Wine regions around the world are facing production challenges as a result of climate change, and global action towards a lower carbon future is accelerating. Agricultural commodities all need to consider the carbon within their products to reduce their impact on climate, and to ensure access to key markets in the future.
In June 2022, Wine Australia commissioned sustainability consultancy Edge Environment to develop an Emissions Reduction Roadmap for the Australian grape and wine sector. The project was guided by a Steering Committee and an Expert Reference Panel of industry members. Consultation across the entire production chain included interviews, workshops, a survey and two webinars, with over 300 customers across all wine regions directly engaged through the project.
The project delivered four key outputs:
- A ROADMAP document, which details the why and the what of decarbonisation for the sector and demonstrates our intentions to our own stakeholders, supply chain partners, governments, customers, consumers and markets
- A practical GUIDE, which supports the Roadmap in setting out the how of emissions reduction for grapegrowers and winemakers, both in their own businesses and to empower collective action across the entire production and supply chain
- A TOOLS document, which provides an assessment of carbon accounting tools available to grapegrowers and winemakers
- A project REPORT suitable for Wine Australia and other peak industry bodies with technical information and details not included elsewhere.
The Roadmap was formally released in September 2023 with a webinar and media release and supported by a dedicated webpage which contains all public-facing roadmap documents and supporting material.
The Roadmap outlines a plan for the sector to achieve 42% emissions reduction by 2030, by implementing a number of key initiatives across all three emissions scopes, with a longer-term goal of net zero by 2050. An evidence-based target for 2030 aligns with the renewed global focus on 2030 following COP26, and is more ambitious than the federal target.
Wine Australia will continue to support grapegrowers and winemakers to implement the actions in the Roadmap and make progress toward sector emissions reduction targets. Promotion of collective action will occur through ongoing roll-out, the Australian wine emissions reduction network, targeted extension and adoption activities, messaging, sharing of success, case studies and other tools. The emissions baseline and key actions will be reviewed in 2025, 2028 and 2030 to track sector progress towards the targets.
Abstract
The Australian wine sector faces significant challenges from the direct impacts of climate change, as well as the changing expectations amongst regulators and consumers for transition to a low carbon future. In June 2022, Wine Australia commissioned sustainability consultancy Edge Environment to develop an Emissions Reduction Roadmap for the Australian grape and wine sector. The project determined the current carbon footprint of the sector, identified opportunities for emissions reduction and developed evidence-based, industry-endorsed targets and a plan to achieve them.
Objectives
The purpose of this project is to develop an emissions reduction roadmap and toolkit with and for the Australian grape and wine sector. The roadmap will:
- Assist the sector in defining its emissions targets
- Guide the sector collectively in progress towards those targets
- Provide practical information on emissions management to producers in an accessible form.
Background
The risks to grape and wine production from the effects of climate change are well-recognised. To date, Wine Australia’s RD&A investments and the priorities of the sector have focused largely on adaptation strategies. However, the conversation is changing. There is a global urgency to limit the effects of climate change, and regulatory, business and social demands are being placed on industries to take responsibility for reducing or even eliminating their carbon footprint.
Accordingly, the aim of Australian Grape and Wine (AGW) for the sector is to have zero net Scope 1 and 2 emissions by 2035. Five wine businesses in Australia are currently certified as carbon neutral, and several wine companies have publicly committed to sustainability and environmental roadmaps.
However, this is a complex and rapidly evolving space. There is generally confusion and apprehension among producers about the pathway to carbon neutrality and how to take action, and the level of engagement and maturity in emissions management varies widely across the sector.
In January, Wine Australia issued a Request for Proposal for the development of an emissions reduction roadmap for the grape and wine sector. Edge Environment was selected from a strong field of applicants to work with sector stakeholders across the next six months to deliver the project.
Approach
The roadmap and toolkit will be established through deep engagement with stakeholders across the Australian grape and wine sector. It will include:
- An assessment of the feasibility and cost-effectiveness of achieving a range of target options in terms of scope coverage and timeline, to allow industry to confirm and adaptively modify its preferred target and trajectory
- An agreed approach to scope boundaries and reporting which is consistent with Australian and international standards and regulatory frameworks
- An assessment of options for the structure and nature of participation and reporting to provide sector peak bodies with the ability to substantiate any claims around sector-wide emissions
- A description of the incentives for producers to reduce their carbon footprint and the restraining forces which inhibit action
- The likely contribution of waste management and participation in the circular economy to emissions reduction
- An assessment of the abatement activities which are already occurring in the wine sector
- A determination of the baseline emissions of the Australian wine sector, against which to measure improvement and identify areas for reduction. The baseline will include Scope 1,2 and 3 emissions and use anonymised data captured by Sustainable Winegrowing Australia (SWA)
- Identification of opportunities for emissions reduction and offsets across the wine supply chain, as well as their relative materiality and costs, set out in an accessible form (quantified Marginal Abatement Cost Curve)
- Practical advice for vineyard and winery operators on how to prioritise activities to reduce emissions
- An assessment of the currently available tools for measurement and reporting of greenhouse gas emissions and the scope for an agreed approach across the sector
- An assessment of available calculation tools for producers to assess/model the cost of a particular abatement activity and the likely return on investment
- Revision of existing information and resources on emissions management available to grapegrowers and winemakers, for integration with additional material into an overall adoption package for the sector
- A how-to guide for producers to set their own emissions reduction trajectory and adapt and manage that over time
- Advice and/or tools for engaging with suppliers across the production chain
- Advice for industry bodies and the sector to communicate its position to customers, policymakers, key markets etc
- Acceptance and commitment to implementation of the roadmap by regional associations and other peak bodies in the sector
The project will develop and deliver:
- A succinct roadmap document setting out the carbon footprint, mitigation opportunities and pathway for the sector
- A guidance document for stakeholders, summarising the roadmap and setting out advice on key issues such as calculating a footprint, developing a mitigation plan, and engaging with suppliers, as well as signposting key resources and case studies
- A technical report for industry bodies, covering the methodology for the assessment, the results of the interviews/survey, the advice on platforms, and information not otherwise captured in industry-facing documents.
Sector benefits
The roadmap will assist the Australian grape and wine sector as a whole to address its social and market obligations to reduce carbon emissions across the entire production chain. It will support the sector’s targets as well as wider agricultural and global commitments in both emissions reduction and within overall sustainability. It will also provide cost-effective, practical options for grapegrowers and winemakers to manage emissions in their own businesses.
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