4632.0.55.001 - Discussion Paper: From Nature to the Table: Environmental-Economic Accounting for Agriculture, 2015-16 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 29/11/2017  First Issue
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GREENHOUSE GAS EMISSIONS

This section presents the first experimental step in compiling Australian accounts for greenhouse gas emissions in accordance with the SEEA AFF Framework. Some of the desired indicators within each account are not yet available and feedback is sought from users about the potential uses of these accounts, additional sources of data, and priority data gaps. See the Approach taken and future plans section.


SEEA AFF FRAMEWORK FOR GREENHOUSE GAS EMISSIONS

The Department of the Environment and Energy (DoEE) reports National Greenhouse Gas (GHG) emissions estimates within its Australian Greenhouse Emissions Information System (AGEIS). These estimates, which follow the United Nations Framework Convention of Climate Change (UNFCCC), have been used to create a physical flow account for GHG emissions related to the agriculture, forestry and fisheries industries in Australia. 2014-15 estimates were the latest data series available at this stage.

The physical flow account records flows of GHG emissions in carbon dioxide equivalents from agriculture, forestry and fisheries activities to the environment, for example through the use of fertiliser or land clearance. Emissions are categorised as related to agricultural activities, energy use in agricultural, forestry and fisheries and Land Use, Land Use Change & Forestry (LULUCF) activities.


POLICY RELEVANCE AND USE

Under the 2015 Paris Agreement, Australia aims to reduce its GHG emissions by 26 - 28 percent below 2005 levels by 2030. The Australian government operates an Emissions Reduction Fund to support Australian businesses, farmers and land managers in support of this target and in improving the environment.

Environmental accounts provide important GHG emissions information to supplement those produced for United Nations Framework Convention on Climate Change (UNFCCC) reporting. In particular, UNFCCC requires a sectors-based reporting of GHG emissions that includes, for example, the energy sector, and the Land Use, Land Use Change and Forestry (LULUCF) sector. Environmental accounts can convert this UNFCCC sectors-based reporting into a standard industry basis, which may support a sharper focus on the performance of agriculture, forestry and fisheries industries in addressing GHG emissions. LULUCF emissions, for example, relate largely but not exclusively to these industries. Environmental accounts can aim to deliver a breakdown of LULUCF emissions across standard industries.

The agriculture, forestry and fisheries industries are important to achieving Australia's Paris Agreement aims. GHG emissions arising from the activities of these industries are volatile and have a sizeable impact on Australia's overall emissions performance. Environmental accounts are required to determine, for example, what proportion of Australia's 'Grasslands' emissions relate to agricultural activities.

The SEEA AFF accounts provide useful information for analysis of GHG flows from agricultural activities and key agricultural products. By combining LULUCF and the agricultural data in the same presentation, users can identify gross emissions and potential net offsets by carbon stored from LULUCF activities. In addition, presenting emissions by type provides a simple air emission account, where methane, nitrous oxide and carbon dioxide emissions can be compared at the industry level.

The matrix presentation in the SEEA AFF accounts enables the analysis of emissions from selected agriculture, forestry and fisheries products. The activity dimension supports a link to measurement processes required to comply with UNFCCC reporting as set out under the Intergovernmental Panel on Climate Change (IPCC) guidelines. The product dimension enables a link with production, trade, consumption and other environmental flows in the SEEA AFF framework.


HEADLINE MEASURES

Table 21 in the Downloads tab sets out the physical flow account for GHG emissions. This account presents a breakdown of agricultural products that were available through AGEIS data. These products include:

  • Agricultural sector activities: enteric fermentation (where ruminants break down foods and produce methane gas as a byproduct); manure management; rice cultivation; inorganic fertilisers; organic fertilisers; urine and dung deposited by grazing animals; crop residue; mineralisation due to loss of soil carbon; cultivation of soil composed mainly of organic materials; field burning of agricultural residues; liming and urea application
  • Energy from Agriculture, Forestry and Fishing (included in totals but not separately identified at this stage)
  • LULUCF: Forest Land, Croplands, Grasslands, Wetlands for Aquaculture use, and Other LULUCF.

Energy use from households, other industries and the total economy are also presented for an agriculture, forestry and fisheries context.

In 2014-15 the Agriculture Sector contributed 70.0 Mt CO2-e (13%) of the total net emissions (including LULUCF). This was a reduction of 2.8 Mt CO2-e from 2013-14. The three greatest contributors to GHG emissions from the agricultural sector were enteric fermentation, agricultural soils and manure management (Graph 1). Enteric fermentation had the greatest reduction in the GHG emissions, with a decrease of 2.2 Mt CO2-e (4%) from 53.1 Mt CO2-e in 2013-14 to 50.8 Mt CO2-e in 2014-15. A decrease in livestock numbers from 2013-14 to 2014-15 appears to be the key driver in reduced emissions. The production of cattle products increased over the same accounting period due to increased slaughter rates for the year. This was predominately because of high international price for beef and seasonal conditions favourable to slaughtering over retaining stock.

GRAPH 1: GHG EMISSIONS FROM AGRICULTURAL ACTIVITIES, Australia, 2010-11 to 2014-15


GRAPH 1: GHG EMISSIONS FROM AGRICULTURAL ACTIVITIES, Australia, 2010-11 to 2014-15



(a) Includes Rice cultivation and Field burning of agricultural residues.

Source(s): DoEE, Australian Greenhouse Emissions Information System, 2017


In 2014-15, the majority of air emissions from agricultural activities were methane emissions (77%) (Graph 2). This was mainly from enteric fermentation.

GRAPH 2: GHG EMISSIONS FROM AGRICULTURAL ACTIVITIES, by emission type, Australia, 2014-15


GRAPH 2: GHG EMISSIONS FROM AGRICULTURAL ACTIVITIES, by emission type, Australia, 2014-15



Source(s): DoEE, Australian Greenhouse Emissions Information System, 2017


In 2014-15 the Croplands LULUCF stored a net 0.5 Mt CO2-e and in 2013-14 emitted a net 0.2 Mt CO2-e. This change was mainly driven by decreased emissions from Forest Lands converted to Cropland and a reduction in carbon stock change.

Forest lands constitute a store (or sink) of carbon and in 2014-15 captured 35.9 Mt CO2-e, with planation forests accounting for 6.1 Mt CO2-e of this amount and native forests 29.8 Mt CO2-e. Over the five year period 2010-11 to 2014-15, the total GHG emissions captured in forest and harvested wood products increased, driven in part by an increased capture within native forests. This is despite the plantation forests capture of carbon decreasing over the period. Capture of carbon within Harvested wood products remained relatively constant between 2010-11 and 2014-15.

GRAPH 3: GHG EMISSIONS FROM FOREST LANDS AND HARVESTED WOOD PRODUCTS (net), Australia, 2010-11 to 2014-15


GRAPH 3: GHG EMISSIONS FROM FOREST LANDS AND HARVESTED WOOD PRODUCTS (net), Australia, 2010-11 to 2014-15



Source(s): DoEE, Australian Greenhouse Emissions Information System, 2017


MEASUREMENT GAPS AND FUTURE OPPORTUNITIES

The tables for the physical flow accounts for greenhouse gas emissions for Agriculture, Forestry and Fisheries contain many of the key components for a complete set of accounts but are missing some indicators. Totals for greenhouse gas emissions by Agriculture were not published due to one of the major components (Grasslands) not being available at that level of detail.

The greenhouse gas estimation system, Full Carbon Accounting (FullCAM), produces estimates for cropland and grasslands. The modelled estimates for Grasslands in the LULUCF suite are combined for all native and grazing areas in Australia due to limited information on the split between native and agricultural purposes. A national land use account with sufficient level of detail could assist to model these data. The Department of the Environment and Energy and the Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES) have raised this as a possible aspiration for future data expansion.

Detailed greenhouse gas emissions from energy sources relies on equivalent detail from data in the Energy Accounts Australia or Australian Energy Statistics. These collections recognise the need for more specific estimates of agricultural energy use.

There is the potential to extend these accounts to record a SEEA air emission account from the agriculture, forestry and fisheries industries. This topic has been included in recent technical papers and presented to international fora (footnote 1, footnote 2). Air emissions accounts extend the concept of greenhouse gases to all air related emissions such as particulate matter and other airborne chemicals.

Footnotes:
1 Tubiello, F.N., Cerilli, S., Conchedda, G. (2017). Mapping IPCC greenhouse gas emissions categories to ISIC A in the SEEA AFF. London Group on Environmental Accounting, Costa Rica, 17-20 October 2017. <back

2 Department of Economic and Social Affairs Statistics Division United Nations. (2016). SEEA Air Emissions Accounts: from Central Framework to Agriculture, Forestry and Fisheries, Eleventh Meeting of the UN Committee of Experts on Environmental-Economic Accounting, New York, 22-24 June 2016. <back