Pathways to decarbonization | Food
The food industry has potentially the opportunity to achieve net-positive emissions and play a pivotal role in reaching global sustainability goals.
As a major emissions polluter, today’s food system is responsible for 25% of global CO2 emissions. To turn this tide, the entire food ecosystem should strive towards a farm-to-fork transformation. In this installment of our Pathways to decarbonization series, we explore a range of decarbonization levers that could help the food sector reduce emissions by up to 90%.
The state of play
Today’s food system accounts for about one third of global greenhouse gas emissions.1 Nevertheless, it is a pivotal sector feeding the world, producing a large share of global gross domestic product (GDP), and providing around 40% of global jobs. The current production model is based on highly productive but unsustainable practices. However, shifting to low-carbon farming practices leads to lower yields and higher costs. Lower yields are problematic, as global food demand is projected to rise, while higher costs are difficult to pass down the value chain, since consumers are often unwilling or unable to pay higher prices.
The way forward
Despite these challenges, the food sector has the potential to become not only net-zero, but also net-positive by acting as a significant carbon sink through natural carbon storage. This is promising but implies significant investments and a redesign of the food system. The good news is that most of the necessary levers to pull are already available. Changing the way we use land—and treat soil on agricultural land—could get the industry almost halfway to net-zero. Low-carbon farming practices, food waste reduction, a shift to renewable energy, and shifting diets could potentially complete the journey. However, the entire food ecosystem should work in unison to make a net-zero, or net-positive, food system a reality. This could include establishing common standards, conducting monitoring, and fast-tracking system changes. Food processing and food retail industries can set the pace, driven by consumers and brand perception. Standards could enable end-to-end transparency. Data and analytics skills can help realize it. Innovation, improvement, and development of new technologies can be important enablers in achieving net-zero.
Read the full report to learn more about Deloitte’s insights.
About Pathways to decarbonization
The Pathways to decarbonization series is a collection of insights on the challenges, opportunities, and viable decarbonization pathways for high-emitting and hard-to-abate sectors. Each of the sector perspectives offers a foundational starting point for leaders who would like to better understand the landscape across these critical sectors.
Explore “Recommendations” below for more in-depth food, supply chain, and climate-related reports.
References:
- William R. Sutton et al., “Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System,” World Bank, 6 May 2024, p. 17.
