers, experts, and decision-makers.
3. Develop A Fair System That Ensures Market Equity: Recognize and reward early adopters with measures like an expanded capital gains exemption and tax credits based on scientifically proven carbon stock. Encourage a fair system to motivate farmers without unintended consequences.
4. Promote Ways To Make Methane Cuts Profitable: Coordinates with provinces for a nationwide blend mandate, supporting digesters through nationwide blend mandate, Strategic Innovation Fund (SIF), Clean Fuel Regulations (CFR) credits, Cleantech Investment Tax Credit, and agile regulatios for methane-reducing feed additives.
5. Strengthen Canada’s Domestic Fertilizer Portfolio: Streamline approval processes for biological products, improve transportation networks, and provide funding to biological companies.
6. Nurture An Innovation-Driven Ag Sector: Create a network similar to CRIN for oil and gas projects to promote R&D in ag-tech. Hold competitions to spur innovation and allowing innovative companies to showcase solutions and finance their innovations.
7. Revive Canada’s Knowledge-Sharing Network: Proposes a collaborative approach involving public, private, and institutional actors to revive agriculture extensions and knowledge-sharing networks.
8. Boost Investment In Post-Secondary Education: Create programs welcoming students from different educational backgrounds and micro-credential programs. Eiminate arriers to foreign credentials to bridge labour gaps in the agriculture sector.
9. Influence purchasing patterns through procurement: Establish a green procurement program to purchase food produced through climate-smart agricultural practices, aligning with Net Zero commitments. Direct federal funds toward sustainable food purchases, supporting growers and reducing food waste.