Using Marginal Abatement Cost Curves to Realize the Economic Appraisal of Climate Smart Agriculture Policy Options
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The AFOLU sector (Agriculture, Forestry, Land Use) is directly linked with climate change issues, on an environmental aspect as well as on an economical and social aspect (food security). Yet, while there is a wide range of technical solutions, it is not immediately apparent which options deliver the most economically efficient reductions in GHG within agriculture. This is why methodologies such as a Marginal Abatement Cost Curves (MACC) have been developed over these past twenty years. MACC als o enables the comparison of the cost-effectiveness of mitigation options between different sectors (e.g. agriculture, power, transport, industry and domestic energy consumption). MACC has become a useful tool for policy makers to prioritize mitigation options. This paper aims at putting forward a methodology to use MAC-curves within the AFOLU sector. It especially targets policy planners and policy makers. The agricultural sector, also called agriculture or AFOLU, encompasses farm-based activiti es (crop production, livestock) as well as forestry and land use. It does not include the downstream agro-industry sector. The first part of these guidelines explains the methodology in order to assess the cost-effectiveness and the mitigation potential of technical practices in agriculture. It also underlines the limits of the MACC approach. The second part looks at a practical MACC analysis example, using the EX-ACT tool.