Building a world-leading, climate-smart agriculture industry

The Australian agricultural sector is at the forefront of climate change impacts and opportunities.

Our farmers work under some of the harshest environments and most variable climates on earth. As the climate continues to change and extreme weather events become more frequent and intense, a shared commitment across governments to pursue a climate change response, underpinned by climate-smart practices, is paramount.

We all have a role to play in our climate response, including helping Australia transition to a net zero economy.

Managing climate impacts on agriculture

Aussie farmers are important environmental stewards, committed to healthy, productive and sustainable farming systems for future generations.

The sector employs more than 230,000 people, many of whom are located in rural and regional Australia.

In 2021-22, Australia had 87,800 agricultural businesses (ABS 2023). According to ABARES 2023 data, this includes:

Our farmers are adopting new practices to reduce emissions, build climate resilience and strengthen sustainability, to respond to climate risks, secure their future and remain globally competitive.

This is critical to maintaining and growing export markets and achieving the industry target of a $100 billion agriculture sector by 2030.

How the data was used

Data from the soil moisture sensors showed that the drip irrigation on one block provided improved water efficiency compared with traditional surface sprayers in other parts of his orchard.

According to Ian, if the information had been available to him sooner, ‘… it would have motivated me to make the change in irrigation systems earlier, and perhaps it would have saved some of the blocks where production was sacrificed’.

This pilot is part of the Primary Industries Climate Change Research Strategy and has been funded by the NSW Government Climate Change Fund.

Valuing First Nations peoples and practices

The WA grain belt is the largest agricultural area in the state and a key contributor to the Australian economy. Through the Australian Government’s Future Drought Fund, 3 regional drought resilience plans are in progress in the region.

Consultation with local Traditional Owners, the Noongar and Southern Yamatji, reinforced the need for drought resilience plans to recognise and represent the needs of Aboriginal communities who speak for Country.

First Nations representatives shared their concerns about the damage to the natural environment, the impacts of settlement and the subsequent effects of drought and climate change.

Priority actions focused on:

• increasing the resilience of First Nations communities through on-Country restoration programs
• connecting communities on Country
• providing opportunities to share intergenerational cultural knowledge
• developing business opportunities in bush food enterprises, tourism and other culture-based economies.

Contributing to a net zero economy

The Australian Government has legislated an emissions reduction target of 43% below 2005 levels by 2030 and committed to Australia reaching net-zero emissions by 2050.

Australia’s emissions reduction targets will require action across the whole economy, with Australian agriculture playing an important role.

According to the National Inventory Report Volume 1, in 2020-21 agriculture produced 16.8% of Australia’s net greenhouse gas emissions.

Agriculture greenhouse gas emissions include roughly:

At the farm level, agricultural activities can also produce and remove emissions that are accounted for in other sectors of the National Greenhouse Gas Inventory. This includes energy and land use, land use change and forestry.

To reduce agricultural emissions, we need continued effort, novel technologies, accelerated widescale adoption of new practices, and new partnerships between government, research, and industry.

There are lower-emissions technologies on the horizon, reflecting significant investment from governments and industry in research and development.

The growing carbon market

The shift to a net-zero economy will increase demand for land-based carbon offsets.

By participating in a growing carbon market, producers can be paid for storing carbon in vegetation and soils, and for avoiding emissions through practices like waste management and feed additives for livestock.

Producers can also use carbon to reduce the net emissions from their businesses and allocate agricultural land to farm forestry activities.

Well-managed carbon projects can benefit regional communities by providing alternative income streams and supporting improved land management as part of a farming business.

Favourable sustainability and climate credentials for exporters

Australian agriculture relies on exports. This means that producers must constantly evolve and adapt to meet the new and emerging environmental, social and governance credential requirements of international trading partners and supply chains.

The Australian agricultural sector exports more than 70% of its production, forecast to be worth $75 billion in 2022–23.

Australian Agricultural Sustainability Framework

Through the industry-led Australian Agricultural Sustainability Framework (AASF), the sector can demonstrate the sustainability of its production practices.

By using sustainability credentials that are fair and representative of Australia’s unique climate and growing conditions, the sector will be able to increase and maintain market access for exports and verify that it meets changing consumer expectations locally and overseas.

The AASF is a unique piece of work based on environmental, social and governance (ESG) principles.

International leadership

Australia is a strong contributor to global alliances and efforts to reduce emissions and respond to current and emerging impacts of climate change.

We have a global leadership role as a constructive and positive climate collaborator and are partnering with industry and other countries to address agricultural risks and opportunities arising from climate change.

Shared global efforts are key to maintaining the agricultural sector’s competitiveness and its ability to access new export markets.

In October 2022, we joined these key international initiatives:

Global methane pledge

The pledge is a non-binding commitment to contribute to a collective global goal of reducing methane emissions by 30% below 2020 levels by 2030. The pledge has 150 members (as of June 2023). This includes some of the biggest beef, sheep and dairy producing countries in the world.

Australia is taking voluntary actions to reduce methane emissions in the energy and waste sectors. We will also seek abatement opportunities in the agricultural sector, through innovation, incentives and partnerships with farmers. This will support ongoing market access for Australian livestock producers and meet international expectations for improved sustainability outcomes.

Global research alliance on agricultural greenhouse gases (GRA)

Australia is a founding partner of this global research network. It provides a platform for knowledge-sharing between agricultural scientific researchers and policymakers.

The alliance aims to help countries improve agricultural productivity while enhancing resilience, adaptive capacity and greenhouse gas mitigation. It provides opportunities to make use of international projects, expertise and partnerships.

Agricultural innovation mission (AIM) for climate

Focuses on increasing productivity required to meet a growing population and changing climate, while looking after biodiversity.

Glasgow breakthrough agenda on agriculture

Australia endorses the goal to make climate-resilient, sustainable agriculture the most attractive and widely adopted option for farmers everywhere by 2030.

Forests and climate leaders’ partnership

The partnership aims to accelerate global progress to reverse forest loss and land degradation by 2030.

Our path forward

Climate-smart, sustainable and innovative practices are key to the future of Australia’s agriculture industry.

Accelerated adoption and progress across agriculture will help make farming more productive and profitable, better protect our environment, increase access to international markets and strengthen our farming communities.

Discover Australia’s first National Statement on Climate Change and Agriculture

Credits

Agriculture Victoria Research

ABARES data 2023

ABS data 2023

National Inventory Report Volume 1, Department of Climate Change, Energy, the Environment and Water, 2023

Photo of Carol Petterson supplied by Southcoast NRM