Agri-Environmental Policy Landscape in Canada

1. Agri-Environmental Policy Landscape in Canada Forestry and Agriculture Greenhouse Gas Modeling Forum Shepherdstown, West Virginia April 6-9, 2009 Alexandre Lefebvre Agri-Environment Services Branch

2. Main agri-environmental policy drivers • Agricultural production is a significant user of land and water resources, impacts air quality and biodiversity and is a source and sink of Greenhouse Gases. • Although many producers are good stewards of the environment and manage landscapes that provide ecological services, society expects an increasing level of environmental performance from the agricultural industry. • Competition is increasing for the natural resources on which agriculture depends (e.g. water). • Environmental stresses of - and on - agriculture continue to intensify and are magnified by the effects of climate change. • Lots of interest in the development of new markets from which producers can gain revenue for environmental performance (ecological goods & services).

3. In July 2008, Federal, provincial and territorial Ministers of Agriculture endorsed a new 5 year agricultural policy framework – Growing Forward Competitive and Innovative Sector Sector that Contributes to Society’s Priorities Sector Proactive in Managing Risks • A Competitive and Innovative SectorAn agriculture, agri-food and agri-based products industry equipped to compete successfully in domestic and international markets, innovate, adapt to change, and seize new opportunities, thereby achieving sustained growth and profitability. • A Sector that Contributes to Society’s PrioritiesAn agriculture, agri-food and agri-based products industry that generates benefits for the sector and all Canadians by contributing to broader federal, provincial and territorial government priorities, ranging from food safety to environmental sustainability to health and wellness. • A Sector that is Proactive in Managing RisksAn agriculture, agri-food and agri-based products industry that is well-equipped to manage and mitigate risks that impinge on the profitability of enterprises and sectoral prosperity. The centerpiece of Growing Forward is a set of three policy outcomes

4. Under Growing Forward, the strategic outcome and priorities for agri-environmental policy have shifted… • Under the previous framework, the agri-environmental focus was on achieving environmental improvement within the agricultural sector. • Under Growing Forward, the strategic outcome has shifted towards: An economically and environmentally sustainable sector that is able to meet or exceed society’s expectations by responding to and anticipating the demands of society and the marketplace; making efficient use of available natural resources; and adapting to changing environmental conditions. • In addition, there is a need to ensure that limited resources are targeted at Government of Canada environmental priorities: • water quality and availability • climate change impact adaptation and GHG mitigation.

5. Growing Forward – Agri-Environmental Policy Objectives… Growing Forward agri-environmental policy aims for : A sector better able to respond to and anticipate the demands of society and the marketplace A sector making more efficient and sustainable use of available natural resources A sector better able to adapt to changing environmental conditions (including climate) These objectives are well embedded in AAFC’s new Agri-Environment Services Branch Vision: Competitive agriculture and agri-food sector Healthy environment Mission: Briging integrated expertise and innovative environmental solutions to the agriculture and agri-food sector

6. Delivering on this requires integrated strategic functions teamed with a strong program suite Discover Develop Deliver Determine Performance Measurement and Reporting Agri-Environmental Science Knowledge and Information Tools Sustainable On- Farm Practices Direct Policy and Program Analysis and Development In partnership with Provinces, OGDs (EC, DFO, NRCan); Academia, Conservation Districts, ENGOs, Farm Groups, etc. • Proposed Program Suite: • Science & Innovation (e.g. SAGES initiative); • Knowledge and Information (e.g. WEBS; Data and Geomatics); • Adaptation and Practice Change (e.g. EFP/BMP; Technical Assistance); • Performance Measurement and Reporting (e.g. NAHARP, NCGAVS).

7. Climate Change – Policy landscape • Yvo de Boer, UNFCCC Executive Secretary – December 9, 2008 : “You all must think I have a crystal ball in my bedroom and I know the outcome of Copenhagen...but I don’t.” • Stephen Harper, Prime Minister – Feb 19, 2009 : “President Obama and I (…) agreed to strengthen our cooperation in the areas of environmental protection and global security” • Jim Prentice, Minister of Environment – March 6, 2009: “…for Canada our path forward is clear, and the way forward is to address climate change by responsibly reducing our carbon emissions with policies that commit us to domestic, to continental, and to international action” • “I am optimistic that we can arrive at a workable North American solution that defines a common or similar carbon reduction targets, that create similar mechanisms to allocate emissions. Allowances that recognizes credits in a way that has integrity and provides for the trading of them on a North American and perhaps ultimately on an international basis.” • “To achieve these objectives we will need to ensure that our provincial policies are carefully harmonized with our federal policies and that they (…) ensure consistency with the approach being followed by the economy which with we are inextricably connected south of us. We share the largest free market energy system in the world and it is difficult to imagine successful policies on the regulation of carbon and the environment that are discordant.” • Laurent Pellerin, President - Candadian Federation of Agriculture – March 16, 2009: “It is essential that any new (International) agreement officially recognizes the key role that agriculture can play in greenhouse gas reduction. As a leading proponent and world innovator with regards to no-till and carbon sequestration, it is important to Canadian farmers that carbon offsets produced by these methods are internationally accepted”

8. Climate Change – Informing decision making… • There are many uncertainties: international negotiations; discussion on cap & trade; development of offset protocols; Can-US high level discussions; etc. • There is also uncertainty as to the extent of the contribution that agriculture and forestry can have… but they have a role to play. • We need to helpget the sector ready to play that role – take advantage of opportunities that will emerge. For this we can build on the results of past investments on: - domestic mitigation effort and carbon sequestration - the Canadian GHG inventory - Land Use Change / Management change– modeling / GHG economic modeling. • Science and modeling efforts paid off in getting sinks recognized under Kyoto. An acknowledgement of the strength of our science. • There is uncertainty on the adaptation front as well: efforts are currently mostly at the science level. Policy level discussions center around eventual directions for agriculture under climate change scenarios. • There is one certainty: once a course of action is determined, there will be little time to react and inform the policy process: - be ready for short term demands (build on existing capacity) - more and more requirements for integrated analysis (co-benefits, pollution swapping) - provide clear answers with clarity on assumptions and uncertainty.