Understanding the Land-based Economy: Agricultural Greenhouse Gas Emissions 101

How much do agriculture and food contribute to greenhouse gas emissions?

Agrifood systems were responsible for about 32% of global greenhouse gas (GHG) emissions in 2023. That is 16.5 billion tonnes of carbon dioxide equivalent (Gt CO2e), according to the UN Food and Agriculture Organization's 2025 FAOSTAT analysis of 2001–2023 data. The share has fallen from 38% in 2001, but the total is still 21% higher.

FAO splits these emissions into three parts:

Source: FAO, Greenhouse gas emissions from agrifood systems: global, regional and country trends, 2001–2023 (FAOSTAT Analytical Brief, 2025).

In Asia, the share is higher. The Asia Food Challenge report, which Terrascope wrote with PwC, Rabobank and Temasek in 2023, found that agri-food can account for up to 50% of emissions in South and Southeast Asia. The same report estimates Asia's agri-food sector could cut emissions by around 12% by 2030 if all stakeholders act. That is roughly the emissions of global aviation in 2022.

For a closer look at how different studies arrive at different shares, see our post on what percentage of emissions come from agriculture.

Which greenhouse gases does agriculture emit?

Agriculture emits mostly methane and nitrous oxide, not just carbon dioxide. That matters because both gases trap far more heat per tonne than CO2.

Source: IPCC Sixth Assessment Report, Working Group I, Chapter 7 (2021).

Where do livestock emissions come from, and how can they be cut?

Livestock emissions come mainly from methane released during digestion in cattle, sheep and goats, and from manure. Better feed and better manure handling are the two main ways to reduce them.

• Enteric fermentation. Ruminants produce methane as they digest grass and feed. This is the largest single source of farm-gate emissions.
• Manure. When manure breaks down without oxygen, such as in lagoons or deep pits, it releases methane. Nitrous oxide forms during storage and when manure is spread.

How to reduce them:

• Improve feed efficiency. Better forage quality, balanced rations and feed additives can lower methane per kilogram of milk or meat.
• Change manure management. Anaerobic digesters capture methane from manure. The biogas can then be used for heat, power or vehicle fuel.
• Look at what the feed itself emits. Feed crops such as soy and maize carry their own fertiliser and land-use emissions. Where feed is sourced from can change a livestock footprint as much as what happens on the farm.

How do soil and fertiliser practices create emissions?

Nitrogen fertiliser is the main cause. Soil microbes convert surplus nitrogen into nitrous oxide, so any nitrogen the crop does not take up becomes an emissions risk. Flooded rice paddies are the other big source, because they create the low-oxygen conditions in which methane-producing microbes thrive.

• Fertiliser use. Over-application, or applying at the wrong time, increases nitrous oxide.
• Crop residues. Residues release methane and nitrous oxide as they decompose. Burning them in the field releases CO2 and other pollutants.
• Rice cultivation. Continuous flooding drives methane emissions from paddies.

How to reduce them:

• Site-specific nutrient management (SSNM). Fertiliser rates are matched to the field and the season. In The Asia Food Challenge report, a Terrascope client that added SSNM to Sustainable Rice Platform training found that farmers with two to three years of training had 21% lower GHG emissions per tonne of rice than farmers with one year.
• Alternate wetting and drying (AWD). Paddies are drained and re-flooded in cycles, which cuts methane. Our post on bridging big food and smallholders covers AWD results in India.
• Cover crops. Planting between main crops protects soil and can reduce the need for synthetic fertiliser.
• Conservation tillage. Less ploughing, with crop residue left on at least 30% of the soil surface (the USDA definition), helps keep carbon in the soil.

How do land-use change and energy add to agricultural emissions?

Clearing forests and peatland for farming releases the carbon stored in trees and soils. FAO puts land-use change emissions from agrifood systems at 3.2 Gt CO2e in 2023. On-farm diesel and grid electricity add a smaller share.

• Deforestation. Expanding cropland and pasture, especially for soy, palm oil, cattle and cocoa, is the main driver in the Amazon, Cerrado and Southeast Asia.
• Feed production. Demand for soy and maize for animal feed pushes land conversion further.
• Machinery and energy. Tractors, pumps, dryers and cold storage mostly run on fossil fuels.

How to reduce them:

• Deforestation- and conversion-free sourcing. Companies setting science-based FLAG targets are expected to commit to no deforestation across their supply chains.
• Agroforestry. Trees on farmland store carbon in biomass and soil, and reduce erosion.
• Forest conservation and restoration. Keeping existing forest standing avoids emissions. Restoration can remove carbon over time.
• Renewable energy and electric equipment. Solar pumps, on-site renewables and electric machinery cut fuel emissions.

How are companies expected to account for land-based emissions?

Two frameworks now set the rules: the GHG Protocol Land Sector and Removals (LSR) Standard for reporting, and the SBTi FLAG Guidance for targets.

Sources: GHG Protocol, Land Sector and Removals Standard and Guidance (2026); SBTi, FLAG Guidance (2022).

Our post on the LSR rulebook for land emissions explains what the standard requires in more detail.

What role do governments play?

Governments shape farm emissions through regulation, carbon pricing, subsidies and finance. International agreements can work: the Montreal Protocol, ratified by every UN member state, has put the ozone layer on track to recover to 1980 levels by around 2066 over Antarctica, according to the WMO/UNEP 2022 Scientific Assessment of Ozone Depletion.

For agriculture specifically:

• Carbon pricing. Denmark agreed in June 2024 to tax livestock emissions from 2030, starting at DKK 300 per tonne of CO2e. See where carbon is taxed for other schemes.
• Finance for farmers. Blended finance and microfinance help smallholders pay for new practices before the yield or cost benefits arrive.
• Disclosure rules. Climate reporting rules that require Scope 3 data push food companies to measure on-farm emissions in their supply chains.

What has worked for food and agriculture companies?

Princes, the food and drink group, worked with Terrascope to measure its value chain emissions and had its FLAG targets validated by SBTi in 3.5 months. Read the Princes case study for how they did it.

How Terrascope helps

Terrascope's FLAG and LSR solution measures land emissions and removals alongside the rest of your inventory. It:

• Screens your operations and value chain to see whether you need a FLAG target.
• Estimates land-use change and land management emissions from farm activity data, such as fertiliser, livestock and crop practices.
• Keeps FLAG and energy and industry emissions in separate inventories, as SBTi and the LSR Standard require, so nothing is double counted.
• Models reduction levers by commodity and region, so you can see which farm practices change your footprint most.

See how this works for growers, processors and traders on our agriculture industry page.

Related reading: Olam's approach to Scope 3 hotspots is covered in key steps for agriculture enterprises. For rice specifically, watch our rice deep dive with Paul Nicholson. Downstream, see decarbonising for retailers and decarbonising packaging.

Frequently asked questions

What percentage of global emissions come from agriculture? FAO estimates agrifood systems produced about 32% of global GHG emissions in 2023, or 16.5 Gt CO2e. Farm-gate activities alone were 8.1 Gt. Other studies give 21% to 37% depending on whether they count processing, transport, waste and land-use change.

What is the largest source of agricultural emissions? Enteric fermentation, the methane cattle and other ruminants produce while digesting, is the largest farm-gate source. Deforestation for farmland is the largest source when land-use change is included.

Why is methane from agriculture such a concern? Methane traps about 27 times more heat than CO2 over 100 years (IPCC AR6, 2021) and far more over 20 years. Because it breaks down in about a decade, cutting it slows warming quickly.

What is the GHG Protocol Land Sector and Removals Standard? It is the GHG Protocol's first standard for reporting land emissions, land-use change and CO2 removals in a corporate inventory. Version 1 was published on 30 January 2026 and takes effect on 1 January 2027. Forestry is not yet covered.

Do I need to set a FLAG target? Under SBTi rules, yes if your company is in a FLAG-designated sector, such as food production or agricultural commodities, or if FLAG emissions make up 20% or more of your total emissions.

How can agricultural companies reduce emissions? Start by finding hotspots by product, region and practice. Then work with suppliers on proven levers: feed and manure management, nutrient management, alternate wetting and drying for rice, and deforestation-free sourcing.

Get ready for the LSR Standard

The LSR Standard takes effect on 1 January 2027. Book a complimentary LSR Guidance workshop to see what it means for your inventory and FLAG targets.