Complementing the longer EX-ACT User Manual, this guide provides an overview of the Ex-Ante Carbon-balance Tool, a land-based accounting system that prioritizes project activities with the greatest economic benefits and potential for climate change mitigation.
This document presents the methodology used to build the EX-Ante Carbon Balance Tool version 9 (EX-ACT). It describes in detail the main logic behind the tool, the tool structure, and the underlying equations and parameters used to calculate the carbon balance. EX-ACT is a land-use-based accounting system developed by the Food and Agriculture Organization of the United Nations (FAO) to evaluate the effects of the interventions in agriculture on greenhouse gas (GHG) emissions and carbon stock changes expressed as carbon balance. The carbon balance comprises changes in GHG emissions and carbon stock changes in the five quantifiable carbon pools: above-ground biomass, below-ground biomass, litter, deadwood and soil. The current version of EX-ACT is primarily based on the Intergovernmental Panel on Climate Change (IPCC) reports "Refinement to the 2006 Guidelines for National Greenhouse Gas Inventories" (2019) and "Supplement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Wetlands" (2014), complemented by other scientific research.
This practical guidance presents details on how to use the EX-Ante Carbon-balance Tool for Value Chain (EX-ACT VC), with the aim of providing a multi-impact appraisal in terms of socio-economic and environmental assessment for value chain analysis. Following the EX-ACT logic, EX-ACT VC compares the environmental and socio-economic performances of current value chains with those of an improved scenario (applicable to different degrees of the chain), based on the analysis of agricultural production, land use changes, processing, transport and climate resilience. EX-ACT VC has been developed for all types of agricultural sectors (which include here fisheries and livestock) that have the potential to mitigate the effects of climate change and to develop the resilience of rural populations that are dependent on them. The tool targets value chains in developing countries for single or more complex sectors, taking into account several agricultural practices and one end-type specific to a region or area.
The Ex-Ante Carbon-balance Tool for value chains (EX-ACT VC) is a quantitative multi-appraisal tool that evaluates the sustainability of agrifood value chains simultaneously along several environmental, economic, and social dimensions. It analyses greenhouse gas (GHG) emissions along an agrifood value chain, from farm gate to shelf, including GHG fluxes from processing and storage, to packaging and transportation; calculates a set of value-added indicators including gross production value, value-added, and net income; and estimates the number and nature of jobs created along the value chain. It also includes an estimation of food loss at each stage of the value chain; an assessment of gender and youth participation and an SDG tracker. The EX-ACT VC methodological guidelines aim to: 1) provide a comprehensive overview of the tool and help users assess the sustainability of agrifood value chains across environmental, economic, and social dimensions using the tool; 2) describe the various methodological concepts underlying the tool to perform a value chain assessment and calculating several indicators of sustainability; 3) illustrate the structural layout of the tool, explaining data requirements, and providing step-by-step data entry guidance to perform a value chain assessment using EX-ACT VC; 4) discuss the different indicators the tool calculates and how they can be for project and policy evaluation and design. These guidelines are intended to assist potential users of EX-ACT VC including policymakers, project managers, analysts, and researchers.
This manual explains how to use the EX-Ante Carbon-balance Tool known as “EX-ACT” to estimate the impacts of management activities in coastal wetlands, aquaculture and fisheries on projects GHG balance. EX-ACT enables investment planners to design program activities that target high return outcomes in terms of climate change mitigation, and is intended to complement conventional ex-ante economic analysis.
Preliminary assessments of the cocoa value chain from using FAO's EX-ACT Value Chain tool show that it has a significant potential to improve farmer incomes while mitigating climate change. With a renovation and rehabilitation strategy of implementing cocoa shadow agroforestry in low-yielding old plantation areas, the mitigation impact of the value chain reaches approximately 146 million tCO2e in the next 20 years. This translates to a carbon footprint of – 5.6 tCO2e for every tonne of cocoa produced. Additionally, the gross income per farmer increases by almost 38 percent - up to USD 10.46 per working day by 2028. Most of the value-added coming from the upgraded scenario stems can be attributed to the producer – more than USD 1 billion in an aggregate value added of over USD 1.6 billion by 2028. Moreover, the cocoa value chain will create an additional 277 669 jobs, and increase the climate resiliency of almost 1.85 million hectares of landscape in Ghana.
This paper proposes a novel methodology for calculating marginal abatement cost curves (MACCs) for public finance in agriculture using granular data on specific activities from investment projects. [Author] The proposed MACCs target public investment decision makers from the international and national financing institutions, as well as governments. [Author] The methodology is based on information obtained from agricultural projects implemented by international funding institutions (IFIs) and carbon accounting appraisals conducted using the Food and Agriculture Organization of the United Nations (FAO) EX-Ante Carbon-balance Tool (EX-ACT). [Author] The curves are estimated through a bottom-up approach, in which actual data on mitigation potential of agricultural investments and their associated costs are used to derive the cost-effectiveness of individual agricultural activities. [Author] The resulting curves illustrate the relationship between the cost of each individual activity and their individual mitigation potential helping decision makers to identify how to achieve best results at lowest cost. [Author] The application of the methodology is demonstrated using a sample portfolio of projects under World Bank’s Global Agriculture and Food Security Programme (GAFSP). [Author] Isolating the contribution of individual practices and highlighting their contextual cost-efficiency is a key factor in investment decision making for private and public entities aligning with the global climate targets. [Author] Given the complexity of estimating real costs, bottom-up MACCs offer a precious reference for evaluating activities' abatement potential and supporting decision-making processes of policymakers and investors interested in efficient and climate-friendly investments. [Author]
The present technical study provides the results and a summary of the most important lessons learned from implementation of a series of climate-smart agriculture (CSA) practices in the rice supply chains of Gagnoa in Côte d’Ivoire. The aim of the CSA practices was to enhance the adaptive capacity of the rice sector against climate change, as erratic rainfall patterns and droughts events have, historically, significantly impacted production. This study relies on data collected at farm and processing levels during two field missions to two pilot sites in August 2017 and September 2018 under the project “Contribution à l’atteinte des objectifs liés au changement climatique et à la sécurité alimentaire via l’agriculture intelligente face au climat en Côte d’Ivoire – cas de la filière riz”. This project is a technical cooperation project implemented by the Food and Agriculture Organization of the United Nations (FAO) from 2016 and 2018. The study provides a series of recommendations for policymakers, including incentives for the development of a modern bioenergy sector in Côte d’Ivoire which are still nascent.
Based on past experience of partnership on support to National Rice Development Strategies (NRDS) within Coalition for African Rice Development (CARD), AfricaRice and FAO decided to conduct a series of rice policy reviews for Ghana, Ivory Coast and Mali in 2019. The following study uses the Ex-ante Carbon-balance Value Chain tool (EX-ACT VC), developed in 2016 by FAO, to assess the Ghanaian rice value chain’s environmental (in terms of climate mitigation and climate resilience) and socio-economic impact for a business as usual scenario in 2020 compared to a growth scenario for 2030. Promotion of good agricultural practices (GAP), the reduction of crop losses, and an increase in the use of inputs and mechanization are the different strategies considered in this study that would help in realizing the aim of self-sufficiency.Through the implementation of these practices, along with the expansion of rice growing areas, the income per day of work per farmer would increase by more than USD 4, reaching approx. USD 9/day of work in the value chain. The gross production value of the rice value chain would reach USD 856 million, which is an additional USD 511 million in gross production value by 2030. An upgraded rice value chain would also result in an increase in the value added by USD 378 million by 2030 with an overall positive carbon balance that would emit 284 852 tCO2-e of greenhouse gas emissions.
Biodiversity loss is accelerating at an unprecedented rate across the planet putting a great number of species on the brink of extinction. A decline in the plants, animals, and microorganisms threatens food security, sustainable development, and the supply of vital ecosystem services. In order to meet the Sustainable Development Goals (SDGs) of the 2030 Agenda, there is an urgent need to take action to halt biodiversity loss and consequently ecosystem degradation. Since the introduction of the Aichi targets, released by the Convention on Biological Diversity (CBD) in 2010, the United Nations have been empowered with greater influence on decision-making impacting biodiversity. However, there was an urgent need for an easy-to-use tool to rapidly, yet effectively assess the impact on biodiversity posed by projects, programmes, and policies. As a timely response, the Food and Agriculture Organization of the United Nations (FAO) has developed the Biodiversity Integrated Assessment and Computation Tool (B-INTACT). B-INTACT extends the scope of environmental assessments to capture biodiversity concerns, which are not accounted for in conventional carbon pricing. The tool is designed for users ranging from national investment banks, international financial institutions and policy decision-makers, and allows for a thorough biodiversity assessment of project-level activities in the Agriculture, Forestry and Land Use (AFOLU) sector. The second version of the guidelines includes additional information on how to use B-INTACT together with FAO's Earthmap platform and the Ecosystem Service Valuation Database.