Mr. Bill Callanan:

I thank the committee for the opportunity to address it to inform its considerations of the carbon budgets. I am joined by my colleagues, Ms Deirdre Fay and Dale Crammond from the climate change division, and by Mr. Fergus Moore, who is head of forest sector development.

The 51% reduction in greenhouse gas emissions on an economy-wide basis is an extremely ambitious but also challenging target for all sectors, including both agriculture and the land use, land-use change and forestry, LULUCF, sectors. The agriculture sector, due to its biological nature, coupled with the high level of methane in the emissions profile results in unique challenges in particular when compared to other EU member states. In the absence of new technological innovations and as long as the sector produces food, feed or fibre there will always be residual emissions.

The recently published Climate Action Plan 2021 sets out what is needed from each sector with the plan committing the agriculture sector to reducing its emissions by between 22% and 30% to bring the emissions for agriculture into the range of 16-18 Mt and for LULUCF, a contribution of 2 Mt from land use and land use change and forestry.

We are not starting from a point of inaction and the commitments in the Climate Action Plan 2021 build on progress to date. Food Vision 2030, the stakeholder-led strategy for the development of the sector, sets an ambitious agenda, addressing sustainability in all its dimensions and identifying that Ireland will aim to become a world leader in sustainable food systems. Food Vision 2030 is about targeting increases in value growth rather than volume growth and evolving and adjusting to a more sustainable way of farming that uses fewer inputs and relies instead on new technologies and new practices. The publication of the Climate Action Plan 2021 goes hand in hand with Food Vision, thereby ensuring Ireland can continue to produce high quality food in a manner that protects the environment and mitigates climate change. It is important that we drive this momentum forward.

Driving environmental ambition and change at farm level will require a combination of policy instruments, such as financial incentives, for example through the Common Agricultural Policy strategic plan, through market-driven support for farmers by food processors and food companies or regulation with an initial focus on reducing nitrogen use, or through the roll-out of new emerging technological solutions and innovations. Early action and high levels of take-up will be required across our 135,000 farms to drive momentum towards achieving the required ambition in the context of managing emissions from our dairy herd and transforming our model of beef production.

As noted earlier, food production is a biological system and the climate Act makes it clear that the social and economic role that Irish agriculture plays in society must be considered at all stages of the carbon budgetary process. To ensure early action in the first five-year carbon budget, there will be a significant focus on reducing nitrous oxide emissions in agriculture, mainly associated with the use of chemical nitrogen fertiliser. A national fertiliser register of compliance will be developed and reductions in chemical nitrogen allowances will help to achieve our objectives, as will supports such as training and advisory services to underpin this transition.

Reductions in methane are more challenging as the technological advances are not available in the marketplace. Progress on methane is expected to accelerate in the second five-year carbon budget as methane-reducing feed additives become commercially available. The Department of Agriculture, Food and the Marine continues to significantly fund and participate in international research to address the methane challenge from pasture-based livestock production systems. The importance of cutting methane to achieve the Paris Agreement temperature goals is widely recognised but it must be acknowledged that in the short term the global focus is on cutting fossil methane, something for which the EU Commission will legislate in 2022. The challenge to reduce methane levels in Ireland is very clear, as 95% of total methane emissions arise in the agriculture sector where abatement potential is limited.

New technologies, such as the development of feed additives, will be needed to complement existing technologies to bring the sector into the climate action plan target range of a reduction of 22% to 30% for agriculture. Long lead-in times will be essential to allow for the scale-up and deployment of commercial technologies. Importantly, given the international research focus and findings to date, the commercialisation potential of this technological advancement and innovation is extremely promising. Through the national soil carbon observatory we support increasing afforestation rates, a focus on reducing emissions associated with the management of peat-based soils in agricultural use and the development of our knowledge about carbon flows in our soils. This will be critical also in respect of land-based emissions and opportunities for removals.

Agriculture globally impacts on our climate but it is also very much impacted by climate change. As set out in Food Vision 2030, there is a critical need to consider the three pillars of social, economic and environmental sustainability as we move forward. The targets as set out in the 2021 plan are ambitious but challenging for the sector as part of the economy-wide target of 51% reduction in emissions. In particular, there are significant challenges around the reduction of methane in our pasture-based livestock production system. We welcome the fact that the second five-year carbon budget is aligned with the current technology constraints in this regard. I and my colleagues are happy to answer any questions committee members may have.