Estimating the Marginal Cost of Methane Abatement for Representative Feedlot Operations in Canada

Agricultural methane emissions are a major contributor to Canada’s greenhouse gas (GHG) emissions, with beef production alone accounting for 71% of the sector’s total methane output (Government of Canada 2022). Given Canada’s climate targets of reducing GHG emissions by 40-45% by 2030 and achieving net-zero emissions by 2050, reducing methane emissions from beef production has become a critical area of focus. Despite growing evidence supporting the potential of various methane mitigation strategies for beef production, there is a lack of detailed cost-effectiveness analysis and few Marginal abatement cost curve (MACC) studies specifically focused on the agricultural sector in Canada. This gap in research presents a significant barrier to the adoption of these strategies for the industry. This study addresses this gap by evaluating the cost-effectiveness of several methane abatement strategies for Alberta’s beef feedlot sector, including breeding for low Residual Feed Intake (RFI), feed management practices, and rumen manipulation techniques such as feed additives (ionophores, 3-Nitrooxypropanol, red seaweed, and Mootral). A “bottom-up” approach is used to construct these MACCs, utilizing data from existing studies, industry reports, and expert consultations to assess the economic feasibility and methane reduction potential of these technologies. The findings reveal that strategies such as breeding for low RFI and certain feed management practices offer methane reductions at negative abatement costs, suggesting potential economic gains for feedlot operations. However, these strategies face challenges, such as long-term investment and planning required for genetic selection and the complexity of implementation. Leading feed additives like 3-NOP and red seaweed show considerable methane reduction potential but are hindered by high upfront costs and logistical barriers, including supply chain issues, making them economically unfeasible without substantial financial incentives. Dietary manipulation, particularly lipid supplementation, is effective in reducing methane emissions but remains costly for producers, posing another economic challenge despite its abatement potential. By constructing two MACC scenarios, maximal and realistic, this research highlights the economic trade-off between methane reduction potential and the practical feasibility of implementing these strategies in Alberta’s beef feedlot sector. The results underline the need for supportive climate policies, including financial incentives and industry collaboration, to overcome the economic and logistical barriers to the adoption of methane mitigation technologies. This study contributes to the growing body of knowledge on methane mitigation in Canadian agriculture and provides essential insights to guide policy decisions and support the development of practical, cost-effective solutions for reducing methane emissions in the beef sector.

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