In an era where environmental sustainability is no longer just an aspiration but a global imperative, the combination of advanced technology and environmental commitment is leading to innovative and effective carbon reduction solutions across the agricultural sector.
At the forefront of this intersection lies the transformative potential of blockchain technology to make environmental obligations and claims more verifiably binding – a dynamic synergy that holds the key to revolutionizing the way we use real assets observe and manage within the agricultural sectors.
As the world finally begins to confront the urgent need to tackle climate change, governments and regulators now see that investments in modern technology systems are an imperative part of the global fight against emissions. Many of the traditional approaches that have defined sustainability measures, commitments and commitments in the past have proven not to be fit for purpose, and are riddled with shortcomings in transparency, efficiency, accountability and, most importantly, trust.
A good example of some of these issues is the Canadian government’s recent imposition of an environmental tax agenda on major oil companies, a policy designed to curb environmental impacts by raising market prices.
This tax has not proven to be particularly practical as it goes far beyond just the oil companies as the tax applies wherever oil and gas is used. Take the effect on farmers for example: this tax affects them on every front, from refueling tractors, heating barns to transporting produce. As a result, food prices are skyrocketing, and the burden is disproportionately borne by consumers who struggle to put food on the table.
While the government’s ambition may have been noble and motivated by a desire to tackle emissions, the measures were ineffective and re-emphasized the need for more practical and achievable solutions.
Shortcomings in the traditional approach can be addressed by leveraging modern technology, such as blockchain, to implement modern and verifiable measurement practices that will in turn encourage and reward truly sustainable practices. The importance of moving to a more verifiable and reliable measurement system becomes clear when we see the commitments made at last year’s COP28 conference in the UAE.
While many big statements have been made, it is now critical that we see concrete climate action and incentives for environmentally friendly practices taking place to truly achieve significant reductions in greenhouse gas emissions. Moving to a more modern measurement process has the added benefit of also providing near real-time progress reports on climate pledges, once again encouraging and rewarding sustainable practices at the community level.
Bring everyone with us – more effective regulation
Deforestation accounts for approx 11% of global carbon emissions – a statistic that dominated discussions at COP28 last year. 2024 is a potential turning point in this area, as the EU’s new anti-deforestation law, EUDRcomes into force and requires proof that goods such as coffee, soya and cocoa have not been produced on land that has been subject to deforestation if they are to be imported into the EU.
While climate activists have welcomed this move, it is also fair to ask how farmers in the Global South can be expected to survive and comply with the EUDR without significant assistance. At least, for example 70% of the world’s cocoa beans are produced in West African countries such as Ghana, Nigeria and Cameroon and further processed and distributed via Europe.
Now EU regulations will ban farmers from exporting to lucrative markets unless they can prove their products come from deforestation-free land. Being able to confirm this is a significant challenge, especially considering the relatively rudimentary monitoring processes that currently exist around the world. smaller farms in the South.
A technological transformation
New, easily accessible technology can help smallholder farmers on this journey.
Aerial photography and AI make it possible for farmers to accurately distinguish between crops grown and grown in areas affected by deforestation. Advanced machine learning enables seamless monitoring of agricultural activities and provides farmers with actionable insights based on real-time information.
Putting all this together, blockchain integration provides a transparent, secure and verifiable record of a product’s history. These documents provide a record of the truth, which cannot be changed once written to the blockchain. This immutable characteristic is vital to traceability processes throughout the supply chain, opening new opportunities for farmers and enabling them to comply with EUDR and other regulations.
Best of all, these technologies are also now more accessible than ever before through creative mobile applications that reach farmers who may not have previously been exposed to any form of AgTech.
This combination of new technological elements enables farmers to access markets by complying with regulations, optimizing crop yields and minimizing environmental impacts. This opens up many new opportunities for small farmers and supports more sustainable and environmentally friendly agricultural practices.
Highlighting these new technological opportunities and making them easily accessible is critical to achieving more sustainable agricultural practices and ultimately a more environmentally sustainable future.