16:34 26 July 2020
Animal sector more and more risky
The animal commodities market becomes as uncertain for investors as the oil market. There is a growing probability that further charges will be imposed on CO2 emissions from the meat production sector. This is because the European Union has committed to achieving climate neutrality by 2050, which will not be possible without eliminating emissions from the food production sector. And these get very high levels.
The livestock sector contributes to 14.5 percent of total greenhouse gas emissions per year and 44 percent of annual methane emissions. The world's 20 largest meat and dairy companies emitted more carbon dioxide in 2017 than all of Germany.
Some countries are already planning to implement rules that would burden manufacturers with additional costs. The first country to include livestock farming in the emissions trading system is New Zealand. As estimated in its latest report for the FAIRR investor network, for 40 of the world's largest meat producers, CO2 fees would cost up to $11.6 billion by 2050.
