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 2020 amounted to US$11.6 billion.1Yara at a glance,” Yara. Archived August 26, 2021. Archive URL: https://archive.is/1UXEO  

According to its website, Yara claims to “pursue a strategy of sustainable value growth,” and to promote “climate-friendly crop nutrition and zero-emission energy solutions.”2This is Yara,” Yara, Archived November 23, 2021 Archive URL:  https://archive.ph/wip/udHsD 

The company also states that it is focused on “growing a climate positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.”3This is Yara,” Yara. Archived November 23, 2021. Archive URL:  https://archive.ph/wip/udHsD 

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 2020 Sustainability Report, Yara claims 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.12Yara 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.”13POLITICO Pro Morning Agri and Food: Flemish farm visit — Yara interview — Young farmers”, Politico Europe, September 3, 2021. Archived .pdf on file at DeSmog.

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.14Yara 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.”15Position 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.16Position 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.17Position paper on Organic Farming,” Yara. Archived 18 September 2021. Archive URL: https://archive.ph/wip/dPZ8K 

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.18EU Farm to Fork Strategy” European Commission, Archived on November 25, 2021, Archive URL: https://archive.ph/wip/d0SZD  19Kerstine 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.20How 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 September 2021, high methane gas prices in Europe led Yara to cut its production of ammonia by 40 percent.21Fertilisers in the EU,” European Commission, June 2019. Archived September 14, 2021. Archived .pdf on file at DeSmog. 22Yara 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.23Reducing 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.24“POLITICO Pro Morning Agri and Food: Flemish farm visit — Yara interview — Young farmers,” Politico Europe, September 3, 2021. Archived .pdf on file at DeSmog. 25Ammonia 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.26Roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara, June 2021. Archived October 15, 2021. Archived .pdf on file at DeSmog.

Green Ammonia

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.27Nick Cunningham. “Decoding the Hype Behind the Natural Gas Industry’s Hydrogen Push,DeSmog, January 14, 2021.

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.28Svein 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  29Anmar 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.30Ammonia emissions: Clean air, strong crops,” Yara, November 2017. Archived July 30, 2021. Archived .pdf on file at DeSmog. 31Roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara, June 2021. Archived October 15, 2021. Archived .pdf on file at DeSmog.

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.3228 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 

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.33Roadmap for putting Europe’s Farm to Fork Strategy into action,” Yara, June 2021, Archived .pdf on file at DeSmog. 34Jim 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.35Yara 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.36Spacetimelabs,” Spacetimelabs, Archive. Archived 18 September, 2021. Archive URL: https://archive.ph/wip/8V7fl  37Sentera,” Sentera, Archive. Archived 18 September, 2021. Archive URL:  https://archive.ph/wip/h1lhe 38Cloud 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.39Interview: Alex Bell on Yara’s Agoro Carbon Alliance,” World Agritech. Archived September 18, 2021. Archive URL: https://archive.ph/wip/C0mc1   40Boomitra – Carbon Removal Through Soil,” Boomitra. Archived July 21, 2021. Archive URL: https://archive.ph/wip/G8JrZ 41Jack 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.42ESG Investor,” Yara, December 7, 2020. Archived November 21, 2021. Archived .pdf on file at DeSmog. 43Daniel 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.44Sixth Assessment Report,” IPCC, 2021. Archived November 25, 2021. Archive URL: https://archive.ph/Fm5Lv 45A 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 46Natural 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 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.47When 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 48Kevin 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.”49Yara joins Biden’s climate coalition,” Yara, November 4, 2021. Archived November 23, 2021. Archive URL: https://archive.ph/wip/JDuSg 50Launching 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 
51I 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.52Yara’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 53Yara. “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.54Joint 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.

Lobbying

According to the EU Transparency Register, Yara spent between €300,000 – €399,999 on lobbying in 2019. Between June and July 2021, Yara held three meetings with EU commissioners and members of their cabinets in the European Commission. 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.55Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey 

In June 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.56Yara 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.57European 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.”58Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey

Affiliations

Yara is a member of Fertilizers Europe, a European trade group representing major fertilizer manufacturers and national fertilizer associations in the European Union.59Members,” Fertilizers Europe. Archived September 14, 2021. Archive URL: https://archive.md/ZPrax 

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, and 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.60List of Members Companies (ABM)Cefic November 2021. Archived .pdf at DeSmog. 61IFA,” 62Yara Belgium S.A.,” European Transparency Register. Archived August 9, 2021. Archive URL: https://archive.ph/zG7Ey 63International Fertilizer Association. Archived November 16, 2021. Archive URL: https://archive.ph/qrElW  64IFA Membership Flyer,” International Fertilizers Association (IFA). Archived .pdf on DeSmog

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.65New 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.”66European Clean Hydrogen Alliance Members,” European Commission. Archived .pdf on file at DeSmog. 67European Clean Hydrogen Alliance,” European Commission. Archived November 5, 2021. Archive URL: https://archive.ph/OKqQV 

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.68Food Systems Summit | United Nations,” United Nations. Archived November 26, 2021. Archive URL: https://archive.ph/wip/eQQaN 69Global 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.70AGORO CARBON ALLIANCE AS,” EU Transparency Register. Archived November, 27 2021. Archive URL: https://archive.ph/wip/bWbwt  71About IETA,” IETA. Archived November 23, 2021. Archive URL: https://archive.ph/wip/VXLOC

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