In this article we explore The Line, Saudi Arabia’s innovative, eco-friendly city project, delving into its sustainability claims and whether or not they stand up to scrutiny.

What is Saudi Arabia’s eco-friendly city (The Line)?

The Line, Saudi Arabia's groundbreaking eco-friendly city, stands as a testament to futuristic urban development. Situated in Neom, this innovative project was originally planned to stretch 170 kilometres and operate without roads, cars, or emissions, running entirely on renewable energy. Emphasising environmental sustainability, The Line was designed to preserve 95% of its natural surroundings, offering a visionary approach to urban living where nature and technology coexist.

However, recent reports suggest that the ambitious scale of the linear city has been significantly reduced. Instead of the envisioned 105-mile-long linear city, the project may now stretch only a mile and a half by 2030, raising questions about its feasibility and the reality of its environmental claims. Additionally, the project's progress has been marred by budget overspends, changing visions, and reported human rights concerns.

👉 In this article, we explore The Line, Saudi Arabia's innovative, eco-friendly city project, delving into its sustainability claims and whether or not they stand up to scrutiny.

The Line was launched by His Royal Highness, Prince Mohammed bin Salman bin Abdulaziz, Crown Prince of Saudi Arabia, in 2021. The linear city will have no roads, cars, or emissions, run entirely on renewable energy, and preserve 95% of the land for surrounding nature. Unlike traditional cities, people's health and well-being will be prioritised over transportation and infrastructure. 

This utopian-sounding urban development is currently under construction in Neom in the Tabuk Province of Saudi Arabia. Originally designed to be 170 kilometres long, towering 500 meters above sea level, and stretching only 200 meters wide, the smart city crosses through desert valleys and mountains to reach the Red Sea where residents will be able to access the water via its hidden marina. The Line aims to redefine urban living and challenge the very idea of what a city looks like.  

If the project is completed to its original design, it will house an impressive 9 million people despite being constructed on a reduced footprint of only 34 square kilometres. With an ideal climate all year round, residents will be able to access daily essentials in no more than a five-minute walk and travel from end to end via high-speed train in only twenty minutes.

What if we could start again? THE LINE rethinks everything we know about how people live, work and play. A 170 km-long vertical city, designed around people, rather than cars. A revolution in urban living. A city that delivers new wonders for the world.

NEOM | What is THE LINE?

The Line is part of Saudi Vision 2030 (also referred to as Project 2030) - a government project spearheaded by the Crown Prince. It was launched in 2016 and aims to tackle the challenges of urban life today while also diversifying the country's economy, culture, and society. 

The country is currently highly dependent on oil and gas with 74% of its exported goods and services linked to oil exports, and 30 to 40% of the country's GDP stemming from oil revenue. Decreasing this reliance on oil is one of the country's long-term goals. The Saudi government wants to diversify its sources of revenue as well as create more employment opportunities by developing the country's private sector.  

The Crown Prince's pet project, Saudi Vision 2030, has three main focuses: to become “the heart of the Arab and Islamic worlds”; to become a key player in global investment; and to develop into a hub connecting Afro-Eurasia. Under the umbrella of this vision, the Saudi Government announced plans to create a new urban area in the north of the Red Sea called Neom. The mega project involves the development of a floating industrial complex, a global trade hub, tourist resorts, and The Line. 

The Saudi government has pledged 500 billion USD for the city's construction, to be provided by the Public Investment Fund of the Kingdom of Saudi Arabia as well as local and international investors. In return for this investment, the Saudi government has stated that the project will create 460,000 new jobs, promote economic development, and add $48 USD to the domestic GDP by 2030.

‘What is NEOM’, you ask?🤔 
Here's EVERYTHING you need to know.

#WhatisNEOM #NEOM

This is NEOM

How does The Line compare to an average city? 

Gathering information on The Line can be challenging as project management requires architects to sign confidentiality agreements, making the project’s official website the primary source of information. However, if you search for concept artwork of the city, you'll see two towering, sleek, mirrored structures with an outdoor space between them, stretching endlessly across the horizon, flanked by desert on both sides. It looks unlike any other city on Earth - more like something out of a science fiction movie.  

According to the website The Line aims to revolutionise city living by "tackling the challenges facing humanity" and is structured around a variety of city ideals, including:

The Line aims to respect its surroundings and to preserve 95% of nature within Neom. It will achieve this by being incredibly dense and tall - with nine million residents the city will have an average population density of 260,000 people per square kilometre. To put this into perspective the current most densely populated city in the world is Manila, with a population of 44,000 people per square kilometre. 

The city's design means that urban sprawl is avoided and with a vertical city garden all residents will have access to nature within just a few minutes walk. 

It's intended that The Line will produce no carbon dioxide emissions and will operate on 100% renewable energy (this includes the operation of its industries). The city has also been designed in such a way that roads, cars, and other unnecessary infrastructure are completely eliminated. 

Nature will also be carefully integrated into the design of the city in an effort to enhance air quality. 

In addition to optimising nature and eliminating roads and urban sprawl, The Line will also prioritise making daily essentials accessible to citizens. All necessary amenities will be available in under a five-minute walk. 

End-to-end transportation will also allow residents to travel the length of the city in only twenty minutes and automated services, powered by artificial intelligence (AI), will increase efficiencies helping to reduce time wasted on commuting or waiting for services. 

Sunlight, shade, and ventilation have been carefully considered to optimise the climate within the city all year round. Green spaces have also been prioritised to enhance the living conditions of city residents. 

It's intended that The Line will run entirely on renewable energy. Artificial technology will be used to monitor the city and predictive data models will work to continuously enhance the lives of citizens. 

The city hopes to attract some of the “best and brightest” and will offer a one-of-a-kind social and economic experimentation. Without traffic and pollution, and alongside world-class preventative care it's hoped that residents will have extended lifespans. 

Built to prioritise humans, the linear city will utilise smart technology to predict and react to what residents need. With the dense design of the city, human experiences will be richer and business opportunities more abundant.

The Line's transport system will be 100% sustainable and without pollution or wait time. With short commutes, residents will also have more time for leisure. Salaries will also be optimised as the city eliminates the need for expenses such as cars, car insurance, fuel, etc. 

Technology is being used to provide advanced planning and logistics when it comes to the construction of the city. The city is also going to be built in a modular fashion and the total structure will be made up of 135 modules, each one 800 meters in length and 500 meters tall. 

<table>
  <thead>
    <tr>
      <th>Aspect</th>
      <th>The Line</th>
      <th>Traditional City</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>Transportation</td>
      <td>No roads or cars, high-speed rail system</td>
      <td>Roads, cars, public transit</td>
    </tr>
    <tr>
      <td>Energy Source</td>
      <td>100% renewable (solar, wind, hydrogen)</td>
      <td>Mixed (fossil fuels, renewables)</td>
    </tr>
    <tr>
      <td>Carbon Emissions</td>
      <td>Zero emissions goal</td>
      <td>Significant emissions from vehicles and industry</td>
    </tr>
    <tr>
      <td>Urban Footprint</td>
      <td>170 km long, minimal width, vertical</td>
      <td>Expansive urban sprawl</td>
    </tr>
    <tr>
      <td>Land Preservation</td>
      <td>95% of land preserved for nature</td>
      <td>Limited nature preservation</td>
    </tr>
    <tr>
      <td>Access to Nature</td>
      <td>Vertical garden design for every resident</td>
      <td>Green spaces concentrated in parks</td>
    </tr>
    <tr>
      <td>Living Essentials</td>
      <td>Within a 5-minute walk</td>
      <td>Often requires longer commutes</td>
    </tr>
    <tr>
      <td>Climate Control</td>
      <td>Optimized sunlight, shade, ventilation</td>
      <td>Variable depending on urban planning</td>
    </tr>
  </tbody>
</table>


Saudi Arabia is building a futuristic city in the middle of a vast desert— from scratch.

A vital element of the country's Vision 2030 plan, the project is the brainchild of Saudi's de facto leader, Crown Prince Mohammed bin Salman, also known as MBS. The site covers an area of more than 10,000 square miles, about the same size as Massachusetts. And it could cost $500 billion to complete.

"So Mohammed bin Salman wants to project himself as a liberal leader within the conservative royal family in Saudi Arabia," Ali Dogan, research fellow at the Leibniz-Zentrum Moderner Orient institute, told CNBC in an interview. "Neom is a mega project seen in Saudi Arabia and the young Saudi population as part of this liberalization process."

The Neom project is far from without controversy, though. Critics say it's another attempt by the crown prince to improve his image after U.S. intelligence officials concluded he was behind the 2018 killing of journalist and Saudi dissident Jamal Khashoggi. It also is being seen by some as a way to distract attention from Saudi Arabia's human rights record.

Watch the video above to find out why MBS is betting on this futuristic city.

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

#CNBC

Neom: Saudi Arabia's $500 Billion Bet To Build A Futuristic City In The Desert

Neom: Saudi Arabia's $500 Billion Bet To Build A Futuristic City In The Desert

What are The Line’s environmental credentials? 

On the official website it's claimed that the city will be zero-carbon, running entirely on renewable energy and preserving 95% of land for nature. But how exactly can be achieved? 

According to The Line's website and press releases a dedicated research team has been assigned to ensure that the city is constructed using only the greenest construction materials possible. Supply chain and operational emissions will also be carefully considered to ensure that the environmental footprint is as low as possible. 

The linear city will be run entirely on renewables - or at least that's the plan. Energy will be sourced from solar and wind power. Additionally, The Line will also become a major production site for hydrogen. A contract has been signed to create the world's largest green hydrogen plant that will generate more than 650 tons of hydrogen per day and 1.2 million tons of ammonia per year. The plant is anticipated to come online by 2025 and will save more than 3 million tons of CO2 emissions annually.

Additionally, it's been claimed that the project will be backed up by carbon capture and storage (CCUS) technologies and that carbon offsetting will also help to eliminate any unavoidable emissions.  

The city's impact on nature and the environment has also been considered in the design of the city itself. The fact that it's being built up instead of sprawling out into the landscape means that the building will not impact the region's nature in the way that the construction of a regular city would. 

The project also plans to treat the glass facade of the building to prevent birds from flying into the city. The migratory patterns of different species of birds have also been considered to minimise any risk. 

The Line, with its breathtaking vision of a futuristic, eco-friendly city, certainly captures the imagination. Yet, the question remains: Can these ambitions truly be materialised into reality? 

Many experts point out that turning The Line's futuristic designs from drawings into real buildings could be a tall challenge. For example, creating living spaces high up on ledges might not only be difficult to build but could also break safety laws and regulations.

Additionally, the city's single, long design might cause issues with wind flow. In a city so tall and narrow, the wind could flow through it in ways that might be uncomfortable or even harmful to the people living there.

One of the biggest issues with The Line's plan to be carbon-neutral is that building something so massive requires a lot of materials like glass, steel, and concrete. While the project claims these will be "low-carbon materials", experts argue that it's not feasible to construct a 500-meter tall building using entirely low-carbon options.

The reality is that these materials will take a lot of energy to produce, and this energy will likely come, at least in part, from the burning of fossil fuels, which releases carbon dioxide. So, even though The Line aims to be eco-friendly, its construction is likely to contribute significantly to carbon emissions. Some experts have estimated that the project could contribute as much as 1.8 gigatonnes of carbon dioxide emissions.

Additionally, recent reports have revealed that Neom officials are seeking contractors to build two gas power plants to supply energy to the region until greener sources can be secured. This reliance on fossil fuels during construction undermines the project's eco-friendly ambitions. Furthermore, a $1.5 billion project to build a water desalination plant running on 100% renewable energy was recently cancelled, raising further doubts about the sustainability of The Line.

Digital rights experts have highlighted concerns about surveillance and privacy in The Line, largely due to its heavy reliance on data and AI. The city's technologically advanced infrastructure, designed as a "cognitive city" for efficient management and control, could potentially enable widespread surveillance, raising concerns given Saudi Arabia's history of monitoring dissent.

Additionally, the project's development involves the displacement of indigenous tribes, notably the Howeitat tribe. The construction of the linear city necessitates their eviction from ancestral lands, leading to the loss of cultural heritage and community upheaval. This situation is further exacerbated by reports of strict penalties for those who oppose these evictions.

Initial designs for The Line have already faced criticism about their potential impact on wildlife and everyday appeal. The mirrored structure is set to be built on a migration route used by billions of birds, leading planners to express concern that the city could lure a significant number of them to their deaths. This has raised significant ecological concerns.

Moreover, the uniform development with external mirrors on both sides could contribute to unnecessary heat gain and be detrimental to bird populations. Experts suggest that such design choices might be ecologically harmful.

Neom claims that 95% of land and sea in the region will be protected for nature and is already recruiting for roles dedicated to rewilding and land preservation. While these goals are commendable, the overall ecological impact of constructing a new city from scratch remains significant. The construction and operation of buildings represent nearly 40% of global carbon emissions, a factor often overlooked in discussions about The Line's sustainability.

Saudi Arabia's green ambitions for Neom, while part of a plan to pivot the economy away from fossil fuels, are still largely funded by the country's vast oil revenues. Critics argue that such projects might be part of a wider greenwashing trend, diverting attention from the country's continued reliance on and production of fossil fuels.

Recent reports indicate that the grandiose scale of The Line has been significantly reduced. Initially planned to stretch 170 kilometres, the project is now expected to reach only a mile and a half by 2030. This drastic reduction highlights the challenges and feasibility issues the project faces, raising further questions about its sustainability and the reality of its environmental claims.

As The Line progresses towards its goals, it remains a symbol of both potential and controversy in urban development. This futuristic city aims to "shine a light on alternative ways to live" and set new standards for sustainability in a world increasingly conscious of environmental impacts. However, the recent scaling back of its ambitions, reliance on fossil fuels during construction, and ecological and human rights concerns highlight significant challenges. 

The journey towards realising this ambitious vision is fraught with hurdles, including questions about feasibility, true sustainability, and ethical implications. While The Line could inspire a global shift in how cities are designed and built, its success is far from guaranteed. The project's evolution will be closely watched, as it attempts to balance innovation with practicality and ecological responsibility, amid growing skepticism about its viability and impact.

How Greenly can help your company become more sustainable

Sustainability is no longer a choice - it's a necessity for businesses in all sectors. As global pressures mount to reduce environmental impact and work towards a more sustainable future, having the right tools to manage and reduce carbon emissions is critical. Greenly offers a full suite of sustainability services that empower businesses to take meaningful action towards their sustainability goals.

Comprehensive sustainability management with Greenly

At Greenly, we provide businesses with the expertise and platform needed to effectively manage their sustainability efforts. From tracking emissions to developing tailored strategies, Greenly supports companies at every stage of their sustainability journey.

Greenly’s platform allows businesses to track their Scope 1, 2, and 3 emissions, providing an overview of their environmental impact. This data is vital for developing targeted strategies to reduce emissions, align with science-based targets, and comply with regulatory standards.

Beyond emissions tracking, Greenly collaborates with companies to develop bespoke sustainability strategies. Our experts help identify key areas for improvement and guide businesses through actionable plans to achieve their sustainability ambitions, including decarbonisation and net-zero goals.

Supporting supply chain emissions reduction

Managing Scope 3 emissions (those coming from the supply chain) can be challenging. Greenly’s platform helps companies identify and tackle high-emission areas in their supply chains, working with suppliers to implement effective, sustainable changes.

A user-friendly platform for sustainability

Greenly’s intuitive platform streamlines sustainability management, enabling businesses to track their emissions, measure progress, and integrate sustainability into everyday operations. Whether you're starting your sustainability journey or enhancing your current efforts, Greenly can help you manage and reduce your environmental impact.

Greenly offers an effective solution for companies looking to lead in sustainability. Our comprehensive services - from tracking emissions to creating actionable strategies - help businesses align their environmental goals with global standards. By partnering with Greenly, your company can play a pivotal role in the fight against climate change.

Ready to become more sustainable? Let Greenly help your company take the next step towards a greener future.

In this article, we’ll break down what regenerative farming is, how it could prove helpful during climate change, and other alternatives.

What is Regenerative Farming?

As climate change and droughts persist, the threat of global warming and how it could impact already-existing food scarcity counties loom over the planet – but luckily, regenerative farming could serve as the answer.

There are several ways in which we have made an attempt to ensure produce remains plentiful despite our now unpredictable climate – such as with green houses and utilising Genetically Modified Organisms (GMOs), but regenerative agriculture can help to prevent food scarcity without sacrificing quantity or quality. 

What is regenerative agriculture and farming?

Regenerative farming refers to the process of nurturing and revamping degraded soils to help enhance biodiversity and boost a farmer’s overall harvest – ultimately aiding in both their productivity and profitability.


In the same manner as climate smart farming, regenerative farming aims to work with nature instead of against it – as regenerative farming works to reverse degradation, improve soil health, and make its surrounding environment more conducive to a plentiful harvest.

Regenerative agriculture implies more than just sustaining something but rather an active rebuilding or regeneration of existing systems towards full health. It also implies an open-ended process of ongoing improvement and positive transformation. – (Charles Massy).  

Regenerative agriculture is an effective way to restore biodiversity and stabilize the climate, but what exactly is it? This video explores three different regenerative practices that have great potential both in food production and in healing the land.

Support me on Patreon:   / jimi  
Make a one-time donation: https://paypal.me/JimiSol
Spanish Version:    • Video  

To engage more with these ideas, visit https://charleseisenstein.org/climate
Visit Charles' YouTube channel:    / charleseisenstein  

Music: Dubious Doings by Thomas Howe (used with permission)

Sources:

Organic Agriculture does more harm than good
Searchinger et al., Assessing the efficiency of changes in land use for mitigating climate change, 2018.
https://www.nature.com/articles/s4158...

Bacteria Converts Ammonium into Nitrite and Nitrate:
Jeff Lowenfels & Wayne Lewis, Teaming with Microbes, 2006, 48.

Myceilium brings water to plants:
Ibid, 57.

Worms increase water absorption and allow plant roots to penetrate deeper:
Ibid, 89.

Fertilizer leeches into water:
Ministry of Agriculture, Food and Rural Affairs, 2005.
http://www.omafra.gov.on.ca/english/e...

Regenerative grazing can sequester carbon:
Sanderman et al., Impacts of Rotational Grazing on Soil Carbon in Native Grass-Based Pastures in Southern Australia, 2015.
https://journals.plos.org/plosone/art...

Regenerative grazing can build soil and reverse desertification:
Allan Savory, Holistic Management, 1999, 244.

The growth of grass:
Global Rangelands, Basics of Grass Growth
https://globalrangelands.org/topics/r...
Julius Ruechel, The Daily Pasture Rotation, 2009.
https://www.grass-fed-solutions.com/p...

Overgrazing leads to erosion, drought, and desertification:
Ibanez et al., Desertification due to overgrazing in a dynamic commercial livestock–grass–soil system, 2007.
https://www.sciencedirect.com/science...

Food forests consist of 7 layers:
Toby Hemenway, Gaia's Garden, 2001, 172.

Chapters
0:00 Introduction
0:21 What does it actually involve?
0:41 No-Till Farming
1:25 Regenerative Grazing
2:35 Agro-Forestry
3:21 Conclusion

What is Regenerative Agriculture?

Here are some of the key aspects of regenerative farming:

Soil Health Improvement – Regenerative farming will seek to improve soil structure such as by supporting microbial, life, preventing erosion, adding organic matter to the soil, ensuring nitrogen levels are sufficient, and avoiding the use of pesticides and synthetic fertilisers.

Boost Biodiversity – As biodiversity can help to support the surrounding environment by stabilising temperatures and plantlife, regenerative farming focuses on crop rotation, food forests, adding livestock, and planting new trees or shrubs in farming areas to promote carbon sequestration.

Reducing Water Usage – Working to monitor water consumption is an important facet of climate change, but it’s also an imperative component of regenerative agriculture – as reducing water waste helps to build resilience to future droughts, ensures soil moisture retention, and can protect waterways from water pollution or erosion. 

Building Climate Resilience – Think of someone slowly running a little but more everyday in order to build up their strength for a full-length marathon. The same concept goes for regenerative farming, as efforts to store carbon in nearby soil can help to reduce atmospheric CO₂, improve overall soil conditions, and allow farmers to more easily assimilate to better practices in the midst of climate change.

Improved Livestock Management – Animals play an important role in regenerative farming, and in regenerative agriculture – farmers will often make an effort to relocate animals across land to mimic natural grazing patterns, use multiple different species to reduce potential parasites, and aim to recycle manure to enrich the soil. 

Economic Benefits – Regenerative farming isn’t only better for the environment and for a lucrative harvest season, but it can reap invaluable economic benefits – as more crops can help to support local markets, reduce freight emissions, and encourage greater social responsibility in farm labor. 

As a whole, regenerative farming can help to restore and enhance soil health, biodiversity, and boost climate resilience to support a more stable food supply, our global economy, and encourage more sustainable farming practices.

Regenerative farming is important as it can help boost soil health, allow for more quality and nutrient dense crops to be grown, and help to protect farmland as opposed to destroying it – which is essential in the midst of climate change as natural disasters, droughts, and increased deforestation all pose a threat to agriculture as we currently know it. 

As climate change is already menacing in terms of productive farming, which is essential to support communities and our economies worldwide – regenerative farming is pivotal as it teaches us how to work with nature instead of against it.

Without regenerative farming, it could become increasingly difficult for farmers to grow food, conserve water, reduce the use of synthetic chemicals – or to even employ people and ensure long-term success and sustainability of their farming business. 

What are the benefits of regenerative farming?

Regenerative farming can help to benefit the environment, economy, and even the mental and physical health of people in your local community.

Here’s a breakdown of the benefits of regenerative farming:

As regenerative farming can help to boost soil health and fertility, it can help to support carbon cycling and biodiversity in the surrounding air and bodies of water. 

Additional ecological benefits of regenerative agriculture include:

Boosting soil’s water-holding capacity 

Helping to encourage more diverse and plentiful plant, bird, and insect species 

Essentially, all life depends upon the soil…there can be no life without soil and no soil without life: they have evolved together. – (Dr. Charles Kellogg, Soil Scientist). 

Regenerative farming can economically benefit both the farmers and consumers, such as how it can allow for cost savings on behalf of those working in regenerative agriculture or help to boost local businesses and stimulate regional economies. 

The economic benefits of regenerative farming include: 

Allowing farmers to reduce operational costs as they will eschew the need for most chemical fertilisers and pesticides

Diversified revenue streams which allow for lucrative financial endeavors

Boosting local economies by promoting local, healthier produce and providing locals with new employment opportunities 

Potentially the most overlooked advantage of regenerative farming, communities are bound to experience multiple benefits – such as improved health of residents in their local community in addition to boosting their economies. 

Here’s how regenerative farming can benefit local communities:

Regenerative farming allows for a greater network of farmers who are willing to learn new climate smart farming techniques from one another, which in turn can help to build a more supportive community – which is essential whilst working to fight against climate change as a whole;

Improving the relationship between consumers and the produce that they purchase, as regenerative farming ensures honest, holistic, and sustainable practices – which can also help to avoid misleading eco-labels or potential greenwashing;

Regenerative farmers may get more joy out of their job as a result of regenerative agriculture practices – as it goes back to the root of farming without the use of superfluous technology or chemicals;

Residents in communities where regenerative farming is prioritised will experience health benefits from fresher produce, which can help to reduce eco-anxiety, avoid respiratory illnesses from air pollution caused by traditional farming tactics, and boost overall health.

Overall, regenerative farming can provide indispensable benefits for everyone involved – making it one of the most lucrative and sustainable ways to both protect our planet and also ensure food security.

Regenerative farming works by utilising various techniques to ensure that the farming practices work alongside nature instead of against it, such as with cover cropping, no-till farming, and agroforestry. 

It is important to note that regenerative farming does not require the use of all of these techniques, but rather an effort to “work smarter, not harder” – as farmers should pick the mechanisms most likely to boost their individual productivity in agriculture.

We can improve soil health much faster than we used to think. It’s just a matter of following the principles of nature. – (Gabe Brown, who pioneered the soil-health movement in the United States).

Examples of regenerative farming techniques

Here are a few examples of the many different ways that regenerative farming can effectively be employed:

Cover Cropping – This refers to the practice of planting crops not to be harvested, but rather to protect the soil underneath. This helps to mitigate soil erosion, ensure soil quality, avoid weeds and pests, boost biodiversity, and support wildlife.

Rotational Grazing – As an effort to mimic the manner that larger animals would move in open grasslands, regenerative farming often utilises rotational grazing – which can help encourage livestock to move between pastures more frequently and boost soil fertility. 

Composting – Although an already simple and common practice for households across the globe to help mitigate global food waste, composting is also a viable tactic in regenerative farming – as it can help facilitate the process of turning food waste into fertiliser. 

No-till Farming – This is a farming technique that aims to keep soil undisturbed from plowing or other invasive processes, but rather allowing the crop to grow freely. In the same way that flossing too hard or frequently could irritate your gums, leaving soil to its natural processes can help to boost its health and therefore encourage more plentiful and nutritious produce.

Agroforestry – As an indigenous practice designed mimic forest systems by planting various trees and shrubs in your existing agricultural environment, agroforestry can help to support regenerative farming as it helps to boost tree-crop production, interact with livestock, and protect the surrounding environment. 

The table below will explain how each of these methods can help to support regenerative farming and exactly how it ensures a more plentiful harvest – therefore benefitting the environment, farmers, economies, and local communities.

<table border="1" cellpadding="8" cellspacing="0" style="border-collapse: collapse; width: 100%; text-align: left;">
    <thead>
        <tr style="background-color: #4CAF50; color: white;">
            <th>Regenerative Practice</th>
            <th>How It Supports Regenerative Farming</th>
            <th>How It Ensures a More Plentiful Harvest</th>
            <th>Environmental Benefits</th>
            <th>Economic & Community Benefits</th>
        </tr>
    </thead>
    <tbody>
        <tr>
            <td><strong>Cover Cropping</strong></td>
            <td>Planting non-harvested crops to protect and enrich the soil.</td>
            <td>Prevents erosion, retains moisture, and restores nutrients for healthier crop yields.</td>
            <td>Reduces soil degradation, improves water infiltration, and enhances biodiversity.</td>
            <td>Lower input costs for fertilisers, higher long-term yields, and more resilient farms.</td>
        </tr>
        <tr>
            <td><strong>Rotational Grazing</strong></td>
            <td>Moving livestock between pastures to prevent overgrazing and promote grass regrowth.</td>
            <td>Encourages healthier soil, which leads to more nutritious and abundant forage for livestock.</td>
            <td>Improves carbon sequestration, enhances soil structure, and supports ecosystem balance.</td>
            <td>Increases farm productivity, reduces veterinary costs, and strengthens local meat and dairy industries.</td>
        </tr>
        <tr>
            <td><strong>Composting</strong></td>
            <td>Recycling organic waste into nutrient-rich soil amendments.</td>
            <td>Boosts soil fertility, improving plant growth and resistance to pests and diseases.</td>
            <td>Reduces landfill waste, lowers methane emissions, and restores natural soil health.</td>
            <td>Reduces fertiliser costs, supports organic certification, and creates local composting businesses.</td>
        </tr>
        <tr>
            <td><strong>No-Till Farming</strong></td>
            <td>Minimising soil disturbance to maintain its structure and microbiome.</td>
            <td>Prevents soil erosion, retains moisture, and encourages deep root growth for stronger crops.</td>
            <td>Increases carbon storage, prevents desertification, and reduces water runoff.</td>
            <td>Reduces fuel and labor costs, improves long-term yields, and stabilises rural economies.</td>
        </tr>
        <tr>
            <td><strong>Agroforestry</strong></td>
            <td>Integrating trees and shrubs into agricultural land for shade, habitat, and soil protection.</td>
            <td>Enhances microclimates, reduces crop stress, and diversifies farm income.</td>
            <td>Increases biodiversity, reduces greenhouse gases, and protects watersheds.</td>
            <td>Creates additional income streams (fruit, nuts, timber), supports pollinators, and strengthens food security.</td>
        </tr>
    </tbody>
</table>


In the end, there are a multitude of ways to implement regenerative farming techniques into your current agricultural practices – making regenerative farming a personalized and approachable experience.  

Is regenerative farming a good solution in the midst of climate change?

Regenerative farming is an excellent solution for everyone as global warming and natural disasters continue to threaten food scarcity, the economy, and the business repercussions to be faced by farmers.

Since regenerative farming can help farmers not only avoid, but adjust to the new circumstances associated with climate change – it’s the most quintessential approach to help farmers, businesses, and local communities prepare for the future repercussions and agricultural drawbacks of climate change. 

Is regenerative farming the same thing as climate smart farming?

Yes, in short terms – climate smart farming and regenerative farming are the same thing, as both focus on more ecological and efficient farming techniques aimed to protect the surrounding environment and wildlife while also yielding a productive harvest. 

Both climate smart farming and regenerative farming zone-in on:

Building crop-resilience to extreme weather conditions

Decreasing dependence on pesticides and synthetic fertilisers

Reducing the environmental impact of traditional farming

Overall, regenerative farming serves as a great way for farmers to accommodate for the newfound challenges in agriculture as a result of climate change – and if your business needs help finding ways to employ regenerative farming or other sustainable tactics, third party companies like Greenly are always here to help.

If reading this article on regenerative farming has inspired you to consider your company’s own carbon footprint, Greenly can help.

At Greenly we can help you to assess your company’s carbon footprint, and then give you the tools you need to cut down on emissions. We offer a free demo for you to better understand our platform and all that it has to offer – including assistance on how to reduce emissions, optimise energy efficiency, and more to help you get started on your climate journey.

Learn more about Greenly’s carbon management platform here.

NRDC https://www.nrdc.org/stories/regenerative-agriculture-101 

Noble https://www.noble.org/regenerative-agriculture/ 

Wildlife Trusts https://www.wildlifetrusts.org/blog/vicki-hird/what-regenerative-farming 

Lachlan Hughes Foundation https://lachlanhughesfoundation.org.au/notable-quotes/ 

World Agroforestry https://www.worldagroforestry.org/about/agroforestry

In this article we’ll explore what the CBAM is, why it’s been created, and what importers need to know ahead of its introduction.

The Carbon Border Adjustment Mechanism (CBAM)

On August 17th, 2023, the European Commission adopted detailed reporting rules for its newly created Carbon Border Adjustment Mechanism (CBAM). The transitional phase of this new mechanism commenced in October 2023, introducing greenhouse gas reporting obligations for importers of certain carbon-intensive products. 

It is hoped that the CBAM will strengthen the effectiveness of the EU's Emissions Trading Scheme (ETS) and reduce carbon leakage. 

👉 In this article we'll explore what the CBAM is, why it's been created, and what importers need to know about its implementation.

The European Union has been progressively intensifying policies and regulations in an effort to reduce emissions and to work towards achieving its climate change targets, which include reducing emissions by at least 55% by 2030 and achieving climate neutrality by 2050. 

A cornerstone of the EU's strategy to achieve these ambitions is the EU Emissions Trading Scheme (EU ETS). According to the European Commission, the ETS is “a key tool for reducing greenhouse gas emissions cost-effectively. It's the world's first major carbon market and remains the biggest one.”

The ETS works by assigning a cost to carbon dioxide emissions (known as carbon pricing) which incentivises the reduction of emissions. Under the scheme, companies can buy or receive carbon allowances corresponding to their carbon emissions, which in effect makes using carbon-intensive energy sources like fossil fuels even more expensive, and makes switching to clean energy sources much more attractive. 

The EU sets a cap on how much carbon dioxide can be emitted annually, and this cap decreases with every passing year. Companies must have enough carbon allowances to cover their annual emissions. If their emissions surpass the amount covered by their allowance they will be fined. Conversely, if they release less greenhouse gases than their allowances, they can sell their excess carbon allowances. 

It's worth noting that free allowances have been issued under the ETS to safeguard the competitiveness of certain energy-intensive industries. However, these free allowances will be gradually phased out from 2026 through to 2034. 

👉 Since its inception in 2005, the ETS has helped to reduce emissions in energy-intensive industries such as power generation and manufacturing by around 35%. However, the success of the system is tempered by something known as ‘carbon leakage'. 

The EU emissions trading system (EU ETS) is a cornerstone of the European Union's policy to combat climate change and its key tool for reducing industrial greenhouse gas emissions cost-effectively. 

Find out how it does so http://ec.europa.eu/clima/policies/ets

The EU Emissions Trading System explained

This describes the situation whereby greenhouse gas emissions (GHG) in one country increase as a result of emissions reductions in another country with stricter emissions regulations and policies. For example, one country may have implemented carbon taxes or a cap-and-trade emissions scheme in an effort to reduce GHG emissions, however, companies can avoid these extra costs by simply moving their production processes to another country without such stringent policies in place. In essence, it's a spillover of emissions.

The European Commission states that “Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emissions constraints. This could lead to an increase in their total emissions.

Because the ETS is a regional scheme, it is vulnerable to the varying emissions policies that exist globally and its effectiveness has been reduced by carbon leakage. Research conducted by the European Central Bank found that companies were moving their carbon-intensive activities from inside Europe to outside of the EU. 

This is why, in December 2022, a provisional agreement was reached between the EU Parliament and the EU Council to introduce a new mechanism called the Carbon Border Adjustment Mechanism (CBAM). This tool places emissions tariffs on imported goods with a high risk of carbon leakage, originating from countries that are not members of the EU Emissions Trading System (ETS).

Welcome to our channel! In this video, we delve into the concept of carbon leakage and its significant contribution to climate change.

Carbon leakage refers to the phenomenon where emissions reduction efforts in one region or country lead to an increase in emissions in another region or country with less stringent environmental regulations. This occurs primarily due to the relocation of industries or businesses to jurisdictions with lower carbon constraints, resulting in a shift of production and associated emissions.

In this educational video, we explore the various factors contributing to carbon leakage, including differences in environmental policies, carbon pricing mechanisms, and competitiveness among nations. We highlight the consequences of carbon leakage on global climate goals and discuss why it is crucial to address this issue on an international scale.

Understanding the impact of carbon leakage is vital for crafting effective climate change mitigation strategies. We examine how this phenomenon can undermine the efforts made by countries to reduce greenhouse gas emissions and achieve targets outlined in international agreements such as the Paris Agreement.

Join us as we explore the potential solutions to combat carbon leakage, such as the implementation of border carbon adjustments, harmonization of carbon pricing mechanisms, and strengthening international cooperation. We shed light on the challenges and opportunities associated with these strategies and discuss their potential effectiveness in curbing carbon leakage and fostering global climate action.

If you are passionate about climate change and want to deepen your understanding of the complex issues surrounding it, this video is a must-watch. Subscribe to our channel and hit the notification bell to stay updated on our future videos dedicated to environmental sustainability and climate change topics.

Together, let's raise awareness, foster knowledge, and work towards a greener and more sustainable future. Watch now and join the conversation on carbon leakage and its contribution to climate change!

Ecoholics is the largest platform for economics. 
 
Download our app:  http://ecoholics.in/mobile-app/
 
Visit our website for further information and resources: http://ecoholics.in/
 
To Subscribe for Courses - https://subscription.ecoholics.co.in/
 
Reach out to us on Whatsapp for further information: https://wa.me/917880107880

If you’re preparing for competitive exams like UPSC IES, RBI DPER or UGC NET then Ecoholics is the one-stop destination for all your learning needs. Study economics the smart way and get an in-depth understanding of this dynamic subject with our holistic approach. Our team of expert faculties help you polish your knowledge and provides you with one-on-one mentorship and doubt-clearing sessions, so you leave no stone unturned when it comes to your preparation. By signing up with us, you can access our live classes, video lectures, test series and get the hard copy of study material delivered to your doorstep, so your preparation never hits a bump!
 
Follow our social media handles to stay updated on all things economics. 
 
Follow Ecoholics on Twitter- https://twitter.com/ecoholics_in
Follow Ecoholics Facebook Group - https://www.facebook.com/groups/41907... 
Follow  Ecoholics Facebook  Page - https://www.facebook.com/ecoholics8 
Follow Ecoholics on Instagram: https://www.instagram.com/ecoholics.in/
Follow Ecoholics on Telegram: https://t.me/ecoholicsbysanat
 
Become a Member of Largest Community of Economics: https://ecoholics.in/become-a-member/

#CarbonLeakage #ClimateChange #EnvironmentalSustainability #GlobalWarming #ParisAgreement #CarbonPricing #BorderCarbonAdjustments #SustainableFuture #ecoholics#economics #economic #economists #upsc #rbi #indianeconomicsservice #ias #iitjam #gateeconomics #ugcnet #ugc #jrf #economy #unionpublicservicecomission #ignou #dse #jnu #maentrance #pgentrance

What is Carbon leakage & how it contributes to climate change?

What is the EU Carbon Border Adjustment Mechanism (CBAM)?

As the European Union increases its policies and regulations in an effort to combat climate change, there is a risk of ‘carbon leakage' - whereby companies based in the EU move their carbon-intensive production or manufacturing abroad to countries with less stringent climate policies or without any form of carbon tax, or where EU products are simply replaced by imported products with higher carbon footprints. 

The EU Carbon Border Adjustment Mechanism (CBAM) has been introduced to combat this situation. It's a mechanism that “puts a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.”  

Essentially the mechanism's key objective is to level the playing field for European producers operating in the EU market who face a financial impact for their emissions under the EU ETS, while also encouraging industrial decarbonisation globally.

CBAM was officially adopted by the EU Commission on the 17th of August, 2023. The mechanism entered into a transitional period from the 1st of October 2023, which will run until the 31st of December 2025, meaning that the CBAM will come into full effect from the 1st of January 2026.

What is ‘carbon leakage’ and how will the Carbon Border Adjustment Mechanism tackle it? 
Industries in the EU face strict limits on the CO2 emissions they produce. To get around these rules, companies may move production to non-EU countries with weaker regulations. 
The European Parliament has approved new rules to encourage responsible behaviour by EU companies and discourage the import of cheap carbon-intensive products made in non-EU countries.
Find out more in our short Q&A.

The Carbon Border Adjustment Mechanism explained

How does the Carbon Border Adjustment Mechanism work?

The CBAM will apply to goods produced in countries that are not covered by the EU ETS. This includes both goods that were produced in their entirety outside of the EU and goods that underwent substantial production outside of the EU. 

The CBAM has been designed to support businesses during this period of change which is why it gradually increases in scope. As of October 1, 2023, the transitional period began. What this means is that importers of certain goods whose production is carbon intensive and susceptible to carbon leakage will have to report on GHG embedded in their imports. At this stage, however, they are not expected to make any financial payments. 

Goods that will fall under the transitional period of the CBAM include:

Some downstream products that contain iron and steel - for example, screws and nails

In 2026, the transitional period will come to an end and importers will be expected to start paying adjustments. This ensures that the carbon price of imports is equivalent to the carbon price of domestic products and that the EU's climate objectives are not undermined. It's possible that at this point the scope of CBAM requirements will be expanded and that further goods will also be subject to the carbon levy.

As the EU raises its own climate ambition, but less stringent environmental and climate policies prevail in non-EU countries, there is a strong risk of so-called ‘carbon leakage’, which can shift
emissions outside of Europe and seriously undermine EU and global climate efforts.

That’s why the EU needs the  new Carbon Border Adjustment mechanism for imports of goods from outside the EU: a system that puts a fair price on the carbon emitted during production, and that encourages cleaner industry in non-EU countries.

https://ec.europa.eu/taxation_customs/news/commission-proposes-new-carbon-border-adjustment-mechanism-and-revision-energy-taxation_de

Carbon Border Adjustment Mechanism in 60 seconds

The transition period of the CBAM's implementation began in October 2023 and will run until December 2025. The intention of this transition period is to allow for a gradual phasing in of the CBAM, allowing businesses (both within and outside the EU) to transition to the new system.

With only GHG reporting obligations at this point, businesses will be given some flexibility when it comes to reporting on emissions embedded in their imports. During the first year of implementation, businesses will have a choice of completing their quarterly reports in one of three ways: 

Full reporting in line with new EU methodology;

Reporting based on equivalent third-country national systems;

Reporting based on default emissions data (also referred to as default values or reference values). 

However, as of January 2025, only the EU method will be accepted. 

The European Commission has developed in-depth guidance, IT tools, training materials, and tutorials that will support importers who must calculate and report emissions when the CBAM transitional period begins. To access these CBAM implementation training tools and documents, head over to the European Commission's website.

❗Good to know: Importers are expected to collect data from the fourth quarter of 2023, however, their first report will not need to be submitted until the end of January 2024.

The permanent system will come into effect from January 1st, 2026. This means that importers will need to declare the number of products imported to the EU in the preceding year (known as the annual CBAM declaration), along with data on their embedded greenhouse gas emissions. 

💡 Therefore, European Union's Carbon Border Adjustment Mechanism (CBAM) is set to become fully operational after January 1, 2026, which will result in numerous changes to be made to CBAM.

Here are some of the changes to be expected under CBAM in 2026 onward:

No More Free Allowances – Starting in 2026, unreported goods will be fined anywhere between 10 and 50 euros of fines per ton of carbon-intensive goods not reported. Ultimately, importers will then need to surrender CBAM certificates corresponding to the GHGs embedded in imported CBAM goods, effectively imposing a carbon price. The cost of these certificates will be determined by the weekly average auction price of allowances under the EU carbon market. Importers will have to purchase CBAM certificates for the same amount per tonne of carbon dioxide as if the goods had been manufactured within the EU. In other words: the price of CBAM certificates will correspond to carbon prices at the EU ETS.

If an importer does not hand over the correct number of corresponding CBAM certificates, they will have to pay a fine for each tonne of carbon dioxide equivalent. Where the goods have been imported by a person who is not a CBAM declarant, the penalty will be between 3 and 5 times higher than this, depending on the “duration, gravity, scope, intentional nature and repetition” of the non-compliance.

Price & Tax Exposure Increase  – European Union importers will be required to obtain an authorization to import CBAM goods into the E.U., which will increase their awareness regarding taxed carbon-intensive goods. In addition to this, allowance prices expected to double and every triple by 2034. In fact, there will be a 100% reduction in free emission allowances under CBAM by 2034 – starting with a 2.5% in 2026. As a whole, this creates financial pressure on both importers and suppliers – who will have to shift their business to be more sustainable if they want to remain successful in a fiscal-sense. 

Expansion of Qualified Carbon Goods Under CBAM – From 2026 onward, it's feasible that additional sectors will be added under CBAM to help progressively cover all of the emissions created by these imported carbon goods. Sectors that are subject to be added under CBAM include textile, plastics, and even ceramics. 

💡 A note on embedded emissions: These are the direct GHG emissions from the manufacturing of goods, that are generated from activities the manufacturer owns or controls.

The European Commission will perform a review of the CBAM prior to the end of its transitional period. It will also be determined whether or not the scope of the mechanism should be expanded to include other product groups (for example organic chemicals and downstream products). A timetable is expected to be produced which will outline the sectors covered and the inclusion of other goods already covered by the EU ETS. 

By 2030 it is hoped that all goods covered by the EU Emission Trading Scheme will be included in the CBAM. 

The European Commission is also expected to consider whether or not it should expand emissions covered by the CBAM to include both direct and indirect emissions. As it stands the EU CBAM applies to direct emissions of greenhouse gases emitted during the production phase of the covered products, as well as to indirect emissions for a subset of those products.

<table border="1" cellpadding="10" cellspacing="0">
  <tr>
    <th>Phase</th>
    <th>Timing</th>
    <th>Application</th>
  </tr>
  <tr>
    <td>Transitional Period Begins</td>
    <td>October 2023</td>
    <td>Importers report GHG emissions for carbon-intensive goods, no financial payments required.</td>
  </tr>
  <tr>
    <td>First Year Reporting Options</td>
    <td>October 2023 - October 2024</td>
    <td>Businesses choose reporting method: full EU reporting, third-country equivalent systems, or default emissions values.</td>
  </tr>
  <tr>
    <td>Full Reporting in Line with EU Methodology</td>
    <td>January 2025</td>
    <td>Only EU methodology for GHG reporting accepted.</td>
  </tr>
  <tr>
    <td>End of Transitional Period</td>
    <td>December 2025</td>
    <td>Importers start preparing for full financial adjustments.</td>
  </tr>
  <tr>
    <td>Permanent System Begins</td>
    <td>January 1, 2026</td>
    <td>Importers start paying adjustments based on GHG emissions embedded in their imports.</td>
  </tr>
  <tr>
    <td>Scope and Coverage Review</td>
    <td>End of 2025</td>
    <td>Review of CBAM's scope and potential expansion to new product groups.</td>
  </tr>
  <tr>
    <td>Potential Expansion of Covered Goods</td>
    <td>2026-2030</td>
    <td>Possible inclusion of organic chemicals and downstream products; extension of coverage to indirect emissions.</td>
  </tr>
  <tr>
    <td>Full Scope Implementation</td>
    <td>By 2030</td>
    <td>Expected full implementation covering all goods under the EU ETS.</td>
  </tr>
</table>


What companies in the UK need to know about CBAM

The introduction of the Carbon Border Adjustment Mechanism (CBAM) presents both challenges and opportunities for UK businesses, especially those involved in exporting carbon-intensive products to the European Union. 

💡 As the UK is no longer part of the EU, UK exporters of products like steel, cement, and aluminum will be treated the same as businesses from other non-EU countries under the CBAM framework. This means UK businesses will need to comply with CBAM requirements to continue exporting to the EU market.

Since the U.K. was once a part of the European Union, it means that the country still withholds several major trading partners – meaning that being able to continue importing goods into the E.U. is essential for the survival of many U.K. businesses.

Here's what importers from the U.K. need to know:

Quarterly reports are required under CBAM 

Supplier engagement will be mandatory after the transition period

What is the global warming ?

More articles

What is Saudi Arabia’s eco-friendly city (The Line)?

What is Regenerative Farming?

The Carbon Border Adjustment Mechanism (CBAM)

Join more than 800 companies committed to climate change