Targeting Methane Emissions: Australia

Overview

Australia’s Methane Emissions Reduction in Livestock (MERiL) program promotes the development and commercialization of feed additives and delivery technologies that can reduce enteric methane from grazing livestock. Enteric methane from livestock accounts for 70% of Australia’s agricultural emissions, according to the Department of Primary Industries, and 13% of total emissions. MERiL aims to establish a better understanding of how to mitigate methane emissions through the livestock’s diet.

When cows and other ruminants consume plants and grass, microorganisms in the digestive track break down the fibers into nutrients though a process called enteric fermentation. A byproduct of this is the production of methane – a potent greenhouse gas. While enteric methane is a natural part of these animals’ digestive system, raising livestock for human consumption has driven up emissions beyond safe levels.

There are ways to reduce methane emissions by making changes to the animals’ diet. For example, farmers can add certain strains of seaweed to interfere with the methane-producing bacteria in the gut, and other supplements are under development. However, the vast majority of the nation’s herd graze over large areas with limited contact with farmers, making it difficult to administer the enteric methane solutions more easily applicable to animals kept in feedlots or controlled environments.

Impact

The MERiL program aims to promote adoption of feed additives in Australia’s expansive farming systems and inform updates to the Livestock Emissions Framework and National Greenhouse Gas Inventory. The trial findings will be used to populate a model to calculate methane emissions for various feed additives, dose levels, livestock types and grazing systems.

MERiL allocates grants in three stages. The first stage demarcated A$6 million ($4 million) in grants for research and development to understand and quantify the abatement potential and productivity impacts of feed supplements and forage feeds. This stage also includes A$1.7 million to design and integrate a Livestock Emissions Framework for Feed Technologies (LEF) to standardize livestock emissions abatement methods. The second and third stages of the program stipulate A$23 million to continue technology development, as well as assess viable delivery options; 47% of these funds were allocated by January 2024.

Lastly, the government has allocated A$17.4 to scale up production and commercialize the seaweed strain Asparagopsis, which is native to Australia and has demonstrated methane-reduction capabilities of over 80% under ideal conditions when added to animals’ diets. How farmers should most effectively incorporate proven methane-reduction supplements into the diets of livestock, especially ones grazing over vast areas, remains a question.

The impact of Australia’s supportive research environment is already becoming evident. FutureFeed, a 2023 BNEF Pioneer winner, produces a bromoform feed additive derived from Asparagopsis. It was developed by Australia’s national science lab, Csiro, before being spun out into a private company in 2020. While not a direct recipient of MERiL grants, the company’s success points to a burgeoning landscape for companies in the methane-reduction space.

Opportunity

The government is deploying MERiL funding in multiple ways rather than focusing on a specific solution, which avoids picking winners and encourages market-led innovation. Funding technology development stimulates the entrepreneur ecosystem and positions the country as a leader in reducing emissions from agriculture, while providing incentives to farmers ensures there will be demand for those emerging technologies.

Australia utilizes both market-based mechanisms and flexible grants to accelerate research and practices relating to the reduction of agricultural emissions. In addition to the methane-reduction grant program, the country utilizes its carbon offset market, which allows farmers to generate carbon offsets by introducing sustainable management practices, as well as measures to reduce methane emissions.

While introducing feed additives to animals’ diets is not yet an approved method to generate credits, guidelines to support this technique are in the review process. Once the methodology is finalized, the development and commercialization of effective feed additives will allow farmers to more easily issue credits and take advantage of the additional income stream.

Source

Australian Government Department of Climate Change, Energy, the Environment and Water