World Bank urges shifting farming subsidies from meat to combat climate change

This redirection of subsidies is proposed as a key strategy to help achieve net zero emissions, according to the World Bank’s first strategic framework on food production’s impact on climate change.

Highlighting the need to decrease consumer demand for emissions-intensive animal-source foods, the report emphasizes the importance of fully pricing environmental and health externalities, repurposing subsidies, and promoting sustainable food alternatives.

The EU’s Common Agricultural Policy (CAP), a major recipient of farming subsidies, has come under scrutiny for disproportionately supporting livestock farming. A significant portion of CAP funding has been allocated to livestock, with the ‘coupled’ payment system linking income support to specific food production, particularly animal products.

While the EU aims to reform its subsidy framework by reducing coupled support and promoting decoupling, the World Bank stresses the need for more substantial changes. It estimates that reallocating public farming support could not only boost national incomes and reduce the cost of healthy diets but also decrease overall agricultural emissions significantly.

However, the report emphasizes that subsidy reallocation alone cannot fully address the challenge of cutting agri-food emissions and calls for additional resources. It suggests leveraging food labeling, education, and communication campaigns to encourage consumer adoption of low-emission food options.

Ursula von der Leyen’s “Farm to Fork” strategy, which emphasizes shifting diets and consumer behavior, aligns with the World Bank’s recommendations. However, the report notes that further policy measures are needed to incentivize private investments in agrifood mitigation and promote the adoption of low-emission technologies.

The World Bank underscores the urgent need for increased investments in cutting agrifood emissions, emphasizing that current levels are insufficient to meet emission reduction targets. The potential benefits of such investments, both in terms of health, economic gains, and environmental impact, are estimated to be substantial, highlighting the potential for significant positive outcomes.