World Bank Recommends Shifting Subsidies from Meat to Sustainable Alternatives

Reallocating Funds from Livestock Farming to Low-Emission Foods

By Milo Runkle

In a groundbreaking new report, the World Bank has called for a major shift in how countries allocate their agricultural subsidies. The global financial institution advocates for redirecting subsidies away from livestock farming and towards low-emission products, emphasizing the critical role of alternative proteins in mitigating climate change and ensuring a sustainable future.

The Urgency of Transforming the Agrifood System

The World Bank's "Recipe for a Livable Planet"report underscores the significant impact of the agrifood system on climate change. With the potential to cut a third of global emissions—about 16 gigatonnes annually—the agrifood sector presents a largely untapped opportunity for affordable climate action. Current agricultural emissions exceed those from heat and electricity by 14%, highlighting the urgent need for systemic change to meet the 1.5°C target set by the Paris Agreement.

Financial Imperatives and Benefits

Despite the agrifood sector's potential for significant emissions reductions, it receives only 2.4% of total mitigation finance. TheWorld Bank argues for an 18-fold increase in funding, reaching $260 billion annually by 2030. Such investment would yield substantial benefits, including enhanced food security, improved nutrition, and biodiversity conservation, with a potential economic return of $4.3 trillion by the decade's end—a 16-to-1return on investment.

Alternative Proteins: A Key Solution

Central to the World Bank's strategy is the promotion of alternative proteins, such as plant-based, cultivated, and fermentation-derived products. These alternatives offer a low-cost, highly effective solution for reducing emissions. Shifting diets from meat to plant-based options could halve food-related emissions and significantly reduce land and water use. Plant-based diets alone have the potential to cut emissions by nearly 49%, making them the most effective dietary change.

Policy Recommendations and Actions

To drive this transformation, the World Bank recommends repurposing "wasteful and harmful" subsidies from red meat and dairy towards low-emission foods. This shift would not only reduce emissions but also make sustainable food options more competitive. The report also suggests implementing carbon taxes on animal foods to reflect their true environmental and health costs, potentially increasing meat prices by 20-60%.

The Role of High-Income Countries

High-income countries, which account for 21% of agrifood emissions, have a crucial role to play. These nations must lead by reducing their own consumption of emissions-intensive animal foods and providing financial and technical support to lower-income countries. By promoting renewable energy in food production and supporting sustainable farming practices, they can drive global progress towards a more sustainable agrifood system.

Joyful Ventures Role

The World Bank's call to action is clear: transforming the agrifood system is essential for a sustainable future. By redirecting subsidies towards alternative proteins and other low-emission foods, we can significantly reduce global emissions, enhance food security, and ensure a healthier planet for future generations. It is imperative for governments, businesses, and consumers to collaborate in this effort, leveraging innovative technologies and sustainable practices to create a more resilient and equitable food system. AtJoyful Ventures, we are committed to investing in and supporting the growth of sustainable protein startups that are at the forefront of this necessary transformation. Together, we can make a lasting impact on the health of our planet and its inhabitants.