Carbon pricing and the food system: Implications for sustainability and equity

Abstract

BackgroundClimate change is a global problem, threatening the sustainability of the food system. Economic approaches like carbon pricing and emissions trading systems aim to put a price on carbon emissions to reduce greenhouse gas emissions. These initiatives have the potential to meet sustainability goals, but ensuring equity could be challenging. Additionally, the implementation and impact of these policies on the food supply system have not yet been fully understood and evaluated. Scope and approachAs the food industry is a complex supply chain responsible for about 26% of global greenhouse gases, sudden implementation of these policies could disrupt the supply chain. Therefore, considering the perspectives of industries, distributors and consumers, it is important to carefully review the implications, efforts, and possibilities of these policies at different stages of the food supply system. Key findings and conclusionsAdopting sustainable and environmentally friendly practices could minimize the impact of carbon policies and climate changes. Better incentives and household compensation can further lower the risk of food security. However, the social effects of the carbon pricing policy will be primarily determined by how revenues are recycled, how the policy is perceived and whether the carbon price signal is maintained.