Amid the hustle of international travel and the unfortunate setback due to a COVID-19 infection, my recent journey to Singapore for the Singapore International Agri-Food Week stood out as a significant event. Hosted by AgFunder in conjunction with our global impact accelerator GROW and Asia investment teams, the week was a gathering of minds and ideas, though it was evident that the fervor that typically characterizes such events was somewhat dampened. The attendance was notably lower than in previous years, and investment levels across the board have been muted, as detailed in our new Asia-Pacific AgriFoodTech Investment report.
**A Surprising Lack of Strategy**
One of the more unexpected revelations from this trip was the apparent absence of a concrete plan from regional governments to tackle emissions within their agricultural supply chains. At the Asia Food Challenge media briefing, a new report titled ‘The Asia Food Challenge: Decarbonizing the Agri-Food Value Chain in Asia,’ co-authored by Rabobank, PwC, Temasek, and Terrascope, was presented. The report highlighted a staggering figure: up to 50% of all emissions in Southeast Asia and 45% in South Asia are attributable to the agrifood industry, well above the global average estimate of one-third.
The report laid out multiple solutions to reduce these emissions to meet the 2050 net zero targets. It suggested that targeting agrifood emissions could be three times more cost-effective than focusing on the energy sector. To put it in perspective, the energy industry would require triple the investment to achieve the same reduction in emissions by 2030 as the agrifood sector.
Despite the clear data and proposed solutions, the call to action for governments was seen as somewhat nebulous, with suggestions to “develop a roadmap to coordinate action on decarbonization in agrifood,” including the regulation of carbon markets. This was pointed out by Sonalie Figuerias, editor-in-chief of Green Queen, during the session, who found the guidance to be “a bit vague.”
**The Energy Versus Agrifood Conundrum**
Anuj Maheshwari, managing director at Temasek and head of agrifood, responded candidly to the concerns raised, acknowledging that the journey to address agrifood emissions is lagging behind other sectors. He noted the lack of governmental focus on agrifood as a significant area for emission reduction, with some local governments even excluding methane emissions from their targets—emissions that are predominantly generated by agriculture, particularly rice production in the region.
The emphasis, Maheshwari pointed out, is overwhelmingly on energy, which, while important, overshadows the pressing need to address the agrifood sector. The vagueness in the report’s governmental ask, he explained, stems from the reality that without recognizing the critical nature of the agrifood sector and taking serious steps towards its decarbonization, the proposed changes will not materialize.
**Singapore’s Paradoxical Stance**
Singapore’s government has been supportive of the agrifood industry, from sanctioning the world’s first cultivated meat product to offering grants to startups and investors. However, Maheshwari’s comments suggest a disconnect between this support and the lack of a focused strategy on agrifood emissions. While food security is a paramount concern for Singapore, which heavily relies on food imports, it is myopic to ignore the link between climate change and food security—a link that is especially relevant in a region prone to the impacts of climate change.
Innovations that address climate change often also contribute to climate adaptation within the agrifood sector. However, the fact remains that agrifood is still considered a niche industry, overshadowed by sectors like fintech, electric vehicles, and NFTs. The lack of a strong collective voice from agrifood activists, entrepreneurs, and investors means that innovation in this space may continue to lag without government recognition and support.
As I look forward to attending COP28 and the new World AgriTech Innovation Summit in Dubai, which will cover The Middle East, Africa, and South Asia, it’s clear that the agrifood industry’s challenges are as much about amplifying its voice as they are about technological and systemic innovation. The connection between climate change and food security cannot be overstated, and it is time for this critical industry to be given the attention and resources it needs to thrive and contribute to a sustainable future.