Carbon markets

Agrifood systems are among the sectors most exposed to climate change, yet they also hold a large share of the world's mitigation potential. Opportunities include reducing methane and nitrous oxide emissions from livestock, rice production and fertilizer use, storing carbon in soils, forests and mangroves, and replacing fossil fuels along agrifood value chains. However, climate finance reaching agriculture, forestry, fisheries and other land uses remains well below the level needed to support the transition to resilient, low-emission agrifood systems.

Carbon markets and other forms of cooperation under Article 6 of the Paris Agreement can help mobilize finance for these efforts. Activities such as agroforestry, improved soil and nutrient management, restoration of degraded lands and mangroves, reduced deforestation, lower-emission livestock and rice production, and clean energy solutions in agrifood systems can generate emission reductions or removals and attract climate finance.

FAO supports countries in understanding, developing and accessing high-integrity carbon markets and climate finance for agrifood systems transformation. Through its Carbon Markets Taskforce, FAO brings together expertise across agriculture, livestock, forestry, fisheries, energy, climate finance and transparency. Its work focuses on country readiness and project support, methodologies and technical guidance, and partnerships and advocacy. As a neutral technical adviser, FAO helps countries strengthen the data, institutions and integrity systems needed to align carbon market participation with national climate priorities and the goals of the Paris Agreement.