1

Accelerating Adoption of Climate Technologies in Kazakhstan’s

Agrifood Sector

Astana7th November 2018

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Agenda

8:30 COFFEE AND REGISTRATION

9:00 OPENING REMARKS Kairat Nazhmidenov, Head of FAO partnership and LiaisonOfficeintheRepublicofKazakhstan AnarOmarova,HeadofAstanaOffice,EBRD

Video “Tackling climate change with the EBRD’s FINTECC programme”

9:25 SESSION 1 Country priorities and key study results Moderator: Kairat Nazhmidenov, Head of FAO partnership andLiaisonOfficeintheRepublicofKazakhstan

Policies for promotion of modern technology in Kazakhstan’s agricultural sector MinistryofAgriculture(tbc)

Financing mechanisms and technical support for technology adoption: lessons from the EBRD experience AstridMotta,Principal,EnergyEfficiencyand ClimateChange,EBRD

Priorities for climate change mitigation and adaptation in Kazakhstan GiuliaConchedda,Agri-environmentalDataAnalyst,FAO

Accelerating adoption of climate technologies in the agrifood sector — key results from the FAO-EBRD study NunoSantos,Economist,FAO

10:45 SESSION 2 Technology sessions — barriers and opportunities Moderator: NunoSantos,Economist,FAO

Part 1 — Crop farming technologies Presentation: MarPolo,Economist,FAO Panelmembers: AigerimAgubayeva,EurasiaGroup KintalIslamov,AtamekenAgro PavelLushak,Naidarovskoe YerlanToktushakov,SPKErtisAgro ZhumagaliOspanbekov,KazakhCropsInstitute

11:45 COFFEE BREAK

12:00 Part 2 — Crop farming technologies Presentation: MarPolo,Economist,FAO Panelmembers: ArsenKerimbekov,CenterforAgricompetence DaurenMaktabayev,RepublicanChamberofHerefords DaurenOshakbeyv,AppliedresearchcenterTALAP GuzelSagintayeva,KezBeefSergazyIsembayev, EurasiaAgroHolding

Part 3 — Renewable and energy efficient technologies Presentation:YerlanSyzdykov,Economist,FAO Panelmembers: AlmaZhukenova,MinistryofEnergy SaltanatRakhimbekova,Coalitionforgreeneconomy anddevelopmentofG-Global SvetlanaChaplinskaya,Eggproducers’association VeraMustafina,KazWasteAssociation

13:45 SUMMARY OF KEY MESSAGES AND CLOSING REMARKS AstridMotta,Principal,ClimateChangeand EnergyEfficiency,EBRD NunoSantos,Economist,FAO 14:00 LUNCH

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Agrifood systems are under increasing pressure to adapt to a changing climate while simultaneously reducing their environmental footprint.

Agrifoodsystemsplayanimportantroleingreenhousegasemissions(GHG)andarethereforecomingunderincreasingpressuretomakeefficiencyimprovements.Thesectorisdirectlyexposedtoclimatechangebecauseofitsdependenceonenvironmentalresources.Itisthusurgenttoincreasethesector’sresiliencethroughtargetedinvestmentsthataddresskeyvulner-abilitiesinacountryand/orregionalcontext.Accelerating adoptionofclimatetechnologiesisanessentialsteptowardsaddressingthesechallenges.

Withthisinmind,theEuropeanBankforReconstructionandDevelopment(EBRD)andtheFoodandAgricultureOrganizationoftheUnitedNations(FAO)willholdtheWorkshopon“Accelerat-ingadoptionofclimatetechnologies”inAstana,Kazakhstan,todiscusstheopportunitiesandchallengesinfosteringdeploymentofmodernagrifoodtechnologies.Specifically,theWorkshopinAstanawillbeanexcellentopportunitytodiscuss:

• keytrendsinadoptingclimatetechnologiesinKazakhstan’sagrifoodsector;

• challengesandopportunitiesforprivatesectorinvestmentsinmodernagrifoodtechnologies;

• possibleareasforpublicsupportandcooperationwithdonorsandinternationalfinancialinstitutionstoacceleratetechnologydeployment;

• strategicalliancesandwaystostrengthencollaborationamongstakeholderstoachievetheUNSustainableDevelopmentGoalsby2030;

• experiencesandsuggestionstoovercomeconstraintsandencourageanenablingenvironmentforprivateinvestments.

Introduction

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Methodology to assess climate technologies

Background

• TheEBRDandFAOrecognizethataddressingclimatechangemitigationandadaptationchallengesintheagrifoodsectorwillrequireradicalchangesinfoodproductionsystems. Greater adoptionofclimatetechnologiesisacoreelementofthistransitiontowardsmoresustainablefoodsystems;

• InthiscontexttheEBRDandFAO,withintheFinanceandTech- nologyTransferCentreforClimateChange(FINTECC)program,haveengagedtodevelopapracticaltooltoinformpolicymakersandtoorientpublicandprivateinstitutionsinterestedininvestmentsthatfosterthegreeningoftheagrifoodsector.

Objective and key elements

• Developaprioritisedlistofclimatetechnologiesthatcontributetoclimatechangemitigation(reductionofgreenhousegasemissions)andclimatechangeadaptation(enhancementofclimatechangeresilience);

• Themethodologyconsistsof5-stepsandusesaMulti- CriteriaAnalysis(MCA)toundertaketheassessmentofclimatetechnologiesfromvariousperspectives;itdrawsonawealth ofexistingdatasourcesincludingFAOSTAT,WorldBankDevelopmentIndicators,UNSD,INDC,NationalCommunica-tionstotheUNFCCC,studiesandinterviewswithlocal stakeholders;

• Themethodologyisusuallyimplementedbyacore, dedicatedteamandincorporatesstakeholderconsultationsatthevariousstages;

• Themethodologybuildsonotherconceptualframeworks andtoolsthatcontributetotheassessmentofmitigationandadaptationbenefits,i.e.EX-AnteCarbonbalanceTool (Ex-ACT);FAO’sWater,EnergyandFoodNexus,GlobalLive-stockEnvironmentalAssessmentModel(GLEAM)andtheEBRD’sGreenEconomyTransitionapproach(GET);

• AfirstpilotstudywascarriedoutinMoroccoin2015–16 andtheresultsaredetailedintherespectiveFAO-EBRDpublication:Morocco.AdoptionofClimateTechnologiesinthe AgrifoodSector;

• Between2017and2018,themethodologywasappliedintheKyrgyzRepublicandKazakhstan.

Summary of the 5 steps

Objectives and criteria: Steps 2 to 4

ANALYSIS OF EMISSIONS AND VULNERABILITIES

STEP 2 STEP 3 STEP 4

TECHNOLOGIES EVALUATED AND SCORED

LIST OF PRIORITISED TECHNOLOGIES

Contributetoincreasedadaptation toclimatechange and to GHG emission reductioninthe agrifoodsector

Identifydriverstosupportadoption

Identifytechnologieswithsignificant potential

Adaptation priorities and mapping GHG emissions

Assessingtechnicalandfinancialfeasibility

Technical and financial Toidentifythemost technicallyefficientand supportedtechnology andtomaximisethereturns toindividualinvestors.

Performancecompared tobestpractice

Potentialtoreduceannual GHG emissions

Policyreformrequirements

Maturityoftechnical supportservices

Contributiontoadaptation

Currenttechnology adoption rate

Mitigationcosts

Trendsingapbetween uptakeandpotential

Negativeexternalities

Financialreturns Positiveexternalities

OB

JEC

TIV

ES

CR

ITE

RIA

Economic and Environmental Tomaximiseneteconomicbenefits

Institutional Topursuetechnologies withthelowestreform threshold

Rankingand conclusions

Evaluatingeconomy- wideimpactsand sustainability

Evaluatingsupport policiesandbarriers

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Challenges

Key findings from analysis of emissions

• Agricultureemissionsaccountforaround7percentoftotalemissionsinthecountrycurrently,whilethesectorrepresentsapproximately5percentoftotalGDP;

• Agriculturesectoremissionshaveincreasedconsiderablyinlast15yearsbothinabsolutetermsandinvalueintensity:growthof3tonofCO2eqperUSD1,000ofAgricultureGDPsince2002;

• Agricultureemissionsincreasedby4.5milliontCO2eqin2000–2016or26percent;by2016agricultureaccountedforaround22milliontCO2eqinemissions;

• Emissionsfromenergyuseincludingthefoodindustryshowdecreasingtrend;

• Increaseinemissionsoverthepast15yearsexplainedbyincreasesinlivestockemissionsand,inparticular,increaseinlivestocknumbers.

Main vulnerabilities of the agriculture sector

• Possibleshortagesinwaterresourcesduetochangesinsurfacewaterrunoff.Surfacewaterflowexpectedtodecreasebyaround25percentuntil2030.Asaresult,watersupplytoagricultureisatrisk.Moreover,thecountry’sheavyrelianceontransboundaryriversforwatersupplyconstitutesanadditionalrisk;

• Depletionofwaterresourcesandtemperatureincreaseswillleadtoincreasedaridityand,inparticular,ashiftofthelowaridzone to the north.Areasandproductivityoflandmaybesignificantlyalteredwithmanydistrictsbecomingunprofitableforcerealcrops;

• Increaseinfrequencyandintensityofextremeclimateeventswith75percentofthecountrybeingsubjecttoincreasedriskofenvironmentaldisruption.MorefrequentheatstressanddroughtsespeciallyinSouthandCentralKazakhstan.Theresultingdryingupofpasturesandreducedwateravailabilityforlivestockcreateparticularlydifficultconditionsforlivestockrelatedactivitiesandanincreaseinrisksassociatedwithsuchactivities.Changesinweatherpatternsmayresultinspringfloods,heavyrainsinautumnandearlyfrosts,whichmayresultinharvestlosses;

• Highexpectedeconomiclossesinabsenceoftimelyadapta-tioninagriculture.AccordingtosomeestimatestheannualeconomiccostofdesertificationandpooragriculturalpracticeswouldreachUSD700million(TechnologyNeedsAssessment);

Source:FAOSTATandWorldBank,2016

Agriculture emissions relative to agriculture GDP tCO2eq/1000USD(constant2010),2016

Trends in emissions from agriculture activities thousandtCO2eq,2000-2016

Source:FAOSTAT,2018

SyntheticfertilizersRicecultivationOrganicsoilsManuremanagementManureleftonpastureManureappliedtosoilsEntericfermentationCultivationoforganicsoilsCropresiduesBurning—savannaBurning—cropresidues

Theshareoflivestock emissions overtotalagricultureemissionsincreasedfrom61percentbetween2000–2002to73percentbetween2014–2016

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tC

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CentralAsia OECD

25,000

20,000

15,000

10,000

5,000

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2000‘01‘02‘03‘04‘05‘06‘07 ‘08 ‘09‘10 ‘11 ‘12‘13‘14 ‘15‘16

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• ByinvestingUSD2.3billioninclimatetechnologies,anestimat-ed7milliontCO2eqoraround30percentofagrifoodsectoremissionscouldbereduced;

• Pastureimprovementprovidesthebulkofmitigationpotential(57percentoftotalestimated)withonly6percentoftotalinvestment.Itisfollowedbyconservationagriculturethatrepresents34percentofthetotalmitigationpotentialand11percentoftotalestimatedinvestment;

• Fieldmachinery,precisionagricultureandfatteningunitsshow moderatemitigationpotential(7percent)witharound60percentofthetotalinvestment;

• Interpretingtheresultsofthemulti-criteriaanalysiswithafocuson mitigationsuggeststhatthefollowingtechnologiesseemmostattractive:pastureimprovement,conservationagriculture,fieldmachineryandprecisionagriculture;

• Renewablesrankverylowduetoweakfinancialresults(cheapalternativesavailable)andlowmitigationpotential;

• Thesameanalysiswithafocusonadaptationsuggeststhatdripirrigationseemsthemostinterestingthroughimprove-mentsinwateravailability(especiallyinareaswithwaterscarcity)andagriculturalproduction.Itisfollowedbypastureimprovementandconservationagricultureastheycontributetoimprovedlongtermsoilhealth,andhigheryieldsandaggregateproductionindroughtyears.

0 500 1,0001,5002,0002,5003,0003,500 4,000

0 200 400 600 800 1.000

Windwaterpumps

Smalldams

Steamboilers

Dripirrigation

Biogas

Improvedgreenhouses

Fatteningunits

Precisionagriculture

Fieldmachinery

Conservationagriculture

Pastureimprovement

ktCO2eq/year

USDmillion

Mitigationpotential,KtCO2eq/yearInvestmentrequired,USDmillion

BIOGAS FROM MANUREVery high potential but insuficient goverment support for a rapid development• Inefficientuseofexistingtech;

premiumforelectricitygenerationis notenoughtocoverinvestment

• Servicingcompaniesandmanure managementarepre-requirmentsfor technologydeployment

STEAM BOILERSPromising but adoption linked to agrifood sector transition • Goodreturnsandmoderate

mitigationbenefits• Limitednumberoffoodenterprises

WINDWATERPUMPS

MODERATEMARKETPOTENTIALBUTINTERESTINGGREENINGBENEFITS• Highreturns butlimitedareas for adoption given areas under greenhouses• Accessto capital is aconstraint;new greenhouses can stimulate energy consumption

IMPROVEDGREENHOUSES

HIGHMITIGATIONPOTENTIALBUTLIMITEDADOPTION• Solidreturns and GHGreduction perunit• Limitedadoption duetohighlyscatteredfeedstock

GOODPOTENTIALFORFLEETRENOVATION• Moderately good mitigation benefits through diesel savings• Accessto capital and availability of best technology are concerns

EFFICIENTFIELDMACHINERY

LIMITEDAREASINTHECOUNTRYANDCOMPETITIONFROMCHEAPELECTRICITY• Very low financial returns and would need public support measures• Only interesting inareas where access to water and grid-electricity is limited

INTERESTINGTECHNOLOGYBUTDIFFICULTTODEVELOP• Competition from cheap and low emissions electricity (hydro)• Canbe interesting inremoteareas and with highvalue crops

SOLARWATERPUMPS

VERYHIGHTHEORETICALPOTENTIALBUTVERYDIFFICULTTODEVELOP• Competition from cheap and low emissions electricity (hydro)

• Extensivelivestockproduction systems noteasyto modify

BIOGAS

TACKLINGLIVESTOCKPRODUCTIVITYISSUES• Canyield highreturns and support sector modernization

• Difficult to scale up with current sector structure

ONLYAMITIGATIONTECHNOLOGYINSPECIFICSITUATIONS• Solidreturns and highly suitable for highvalue crops

• Limitedcurrent potentialgiven country‘s irrigation network

DRIPIRRIGATION

GREATPOTENTIALFORCARBONSEQUESTRATION• Highpriority for sustainability of livestocksector and low mitigation cost

• Publicinvestments,organizational and technical suppport needed to foster adoption

PASTUREIMPROVEMENT

HIGHPOTENTIALFORMITIGATIONANDALSOFORADAPTATION• Moderatefinancial returns;important for long term soil quality

• Averageproperty structure and lackof knowledge about technology are barriers

CONSERVATIONAGRICULTURE

0

100

Technologytree

VERYGOODMITIGATIONPOTENTIALBUTCOSTLY• Good potentialgiven livestocknumbers and alsoimportant for soil quality• Increased level of awareness oncompost and public support needed

MANUREMANAGEMENT

EFFICIENTFATTENINGUNITS

BIOGAS(BIOFERTILIZER)

EFFICIENTSTEAMBOILERSPROMISINGBUTADOPTIONLINKEDTOAGRIFOODSECTORTRANSITION• Moderatereturns butgood GHG

reduction perunit• Limitedby numbers of food enterprises

WINDWATERPUMPS

MODERATEMARKETPOTENTIALBUTINTERESTINGGREENINGBENEFITS• Highreturns butlimitedareas for adoption given areas under greenhouses• Accessto capital is aconstraint;new greenhouses can stimulate energy consumption

IMPROVEDGREENHOUSES

HIGHMITIGATIONPOTENTIALBUTLIMITEDADOPTION• Solidreturns and GHGreduction perunit• Limitedadoption duetohighlyscatteredfeedstock

GOODPOTENTIALFORFLEETRENOVATION• Moderately good mitigation benefits through diesel savings• Accessto capital and availability of best technology are concerns

EFFICIENTFIELDMACHINERY

LIMITEDAREASINTHECOUNTRYANDCOMPETITIONFROMCHEAPELECTRICITY• Very low financial returns and would need public support measures• Only interesting inareas where access to water and grid-electricity is limited

INTERESTINGTECHNOLOGYBUTDIFFICULTTODEVELOP• Competition from cheap and low emissions electricity (hydro)• Canbe interesting inremoteareas and with highvalue crops

SOLARWATERPUMPS

VERYHIGHTHEORETICALPOTENTIALBUTVERYDIFFICULTTODEVELOP• Competition from cheap and low emissions electricity (hydro)

• Extensivelivestockproduction systems noteasyto modify

BIOGAS

TACKLINGLIVESTOCKPRODUCTIVITYISSUES• Canyield highreturns and support sector modernization

• Difficult to scale up with current sector structure

ONLYAMITIGATIONTECHNOLOGYINSPECIFICSITUATIONS• Solidreturns and highly suitable for highvalue crops

• Limitedcurrent potentialgiven country‘s irrigation network

DRIPIRRIGATION

GREATPOTENTIALFORCARBONSEQUESTRATION• Highpriority for sustainability of livestocksector and low mitigation cost

• Publicinvestments,organizational and technical suppport needed to foster adoption

PASTUREIMPROVEMENT

HIGHPOTENTIALFORMITIGATIONANDALSOFORADAPTATION• Moderatefinancial returns;important for long term soil quality

• Averageproperty structure and lackof knowledge about technology are barriers

CONSERVATIONAGRICULTURE

0

100

Technologytree

VERYGOODMITIGATIONPOTENTIALBUTCOSTLY• Good potentialgiven livestocknumbers and alsoimportant for soil quality• Increased level of awareness oncompost and public support needed

MANUREMANAGEMENT

EFFICIENTFATTENINGUNITS

BIOGAS(BIOFERTILIZER)

EFFICIENTSTEAMBOILERSPROMISINGBUTADOPTIONLINKEDTOAGRIFOODSECTORTRANSITION• Moderatereturns butgood GHG

reduction perunit• Limitedby numbers of food enterprises

0

100

SMALL DAMS High demand to prevent floods and irrigate, but requires long-term view• Negativefinancialreturnsduetohighup-front

investmentandlowlevelofwatertariffs• Developmentoffisheries,tourism,recreational

services,biodiversityimprovements

IMPROVED GREENHOUSESLimited market potential but interesting greening benefits• Financiallyattractiveforindustrial

greenhousesthatoperatefortheentireyear• Governmentsupportandincentives

mayleadtonewinvestmentopportunities

EFFICIENT FATTENING UNITS Tackling livestock productivity issues • Goodfinancialreturns;cansupport

sectormodernization• Capacityutilizationiscrucialfor

financialprofitability

PRECISION AGRICULTUREGood potential area served by field machinery equipped with tech• Excellentfinancialreturnsduetoless

wastedseed,fertilizer,fuelandtime• Demonstrationfarmsandactivitieson

promotionoftechnologyareneeded

PASTURE IMPROVEMENTVery high potential for carbon sequestration• Highpriorityforthesustainable

developmentofthelivestocksector• Settingnationaltargetstowardsthe

recoveryofdegradedpasturescanhelp

WIND WATER PUMPSHigh potential in remote areas with adaptation benefits • Verygoodfinancialreturnsdueto

publicsupportmeasures• Onlyinterestinginareaswhere

electicityisnotavailable

DRIP IRRIGATION Only a mitigation technology in specific situations• Significantadaptationbenefitsifwater

scarcityandwithappropiategovernance• Water/groundwaterregulations,clear

targetsandincentivesforwater-saving

FIELD MACHINERY Good potential for fleet renovation• Moderatelygoodmitigationbenefits

throughdieselsavings• Accesstocapitalandavailabilityof

besttechnologyconcerns

CONSERVATION AGRICULTUREVery high potential for mitigation and also adaptation • Goodfinancialreturns;bestpractices

disseminationandwidespreadsupportservicesneeded

• Despiteinitialboom,policyreform andfinancialsupportneededtofosteradoption

Results of the five-step assessment

Source:Author’scompilation

Source: Author’s calculations

Opportunities

Mitigation potential and investment by technology

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Crop farming technologies (CA,dripirrigation,improvedgreenhouses,machineryand precisionagriculture)

• Estimatedadoption ratesofimprovedgreenhousesandprecisionagriculture(13and17percentofpotential)arequitelowsuggestingsignificantpotentialfordeployment. ModerateadoptionratesinCA(36percent)anddripirrigation(31percent)areduetoconservativeassumptionsofpotentialareasforadoption;

• Conservationagriculture,fieldmachineryandprecision agricultureareamongthebesttechnologiesinterms ofoverallscore;

• Theanalysisindicatesverygoodfinancialreturnson investmentsinprecisionagriculture,dripirrigation,conserva-tionagricultureandimprovedgreenhouses.Fieldmachinerypresentsmoderatereturnsbecauseoflimiteddieselsavingsandreductionofharvestlosseswheninvestinginregionally- producedmachinery.Mostefficientfieldmachinerytechnologyisavailablebutitismorecostlyanddifficulttomaintain;

• Fostering conservationagricultureadoptionwouldrequiregreaterknowledgedisseminationaboutthispracticeandallitsbenefitsamongstakeholders.Collectiveactionsuchasfarmersorganizingequipmentsharingorlinkageswithlivestockproductiontomaintaincropcover,couldexpandadoption;

• Use of more efficientfieldmachinerycouldbestimulated byenhancingfarmers’knowledgeonpracticestoreducefuelconsumption,technicalsupportservicesandimproved accesstocapital(forsmallscalefarmers);

• Promoting precisionagricultureadoptionwouldrequire greaterknowledgedissemination,pilotswithleadfarmersandfurtherdevelopmentofsupportservices;

• Dripirrigationdeploymentwouldbenefitfromimprovedinstitutionalarrangementsforefficientwatergovernanceandgreaterawarenessofthetechnologyanditsbenefits;

• Adoption of greenhousetechnologiessuchasthermocoverscouldbesupportedthroughsensitizationcampaignsandcapacitydevelopment.

Livestock technologies (pastureimprovementandfatteningunits)

• Bothtechnologiesperformreasonablywellinthecountrycomparedtointernationalbestpractices;

• Thetwotechnologiesshowroomforexpandingtheircurrentadoption ratesofaround30percentinfatteningunitsand67percentinpastureimprovement;theanalysisappliedveryconservativeassumptionsonpotentialadoption(lowshareofthefulltechnicaladoption),

• Goodfinancialreturnsoninvestmentsforfatteningunitsandpastureimprovementmakethesetechnologiesattractive toprivateinvestors.Efficientfatteningunitspresentoneofthebestestimatedfinancialreturnsofalltechnologiesasaresult ofGovernmentsupportprogrammes;

• Supportingpastureimprovementwouldrequireimprovedknowledgeandinformationonpasturemanagementforfarmersandtechnicalservices.Itwillalsorequireorganizationalandinstitutionaldevelopment,aswellasaccesstocapitalforinitialinvestmentsinequipment(forsmall-scalefarmers).

• Investmentinfatteningunitswouldbenefitfromknowledgedisseminationofongoingexperiencesandbestpractices toillustrateeffectivelivestockfeedingandpracticebenefits.Itwouldalsobenefitfromtechnicalexpertiseinimprovedfeedingandveterinarycare,localvaluechainorganizationandtailoredsupportforsmallfarmers.

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Renewables and energy efficiency technologies (windpumps,biogas,steamboilersanddams)

• Adoption ratesofbiogasareverylow(lessthan4percentofpotential),whichsuggestsopportunitiesfortheirpromotion.Lowadoptionratesareestimatedforsteamboilers(17percent),mostlybecauseoftheirlimitedadoptionpotential.Higheradoptionratesareestimatedforwindpumpsandsmalldams(30and54percentrespectively);

• Biogasandsmalldamsshowconsiderablylowfinancialreturns (belowcostofcapital).Efficientsteamboilertechnologypresents goodfinancialreturnswhilewindpumpshavethehighestreturnoninvestmentdueto80percentsubsidies;

• Whilenationallegislationprovideshigherfeed-intariffs forrenewableelectricitygenerated,thelackofefficientimple-mentationmechanismscouldhaveadverselyimpactedthe promotionofrenewables.Furtherpolicyreformswithclearimplementationandfinancialmechanismsseemtoberequired;

• Windpumpscanbesupportedinareaswithavailable pumpingwaterandlackofaccesstotheelectricgridthroughprovisionofconcessionalfinancialresources,awareness andcapacitydevelopment;

• Promoting biogasexpansionwouldbenefitfromorganizational,logisticalandregulatorysupportforcollectingfeedstockbysmall-scalefarmers,financialincentivesandmarketdevelop-mentforbiogasanddigestate.Highinitialinvestmentsandlimitedknowledgeandsupportservicesseemtodiscourageinvestmentsinthetechnology;

• Thesteamboilermarketwoulddevelopinparallelwiththegrowthofthecountry’sfoodindustryandwouldbenefitfromtheestablishmentofbindingGHGemissionregulations;

• Supportingdamsandirrigationinfrastructurewouldrequireintensivepolicyreformtofacilitateefficientwateruseandpricing.Itwouldalsobenefitbyprovidingtechnicaland financialcapacitytothenationalwaterfirmresponsiblefor theoperationandmaintenanceoftheinfrastructureat thefarmlevel.

Notes

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