Commodities
How food and agriculture contribute to climate change
© Reuters. FILE PHOTO: Fresh compost made from food scraps and green waste is loaded onto a truck before being sent to a farm at Recology Blossom Valley Organics North near Vernalis, California, U.S., November 10, 2022. REUTERS/Brittany Hosea-Small/File Photo
By Leah Douglas
(Reuters) – Feeding the world is a big job, and the effort produces billions of mets of emissions of greenhouse gases each year – around a third of the global total.
Despite the fact that food is a big climate problem, very little has been done so far to address it.
This year’s U.N. climate conference in Dubai will be the first to dedicate a whole day to the question of how to reduce food’s climate impact, and advocacy groups are pressing countries to come up with real solutions.
Here are some details about the sources of emissions from the food and agriculture sector:
HOW MUCH DOES OUR FOOD EMIT?
Global food systems accounted for 17 billion metric tonnes of carbon dioxide equivalent or 31% of human-made greenhouse gas emissions in 2019, according to the United Nations’ Food and Agriculture Organization (FAO).
That includes emissions related to farming and land use, producing crops and livestock, household food consumption and waste, and energy used in farm and food processing and transportation, according to FAO.
Altogether, those sectors generated 21% of all the world’s carbon dioxide, 53% of all methane and 78% of all nitrous oxide emissions globally, according to FAO.
LIVESTOCK
One the biggest contributors is livestock. Global livestock production generates around 14.5% of all anthropogenic GHG emissions, according to FAO.
Cattle are responsible for 65% of those emissions, largely as methane. When ruminant animals like cows and sheep digest food, they produce methane in the form of burps. Storage of manure, especially in large lagoons, also emits methane.
Emissions also come from producing and processing animal feed, including tilling land to grow crops, which releases carbon dioxide stored in the soil.
LAND USE
Activities to support agriculture like deforestation or degrading of peatlands generate 3.5 billion metric tonnes CO2 equivalent annually, according to FAO.
When forests are cleared for agricultural purposes like raising livestock or growing crops, stored carbon is released into the atmosphere.
Deforestation is responsible for nearly 80% of emissions from food production in Brazil, for instance, the world’s largest exporter of beef and soybeans.
Peatlands, meanwhile, store massive amounts of carbon – twice as much as the world’s forests.
Draining or burning peatlands for purposes like growing crops or livestock grazing is responsible for about 5% of all anthropogenic emissions, according to a 2021 report by the United Nations.
FOOD WASTE
About one-third of all food grown in the world is wasted, according to the U.N. – 13% between the harvest and retail stages, and 17% in households and in the food service and retail sectors.
That wasted food – including the energy used to produce and transport it, spoilage along the way and the food thrown out after rotting in household fridges – generates half of all global food system emissions, according to a March study published in the journal Nature Food.
A good chunk of those emissions are caused by the methane formed when food rots in landfill. Food waste makes up about 25% of municipal solid waste in landfills in the United States, according to a recent study by the Environmental Protection Agency.
(Reuters) – Citi on Wednesday raised its oil price outlook for 2025 due to geopolitical risks centred on Russia and Iran, but noted prices were likely to ease through the second half of the year.
“The oil outlook could see heightened, sustained geopolitical risks in Iran/Russia-Ukraine potentially wipe out the 2025 oil balance surplus, but the Trump administration appears intent on dealmaking,” the bank said in a note.
Citi expects to average $67 a barrel in 2025, up from a previous forecast of $62. It also said it was lifting its average WTI crude forecast to $63/bbl, without giving its former view.
It added that it was revising up its quarterly Brent forecasts to $75/bbl in the first quarter, $68/bbl in the second, $63/bbl in the third, and $60/bbl in the fourth, also without specifying its previous expectations.
The Biden administration on Jan. 10 sanctioned more than 100 tankers and two Russian oil producers, leading to a scramble by top buyers China and India for prompt oil cargoes and a global rush for ship supply as dealers of Russian and Iranian oil sought unsanctioned tankers.
U.S. President Donald Trump has since laid out a sweeping plan to maximise oil and gas production, including declaring a national energy emergency to speed up permitting, rolling back environmental protections, and withdrawing the U.S. from the Paris climate pact.
Citi said the timing and nature of President Trump’s actions regarding Iran and Russia could be defining features of the oil market and pricing during 2025. It forecast a surplus of 0.8 million barrels per day for the year.
By Arunima Kumar
(Reuters) -Oil prices held steady on Wednesday, with traders closely watching President Donald Trump’s proposed tariffs and the potential impact of the national energy emergency he declared on his first day in office.
futures inched 4 cents higher, or 0.05%, to $79.33 per barrel at 1246 GMT. U.S. West Texas Intermediate crude futures edged 2 cents lower, or 0.03%, to $75.81.
“As more details emerge regarding energy production and trade agreements, traders will assess the balance between economic growth, energy security, and policy risks,” said Dilin Wu, research strategist at Pepperstone.
Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.
He also vowed duties on European imports, without providing further detail.
“The oil market’s attention is slowly turning away from U.S. sanctions against Russia towards President Trump’s potential trade policy,” said ING analysts, adding that the energy complex has come under pressure with the growing threat of tariffs.
The U.S. president had said his administration would “probably” stop buying oil from Venezuela, among the top suppliers of oil to the country.
Trump laid out a sweeping plan to maximise domestic oil and gas production, including declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the U.S. from the Paris climate pact.
Trump’s policy is unlikely to spur near-term energy investment or change U.S. production growth, analysts at Morgan Stanley (NYSE:) wrote in a note, adding that it could, however, moderate potential erosion of refined product demand.
Meanwhile, a rare winter storm churned across the U.S. Gulf Coast on Tuesday.
Elsewhere, North Dakota’s oil production was estimated to be down by between 130,000 and 160,000 barrels per day (bpd) due to extreme cold weather and related operational challenges, the state’s pipeline authority said on Tuesday.
By Enes Tunagur
LONDON (Reuters) – Oil prices fell on Tuesday as investors assessed U.S. President Donald Trump’s plans to apply new tariffs later than expected while boosting oil and gas production in the United States.
futures were down $1.42, or 1.77%, to $78.73 per barrel at 1116 GMT. U.S. West Texas Intermediate crude futures were down by $1.97, or 2.53%, at $75.91. There was no settlement in the U.S. market on Monday due to a public holiday.
Pressuring prices on Tuesday was a stronger U.S. dollar, as its strengthening makes oil more expensive for holders of other currencies.
“The current weakness is most probably Trump and dollar-related,” said PVM analyst Tamas Varga.
The dollar rebounded after Trump’s comments on imposing tariffs against Mexico and Canada, Varga added, noting that the dollar’s strength is negatively impacting oil prices.
Trump said he was thinking of imposing 25% tariffs on imports from Canada and Mexico from Feb. 1, rather than on his first day in office as previously promised.
“The initial sense of relief that trade measures weren’t an immediate focus on Trump’s ‘Day 1’ was quickly offset by reports of 25% tariffs on Mexico and Canada as early as February, which saw risk sentiments turn,” said Yeap Jun Rong, market strategist at IG.
Trump did not impose any sweeping new trade measures right after his inauguration on Monday, but told federal agencies to investigate unfair trade practices by other countries.
The U.S. president also said his administration would “probably” stop buying oil from Venezuela. The U.S. is the second-biggest buyer of Venezuelan oil after China.
Trump also promised to refill strategic reserves, a move that could be bullish for oil prices by boosting demand for oil.
Also weighing on prices on Tuesday was the potential end to the shipping disruption in the Red Sea. Yemen’s Houthis on Monday said they will limit their attacks on commercial vessels to Israel-linked ships provided the Gaza ceasefire is fully implemented.
“Reopening of the Suez Canal will create a short-term abundance of supply given the shorter journey times, and that may also weigh on prices in the short term,” said Saxo Bank analyst Ole Hansen.
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