Publication 01.06.2022

Expert insight - Agriculture: race to regenerate

Cécile Cabanis

Cécile Cabanis

Deputy CEO, Tikehau Capital

Lindee Wong

Pierre Abadie

Group Climate Director & Co-Head of the Private Equity Decarbonisation Strategy

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According to the United Nations Global Land Outlook 2022, over half (52%) of the globe’s agricultural land is degraded. If we do nothing, by 2050 an additional 16 million km² (the size of South America) will be lost forever.

Agriculture is the second-largest emitter of GHG globally (c. 25%) the majority of which comes from methane emitted by livestock farming and the remainder through nitrous oxide from fertiliser use. Since the 1950s, modern agriculture has made it possible to increase production massively across the globe. Fertilisers have been created with nitrogen, phosphorus and potassium to boost productivity; herbicides and pesticides have been developed to eradicate insects and weeds. All in all, the modernisation of agriculture has been a shining example of human ingenuity- but at what cost?

Regenerative agriculture is a nature-based solution which promotes land management practices that leverage the natural and ecosystemic photosynthesis in plants to close the carbon cycle, rebuild soil health, promote crop resilience, and encourage nutrient density. It improves soil fertility, primarily through practices that increase soil organic matter. Amongst other benefits, it can help reverse climate change by acting as a carbon sink and rebuilding degraded soil biodiversity – in turn resulting in carbon drawdown, improved water cycle and reduced use of chemical intrants.