Agriculture and Agri-Food

Long-Term Play

Agriculture and agri-food’s role in the net-zero transition differs from most other sectors: emissions are largely biological, arising from livestock digestion and manure, nitrogen fertilizer use, and soil processes, with the remainder combustion-related from on-farm fuel use. These emissions are spread across nearly 190,000 farms rather than concentrated in a handful of facilities, so no single technology delivers net zero here. Progress depends on stacking three levers together: reducing the emissions intensity of livestock production while gradually shifting some consumption toward lower-emission proteins, reforming cultivation and soil management to cut fertilizer- and land-driven emissions, and displacing on-farm fossil fuel use with electrification or alternative fuels.

That same dispersion makes emissions difficult to measure, verify, and regulate farm by farm, especially for soil- and livestock-driven sources that vary by region, climate, and management. Public extension services that once spread proven mitigation practices have been substantially reduced, and Canada still lacks a clear decarbonization roadmap for agri-food, leaving producers and processors without a clear signal for where to invest.

GHG emissions
  • 76.4
    Mt CO₂e
11.2% of national emissions; 70 Mt from agriculture and 6.4 Mt from food and beverage manufacturing, 2024
Additional emissions from food waste
  • 25.7
    Mt CO₂e
46% of Canadian food is wasted annually, 2024
Economic
  • $149.2B
    in GDP
Sector supports 2.3 million jobs (1 in 9 people in Canada work in this sector), 2024
Top pathways for action
Pathway Elements
Role in the
Net-Zero System
Signal to
Decision-Makers
Pathways Elements
Advanced Manure Management
Role in the Net-Zero System
Priority Decarbonization Pathway
Signal to Decision-Makers
Deploy
Offer financing mechanisms and/or adopt offset protocols with financial benefits. Provide extension services on selecting economical options relevant to farm size.
Pathways Elements
Plant-Based Proteins
Role in the Net-Zero System
Priority Enabling Pathway
Signal to Decision-Makers
Deploy
Support expanding manufacturing of higher value chain plant-based protein products with financing mechanisms. Provide education to consumers on the benefits of plant-based proteins.
Pathways Elements
Efficient Fertilizer Application and Use
Role in the Net-Zero System
Decarbonization Pathway
Signal to Decision-Makers
Deploy
Continue to provide high-quality extension services on fertilizer application best management practices and their benefits.
Pathways Elements
Improved Regional-Specific Data Collection and Monitoring
Role in the Net-Zero System
Priority Enabling Pathway
Signal to Decision-Makers
Deploy
Support mass deployment with financing mechanisms and extension services. Continue support of R&D to optimize systems.
This is a selection of priority pathways for this sector; others are covered in the full pathway assessments below.
Current challenges
#ffb400
Biological emissions resist a single-lever fix

Emissions are largely biological and complicated to address requiring many complementary decarbonization practices.

Heterogeneity limits standardized solutions

GHG footprints vary widely for the same product, so a practice that works on one farm may not transfer cleanly to another.

Capital constraints on adoption

Mitigation practices often carry high upfront costs, and existing farm debt loads and slim margins limit the capital available to adopt them.

No price signal or premium for low-carbon output

There's no certification system letting producers capture a price benefit for lower-emission production.

Export orientation weakens domestic policy leverage

With 60% of production exported, domestic shifts in consumption don't necessarily cut agricultural emissions.

Support programs favour uniformity

Programs built around price stabilization and export volume can inadvertently discourage practices like crop diversification.

Longer-term issues
#ffb400
Climate change raising production risk

Crop insurance payouts already rose from $1.9B (2018) to $5.7B (2023), with larger impacts expected.

Limits of soil carbon sequestration

Rates are region- and soil-specific and decline as soils saturate.

Agroecological shift at scale

Moving away from high-input monocropping is a multi-decade structural change, not a near-term fix.

Land-use pressure limits natural climate solutions

Avoiding conversion of grasslands, peatlands, and wetlands is one of Canada's most impactful natural climate solutions, and agricultural expansion reduces that potential.

Indicators of progress
#089457
Emissions and intensity

Emissions per unit of output.

Soil organic carbon

Level of soil organic carbon in monitored soils.

Energy mix

Fossil fuel share of on-farm and processing energy use.

Economic opportunities
#089457
Closing the organic gap

Canadian organic imports outpaced exports by nearly $330M in 2020 — room for domestic production growth.

Plant-based and legume value chains

Canada's legume base could support higher-value plant-based protein manufacturing, IP, and exports.

Ag-tech and data services

Growth in precision agriculture and monitoring/verification services.

Pathway Assessments for Agriculture and Agri-Food Sector

View all of the major decarbonization pathways available to this sector, including a high-level signal of its current readiness, or filter the list for only the signals you’re looking for. Click any of the pathway elements for a detailed look at the analysis behind the assessments.
Table
Cards
Filter
Pathways Signals
Pathways Roles
Choose a signal
Pathways Signals
Choose a role
Pathways Roles
Criteria status
  • Fails
  • Not promising
  • Meets in some respect
  • Potentially meets
  • Meets criteria
Pathway
Elements
Role in the
Net-Zero System
Signal to
Decision-Makers
Alignment with Carbon Neutrality
Economic
Technical
Social
Animal Agriculture
Plant-Based Proteins
Priority
Enabling Pathway
Deploy
Support expanding manufacturing of higher value chain plant-based protein products with financing mechanisms. Provide education to consumers on the benefits of plant-based proteins.
Can achieve net zero with zero-emission crop practices.
Modified Grazing Practices
Enabling Pathway
Deploy
Provide regionally specific extension services to farmers including case studies. Support local demonstrations.
Can build soil carbon and reduce emissions if optimized. Outcomes are climate/soil dependent.
Improved Feed Digestibility and Quality
Enabling Pathway
Deploy
Provide regionally specific information on growing and selecting high quality feed. Support development of additives.
Higher forage quality and specific additives cut methane per unit output but not to zero.
Fermentation-Based and Cultured Proteins
Potential
Decarbonization Pathway
Incubate
Support research and development. Build out regulatory environment.
Potential for large reductions if powered by clean energy and scaled.
Enhanced Soil and Pasture Management
Enabling Pathway
Deploy
Provide regionally specific extension services to farmers including case studies. Support local demonstrations.
Practices increase soil organic carbon and reduce inputs but are complementary to enteric/manure abatement.
Enhanced Animal Genetics
Enabling Pathway
Incubate
Support ongoing testing and demonstration. Provide extension services to farmers on how to select for and the benefits of selecting low methanogenic genetics.
Selective breeding reduces enteric methane intensity but does not eliminate emissions. Must pair with other measures.
Advanced Manure Management
Priority
Decarbonization Pathway
Deploy
Offer financing mechanisms and/or adopt offset protocols with financial benefits. Provide extension services on selecting economical options relevant to farm size.
Anaerobic digestion, acidification, or separation substantially reduce manure methane. Residual emissions remain.
Crop Agriculture
Vertical Farming
Potential
Niche Pathway
Incubate
Support R&D. Assist with financing in favourable economic conditions.
Can reduce land and pesticide use. Dependent on electricity carbon intensity.
Precision Agriculture
Enabling Pathway
Deploy
Provide extension services on precision agriculture and financing mechanisms for small or remote farms to enable equitable access to tools.
Reduces input‑related emissions through better timing, rate, and placement.
No or Low Till
Enabling Pathway
Deploy
Provide regionally specific extension services. Support monitoring soil organic carbon to ensure effectivity in local conditions.
Supports soil organic carbon retention and fuel savings. Effects vary by region/soil.
Multicropping
(Including Intercropping, and Increased Frequency and Diversity of Rotations)
Enabling Pathway
Deploy
Provide regionally specific extension services to farmers, including case studies. Support local R&D and pilots on optimizing rotations to reduce GHGs.
Reduces emissions by increasing soil organic carbon, reducing nitrogen fertilizer application, and withdrawing CO₂ from atmosphere. Impacts are rotation specific.
Greater Use of Cover Crops
Enabling Pathway
Deploy
Provide regionally specific extension services. Support research and monitoring focused on optimizing crop selection in local conditions.
Potential to reduce N2O emissions and increase soil organic carbon but effects are variable depending on crops, climate, and soil properties.
Greater Inclusion of Pulses in Rotations
Enabling Pathway
Deploy
Provide regionally specific extension services. Monitor soil nitrogen levels to ensure effectivity in local conditions.
Legumes (pulses) can fix nitrogen from atmosphere, reducing required synthetic nitrogen fertilizer needs. Type of pulse and environmental conditions dictate effectivity.
Efficient Fertilizer Application and Use
Decarbonization Pathway
Deploy
Continue to provide high-quality extension services on fertilizer application best management practices and their benefits.
Lowers N₂O emissions materially. Not a full abatement to zero. Requires other measures to offset remainder.
Biochar Addition
Enabling Pathway
Enable
Support R&D and demonstration projects. Develop carbon credit protocols and quality standards.
Can increase soil organic carbon, reduce N₂O emissions, and sequester carbon, but efficacy varies by feedstock, soil type, and climate.
Adding Organic Amendments
Enabling Pathway
Deploy
Support further buildout of organic fertilizer market with financing mechanisms, regulatory changes, and extension services on best management practices.
Improves soil quality and can lower net emissions. Benefits are context dependent.
All Agriculture
Organic Farming
Enabling Pathway
Enable
Support demonstration and extension services focused on minimizing yield losses. Improve supply chain regulations for organic certifications.
Can reduce reliance on synthetic fertilizers, fuel, and pesticides, lowering emissions. Can improves soil carbon retention, but may lower yields. GHG outcomes depend on circumstances.
Improved Regional-Specific Data Collection and Monitoring
Priority
Enabling Pathway
Deploy
Support mass deployment with financing mechanisms and extension services. Continue support of R&D to optimize systems.
Enables accurate measurement of emissions and carbon retention, improves policy design, carbon credit integrity, and mitigation strategies.
On-Farm Energy use
Renewable Diesel
(RD)
Bridge Pathway
Enable
Develop policies that assist with increased fuel costs and limited rural access to RD. Support until maturity increases for electric or hydrogen equipment.
Lowers lifecycle GHGs compared to fossil diesel but not a net-zero end-state. Emission reductions depend largely on feedstock sustainability and carbon intensity.
On-Site Biogas Production
(Biomethane/Renewable Natural Gas Production)
Enabling Pathway
Enable
Provide resources and develop policy to lower barriers to interconnection and fuel offtake. Support R&D and demonstration.
On-site biofuel can cut emissions and displace fossil fuels for heat and power. Emissions reductions depend on feedstock sustainability and processing methods.
On-Farm Renewable Power Generation
(Wind and Solar)
Enabling Pathway
Deploy
Develop supportive policies where appropriate. Provide resources that assist implementation.
On-farm wind and solar can displace fossil energy use on farms, and/or farmland can generate renewable electricity without compromising farming operations.
Hydrogen-Powered Heavy Machinery
Potential
Niche Pathway
Incubate
Fund R&D of heavy-duty hydrogen farming equipment.
Hydrogen could decarbonize heavy equipment where electrification is impractical. Net emissions reductions depend on low-carbon hydrogen supply.
Heat Pumps
Potential
Decarbonization Pathway
Enable
Support electrical grid expansion and upgrade in rural areas. Provide financing mechanisms to assist with piloting and demonstrating new technologies on farms and food and beverage manufacturing facilities.
Can eliminate emissions from space and water heating in farm buildings, grain drying, greenhouses, and some food manufacturing. Emission reductions depend on availability of net-zero electricity.
Battery Electric Vehicles and Equipment
Potential
Decarbonization Pathway
Enable
Support electrical grid expansion and upgrade in rural areas. Provide financing mechanisms to assist with piloting and demonstrating new technologies on farms.
Net zero with clean electricity.
Animal Agriculture
Plant-Based Proteins
Deploy
Priority
Enabling Pathway
Support expanding manufacturing of higher value chain plant-based protein products with financing mechanisms. Provide education to consumers on the benefits of plant-based proteins.
ECON
TECH
SOC
Modified Grazing Practices
Deploy
Enabling Pathway
Provide regionally specific extension services to farmers including case studies. Support local demonstrations.
ECON
TECH
SOC
Improved Feed Digestibility and Quality
Deploy
Enabling Pathway
Provide regionally specific information on growing and selecting high quality feed. Support development of additives.
ECON
TECH
SOC
Fermentation-Based and Cultured Proteins
Incubate
Potential
Decarbonization Pathway
Support research and development. Build out regulatory environment.
ECON
TECH
SOC
Enhanced Soil and Pasture Management
Deploy
Enabling Pathway
Provide regionally specific extension services to farmers including case studies. Support local demonstrations.
ECON
TECH
SOC
Enhanced Animal Genetics
Incubate
Enabling Pathway
Support ongoing testing and demonstration. Provide extension services to farmers on how to select for and the benefits of selecting low methanogenic genetics.
ECON
TECH
SOC
Advanced Manure Management
Deploy
Priority
Decarbonization Pathway
Offer financing mechanisms and/or adopt offset protocols with financial benefits. Provide extension services on selecting economical options relevant to farm size.
ECON
TECH
SOC
Crop Agriculture
Vertical Farming
Incubate
Potential
Niche Pathway
Support R&D. Assist with financing in favourable economic conditions.
ECON
TECH
SOC
Precision Agriculture
Deploy
Enabling Pathway
Provide extension services on precision agriculture and financing mechanisms for small or remote farms to enable equitable access to tools.
ECON
TECH
SOC
No or Low Till
Deploy
Enabling Pathway
Provide regionally specific extension services. Support monitoring soil organic carbon to ensure effectivity in local conditions.
ECON
TECH
SOC
Multicropping
(Including Intercropping, and Increased Frequency and Diversity of Rotations)
Deploy
Enabling Pathway
Provide regionally specific extension services to farmers, including case studies. Support local R&D and pilots on optimizing rotations to reduce GHGs.
ECON
TECH
SOC
Greater Use of Cover Crops
Deploy
Enabling Pathway
Provide regionally specific extension services. Support research and monitoring focused on optimizing crop selection in local conditions.
ECON
TECH
SOC
Greater Inclusion of Pulses in Rotations
Deploy
Enabling Pathway
Provide regionally specific extension services. Monitor soil nitrogen levels to ensure effectivity in local conditions.
ECON
TECH
SOC
Efficient Fertilizer Application and Use
Deploy
Decarbonization Pathway
Continue to provide high-quality extension services on fertilizer application best management practices and their benefits.
ECON
TECH
SOC
Biochar Addition
Enable
Enabling Pathway
Support R&D and demonstration projects. Develop carbon credit protocols and quality standards.
ECON
TECH
SOC
Adding Organic Amendments
Deploy
Enabling Pathway
Support further buildout of organic fertilizer market with financing mechanisms, regulatory changes, and extension services on best management practices.
ECON
TECH
SOC
All Agriculture
Organic Farming
Enable
Enabling Pathway
Support demonstration and extension services focused on minimizing yield losses. Improve supply chain regulations for organic certifications.
ECON
TECH
SOC
Improved Regional-Specific Data Collection and Monitoring
Deploy
Priority
Enabling Pathway
Support mass deployment with financing mechanisms and extension services. Continue support of R&D to optimize systems.
ECON
TECH
SOC
On-Farm Energy use
Renewable Diesel
(RD)
Enable
Bridge Pathway
Develop policies that assist with increased fuel costs and limited rural access to RD. Support until maturity increases for electric or hydrogen equipment.
ECON
TECH
SOC
On-Site Biogas Production
(Biomethane/Renewable Natural Gas Production)
Enable
Enabling Pathway
Provide resources and develop policy to lower barriers to interconnection and fuel offtake. Support R&D and demonstration.
ECON
TECH
SOC
On-Farm Renewable Power Generation
(Wind and Solar)
Deploy
Enabling Pathway
Develop supportive policies where appropriate. Provide resources that assist implementation.
ECON
TECH
SOC
Hydrogen-Powered Heavy Machinery
Incubate
Potential
Niche Pathway
Fund R&D of heavy-duty hydrogen farming equipment.
ECON
TECH
SOC
Heat Pumps
Enable
Potential
Decarbonization Pathway
Support electrical grid expansion and upgrade in rural areas. Provide financing mechanisms to assist with piloting and demonstrating new technologies on farms and food and beverage manufacturing facilities.
ECON
TECH
SOC
Battery Electric Vehicles and Equipment
Enable
Potential
Decarbonization Pathway
Support electrical grid expansion and upgrade in rural areas. Provide financing mechanisms to assist with piloting and demonstrating new technologies on farms.
ECON
TECH
SOC

About the Assessments

What is a pathway element?
A specific technology, fuel, practice, or system change that could help drive Canada’s transition to net zero.
Each pathway is rated on three dimensions: economic, technical, and social. Each dimension aggregates several sub-criteria — economic covers viability and development opportunity; technical covers maturity, operational fit, and infrastructure/supply chain suitability; social covers acceptability, stakeholder relevance, and related benefits and costs. Ratings run from Fails to Meets criteria:
  • Fails: Does not meet the criteria
  • Not promising: Meets the criteria in very limited respects
  • Meets in some respect: Partially meets the criteria
  • Potentially meets: Meets most of the criteria
  • Meets criteria: Fully meets the criteria
Full scoring for each individual sub-criterion is available in the pathway explorer.
Each pathway element is categorized:
  • Decarbonization Pathway – achieves net zero
  • Niche Pathway – achieves net zero under specific conditions
  • Bridge Pathway – supports but doesn’t achieve net zero alone
  • Dead-End – incompatible with net zero
  • Enabling – supports other pathways without directly cutting emissions
Priority marks a pathway as essential and ready for deployment now. Potential marks one that could grow into its role but is still limited in feasibility.
What to do with a pathway today: Deploy (ready now), Enable (needs targeted support), Incubate (early-stage, fund R&D), Don’t Prioritize (monitor only), or Dismiss (redirect attention elsewhere).

Scores are grounded in the sources cited throughout each sector assessment, then reviewed by experts and industry stakeholders to confirm how each pathway elements criteria are ranked.

Primary Title
Secondary title
Priority
Decarbonization Pathway
Role in Net-Zero System

Signal to Decision-Makers

Deploy
Signal Description

Alignment with Carbon Neutrality

carbon score
Alignment with Carbon Neutrality description

Economic

Economic viability

economic viability score

Economic Viability description

Economic development

economic development score
Economic development description

Technical

Maturity

Maturity score
Maturity description

Operational fit

Operational Fit score
Operational Fit description

Infrastructure & supply

Infrastructure & supply score
Infrastructure & supply description

Social

Social acceptability

Social acceptability score
Social acceptability description

Relevance to stakeholders

Relevance to stakeholders score
Relevance to stakeholders description

Related benefits & costs

Related benefits & costs score
related benefits description