The Economics Of The Food System Transformation : Report
The Food System Economics Commission has published a report titled-” The Economics of the Food System Transformation”, highlighting that a sustainable transformation of existing food systems is urgently required at an estimated total cost of USD 500 billion per year.
- The Food System Economics Commission (FSEC) is a private consortium of scientists across nationalities and academic fields, aimed at identifying the challenges to food system security and the policy changes required to overcome them.
Highlights of the Report:
- Globally, current food systems cost significantly more than they contribute to development.
- A sustainable transformation of existing food systems is urgently required at an estimated total cost of $500 billion per year.
- This cost is equivalent to only 0.2–0.4% of global GDP (Gross Domestic Product) and is small relative to the multi-trillion dollar benefits it could bring.
- The current global food system is characterised by hidden environmental, health, and social costs exceeding 10 trillion USD in 2020.
- Under the existing scenario, food systems will continue to drive a third of global Greenhouse Gas (GHG) emissions, which will contribute to 2.7 degrees Celsius of warming by the end of the century compared to pre-industrial periods.
- Food production will become increasingly vulnerable to climate change, with the likelihood of extreme events dramatically increasing.
- The report contrasts two pathways up to 2050: Current Trends (CT) and Food System Transformation (FST).
- The CT pathway shows continued food insecurity, obesity increase, and negative environmental impacts by 2050.
- Transforming food systems can contribute significantly to economies and address health and climate challenges.
- Global convergence towards healthy diets could contribute as much as 70% of the total economic benefits of pursuing the FST pathway.
- Food systems under FST could become net carbon sinks by 2040, helping limit global warming to below 1.5°C.
- Positive developments include extensive reforestation, reducing extreme weather events, protecting land, halving nitrogen surplus, and reversing biodiversity loss.
