Why are Net-Zero Targets and Carbon Markets Important for Sustainable Agriculture? Who Needs to Take Which Steps, and Why?

The use of pesticides worldwide has increased exponentially over the last 30 years, as shown in the visuals of FAO's list of pesticide usage by country.

However, at the same time, initiatives, regulations, and investments aimed at reducing chemical use in agricultural production are on the rise, particularly in Europe and the US. While the parallel progress of investments and the reduction of chemical usage (even if not at an equal pace) is currently limited to Europe;

• the decreasing per-hectare productivity,
• declining crop quality,
• diminishing nutritional value of food,
• inability to create new agricultural land due to the rapid reduction of available farmland, and the growing risks of climate change

have all underscored the urgent need for supporting agricultural technologies that prioritize increasing environmental-friendly efficiency in agriculture, food safety and human health.

AgTech (such as spot spraying) is the only way to steer clear of this negative trajectory. For this reason, every financial and systemic solution that helps implement technologies aimed at improving agricultural efficiency and sustainability in the field is of immense value. According to the World Economic Forum , 84% of all farmers worldwide operate on less than 20 decares of land. Considering that a significant proportion of the 570 million farmers work on such a small scale, it becomes evident that supporting "as a service" models that can deliver carbon footprint-reducing and food security-enhancing agricultural technologies to small-scale farmers is essential for achieving true sustainability in agriculture.

One of the most important functions of carbon markets (whether voluntary or mandatory) should be to transform the agriculture sector, which, left on its own, would not prioritize producing cleaner food and more environmentally friendly agriculture due to commercial profitability. The agricultural sector, particularly small-scale farmers, cannot be expected to bear the investment costs of this transformation without targeted support and affirmative measures, given the financial constraints within the farming community.

Instead, carbon markets can steer the agriculture sector toward models that not only minimize environmental harm but also align with public health objectives and Net-Zero goals, delivering multiple benefits for all.

The UK government's grants for spot spraying technology (Search for FETF425 - Camera guided spot sprayer 24m) serve as a prime example of a progressive vision in agriculture that supports Net-zero and healthy food production.

In today's agricultural world, herbicides account for 66% of the total pesticides used. A rough examination of the following U.S. data will help us understand the importance of the efficiency provided by spot spraying practices, particularly concerning herbicides, which have the highest usage and carbon footprint emissions.

As illustrated in the visual below, countries like the U.S., Brazil, the European Union, and Indonesia possess significant carbon offset potential due to their extensive pesticide use.

Currently, the weighted average value of $40 per carbon credit —calculated from the highest-value reforestation projects and the lowest-value solar energy carbon credits traded on voluntary carbon markets—should be considered the lowest estimate for the financial value of more efficient herbicide applications using spot spraying technology, which provides financial, environmental, social, food security, and human health benefits across six levels. Based on this assumption, the total commercial value of carbon credits generated by weed control through spot spraying, just from its first level of impact—reducing the carbon footprint of herbicide production—exceeds $2 billion.

Let's examine the importance of these six levels of high pesticide use and their negative impacts:

The first impact is the carbon footprint generated by pesticide production.

Second, excessive chemical use depletes the soil's organic matter, leading to reduced carbon levels in the soil, which diminishes the soil's water retention capacity (which makes the soil less resilient to drought ).

Third, as soil quality declines, agricultural productivity decreases, requiring more land to produce the same output.

Fourth, pesticides contaminate both surface and groundwater sources. In 2020, the insecticide imidacloprid and the herbicide metolachlor showed the highest absolute number of exceedances across Europe. In groundwater, the highly persistent herbicide atrazine caused the most exceedances even though atrazine has been banned since 2007.

Fifth, excessive chemical use significantly increases public health expenditures, adding tens of billions of dollars.

Lastly, high pesticide and fertilizer costs lower the incomes of small-scale farmers and contribute to rising food inflation.

Bridgesoft's Smart SprayeX spot spraying solution effectively mitigates these critical risks by accurately identifying weeds and targeting only the areas that require treatment .

A minimum 75% reduction in herbicide use achieved through this technology has the potential to revolutionize the agricultural sector in terms of input cost reduction, carbon emission reduction, food safety, and soil health.

Based on FAO data, the first-level carbon avoidance impact of spot spraying, which involves reducing herbicide use alone, could cut 54 million tons of carbon emissions just from the production of herbicides that would otherwise not be used. While this reduction in carbon emissions represents 5% of the carbon footprint produced by all aviation industry, the benefit that can be derived from agriculture extend far beyond reducing the carbon footprint by using fewer chemicals.

In the coming years, the demand for fertilizers is expected to decrease due to the increase in organic matter in the soil. This rise in organic matter will lead to higher yields per hectare, allowing less agricultural land to be used while still feeding the same population, which will further reduce carbon emissions. The potential of spot spraying technology to generate over $2 billion in carbon credits and to reduce hundreds of millions of tons of carbon emissions should attract the attention of carbon project management companies, agricultural corporations, multinational food companies, and investors in sustainability technologies.

Another essential requirement for swiftly aligning the global agricultural ecosystem with Net-Zero targets is for carbon credit standardization and certification organizations, as well as institutions such as the World Bank and EBRD, to enhance their awareness and focus on measurable, sustainable, and multi-faceted carbon reduction solutions. Unlike industries such as energy, automotive, and aviation, the agricultural sector lacks equivalent human resources and financial capabilities. Therefore, it is crucial to offer financial and procedural support to high-value initiatives focused on carbon avoidance and reduction in agriculture, particularly in their certification processes and market penetration efforts.

Agriculture is not solely a concern for farmers, governments, or agricultural companies; it is a critical issue that impacts individuals globally.

Consequently, initiatives focused on mitigating carbon emissions in the agricultural sector—along with startups like Bridgesoft that are developing both mitigation and adaptation solutions—should receive the necessary attention from investors and governments, as well as the strategic support they require from institutions such as the World Bank and EBRD, without delay.