The Agriculture, Forestry, and Other Land Use (AFOLU) sector plays a pivotal role in both contributing to and combating climate change. Responsible for around 22–23% of global greenhouse gas (GHG) emissions, the AFOLU sector encompasses a wide array of activities, including farming, forestry, land-use changes, and peatland management. While it has historically been seen as a major emitter, AFOLU also offers some of the most cost-effective and immediate opportunities to reduce emissions and enhance carbon sequestration.
How AFOLU Contributes to Emissions?
Emissions from the AFOLU sector primarily originate from two key areas. First is agriculture, which produces methane (CH₄) from livestock and rice cultivation, and nitrous oxide (N₂O) from fertilized soils and manure. The second source is from forestry and land-use change, often abbreviated as FOLU, which mainly involves carbon dioxide (CO₂) emissions due to deforestation, degradation of peatlands, and forest fires.
These emissions are particularly significant in tropical regions such as Southeast Asia, Latin America, and Sub-Saharan Africa, where land-use changes are driven by agricultural expansion and commodities like palm oil.
AFOLU as a Solution
Beautiful and green rice fields Photo by urtimud.89 on Pexels
Despite its emissions, the AFOLU sector is also a crucial part of the solution to climate change. Forests and soils serve as vital carbon sinks that absorb and store CO₂ from the atmosphere. Preserving and restoring these natural ecosystems can have a major impact on reducing net emissions.
Protecting standing forests and undertaking reforestation efforts are among the most effective strategies, as avoided deforestation alone can account for more than 60% of the sector’s mitigation potential. Sustainable agriculture is another key strategy. Practices such as agroforestry, conservation tillage, crop rotation, and efficient fertilizer use not only reduce emissions of N₂O but also improve soil health and increase carbon storage.
In addition, technological innovations like feed additives for livestock can significantly reduce methane emissions. Peatland restoration offers yet another powerful opportunity. Peatlands store vast amounts of carbon, but when drained or burned for agricultural use, they release enormous quantities of CO₂. In countries like Indonesia, restoring these degraded lands has become a national priority and a centerpiece of climate mitigation.
Beyond land management, the AFOLU sector can also contribute through the development of bioenergy with carbon capture and storage (BECCS). While still emerging, this technology could provide negative emissions by producing energy from biomass while capturing and storing the resulting carbon. However, it also raises concerns about potential land competition with food crops and biodiversity.
The Case of Indonesia
Indonesia offers a compelling real-world example of how AFOLU strategies can be implemented effectively. Indonesia has taken notable steps in forest-based climate mitigation, particularly through its engagement with the REDD+ program, which provides performance-based payments for reducing deforestation and forest degradation. Indonesia has also taken major steps to improve sustainability in palm oil production, a sector that has historically driven deforestation.
Policies promoting certified sustainable palm oil, alongside stricter land-use planning, are helping to reduce emissions. Agroforestry practices that integrate trees into farms are also being promoted, enhancing carbon storage while supporting biodiversity and farmers’ incomes. Furthermore, Indonesia’s large-scale peatland restoration initiatives aim to prevent peat fires and rewet degraded lands, preserving one of the world’s most important carbon reservoirs.
Understanding the potential of the AFOLU sector in climate mitigation is only the first step. To create real impact, projects need to be designed carefully and in accordance with international standards. This is where the Project Design Document (PDD) plays a critical role.
Strong, comprehensive and regulatory-compliant PDD development support will help ensure your carbon project runs optimally. With the right approach, the PDD is not only an administrative tool, but also a foundation for increasing the credibility and value of the project in the eyes of stakeholders. Build the foundation for a credible and impactful carbon project starting with a properly designed PDD.
Author: Ainur Subhan
Editor: Sabilla Reza
References:
Henderson, B., Frank, S., Havlik, P., & Valin, H. (2021). Policy strategies and challenges for climate change mitigation in the Agriculture, Forestry and Other Land Use (AFOLU) sector (OECD Food, Agriculture and Fisheries Papers No. 149). OECD Publishing. https://doi.org/10.1787/47b3493b-en
Nyawira, S. S., Herold, M., Mulatu, K. A., Roman‑Cuesta, R. M., Houghton, R. A., Grassi, G., Pongratz, J., Gasser, T., & Verchot, L. (2024). Pantropical CO₂ emissions and removals for the AFOLU sector in the period 1990–2018. Mitigation and Adaptation Strategies for Global Change, 29(13). https://doi.org/10.1007/s11027-023-10096-z