Mitigating climate change in the agriculture, forestry and other land use (AFOLU) sectors: A literature review on policy effectiveness

Governments have introduced a wide range of policies that can directly or indirectly contribute to the mitigation of greenhouse gas (GHG) emissions in the agriculture, forestry and other land use (AFOLU) sectors. This report synthesises the findings of studies on the effectiveness of these policies in OECD and G20 countries. Policies that prevent the removal or reduction of large carbon sinks, such as ecosystem protection measures, are found to mitigate the most GHG emissions per hectare on average. Technology standards present high GHG mitigation potential per hectare while government investment in research and development can improve productivity and reduce emissions intensity. Subsidies, which directly and indirectly support climate mitigation in AFOLU and are the most used instrument in these sectors, can also reduce GHG emissions, though at a lower average level. The effectiveness of these and other reviewed mitigation policies, however, depends on contextual factors, including the presence of other existing policies, and environmental, social, and economic conditions. Some policies can also generate co-benefits or undesirable social, environmental, and economic impacts. More efforts are needed to evaluate the different effects of direct and indirect mitigation policies to better reflect the policy context and to consider their alignment with other government objectives.