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TWN Info Service on Sustainable Agriculture
27 October 2022
Third World Network


Dear Friends and Colleagues

How agrochemicals prop up the fossil economy

Chemical fertilizers derived from fossil fuels (“fossil fertilizers”) are an under-recognized driver of climate change, biodiversity loss, and toxic pollution. The global climate impact of nitrogen fertilizer alone exceeds that of commercial aviation, contributing roughly 2% of all global greenhouse gas emissions.

A new report “Fossils, Fertilizers, and False Solutions” exposes how oil, gas, and agrochemical companies are partnering on a rapidly growing wave of new projects that would use carbon capture and storage (CCS) and related technologies to produce fossil gas-based ammonia (and its hydrogen precursor) not only as a critical fertilizer input, but as a combustible fuel for transport and energy.

Through such approaches, the fertilizer and fossil fuel companies seek to greenwash their polluting business, cash in on generous new subsidies for CCS, and access new markets as “clean energy companies”. Scientific research demonstrates compellingly, however, that such fuels are not only technically and economically infeasible for most uses, they are as bad or worse for the climate than burning fossil gas directly.

The close ties between agrochemicals and fossil fuels also mean that industrial food production is vulnerable to the volatility inherent in oil and gas, threatening our food security. As the world must urgently transition away from the fossil economy, it must also confront and abandon the current fossil-based model of intensive, industrial agriculture, with the goal of scaling up resilient, regenerative models that enhance food and energy sovereignty so that the ecosystems and communities that depend on them can thrive.

With best wishes,
Third World Network

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Item 1

FOSSILS, FERTILIZERS, AND FALSE SOLUTIONS

– HOW LAUNDERING FOSSIL FUELS IN AGROCHEMICALS PUTS THE CLIMATE AND THE PLANET AT RISK

The Center for International Environmental Law (CIEL)
https://www.ciel.org/wp-content/uploads/2022/10/Fossils-Fertilizers-and-False-Solutions.pdf
October 2022

Executive Summary

Over the last six decades, the global production and use of nitrogen fertilizers has grown ninefold, from 12.9 million tonnes in 1961 to more than 123 million tonnes in 2020. High-income countries like Japan, the United States, and parts of western Europe use 85–135 kilograms (kg) (187–298 pounds) of nitrogen fertilizers per capita, with industry now focused on dramatically increasing fertilizer use in the Global South. The production and use of pesticides has followed a similar trajectory, with early dramatic growth in pesticide use in North America and Europe shifting in recent decades to a heavy focus on pesticide exports to the Global South as consumers and regulators in the Global North demand safer alternatives. Since 1960, the value of global pesticide exports increased by 15,000 percent, reaching USD41 billion in 2020.

Overwhelming scientific evidence demonstrates that decades of overuse of synthetic fertilizers and pesticides—collectively agrochemicals—and the pervasive spread of industrial agriculture based on those agrochemicals, is contributing to catastrophic biodiversity collapse and toxic pollution, pushing the Earth beyond critical planetary boundaries, and resulting in widespread violations of human rights, particularly in the Global South. This overuse also impacts fenceline communities in both the Global North and South where agrochemicals are made.

These impacts are compounded by the significant but often overlooked role of agrochemicals in the accelerating climate crisis. Agriculture accounts for roughly a third of global greenhouse gas (GHG) emissions, and fossil fertilizers—synthetic fertilizers derived from fossil fuels—are an unrecognized contributor to this figure. A peer-reviewed study published in August 2022 found that the global climate impact of nitrogen fertilizer alone exceeds that of commercial aviation, contributing roughly 2 percent of all global GHG emissions. These emissions arise both from emissions-intensive fertilizer production and from ongoing and diverse climate impacts when nitrogen fertilizers are applied to agricultural soils. For example, producing the ammonia (NH3) on which nitrogen fertilizers are based releases an estimated 450 million tonnes of carbon dioxide (CO2) per year—equivalent to the total energy system emissions of South Africa. Similarly, agriculture accounts for roughly two-thirds of global emissions of nitrous oxide (N2O), a greenhouse gas 265 times more potent than carbon dioxide. Agricultural soils treated with nitrogen fertilizers are a dominant source of those emissions. Recent studies report that observed atmospheric concentrations of nitrous oxide are beginning to exceed even the most pessimistic climate models used by the United Nations Intergovernmental Panel on Climate Change (IPCC). In addition, continued overuse of both pesticides and fertilizers could be impairing the soil’s own ability to absorb and sequester carbon. Alarmingly, and despite these risks, the Food and Agriculture Organization of the UN (FAO) projects that nitrogen fertilizer use could grow another 50 percent by 2050.

Both the agrochemical and the fossil fuel industries stand to benefit from increasing production of synthetic fertilizers. Already, synthesizing ammonia for nitrogen fertilizers consumes an estimated 3–5 percent of the world’s fossil gas. The International Energy Agency (IEA) projects petrochemicals will account for more than two-thirds of global oil demand growth through 2026, and account for more than half (55 percent) of all petroleum usage by 2050. Plastics and fertilizers, which together account for nearly three-quarters (74 percent) of all petrochemicals produced, are the major drivers of that growth. According to the IEA, fertilizers represent the greatest near-term growth sector for petroleum feedstock use, with fertilizer production projected to demand more than 100 billion cubic meters (bcm) of natural gas in 2025, and global ammonia production growing up to 30 percent by 2050.

This convergence of interests is reflected in deep and pervasive interlinkages between the industries themselves. While the pervasive role of oil and gas companies in the petrochemical buildout and the ongoing plastics crisis is well-documented, links between the fossil fuel and agrochemical industries have received far less attention. Of eight leading fertilizer companies examined for this report, seven showed extensive past or current ties to the fossil fuel industry through board interlocks, corporate ownership structures, or direct engagement in fossil fuel production. Notably, this is in addition to well-known historic ties to fossil fuel industries among longtime agrochemical leaders like DuPont and Dow.

Perhaps unsurprisingly, therefore, agrochemical companies are drawing with growing intensity on the fossil fuel playbook to argue that they can make the massive climate impacts of fertilizer production disappear through widespread deployment of carbon capture and storage (CCS) and other false climate solutions. More troublingly—and largely unnoticed by media and civil society watchdogs—oil, gas, and agrochemical companies are partnering on a rapidly growing wave of new projects that would use CCS and related technologies to produce fossil gas-based ammonia (and its hydrogen precursor) not only as a critical fertilizer input, but as a combustible fuel for transport and energy. Fertilizer and fossil fuel companies are operating, developing, proposing, or actively exploring dozens of such blue hydrogen or blue ammonia projects in at least nine countries across the world. This report particularly highlights the buildout plans in the US where projects have been proposed in eight states. Unsurprisingly, the same states and communities that are already experiencing impacts of petrochemical and CCS production are also primary targets for the fossil fertilizer industry’s expansion into blue hydrogen and blue ammonia.

Scientific research demonstrates compellingly that such fuels are not only technically and economically infeasible for most uses, they are as bad or worse for the climate than burning fossil gas directly. Nonetheless, by positioning this fossil gas with CCS-derived ammonia as a clean energy source, both industries are maneuvering to exploit not only the marketing potential of allegedly “clean” and sustainable fuels, but also massive government subsidies for infrastructure investments in the name of climate mitigation. Put simply, the fertilizer and fossil fuel industries are increasingly collaborating to launder fossil fuels—particularly gas—as an ever-expanding source of both “clean” energy and “clean” agrochemicals. It is neither. Yet the acceleration of these proposals and the narratives underpinning them threaten to extend and deepen global reliance on both fossil fuels and industrial agriculture in the face of growing global recognition that both must be urgently reduced.

Beyond the threats it poses to biodiversity, human health, and the global climate, the deep integration of fossil fuels and industrial agrochemicals poses profound threats to global food security—as starkly illustrated by the 2022 market shocks in food, fuel, and fertilizer prices. As this report goes to design in mid-September 2022, acute gas shortages and massive near-term price spikes have spurred leading fertilizer companies to announce short-term production cuts even as long-term investment plans expand. Given the global food system’s current heavy dependence on chemical inputs, the widespread overuse and inequitable allocation of those inputs, and the disruption of both grain and fertilizer exports caused by Russia’s invasion of Ukraine, there is reason to be concerned that a further decline in fertilizer access will compound the near-term threats to food security created by the invasion itself. But the roots of these concerns lie in the systemic flaws of industrial food production, rather than shortages of a product that in actuality does not promote food security but instead undermines food sovereignty. As this report details, there has never been a clearer moment nor a more urgent need to reconsider the current system, especially the role of fossil fertilizers.

As the world must urgently transition away from the fossil economy, it must also confront and abandon the current fossil based model of intensive, industrial agriculture, with the goal of scaling up resilient, regenerative models that enhance food and energy sovereignty so that the ecosystems and communities that depend on them can thrive. Such transitions can only be achieved by confronting head-on the fossil-fueled system that is pushing the Earth and its inhabitants beyond critical planetary boundaries. Against the present backdrop of intersecting crises, the case for doing so has never been clearer.

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Item 2

PRESS RELEASE

FOSSILS, FERTILIZERS, AND FALSE SOLUTIONS: AGROCHEMICALS ARE PROPPING UP THE FOSSIL ECONOMY

The Center for International Environmental Law (CIEL)
https://www.ciel.org/reports/fossil-fertilizers/
6 Oct 2022

Washington, DC — Chemical fertilizers derived from fossil fuels (“fossil fertilizers”) are an underrecognized driver of climate change, biodiversity loss, and toxic pollution, and yet the fertilizer industry is increasingly portraying itself as part of the solution to these converging planetary crises. Together with oil and gas companies, agrochemical producers are promoting carbon capture and fossil fuel-derived hydrogen and ammonia to secure additional revenue streams for their business-as-usual production and green their image. A new report released today by the Center for International Environmental Law (CIEL) reveals how these trends risk deepening reliance on fossil fuels and industrial agriculture precisely when we need to be phasing them out, and push the world further past planetary boundaries to the detriment of ecosystems and human rights.

Fossils, Fertilizers, and False Solutions: How an Industry Push to Launder Fossil Fuels in Agrochemicals Puts the Climate and the Planet at Risk exposes how the fossil fertilizer industry is advancing a new business model that will extend the fossil economy in the midst of a climate emergency. At a time of surging fossil fuel and fertilizer prices and related impacts on food and energy security, the report finds:

  • Fossil fertilizers have significant climate impacts all along their life cycle and are major drivers of biodiversity loss and toxic pollution.
  • Rather than reducing reliance on these chemicals and transitioning away from the fossil economy, fertilizer companies are promoting the use of carbon capture and storage (CCS) to make fossil gas-based hydrogen and ammonia as inputs for industrial agriculture and as new combustible fuels.
  • These risky technologies prolong reliance on fossil fuels on the myth that they can be made “low carbon,” but instead entrench dependence on oil and gas, prop up industries that need to be phased out, and increase harms to people and the planet.
  • Efforts to remake fertilizer businesses as “clean energy companies” serve to greenwash polluting operations, cash in on generous new government subsidies for CCS and hydrogen, and expand market access – not solve the climate crisis.
  • Fertilizer and fossil fuel companies are operating or actively exploring dozens of new or expanded production facilities in at least nine countries across the world, including projects in eight US states already affected by polluting industries.
  • Deep connections and close ties between the fossil fuel and agrochemical industries, including through shared board members, overlapping corporate ownership structures, or agrochemical companies’ direct engagement in fossil fuel production dangerously tether food systems to the fossil economy.

Steven Feit, Senior Attorney and co-author of the report said,

“Fossil fertilizers are both a key target for oil production and the leading edge of the fossil fuel-enabling schemes. The combination of CCS, blue hydrogen, and blue ammonia at the heart of fertilizer and fossil fuel company expansion plans threaten to impede climate action while further entrenching polluting industries and undermining food sovereignty. Governments and the public alike should see through the greenwashing and take action to close these escape hatches for the fossil fuel industry. Anything else will prolong the inevitable and necessary transition from the fossil economy.”

Lili Fuhr, Deputy Director of Climate & Energy and co-author of the report said,

“Fossil fertilizers enable a corporate-controlled model for industrial agriculture that pushes monocultures and high-yields while sending humanity hurtling toward dangerously risky territory. Just like carbon in the atmosphere and microplastics in our soils and waters: fossil fertilizers and pesticides are fossil fuel pollution. Untethering global food production from fossil fuels is essential to advancing both climate justice and food sovereignty. We need to close the oil and gas tab for the agrochemical industry if we truly want to scale up resilient, regenerative models of food production so that ecosystems and the communities that depend on them can thrive.”

Additional quotes in support of the report: 

Marcos Orellana, United Nations Special Rapporteur on Toxics and Human Rights

“As if the well-documented toxic impacts of synthetic nitrogen fertilizers on human health were not enough, their widespread use pushes us past multiple planetary boundaries for climate, nitrogen, pollution, and biodiversity loss.”

David Boyd, United Nations Special Rapporteur on the Environment and Human Rights

“Industrial agriculture is a dominant contributor to breaches of planetary boundaries and the triple environmental crisis. Fulfilling the right to a clean, healthy and sustainable environment and preventing the creation of sacrifice zones in the global South requires the complete transformation of industrial food systems.”

Tzeporah Berman, Chair Fossil Fuel Non-Proliferation Treaty Initiative 

“Oil and gas companies’ push to make our food systems more dependent on fossil fuels threatens the very air we breathe and the water we drink. This report is a wake-up call to policymakers to act quickly to phase out fossil fuels not only in our energy systems but also in our food systems.”

Lim Li Ching, Third World Network and IPES-Food

“This timely report shows that the food, climate and biodiversity crises are, in fact, interlinked and underpinned by systemic flaws in the industrial food system. Synthetic fertilizers derived from fossil fuels – fossil fertilizers – are a major source of emissions and the bedrock of industrial agriculture. The report unmasks the unholy alliance between the agrochemical and fossil fuel industries and the false solutions they peddle. Food system transformation, away from fossil- and agrochemical-dependent industrial agriculture towards climate-resilient agriculture systems such as agroecology, has never been more necessary.” 

Henk Hobbelink, Coordination, Global Programme at GRAIN

“CIEL’s report shows how the fossil fuel and fertilizer industries collaborate to bring us yet another set of false solutions to the climate crisis. They try to convince us that their joint initiatives will bring us cleaner products, but nothing can hide the massive climate impacts of nitrogen fertilizer and fossil fuels they continue to produce.” 

Marcia Ishii, Senior Scientist and Director of the Grassroots Science Program at Pesticide Action Network North America (PANNA)

“Petroleum-based agrochemicals — pesticides and fertilizers — are truly the toxic twins of industrial agriculture, as this important report makes blazingly clear. Agrochemicals are unquestionably key drivers of today’s climate crisis — their contribution to global greenhouse gas emissions continues throughout their life cycles, from production through distribution, transport, application, and dispersal in the environment, while their disruption of the soil microbiome further weakens farming systems’ resilience to climate stressors. At the same time, these agrochemicals are responsible for unrelenting and devastating harm to human health, the world’s biodiversity, the integrity of the planet’s ecosystems, and the life support systems on which we all rely. 

“Where the agrochemical industries seek to obscure the impacts of their false solutions, aiming to keep us on a fossil-based treadmill to maintain their profits, CIEL’s report shines a much-needed bright light on the problem: providing scientific data and evidence, along with an astute political analysis that connects the dots between corporate greed, failed policy responses, the demands of social and environmental justice, and the urgent need for a complete transition towards a fossil-free food and farming system.”

Teresa Anderson, Global lead on climate justice, ActionAid International 

“Given that agriculture is the planet’s second biggest cause of climate change after fossil fuels, it’s long past time to put industrial agriculture in the climate spotlight. We can’t address the climate crisis unless we talk about the role of fossil-fuelled fertilizer in heating up our planet and driving food systems into the ground.  

“This timely report shows that the global climate impact of nitrogen fertilizer is greater than that of commercial aviation. It exposes the deep ties between the fertilizer and fossil fuel industries and their common playbook to protect business-as-usual in the face of climate science.

“It’s clearly time to transform farming systems to work with nature instead of against it. If we are to prevent runaway climate breakdown, the writing is on the wall for the big agribusiness corporations.” 

Sophia Murphy, Executive Director, Institute for Agriculture and Trade Policy

“At a time when food systems’ dependence on chemical fertilizers has come into sharp relief, this report highlights how that dependence entangles the interests of fossil fuel companies with agribusiness. CIEL’s insightful analysis highlights that entanglement and offers decision-makers the possibility of transformational change: tighten the regulation of chemical fertilizers sharply and thereby reduce both agricultural emissions and dependence on fossil fuels.”

 


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