New climate policies, regulations, technologies and consumer trends present market opportunities for agrifood exporters as they are increasingly exposed to the physical risks of climate change.
Agrifood Exports and Climate Change A Guide for Business Support Organizations said agricultural producers and processors will also demand new climate-related goods and services as they build resilience, creating new economic opportunities, particularly in rural areas.
The guide published by the International Trade Centre, a joint agency of the World Trade Organization and the United Nations, identifies emerging climate-related market opportunities and service sectors for building resilience in the agrifood sector and offers recommendations to shape the strategies and service offerings of these organizations.
It said climate change creates risks for agrifood exporters as extreme weather events and rising temperatures disrupt supply chains and reduce productivity.
“Micro, small and medium-sized enterprises (MSMEs) also face risks from new policies, regulations and technologies designed to address climate change. Some climate change-related opportunities are emerging in response to these trends,” the guide said.
It added new goods and services are needed to help reduce the exposure and sensitivity of the agriculture sector to climate change hazards and to increase the adaptive capacity of agribusinesses to cope with climate change.
Citing earlier publications, the guide said examples of the types of goods and services supporting resilience in agriculture available in the market and for which demand is likely to increase include on-site monitoring devices, smart crop monitoring systems, protective structures, digital pest management systems, water-efficiency devices, and development and monitoring of nature-based solutions.
Some goods and services supporting resilience in ports are floating infrastructure; flood-proofing measures; dredging; flood risk modeling; heat-tolerant or resistant plants, equipment, infrastructure or materials; research; warning equipment, fog horns, radar, high visibility lighting, etc.; warning systems; and new protocols or codes of practice for operations in poor visibility.
“Many of these products and services are win-win solutions in that they enable economic gains and boost efficiency while contributing to climate change adaptation or mitigation,” the guide said.
Physical climate risk advisory and analytic services will also become more important, it said.
Further, premium prices are associated with value-added produce such as organic and specialty goods.
“Retailers use labeling and certification schemes to communicate on the environmental attributes of products, including absence of pesticide use and low carbon footprint. Opportunities also exist for firms and organizations able to help MSMEs in the agriculture sector navigate sustainability and climate-related standards, and to access sustainable markets and customers through sustainable certification,” it said.
The guide said the potential to earn income from alternative land uses includes renewable energy integration, conservation schemes and sequestering carbon.
It said farmers can generate additional income by investing in renewable energy sources such as solar panels or wind turbines on their land, while conservation entrepreneurs are working with farmers to adopt environmentally-friendly practices that are financially rewarded.
“Projects that sequester carbon in soils and forests represent a large share of the carbon credits traded in international markets; yet, more innovative forms of carbon capture –such as blue carbon– are also starting to gain traction. Carbon sequestration present(s) an interesting opportunity for farmers to develop a new service in their managed lands,” it added.
The guide also outlines how business support organizations can respond to transition and physical risks by mainstreaming climate risk issues into their business plans and advisory services, helping businesses navigate climate-related uncertainties and tapping into emerging market opportunities.
