DeSmog

Yara

Background

Yara International ASA is a Norwegian fertilizer company headquartered in Oslo. The company was founded in 1905 “to solve the emerging famine in Europe” and claims to be the world’s only agrichemical “crop nutrition” company with a sole focus on the production of fertilizers since its establishment. The company’s global annual revenues for 2021 amounted to US$16.6 billion.1Yara Integrated Report 2021”, Yara. Archived October 3, 2022. Archived .pdf on file at DeSmog.

According to its 2021 annual report, Yara claims to “pursue a strategy of sustainable value growth,” and to promote “climate-friendly crop nutrition and zero-emission energy solutions.”2Yara Integrated Report 2021,” Yara. Archived October 3, 2022. Archived .pdf on file at DeSmog.

The company also states that it is focused on “growing a nature positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.”3Yara Integrated Report 2021,” Yara. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Yara’s largest factory for ammonia and nitrates, located in Sluiskil, Netherlands, produces 15 percent of Yara’s worldwide fertilizer products – approximately 5 million tons per year. An estimate by the Netherlands Environmental Assessment Agency found that the plant’s 2017 emissions of greenhouse gases were equivalent to 3.4 million tons of carbon dioxide.4Yara Sluiskil,” Yara. Archived November 23, 2021. Archive URL: https://archive.ph/NTMSb 5M. Batool and W. Wetzels. “Decarbonisation options for the Dutch fertiliser industry,” Netherlands Environmental Assessment Agency, 2019. Archived August 3, 2020. Archived .pdf on file at DeSmog. 

Yara has been involved within the World Economic Forum (WEF) since 2015, where it co-chairs the development of the WEF’s New Vision for Agriculture with other industry stakeholders including Walmart and Syngenta.6New Vision for Agriculture,” World Economic Forum. Archived 18 September, 2021. Archive URL: https://archive.ph/wip/hUCWH 

In June 2021, Svein Tore Holsether, president and CEO of Yara International, was selected as the new chair of the The International Fertilizer Association (IFA), a global fertilizer industry trade group with a membership of more than 430 entities in 70 countries, including fertilizer producers, traders, distributors, service providers, advisors, research organizations and NGOs.7IFA,” International Fertilizer Association. Archived November 16, 2021. Archive URL: https://archive.ph/qrElW 

In September 2021, Yara acquired the Finnish fertilizer producer Ecolan, in a bid to expand its organic fertilizer business. Organic fertilizers are derived from organic materials such as plant matter and animal manure, and differ from mineral fertilizers, which are made through synthetic, chemical processes.8Yara acquires Finnish Ecolan to expand its organic fertilizer business,” Yahoo Finance, September 1, 2021. Archived 18 September 2021. Archive URL:  https://archive.ph/wip/JNa6j  9Organic Fertilizers,” Science Direct. Archived November 23, 2021. Archive URL: https://archive.ph/wip/vm4NR  

In November 2021, Holsether said that due to a spike in the price of methane gas in Europe, the company had curtailed its ammonia production by 40 percent. Methane is the most expensive input necessary to the production of nitrogen-based chemicals and fertilizers.10Energy crisis will trigger a food shortage as fertilizer prices soar,” Fortune, November 4, 2021. Archived November 22, 2021. Archive URL: https://archive.ph/P3VD9    

According to Grain, a non-profit organization that supports small farmers interested in increasing biodiversity, the efficiency of nitrogen fertilizers decreased by two-thirds between 1970 and 2010, while the consumption of nitrogen fertilizers per hectare has increased by seven times. Farmers must therefore use more fertilizers each year to sustain crop yields.11Earth matters – Tackling the climate crisis from the ground up,” Grain, October 28, 2009. Archived January 26, 2021. Archive URL: https://archive.ph/Aob0A 

Stance on Climate Change

In its 2021 Integrated Annual Report, Yara claims that it is aiming to become climate neutral by 2050, stating, “we are well positioned to meet the EU Commission target of 55% reduction by 2030 compared to 1990 levels.”12Yara Integrated Report 2021,” Yara. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Yara’s 2021 Sustainability Report stated that the company has reduced its scope 1 and 2 greenhouse gas (GHG) emissions in Europe by about 50 percent since 2005. The report states that Yara’s greenhouse gas emissions totalled 77.3 million tons of CO2 equivalent (CO2e) for scopes 1, 2, and 3 combined.13Yara Sustainability Report 2021,” Yara. Archived October 3, 2022. Archived .pdf on file at DeSmog. 

In its 2020 Sustainability report, Yara claimed that it is aiming to become climate neutral by 2050, and that the company has reduced its scope 1 and 2 greenhouse gas (GHG) emissions in Europe by 45 percent since 2005. The report states that Yara’s greenhouse gas emissions totalled 71.1 million tons of CO2 equivalent (CO2e) for scopes 1, 2, and 3 combined.14Yara Sustainability Report 2020,” Yara, 2020. Archived November 8, 2021. Archived .pdf on file at DeSmog.

In an interview with Politico’s Morning Agri newsletter in September 2021, Mónica Andrés Enríquez, executive vice president of Yara Europe, said: ​​“We don’t believe we are damaging the environment nor are we the most polluting company, in fact we are one of the least in Europe. If we compare to non-European producers, our GHG emissions are about 50 or 60 [percent] below the rest.”15POLITICO Pro Morning Agri and Food: Flemish farm visit — Yara interview — Young farmers”, Politico Europe, September 3, 2021. Archived .pdf on file at DeSmog.

However, during a POLITICO Event sponsored by Yara, the company’s French President stated, “Food is gas. This is what everyone is discovering in the current situation [of gas shortages following Russia’s invasion of Ukraine]. We need gas because gas is hydrogen [a key component of fertilizers]. At Yara, we produce around 25% of European hydrogen through gas. So this gas is really needed because it’s the entry point of mineral fertilizers.” He also claimed that by choosing the “right form [of fertilizer] and by “using it properly”, farmers “can reduce nitrogen use by 20%, increasing revenues by 7%, and decreasing emissions by 20%.”16Nicolas Broutin. “Panel discussion – A recipe for food sovereignty,” POLITICO Future of Food and Farming Summit 2022, September 29, 2022.

In a 2019 YouTube video posted by Yara International about green ammonia, the company claimed that about half of all food globally is produced using mineral fertilizers, and suggested that reducing fertilizer use would decrease available food for the increasing world population. The video also suggested that without using mineral fertilizers, the world could only feed 40 percent of its population.17Yara Green Ammonia,” YouTube video uploaded by user “Yara International” on November 22, 2019. Archived 18 September 2021. Archived .mp4 on file at DeSmog.

In Yara’s December 2020 Position Paper On Organic Farming, the company highlighted several environmental downsides associated with the use of organic farming, writing that although it is “often touted as the way forward,” “organic farming alone cannot feed the world population.” The paper states that the “most significant drawback” of organic farming is its “low productivity level” and increased land area requirement, arguing that these characteristics pose a “risk to the food system and the planet.”18Position paper on Organic Farming,” Yara. Archived 18 September 2021. Archive URL: https://archive.ph/wip/dPZ8K 

The paper also contends that the continued use of fertilizers would both promote food security in Europe and avoid an increase in land use for agriculture, which Yara argues would be required to fill the gap in food production between organic and conventional agriculture.19Position paper on Organic Farming,” Yara. Archived 18 September 2021. Archive URL: https://archive.ph/wip/dPZ8K 

The position paper also claims that ​​mineral fertilizers can “contribute to the reduction of food waste” by ensuring crops receive the “right nutrients,” giving them a longer shelf-life.20Position paper on Organic Farming,” Yara. Archived 18 September 2021. Archive URL: https://archive.ph/wip/dPZ8K 

Stance on EU Farm to Fork Strategy

Since 2020, EU agricultural policy has centered around the Farm to Fork Strategy (F2F), the EU’s plan for transitioning to a more sustainable food system. Farm to Fork, which is part of the European Green Deal, includes 2030 targets to reduce the use and risk of chemical pesticides by 50 percent, reduce the use of fertilizers by 20 percent, and increase the amount of land under organic farming to 25 percent. 

Yara states that it “backs the EU ambition of transforming the food system in Europe”. It argues that it can help farmers to achieve the fertilizer target by addressing what it calls, “inefficient farming practices, which lead to the excessive use of nutrients”, and widely promotes digital and precision farming to achieve Farm to Fork goals. However, it has also called for a “ a dedicated impact assessment” on Farm to Fork measures.

In response to Farm to Fork, Yara published an undated document on its website titled “Making every nutrient count”. The document states, “Several studies have shown that different targets set in the F2F and Biodiversity strategies can have a major impact on farmers’ income, food production and food security globally. All studies have their strengths and limitations, and for instance don’t address positive effects of the improved environmental aspects. Nevertheless, they all point to the fact that fertilizers are a key piece of the puzzle to keep up with EU’s ambition to produce food in a more sustainable way.”21Making Every Nutrient Count: Farm to Fork Implementation”, Yara. Archived December 20, 2022. Archived .pdf on file at DeSmog.

In March 2022, the company sent a Position Paper on food security in light of Russia’s invasion of Ukraine to decision-makers in the European Commission, which likewise stated, “All studies on the impacts of the different non-binding targets under the Farm to Fork (F2F) Strategy show that the biggest factor impeding farm productivity is the goal of halving nutrient losses by 2030.” It recommended precision farming, digital tools and agronomic advice in order to support farmers.22Yara. “Position Paper – Ukraine invasion – addressing food, fertilizer &AdBlue® supply risks”, provided by European Commission Agriculture and Rural Development, accessed via AsktheEU, March 15, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Yara told DeSmog that its position paper “was an initial reaction to the events developing at the start of the war in Ukraine and the Russian aggression” and did not represent its position on the Green Deal or Farm to Fork.

As of November 2022, seven impact assessments by a number of universities, consultancies, and public institutions have been published.  Some suggest that the strategy’s targets could result in lower crop yields and lower income for farmers. However, according to reporting by Corporate Europe Observatory, five of the seven reports  have been paid for and conducted in collaboration with the agrochemical industry.23Nina Holland and Rachel Tansey. “A loud lobby for a silent spring: the pesticide industry’s toxic lobbying tactics against Farm to Fork,” Corporate Europe Observatory, December 2021. Archived May 24, 2022. Archived .pdf on file at DeSmog.

Multiple NGOs and academics have criticized the studies, arguing that they give only a “partial and incomplete” picture of F2F’s potential impacts. For example, the existing impact assessments do not consider the cost of inaction, such as potential climate breakdown, biodiversity loss, and a global food production crisis. They also don’t account for the positive effects of measures, as mentioned by Yara.24Alice Poiron. “Why Attacks Against the EU Farm to Fork Strategy Completely Miss the Point,” Slow Food, February 9, 2022. Archived October 25, 2022. Archive URL: https://archive.ph/hwUqD 25Nina Holland and Rachel Tansey. “A loud lobby for a silent spring: the pesticide industry’s toxic lobbying tactics against Farm to Fork,” Corporate Europe Observatory, December 2021. Archived May 24, 2022. Archived .pdf on file at DeSmog. 26Green Deal targets for 2030 and agricultural production studies – Fact Sheet,” European Commission, February 2022. Archived April 7, 2024. Archived .pdf on file at DeSmog.

Lobby watchdog Corporate Europe Observatory has accused agrochemical industry members of using impact assessments to “scaremonger about economic losses while painting an unfair picture” of a more sustainable food system.27Nina Holland and Rachel Tansey. “A loud lobby for a silent spring: the pesticide industry’s toxic lobbying tactics against Farm to Fork,” Corporate Europe Observatory, December 2021. Archived May 24, 2022. Archived .pdf on file at DeSmog.

Yara’s ‘Making Every Nutrient Count’ document also stated, “a dedicated impact assessment is needed to ensure that any further steps in the F2F Strategy implementation are science-based.”28Making Every Nutrient Count: Farm to Fork Implementation”, Yara. Archived December 20, 2022. Archived .pdf on file at DeSmog.

Corporate Europe Observatory has found that agribusiness lobby groups “flooded” the European Commission with similar calls for cumulative impact assessments.29Nina Holland and Rachel Tansey. “A loud lobby for a silent spring: the pesticide industry’s toxic lobbying tactics against Farm to Fork,” Corporate Europe Observatory, December 2021. Archived May 24, 2022. Archived .pdf on file at DeSmog. Politico reported that influencing the Commission to provide more impact assessments was “a key lobbying objective of Farm to Fork skeptics.”30Eddy Wax. “MEPs vote on EU’s green food plan amid lobbying blitz”, POLITICO, October 17, 2021. Archived November 2, 2022. Archive URL: https://archive.ph/6sAeB

According to Corporate Europe Observatory, the impact assessments “tend to favour economic factors over social and environmental ones,” adding that these reports are “only delaying progress towards tackling the climate emergency.”31Vicky Cann. “Exploiting the Ukraine crisis for Big Business,” Corporate Europe Observatory, July 28, 2022. Archived October 25, 2022. Archive URL: https://archive.ph/dSLE8

The document also gave three recommendations for more effective fertilizer use:32Making Every Nutrient Count: Farm to Fork Implementation”, Yara. Archived December 20, 2022. Archived .pdf on file at DeSmog. 

  • Choosing the right mineral [synthetic] fertilizer and the right nitrogen form
  • Opting for low-carbon footprint mineral [synthetic] fertilizers
  • Adding precision and knowledge to crop nutrition planning

In June 2021, the company also published a “roadmap for putting Europe’s Farm to Fork Strategy into action”. The roadmap promoted three “fast-track solutions”:  using the right synthetic fertilizer, opting for fertilizers with the lowest carbon footprint, and increasing efficiency to reduce nutrient losses. It promoted industry innovations like precision agriculture, “carbon-neutral fertilizers” (made from green ammonia), and carbon farming.“33Yara roadmap for putting Europe’s Farm to Fork Strategy into action”, Yara, June 2021. Archived December 20, 2022. Archived .pdf on file at DeSmog.

Use of Fossil Fuels in Fertilizer Production

The EU’s Farm to Fork strategy, announced in May 2020, set a goal to reduce at least 20 percent of nutrient losses on EU farms by 2030, which could translate into a 20 percent reduction in synthetic fertilizer use.34EU Farm to Fork Strategy” European Commission, Archived on November 25, 2021, Archive URL: https://archive.ph/wip/d0SZD  35Kerstine Appunn “EU’s Farm to Fork strategy impacts climate, productivity and trade,” Clean Energy Wire, March 5, 2021. Archived November 26, 2021. Archive URL: https://archive.fo/iwt40  

Synthetic fertilizers are a major contributor to climate change as their production is based on the use of methane gas, which contributes to the continued rise of atmospheric greenhouse emissions.36How Fertilizer Is Making Climate Change Worse,” Grain, November 1,2021 Archived November 25, 2021. Archive URL: https://archive.ph/wip/7sbQ7 

Fertilizer production involves using methane gas to produce ammonia, which is the most expensive input for the production of nitrogen-based chemicals and fertilizers. In August 2022, the company stated that it was only using around 35 percent of its European ammonia capacity37.Louise Rasmussen and Terje Solsvik, “Yara cuts cast doubt on Europe’s fertiliser production,” Reuters, August 25, 2022. Archived October 3, 2022. Archive URL: https://archive.ph/e70TZ In September 2021, high methane gas prices in Europe led Yara to cut its production of ammonia by 40 percent.38Fertilisers in the EU,” European Commission, June 2019. Archived September 14, 2021. Archived .pdf on file at DeSmog. 39Yara curtails ammonia production due to increased natural gas prices,” Yara, September 17, 2021. Archived September 28, 2021. Archive URL:  https://archive.ph/rk6Jt 

According to its website, Yara is a leading urea producer. However, Yara Europe Executive Vice President Andrés Enríquez has said that the company’s most widely used fertilizer is based on nitrogen rather than urea.40Reducing NOx with SNCR and SCR systems using Urea reagent,” Yara. Archived May 6, 2021. Archive URL: https://archive.ph/nbSBW 

Enríquez has said that the company did not believe it would be notably affected by the EU’s Farm to Fork strategy, because the company believes that “that estimated 20 [percent] of reduction of fertilizers will apply to those that are more polluting the environment.” This is a reference to companies that are more reliant on urea-based fertilizers, which release ammonia into the atmosphere more readily than nitrogen fertilizers.41“POLITICO Pro Morning Agri and Food: Flemish farm visit — Yara interview — Young farmers,” Politico Europe, September 3, 2021. Archived .pdf on file at DeSmog. 42Ammonia emissions: Clean air, strong crops,” Yara, November 2017. Archived July 30, 2021. Archived .pdf on file at DeSmog.

Yara states that farmers can contribute to reducing emissions from agriculture by choosing the “right” mineral fertilizer for their fields. However, urea-based fertilizers continue to be the most widely-used because of their lower cost compared to nitrogen and other mineral fertilizers.43Roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara, June 2021. Archived October 15, 2021. Archived .pdf on file at DeSmog.

A significant proportion of global fertilizer operations are based in Russia. According to analysis by Dutch lender Robobank, Russia accounts for over 40% of potash exports, over 20% of ammonia exports, and over 45 percent of ammonium nitrate exports – all either components of or finished fertilizer products.44The Russia-Ukraine War’s Impact on Global Fertilizer Markets,” Rabo-Research, April 2022. Archived August 2, 2022. Archive URL: https://archive.ph/eWKad 

Fertilizer production has therefore been severely disrupted by Russia’s invasion of Ukraine, contributing to already rising fertilizer prices, which have increased nearly 30 percent since the start of 2022, on top of an 80 percent increase in 2021.45John Baffeswee and Chian Koh, “Fertilizer prices expected to remain higher for longer”, May 11, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/Hpkxi

Yara has suggested that fertilizer companies should be prioritized for gas supply in the case of shortages. In March 2022, it met with the European Commission’s Cabinet for the Director-General on Agriculture. According to minutes from the meeting, “To ensure food security, Yara would recommend to secure gas access for fertilisers companies if gas has to be rationed later in the year if Russia cuts off the supply, and to secure access to imported nitrogen from outside Europe”.46Meeting with Yara international – 17 march 2022, Brussels”, European Commission for Agriculture and Rural Development, accessed via AsktheEU, March 17, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog. 

It met with the cabinet again in May 2022, minutes from which stated that it “got assurances they would be priority customer as very gas-dependent.”47Email from Joanna Stawowy. “Meeting at CAB level with YARA (fertiliser producer): read-out, 13 May 2022,” European Commission for Agriculture and Rural Development, accessed via AsktheEU, May 13, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Fertilizer and Land Use Emissions 

Members of the fertilizer industry suggest that fertilizer use can reduce emissions from the agricultural industry, by increasing the productivity of farming land and preventing further conversion of natural areas. 

During a POLITICO Event sponsored by the company, Yara argued that intensification is “the right path. But we need to intensify in a greener way.”48Nicolas Broutin, “Panel discussion – A recipe for food sovereignty,” POLITICO Future of Food and Farming Summit 2022, September 29, 2022.

In its responses to the EU’s public consultations on its new Soil Strategy (February – April 2021) and its Evaluation of the EU Biodiversity Strategy to 2020 (January – April 2021), Yara emphasized the importance of land use. It stated, “The EU soil strategy should also aim at an increased efficiency of land use in Europe to avoid the well- known potential trade-offs between food security, preservation of biodiversity, protection of areas of very high biodiversity and climate value and nature restoration – without compromising agricultural crop yields.”49Open public consultation on the new EU soil strategy,” Yara, April 2021. Archived October 3, 2022. Archived .pdf on file at DeSmog.

It also stated: “The largest source of greenhouse gas emissions (GHG) from agriculture comes from conversion of natural land into farmland. Yara firmly believes that avoiding expansion of farmland into untouched land is the best way to securing farming-free areas for biodiversity. Yara’s solutions and knowledge of best nutrient management practices and how to produce more on less land, are relevant for all farming systems. […] Innovation is needed to upscale land use efficiency, such as precision and digital farming tools.”50Yara submission, “Contributions – Biodiversity Survey”, European Commission, January – April 2021. Archived October 3, 2022. Archived .cvs on file at DeSmog.

Scientists and NGOs have contested claims that fertilizer use can reduce emissions by increasing yields. Pierre-Marie Aubert, an agronomist from French think tank IDDRI, told Investigate Europe in June 2022, “[Attempts to] grow more by spreading more nitrogen fertiliser and destroying what is still ecologically useful will only further deteriorate the production capacity of agricultural systems and make it almost impossible to increase yields.”51Harald Schumann, Nico Schmidt and Alicia Prager. “The battle over pesticides in Europe”, Investigate Europe, June 24, 2022. Archived August 4, 2022. Archive URL: https://archive.ph/POsZd 

Green Ammonia and Hydrogen

Yara specializes in the production of nitrogen fertilizers. These are produced using methane gas as a raw material, which is then turned into hydrogen.

Yara is investing in the development of carbon-free fertilizers by promoting the concept of “green ammonia,” which can be produced with “green hydrogen,” hydrogen created using renewable energy rather than fossil fuels.52Nick Cunningham. “Decoding the Hype Behind the Natural Gas Industry’s Hydrogen Push,DeSmog, January 14, 2021. It is also developing ‘blue ammonia’ – ammonia produced from gas with carbon capture and storage – capacity, which it promotes as a ‘clean’ source.53Yara Clean Ammonia,” Yara. Archived October 3, 2022. Archive URL: https://archive.ph/djFCt 54Yara and JERA plan to collaborate on clean ammonia to decarbonize power production in Japan,” Yara, May 11, 2021. Archived October 3, 2022. Archive URL: https://archive.ph/JvHal 

In a 2021 post on the World Economic Forum “Davos Agenda” website, Holsether claimed that the world is “already completely dependent on ammonia,” and that a shift toward green ammonia would “help decarbonize food and take a big step towards a hydrogen economy.” The company says that this transition is possible only in five to seven years.55Svein Tore Holsether. “Can green ammonia stop our addiction to fossil fuels?,” World Economic Forum, January 21, 2021, Archived November 26, 2021. Archive URL: https://archive.ph/wip/qnEeC  56Anmar Frangoul. “Firms line up ‘green’ ammonia for fertilizer and future fuel,” CNBC, August 16, 2021. Archived November 26, 2021. Archive URL: https://archive.ph/wip/XKOAO 

Currently, mineral fertilizer application accounts for 22 percent of all ammonia emissions from agriculture in the EU, according to Yara. In its “roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara states that it will invest in green ammonia and hydrogen, in order to provide climate-neutral fertilizers that will help reduce agriculture’s climate footprint.57Ammonia emissions: Clean air, strong crops,” Yara, November 2017. Archived July 30, 2021. Archived .pdf on file at DeSmog. 58Roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara, June 2021. Archived October 15, 2021. Archived .pdf on file at DeSmog.

In January 2021, Reuters reported that Yara was looking for government subsidies in order to convert ammonia plants to green hydrogen production for the shipping industry.59Rod Nickel, Victoria Klesty, “Facing green push on farm, fertilizer makers look to sea for growth,” Reuters, January 20, 2021. Archived October 3, 2022. Archive URL: https://archive.ph/34cjR

During COP26 in November 2021, Yara and 27 other other companies, including fossil fuel producers and energy providers Iberdrola, Shell and TotalEnergy, pledged to accelerate use of decarbonized hydrogen.6028 companies pledge to accelerate use of decarbonized hydrogen at COP26,” Yara, November 9, 2021. Archived November 22, 2021. Archive URL: https://archive.ph/wip/pNabZ

In March 2022, Yara met with the European Commission’s cabinet on Agriculture. According to minutes from the meeting, the company promoted its investments in green ammonia as a step to address rising fertilizer prices due to the Ukraine war.61Meeting with Yara international – 17 march 2022, Brussels,” European Commission for Agriculture and Rural Development, accessed via AsktheEU, March 17, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog. 

It met with the cabinet again in May, when it suggested that the European Commission should support “pilot projects for green ammonia such as Yara’s […] under the ‘European Innovation Fund” and “earmark money for that R&D area.”62Email from Joanna Stawowy. “Meeting at CAB level with YARA (fertiliser producer): read-out, 13 May 2022,” European Commission for Agriculture and Rural Development, accessed via AsktheEU, May 13, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Carbon Offsets

In an attempt to reduce the company’s carbon footprint and meet emissions reductions goals set by the European Union, Yara has invested in a variety of carbon offsetting methods.

Yara is encouraging the development of “carbon farming,” a process in which rural landowners use strategies like no-or low-tillage planting techniques to encourage healthy soils which sequester carbon. Yara has said that carbon farming could allow farmers to monetize their soils by generating carbon credits, which could then be sold to other companies as carbon offsets.63Roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara, June 2021, Archived .pdf on file at DeSmog. 64Jim Giles. “Digging into the complex, confusing and contentious world of soil carbon offsets”, Green Biz, February 26, 2021. Archived November 25, 2021. Archive URL: https://archive.ph/wip/QgRRQ

In May 2021, Yara launched the Agoro Carbon Alliance (ACA). According to its website, the ACA is “taking action on a global scale to reverse the effects of climate change by decarbonizing farming and restoring carbon to the world’s soil.” Yara states that the ACA was created to support decarbonizing the global food value chain by allowing farmers to sequester carbon emissions at their farms, and sell these sequestered emissions as carbon credits to generate additional income.65Yara Announces the Commercial Launch of Agoro Carbon Alliance, enabling global farm decarbonization,” Yara. Archived 18 September, 2021. Archive URL: https://archive.ph/wip/rzxEc  

Through the ACA, Yara is collaborating with precision farming agritech companies like SpaceTime Labs, Sentera and Cloud Agronomics to create what it calls a “Farm Carbon Credit value chain,” otherwise known as a carbon market.66Spacetimelabs,” Spacetimelabs, Archive. Archived 18 September, 2021. Archive URL: https://archive.ph/wip/8V7fl  67Sentera,” Sentera, Archive. Archived 18 September, 2021. Archive URL:  https://archive.ph/wip/h1lhe 68Cloud Agronomics,” Cloud Agronomics. Archived September 18, 2021. Archive URL:  https://archive.ph/wip/VidG2 

Alex Bell, CEO of Yara’s Agoro Carbon Alliance, has said that the ACA’s goal is to put farmers at the center of this new market for carbon credits and help them generate a “sustainable income.” Yara’s investment led the US$4 million funding round of the US carbon credit startup Boomitra, which was also backed by petroleum giant Chevron through its investment arm Chevron Technology Ventures.69Interview: Alex Bell on Yara’s Agoro Carbon Alliance,” World Agritech. Archived September 18, 2021. Archive URL: https://archive.ph/wip/C0mc1   70Boomitra – Carbon Removal Through Soil,” Boomitra. Archived July 21, 2021. Archive URL: https://archive.ph/wip/G8JrZ 71Jack Ellis. “Precision ag player reborn as soil carbon market Boomitra; scores $4m from Yara, Chevron,” AgFunderNews, June 22, 2021. Archived July 10, 2021. Archive URL: https://archive.ph/tC5uB

Yara is also investing in carbon sequestration technologies, despite concerns that carbon sequestration on agricultural lands may not be an effective or long-term emissions reduction solution because storing carbon in soils is impermanent.72ESG Investor,” Yara, December 7, 2020. Archived November 21, 2021. Archived .pdf on file at DeSmog. 73Daniel Kane. “Carbon Sequestration Potential on Agricultural Lands: A Review of Current Science and Available Practices,” Sustainable Agriculture, June 2015. Archived October 12, 2021. Archived .pdf on file at DeSmog.

In addition to concerns about how long soils can sequester carbon, the Intergovernmental Panel on Climate Change (IPCC) warned in its Sixth Assessment Report, released in 2021, that rising temperatures can affect soil’s capacity to store carbon. The IPCC also cautioned that climate-change-driven increases in the number of natural disasters may also limit the potential for soil to reliably remain an undisturbed carbon sink.74Sixth Assessment Report,” IPCC, 2021. Archived November 25, 2021. Archive URL: https://archive.ph/Fm5Lv 75A spatial emergent constraint on the sensitivity of soil carbon turnover to global warming,” Nature, November 20, 2020.  Archived November 25, 2021. Archive URL: https://archive.ph/wip/6VGzQ 76Natural disasters occurring three times more often than 50 years ago: new FAO reportUnited Nations, March 18, 2021. Archived November 25, 2021. Archive URL: https://archive.ph/wip/yMOOd

In May 2021, Yara International joined the European Carbon+ Farming Coalition.77EU Carbon+ Farming Coalition,” World Economic Forum. Archived September 6, 2022. Archive URL: https://archive.ph/20FNt According to the United Nations, the Coalition “was launched as part of a larger effort to transform global food systems, under the auspices of the WEF [World Economic Forum]. It aims to promote regenerative and climate-smart practices to better Manage Europe’s farmlands, contributing to the decarbonization of the European food system, healthier soils and more resilient farms.”78Lera Miles, Raquel Agra,, Sandeep Sengupta, Adriana Vidal, Barney Dickson, “Nature-based solutions for climate change mitigation,” United Nations Environment Programme and International Union for Conservation of Nature, 2021. Archived September 6, 2022. Archived .pdf on file at DeSmog. The majority of partners in the Coalition are corporations, including BASF and Syngenta Group, alongside just one university and one NGO.79EU Carbon+ Farming Coalition”, World Economic Forum. Archived September 6, 2022. Archive URL: https://archive.ph/20FNt

In a November 2021 tweet ahead of COP26, the international climate conference held in Glasgow, Scotland, Holsether appeared to support the idea of discussing a global price on carbon at the conference. Holstein tweeted that “When we put a real price on carbon we put a real value on nature,” and shared an article on global carbon pricing from Reuters.80When we put a real price on carbon we put a real value on nature – let’s get this done! #TogetherForOurPlanet #COP26 #NetPositive #BusinessForNature,” Tweet by @stholsether. Retrieved from Twitter.com. Archived November 2, 2021. Archive URL: https://archive.ph/dSSm8 81Kevin Liffey. “Can carbon’s price finally match its value at COP26?,” Reuters, October 6, 2021. Archived November 20, 2021. Archive URL: https://archive.ph/rSGn8

During the COP26, on November 4, 2021, Holsether announced that Yara had joined the First Movers Coalition, the United States’ new platform for companies wanting to “harness their purchasing power and supply chains to create early markets for innovative clean energy technologies that are key for tackling the climate crisis.” Holsether tweeted that “we agree that we need more action now [on climate change]” and that Yara “commits to providing green fuel for shipping to accelerate the push to meet climate goals.”82Yara joins Biden’s climate coalition,” Yara, November 4, 2021. Archived November 23, 2021. Archive URL: https://archive.ph/wip/JDuSg 83Launching the First Movers Coalition at the 2021 UN Climate Change Conference – United States Department of State”, U.S. Department of State, November 4, 2021. Archived 23 November 2021. Archive URL: https://archive.ph/wip/RqRLi 84I had the honor of meeting @POTUS and we agree that we need more action now.  @Yara is a founding partner of the First Movers Coalition with @wef and commits to providing green fuel for shipping to accelerate the push to meet climate goals. #COP26 @whitehouse,” Tweet by user @stholsether, November 2, 2021. Retrieved from Twitter.com. Archived November 25, 2021. Archive URL: https://archive.ph/wip/RZVSG

Precision and Digital Farming

In 2019, Holsether said that the “single most important need for a sustainable food future is boosting the natural resource efficiency of agriculture.” According to a Yara-sponsored article in Politico Europe, the company believes that precision farming and the “correct use of fertilizers” are key solutions for increasing the efficiency of farming while reducing carbon emissions.85Yara’s mission to bring climate-smart agriculture to Africa’s smallholder farmers,” Reuters, May 28, 2019. Archived September 18, 2021. Archive URL: https://archive.ph/wip/C0mc1 86Yara. “Producing crop, not CO2,” Politico Europe, November 21, 2017. Archived March 17, 2021. Archive URL: https://archive.ph/QpLmX 

Precision agriculture is a farm management approach that uses technology to collect and monitor relevant data – such as soil moisture, soil nutrients, and pesticide and fertilizer use – to make farms more efficient in their energy use and consumption of fertilizers and pesticides.87Joint Research Centre (JRC) of the European Commission; Monitoring Agriculture ResourceS (MARS) Unit H04; Pablo J. Zarco-Tejada, Neil Hubbard and Philippe Loudjani. “PRECISION AGRICULTURE: AN OPPORTUNITY FOR EU FARMERS – POTENTIAL SUPPORT WITH THE CAP 2014-2020,” Joint Research Centre of the European Commission, June 2014. Archived September 11, 2021. Archived .pdf on file at DeSmog.

In 2021, Yara responded to the European Commission’s public consultation of its evaluation of the EU Biodiversity Strategy to 2020. It suggested that land conversion was the most significant factor in the EU’s agriculture related emissions, and that precision agriculture could help to prevent the “expansion of farmland into untouched land” by improving land efficiency.88Yara submission, “Contributions – Biodiversity Survey”, European Commission, January – April 2021. Archived October 3, 2022. Archived .cvs on file at DeSmog. 

In February 2022, Yara emailed the European Commissioner for Agriculture, Janusz Wojciechowski, to request a meeting on “delivering on Farm to Fork objectives”. The company suggested that its innovations, including precision agriculture, could help the EU to achieve its targets for more sustainable farming, which include for example a 20% reduction in fertilizer use. It asked to discuss ways “to upscale precision farming”.89Email from Yara to Joanna Stawowy. “Delivering on the Farm to Fork objectives – Proposal for a meeting with Yara Europe,” European Commission on Agriculture and Rural Development, accessed via AsktheEU, March 14, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

In March 2022, Yara requested a further meeting with DG AGRI regarding the Ukraine war. It sent a position paper on the topic, which argued, “Considering the growing risks related to worldwide food security, it is essential that farmers feed their crops with the nutrients necessary to reach their maximum genetic growth potential.” The paper claimed that synthetic fertilizers (also known as mineral fertilizers) “produce 50% of the food grown today”. It argued that, “The current uncertainty must not result in lower food production.”90Yara. “Position Paper – Ukraine invasion – addressing food, fertilizer &AdBlue® supply risks,” provided by European Commission Agriculture and Rural Development, accessed via AsktheEU, March 15, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog. 

Scientists have challenged the idea that synthetic fertilizers support long-term food security. According to the Centre for International Environmental Law (CIEL), synthetic pesticides and fertilizers actually harm food security due to “deleterious effects on soil biota,” ultimately “degrading natural cycles” and ensuring that food systems are dependent on ever greater inputs of chemicals in order to maintain yields.91Dana Drugmand, Steven Feit, Lili Fuhr, and Carroll Muffett, “Fossils, Fertilizers, and False Solutions: How Laundering Fossil Fuels in Agrochemicals Puts the Climate and the Planet at Risk,” Centre for International Environmental Law, October 2022. Archived November 1, 2022. Archived .pdf on file at DeSmog.

Alternative growing systems can provide food security without agrochemicals, says think tank IPES-Food. “Data shows that [diversified agroecological] systems can compete with industrial agriculture in terms of total outputs, performing particularly strongly under environmental stress, and delivering production increases in the places where additional food is desperately needed.92From Uniformity to Diversity – A paradigm shift from industrial agriculture to diversifed agroecological systems,”  International Panel of Experts on Sustainable Food systems, 2016. Archived July 28, 2022. Archive URL: https://archive.ph/rrzNt

Yara’s position paper gave a number of recommendations, including promoting “the efficiency of the nutrients used at farm level” through strategic plans for EU farming subsidies (known as CAP or the Common Agricultural Policy). The recommendation stated, that in order to maintain food production while meeting EU sustainability targets, “The best way forward is to support farmers with agronomic advice, precision farming and digital tools to make every nutrient count.”93Yara. “Position Paper – Ukraine invasion – addressing food, fertilizer &AdBlue® supply risks,” provided by European Commission Agriculture and Rural Development, accessed via AsktheEU, March 15, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Lobbying

According to the EU Transparency Register, Yara spent between €2,500,000 – 2,749,999 on lobbying in 2021.The company is represented by two PR firms in Brussels, Fleishman-Hillard and FTI Consulting Belgium.94Yara,” European Commission Transparency Register, March 25, 2022. Archived October 3, 2022. Archive URL: https://archive.ph/126kn Yara spent between €300,000 – €399,999 on lobbying in 2019.

Between March and July 2022, Yara held four meetings with EU commissioners and members of their cabinets in the European Commission. The meetings were said to be on their “commitment to sustainable food production, manufacturing climate-friendly crop nutrition solutions and achieving zero emission energy targets”; food security and fertilizers; delivering on Farm to Fork objectives; and sustainable food systems.95“Meetings – Yara,” European Commission Transparency Register, October 3, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

Ahead of these meetings, Yara sent DG AGRI a proposal on Farm to Fork and a position paper on the Ukraine war and food security. In them, it promoted its products and services, such as precision farming, as solutions to meeting EU targets and maintaining EU yields.96Email from Yara to Janusz Wojciechowski. “Delivering on the Farm to Fork objectives – Proposal for a meeting with Yara Europe,” provided by European Commission Agriculture and Rural Development, accessed via AsktheEU, February 9, 2022. Archived October 3, 2022. Archive .pdf on file at DeSmog. 97Yara. “Position Paper – Ukraine invasion – addressing food, fertilizer &AdBlue® supply risks,” provided by European Commission Agriculture and Rural Development, accessed via AsktheEU, March 15, 2022. Archived October 3, 2022. Archive .pdf on file at DeSmog.

Minutes from the meeting on food security stated that due to the Ukraine war, fertilizer prices were “at the edge of what farmers can afford”. It stated, “Yara will help on optimisation through precision farming (potential of 10% reduction according to Yara), will invest in organic fertilisers (from manure etc) and green ammonia based on hydrogen and renewables (hydro power, wind).”98Meeting with Yara international – 17 march 2022, Brussels,” European Commission for Agriculture and Rural Development, accessed via AsktheEU, March 17, 2022. Archived October 3, 2022. Archive .pdf on file at DeSmog. 

Between June and July 2021, Yara held three meetings with EU commissioners and members of their cabinets. According to the filings, the meetings related to “bioeconomy/sustainability of biomass,” the EU’s “Fit for 55” climate policy package and a roundtable of the Clean Hydrogen Alliance.99Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey 

In December 2021, Yara held a video meeting with Frans Timmermans, the EU Commissioner responsible for the European Green Deal and the EU’s “Fit for 55” package.100Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey 

The package, which was proposed on July 14, 2021, contains legislative proposals to revise the entire EU 2030 climate and energy framework.101European Green Deal: Commission proposes transformation of EU economy and society to meet climate ambitions,” European Commission. Archived November 26, 2021. Archive URL: https://archive.ph/ZX31e 

 According to records in the EU Transparency Register, Yara shared its feedback on the European Commission’s initiative on “Restoring sustainable carbon cycles” and the “EU Framework for Sustainable Food System.”102Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey It had also responded to public consultations on the EU Biodiversity strategy, the Soil strategy, and the Integrated Nutrient Action Plan, as well as other areas.103Yara,” European Commission Transparency Register, March 25, 2022. Archived October 3, 2022. Archive URL: https://archive.ph/126kn

Affiliations

Yara is a member of Fertilizers Europe, a European trade group representing major fertilizer manufacturers and national fertilizer associations in the European Union.104Members,” Fertilizers Europe. Archived September 14, 2021. Archive URL: https://archive.md/ZPrax 105Yara”, European Commission Transparency Register, March 25, 2022. Archived October 3, 2022. Archive URL: https://archive.ph/126kn

It is a member of Hydrogen Europe, one of the key industry groups to have successfully lobbied for increased government funding for hydrogen.106Members Locations,” Hydrogen Europe. Archived October 3, 2022. Archived URL: https://archive.ph/jnYuF 107Alice Wright. “Mapped: Europe’s Fossil Fuel-Backed Hydrogen Lobby,” DeSmog, December 2021. Archived October 3, 2022. Archive URL: https://archive.ph/7asqg

Yara is also a member of the European Chemical Industry Council (Cefic), an industry membership organisation that promotes the interests of European chemical businesses consisting of 670 members and affiliates within the chemical business community.

Yara is a member of the International Fertilizers Association (IFA), a global fertilizer industry body with a membership of more than 430 entities in 70 countries, including fertilizer producers, traders, distributors, service providers, advisors, research organizations and NGOs.108List of Members Companies (ABM)Cefic November 2021. Archived .pdf at DeSmog. 109IFA,” 110Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey 111International Fertilizer Association. Archived November 16, 2021. Archive URL: https://archive.ph/qrElW  112IFA Membership Flyer,” International Fertilizers Association (IFA). Archived .pdf on DeSmog. 113Yara,” European Commission Transparency Register, March 25, 2022. Archived October 3, 2022. Archive URL: https://archive.ph/126kn

It is also a member of The Fertilizer Institute, a U.S. trade body, although this is not recorded in its profile on the EU Transparency Register.114Members,” The Fertilizer Institute. Archived October 3, 2022. Archive URL: https://archive.ph/IGOmz

Since 2015 Yara has been involved within the World Economic Forum (WEF), where it co-chairs the development of the WEF’s New Vision for Agriculture with other industry stakeholders including Walmart and Syngenta.115New Vision for Agriculture,” World Economic Forum. Archived 18 September, 2021. Archive URL: https://archive.ph/wip/hUCWH 

Yara participates in the European Clean Hydrogen Alliance, an initiative of the European Commission set up in July 2020. The Alliance supports “the large-scale deployment of clean hydrogen technologies by 2030 by bringing together renewable and low-carbon hydrogen production, demand in industry, mobility and other sectors,” and “aims to promote investments and stimulate the roll-out of clean hydrogen production and use.”116European Clean Hydrogen Alliance Members,” European Commission. Archived .pdf on file at DeSmog. 117European Clean Hydrogen Alliance,” European Commission. Archived November 5, 2021. Archive URL: https://archive.ph/OKqQV  118“European Clean Hydrogen Alliance membership”, European Commission, September 30, 2022. Archived October 3, 2022. Archived .pdf on file at DeSmog.

During the first UN Food Systems Summit in September 2021, convened to help countries agree on how the food sector can become more sustainable and equitable, Yara joined the Coalition of Action 4 Soil Health, a coalition of agribusiness companies and industry groups. The coalition’s stated goal is to facilitate the adoption of “restorative practices that restore soil health.” Other major fertilizer and pesticide producers in the coalition include BASF, Bayer, Corteva, and Syngenta.

The group also includes several trade groups representing these companies, including CropLife International and the International Fertilizer Association.119Food Systems Summit | United Nations,” United Nations. Archived November 26, 2021. Archive URL: https://archive.ph/wip/eQQaN 120Global Soil Hub – Food Systems Summit Community,” Food Systems Summit 2021. Archived November 26, 2021. Archive URL: https://archive.ph/wip/nb8gl 

In October, 2021, Yara spin-off company the Agoro Carbon Alliance (ACA) was registered within the EU Transparency Register, allowing it to lobby within the EU. The ACA states that it is part of the International Emissions Trading Association (IETA), a non-profit business organization created in June 1999 to establish a “functional international framework” for trading greenhouse gas emission reductions.121AGORO CARBON ALLIANCE AS,” EU Transparency Register. Archived November, 27 2021. Archive URL: https://archive.ph/wip/bWbwt   122About IETA,” IETA. Archived November 23, 2021. Archive URL: https://archive.ph/wip/VXLOC

Yara is a member of the European Carbon+ Farming Coalition, set up under the WEF, which “aims to promote regenerative and climate-smart practices to better Manage Europe’s farmlands, contributing to the decarbonization of the European food system, healthier soils and more resilient farms.”123EU Carbon+ Farming Coalition,” World Economic Forum. Archived September 6, 2022. Archive URL: https://archive.ph/20FNt 124Lera Miles, Raquel Agra, Sandeep Sengupta, Adriana Vidal, Barney Dickson, “Nature-based solutions for climate change mitigation,” United Nations Environment Programme and International Union for Conservation of Nature, 2021. Archived September 6, 2022. Archived .pdf on file at DeSmog.

Resources

Related Profiles

Background The International Fertilizer Association (IFA) describes itself as “the only global fertilizer association,” and is headquartered in Paris, France.“Contact us,” International Fertili...
Background The European Carbon+ Farming Coalition (CFC) is a project launched by the World Economic Forum (WEF) in 2021.“New Coalition Announces Bold Plan to Decarbonize Europe’s Food System,” ...
Background Fertilizers Europe (FE) is a trade group representing the fertilizer industry in the European Union.  According to its website, FE represents 16 corporate members, including ...
Background The Global Alliance for Climate-Smart Agriculture (GACSA) was launched in 2014 by the UN Food and Agriculture Organisation (FAO). GACSA describes itself as an “inclusive, voluntary a...