Costs and Benefits of Clean Energy Technologies in the Milk, Vegetable and Rice Value Chains (INVESTA Project)

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Title: Costs and Benefits of Clean Energy Technologies in the Milk, Vegetable and Rice Value Chains (INVESTA Project)

Authors: Alessandro Flammini (FAO), Stefania Bracco (FAO), Ralph Sims (Massey University), Jeanette Cooke (FAO), Agata Elia (FAO)

Published by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Published date/place : 2017, Rome

Sector: Renewable energy and energy efficiency in the agricultural sector 

Website: INVESTA Project

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Agricultural production systems that use energy rationally and economically can be cost-effective and provide pragmatic steps toward reducing greenhouse gas (GHG) emissions and achieving several Sustainable Development Goals (SDGs). Sustainable “climate-smart” and “energy-smart” agrifood processing and delivery systems can result in significant structural changes, improved livelihoods and enhanced food security for rural communities in many countries.

The Food and Agriculture Organization of the United Nations (FAO) published the report “Opportunities for Agrifood Chains to become Energy-Smart” in November 2015 under the international initiative “Powering Agriculture: An Energy Grand Challenge for Development” (PAEGC). Selected food supply chains for milk, rice and vegetables (tomatoes, carrots and beans) were assessed for their energy inputs at each step along the specific value chain. Analyses of these agrifood value chains, at both large and small scales, identified priority stages, entry points and interventions where clean energy solutions could be introduced. They also highlighted opportunities to reduce energy demand through improved efficiency.

The subsequent study, presented in this report, focused on the same three food supply value chains as the original report and concentrated on similar key clean energy technologies. Their costs, benefits and sustainability potentials were analysed together with unintended impacts at the intervention level (e.g. at farmer or food processor level). A methodological approach was developed to provide a sound and comprehensive cost–benefit analysis (CBA). The potential added value of these technologies for different stakeholders was then considered using selected case studies.