Market-based tools for accelerating cattle sustainability in Canada

Canada provides a useful and interesting model for tools that can accelerate livestock sustainability, in particular, for the cattle sector. Globally, cattle are responsible for about 65% of livestock’s greenhouse gas emissions, with methane from enteric fermentation of feedstuffs and manure accounting for about 44% of the emissions. This represents a unique opportunity for livestock-based solutions, facilitated by effective market mechanisms and tools, contributing to lower environmental impacts. This paper discusses key drivers enabling the opportunity and uses case studies from Canada that are operational today to demonstrate what could be possible in other jurisdictions given similar circumstances and capabilities. As a country, Canada is an interesting microcosm of carbon pricing policies and sustainability tools. Carbon pricing is a tool that can accelerate decarbonization across sectors. Several provinces have had subnational carbon pricing schemes in place since the 2007 to 2008 timeframe (British Columbia, Quebec, and Alberta). Starting in 2016, the federal government under the Trudeau Administration worked with the provinces to establish the “Pan Canadian Framework”—a plan that strives to implement a pan-Canadian approach to pricing carbon pollution and measures to achieve reductions across all sectors of the economy. The road to harmonization has not been an easy or a popular one, with several provinces having since elected conservative governments currently challenging the constitutionality of the federal government’s imposition of backstop greenhouse gas regulations at the Supreme Court of Canada. Nevertheless, the carbon pricing systems remain in place, with the opportunity for the non-covered sectors such as agriculture, forestry, and waste treatment to voluntarily generate carbon offsets and sell to the regulated sectors for compliance-meeting purposes. It is this latter context—the ability to extend the price incentive to reduce the carbon intensity of agricultural production—that drove the development of tools to monetize activities for lower carbon beef production in Alberta, that is now extending to the Federal Offset System and beyond Canada’s borders. This paper will focus on the evolution of several market-based tools at play in Canada driven by subnational, national, sectoral certification systems, and global actions, policies, and pledges. As early as 2009, the Alberta Government approved three Carbon Offset Quantification Protocols incentivizing lower carbon beef production in the province—Feeding Edible Oils, Reducing greenhouse gas emissions (GHG) Intensity of Fed Cattle (Fed Cattle), and since 2012, Selection for Low Residual Feed Intake in Beef Cattle (Alberta Offset System 2021; https://www.alberta.ca/alberta-emission-offset-system.aspx). Alberta is the only jurisdiction in the world where project developers have been able to generate compliance-grade beef carbon offsets for sale to large final emitters in Alberta’s Carbon Pricing system. Trimble Corporation Canada has three projects listed on the Alberta Emissions Offset Registry under “The Reducing greenhouse gas Intensity of Fed Cattle Protocol” for practices implemented that increase feed efficiency of beef production. The projects generate over 49,000 tonnes of beef carbon offsets in four Alberta feedlots. In 2017, these tonnes were sold to a variety of buyers (Capital Power, Brightspot Climate, and TransAlta; https://alberta.csaregistries.ca/GHGR_Listing/AEOR_ListingDetail.aspx?ProjectId=229). Two more fed cattle projects are listed on the Registry by Trimble, generating carbon from 15 more feedlots in the 2017 project year, for an estimated total of over 90,000 tonnes of emission reductions altogether. Growsafe Beef Systems has one project listed for the “Selection for Low Residual Feed Intake in Beef Cattle protocol” on the Registry to date (https://www.csaregistries.ca/albertacarbonregistries/eor_project.cfm?id_prj=820). The Canadian government recognizes the quality of the Alberta cattle projects and announced that they would recognize these compliance units in the National Offset System. They have also signaled the development of livestock feed management protocols for the National Offset System as well, enabling projects in other provinces. Further, elements of Alberta’s cattle protocols can be found in Voluntary Carbon Offset Markets (Verra 2021; https://verra.org/methodology/methodology-reduce-enteric-methane-emissions-beef-cattle-using-organic-natural-feed-supplements and https://verra.org/methodology/reduction-of-enteric-methane-emissions/) and the Australian Emission Reduction Fund (https://www.industry.gov.au/regulations-and-standards/methods-for-the-emissions-reduction-fund). In 2018, the Alberta Dairy Protocol was adapted into the Gold Standards’ suite of offset methodologies by TREEs and DSM Nutritional Products (https://www.goldstandard.org/sites/default/files/documents/gs_agriculture_clean_cow_meth_dec_2018.pdf). In 2019, the Climate Action Reserve approved the first Canadian voluntary protocol dedicated to conserving grasslands in Canada and the carbon stored in the beef-pasture production system—Canadian grasslands represent one of the most intact ecosystems in the world and are critical for preserving biodiversity and contributing to climate mitigation. A pilot is underway to test the protocol across Canadian ranches. In 2011, McDonald’s was one of 12 founding members that initiated the Global Roundtable for Sustainable Beef (GRSB; https://grsbeef.org; original members included WWF, McDonald’s, Cargill, National Wildlife Federation, The Nature Conservancy, several other national affiliates, ranchers, and other stakeholders)—a multistakeholder, market transformation organization that brings together key players in the beef industry, from ranchers to retailers, helping to identify opportunities for continuous improvements in sustainability throughout the global beef supply chain. These efforts aim to minimize greenhouse gas emissions, protect native forests and grasslands with high conservation value, efficiently manage water use and quality, promote soil health, and protect biodiversity—all while maintaining the social and economic viability of beef production worldwide. These goals are outlined in the framework of the GRSB, and as part of the company’s commitment to sustainable beef, McDonald’s set a pioneering goal in early 2014 to begin sourcing sustainable beef by 2016. Since the goals, principles, and criteria of the GRSB had not yet been implemented at a local level, launching a Sustainable Beef Pilot was the next step in McDonald’s long-term strategy to achieve its 2016 goal, and they chose Canada as the Pilot country. The reasons McDonald’s chose Canada to pilot the translation of the GRSB goals, principles, and criteria were because Canada had a national traceability system, a consolidated supply chain with the Cargill patty plant in Alberta supplying the Country’s restaurants, a supportive set of industry programs to base the Pilot on, and available funding for implementation (note: in more complex and disaggregated supply chains distributed across more diverse geographic regions, the approach may have to be more customized to localized supply chains). Beginning in 2015, the Pilot set out to develop indicators of sustainable beef production that were outcome-based, in keeping with the GRSB’s intended means of verification (as described in the GRSB’s “Principles and Criteria for Sustainable Beef” document; https://grsbeef.org/WhatIsSustainableBeef). Outcome-based metrics allow each producer to describe how they deliver the positive outcomes associated with a given indicator, rather than requiring the producer to stick to a prescribed list of practices. The way cattle are raised in Canada varies across landscapes, enterprises, and production stages, so basing performance on outcomes enables different production systems to achieve the same objectives without mandating exactly how they get there. An outcome-based approach also protects the autonomy of individual producers to make decisions that best suit their own unique resources and business interests. This effort required enlisting the help of 11 respected advisors (i.e., the advisors were selected from the general principle categories outlined in the GRSB framework; http://www.mcdvsb.com) and gathering insights from dozens of discussions with Canadian ranchers, feedlot operators, and processors as well as representatives from retail, foodservice, academia, nongovernmental organizations, government, and industry associations. Once the indicators for cow–calf, backgrounding, and feedlot operations were drafted and McDonald’s had confirmed the decision to verify based on outcomes, the Pilot team needed to establish a consistent method of scoring individual performance across the indicator and operation sets. A performance scale was developed and tested through significant feedback from advisors and other Canadian beef industry subject matter experts. The testing involved experienced, independent third-party verifiers (http://wherefoodcomesfrom.com) to assign and calibrate with each other a sample of operations with performance scores for each indicator using the three techniques of interview, observation, and records-checking during verification. The Pilot ended in mid-2016 proving that beef from sustainable sources could be successfully tracked through the Beef Information Exchange (BIX; https://www.trustbix.com). This created a beef sustainability system that verified Canadian operations as sustainable and then tracked cattle chain of custody through these operations into the two processors that supply McDonald’s with their beef in Canada. This translated to nearly 8 million lbs of Canadian hot carcass weight delivered by an entirely verified sustainable supply chain. Using a mass balance calculation, McDonald’s sourced just over 300,000 lbs of Canadian beef trim from entirely sustainable sources during the Pilot (http://www.mcdvsb.com). At the beginning of 2018, the Canadian Roundtable on Sustainable Beef (CRSB) launched the Certified Sustainable Beef Framework through a multistakeholder development process, including two rounds of public consultation (https://www.crsbcertifiedsustainablebeef.ca; the CRSB relied on the guidelines and communications with experts in the International Social and Environmental Accreditation and Labeling (ISEAL) Alliance to help develop the certification framework). This innovative effort is essentially the first of its kind for the beef industry globally, aligned with the Five Principles of Sustainable Beef as set by the GRSB. There are similar programs in other commodities, such as seafood, forest and paper products, sugar, coffee, palm oil, and others upon which the CRSB has drawn from lessons learned and in accordance with ISEAL Alliance guidelines (https://www.isealalliance.org/defining-credible-practice). Most of these programs are internationally based. There are similar organizations and Roundtables for Sustainable Beef in other countries, such as the United States, Brazil, Australia, Columbia, and others; however, Canada is the first to build such a robust certification framework with chain of custody requirements and claims to support its Standards. Other countries are following the leadership position that the CRSB is taking with keen interest. To further accelerate the certification of sustainable beef operations in Canada, and grow the traceable supply of certified sustainable beef, Cargill and partners TrustBIX (BIX) and VBP+ (Verified Beef Production plus) launched an innovative Certified Beef Sustainability Acceleration (CBSA) pilot that ran from 2017 to 2019 (https://cbsapilot.ca; the Pilot is now a Program with long-term commercial stability providing enhanced economic viability to beef operations in Canada and ensuring the sustainability of Canada’s beef value chain). A growing number of retailers joined the CBSA pilot evolving it into a longer-term program—McDonald’s, Loblaws, Original Joe’s, Swiss Chalet, Cactus Club Café, Harvey’s, and Centennial Foods, and the list is growing. Collectively, the retailers pay premiums back to beef producers for fully certified sustainable beef tracked through the TrustBIX platform. BIXS tracks all of the cattle on an radio frequency identification (RFID) tag basis passing through operations that are certified and, then, using distributed ledger technology, issues cheques to the beef operators on behalf of retailers. The premium-enhanced uptake tracked by BIXS’ innovative technology-based platform, coupled with the Certified Sustainable Beef programming, initially catalyzed by McDonald’s Sustainable Beef Pilot, demonstrates what is possible through market-based tools and how others could do it through meaningful partnerships—it’s not Just a Flash in the Pan (not just a flash in the pan: https://www.youtube.com/watch?v=QJV6-Y2rCYc&feature=youtu.be; Figure 1). Uptake in the CBSA Pilot shows a 25% increase in the qualified volume of certified beef every quarter, along with increased value per head per operation ($CDN/head/operation). Uptake in the CBSA Pilot shows a 25% increase in the qualified volume of certified beef every quarter, along with increased value per head per operation ($CDN/head/operation). By the time the Pilot ended in September 2019, close to Canadian $1.8 million was paid to beef producers participating in the Pilot. Now that it has become a program, with more retailers coming on board, the success story will grow even larger. A number of global drivers are catalyzing the development of low-carbon cattle production. Finding ways to grow more food without growing greenhouse gas emissions is the mandate of the Global Research Alliance (GRA). After all, greenhouse gas emissions represent a loss of costly inputs—both nutrients and feed energy—ultimately resulting in inefficiencies in agricultural production systems. Cattle (raised for both beef and milk) are responsible for about 65% of the livestock sector’s emissions, with methane from enteric fermentation of feedstuffs and manure accounting for about 44% of the emissions (Gerber et al., 2013). The Livestock Research Group (LRG) of the GRA, chaired by New Zealand, Ireland, and the UK, focuses on actions to reduce the emissions intensity of livestock while increasing food security. In fall 2016, the LRG and the Sustainable Agriculture Index (SAI) Platform released a report summarizing current climate smart practices implementable today and in the near term, and where industry partners, farm group agencies, and policy groups could collaborate further in the development, trial, and deployment of more mitigation options. The SAI Platform president points out that although solutions can be found in science, if ranchers/farmers do not find them relevant, useful, or actionable—they won’t go anywhere. The report charts a useful roadmap with the main options for reducing greenhouse gas emissions, improving productivity, and enhancing food security and animal health are: 1) animal breeding/genetics, 2) rumen modification, 3) grassland management, 4) manure management, and 5) animal health (Figure 2). Adapted from the LRG’s Best Practice and Emerging Options report. Each option is categorized by whether they are best practices, for at a of or the requiring more Adapted from the LRG’s Best Practice and Emerging Options report. Each option is categorized by whether they are best practices, for at a of or the requiring more the and Agriculture of the a in 2017 three livestock solutions for climate 1) improvements to reduce livestock carbon 2) carbon and 3) livestock into the In the the out that although grasslands represent of the global than they are estimated to tonnes of more than is stored in forests and are at from (Figure Global and livestock feed of Global and livestock feed of In Canada, the production efficiency of the beef has increased since at of Canadian beef production have that in 2011, the same of beef required and than in et al., et al., The efficiency through health, and the opportunities have been opportunities for low-carbon beef production. In a for the Alberta Beef categorized available and best management practices with the to reduce emissions to The were also to of where intensity per of practices that production efficiency reducing at in the and for which and and health of the for feed which methane emissions and methane matter that emissions from to feed and management practices that reduce methane emissions from including the and Edible and into the use of as a this could be a Feed and quality Feed management and carbon loss of soil carbon efficiency can be increased through a variety of practices through their are to in production as well as carbon In a 2017 of Canadian beef management practices and indicators weight from weight These practices to a in emission intensity for et al., and These indicators of efficiency are raised over and weight total weight sold beef weight sold per in the case of cattle production per animal weight and per total of feedstuffs to requirements for for and on and and of more and cattle will weight and greenhouse over a time on the feed will in lower greenhouse gas emissions in feedlot systems, the of on and weight as a of in systems. The found that the producers on increasing weight by than on increasing by through feed water and use in a to increase in for while weight in from to Cattle that use feed per of weight than other cattle are as having a or a feed efficiency resulting in greenhouse gas emissions from enteric fermentation and manure (Alberta Agriculture and These cattle can be selected and tested for an value or may be selected for to their feed report to a in for on and Low cattle to 25% enteric methane carcass beef for carcass with lower and feed a to in matter and and farm et al., 2013). The as having the in Canada, as a high country, through for 2013). New tools are to in the of efficiency such as the The tool and an of to generate a that a high as from and has and with a et al., and a carbon tools have not been found to the to Several methane are under development, with the most and from DSM based in the is a that the in the step of the in the rumen Global independent studies have emission reductions of at in studies in beef, and at Agriculture and Canada have been this feed for the with on both reductions and performance in and in Alberta et al., et al., along with partners Canada, and the in the world Emissions Reduction Alberta million to this million project through its The project was for having positive for the to the that of Canada’s cattle production in cattle included in the trial, it represents the on methane for that an enteric methane emission was found the feed was in or In a in the of to was In increasing the of the feed the of methane by to with The successfully that the can be included in commercial feedlot to reduce methane emissions, without on animal health and performance and carcass et al., et al., In an of Climate for Canada, Nature United Nature in options that can to Canada’s goals for emissions the management, and of systems et al., The estimated can to to of mitigation in and to and with available at the mitigation opportunities is of grasslands grasslands through market In a by the of carbon in Alberta was to at carbon from to in and or taking nearly the road every (Figure of that are with grasslands also significant carbon The value of all grasslands as well as in the ecosystems in the of Alberta et al., and soil carbon from in Alberta with carbon value to estimated carbon to The value of all grasslands as well as in the ecosystems in the of Alberta et al., and soil carbon from in Alberta with carbon value to estimated carbon to Further, of soil carbon were from current estimated of in Alberta and to carbon to from the of and and (Figure As a Pilot is underway in Canada to test the approved Canadian Protocol under the voluntary Climate Action Reserve Registry and This will be an to the carbon and other from preserving Canadian and by Canadian ranchers to has been and buyers of these carbon offsets have in carbon and other outcomes from the of all of the activities in this and outlined in represent a possible of greenhouse from cattle operations in Canada in the next given the market and other feed at management practices, and In with soil carbon under Canada’s grasslands and with market-based mechanisms the of Carbon Beef production in Canada is of selected by by of to and currently is not to development and of of selected by by of to and currently is not to development and of is the of a of advisors helping agriculture, and sustainable food sectors the their carbon and an sustainability has over of in agricultural and environmental policy development from the and at the of Climate has soil carbon and in a of sustainable system across Alberta, developed the and protocols to support compliance in Alberta, and adapted protocols into the Quebec, and under the Climate is with partners to pilot a and framework for reductions at scale from and certification for an under and testing the of the to beef production systems with the Alberta Beef

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.