Comparison of downstream market-based policies to reduce agricultural emissions

McDonald, H., & Gardiner, J. (2026). Comparison of downstream market-based policies to reduce agricultural emissions. German Environment Agency. https://doi.org/10.60810/openumwelt-8298

Abstract english

This report compares three downstream policy options to reduce greenhouse gas emissions in the EU agrifood sector, all of which require regulated entities to cut farm-level emissions embedded in the products they handle or sell. It evaluates their design, efficiency, costs, and carbon leakage risks, highlighting key trade-offs. Retailer-level systems cover more emissions but are complex and costly, while processor-level options are either simpler to administer or more cost-efficient when trading is included. Carbon leakage is a concern across all options, though its magnitude remains uncertain. The report concludes by outlining how these policies could evolve or be sequenced over time.