Towards carbon neutrality in the agri-food sector: Drivers and barriers

• Carbon neutral strategies can help companies implementing short terms solutions while developing long-term carbon reduction projects. • Drivers for agri-food companies are the possibility of saving costs and increasing profit. • Costs and related companies’ lack of resources and budget are at the same time one of the main barriers. • The most costly, time-consuming, and complex phase is developing internal offsetting/insetting projects. • Financial enabling factors are receiving free or subsidized certifications/verifications and accessing packages of technical assistance, especially for the supply-chain. Agri-food companies are developing carbon neutral strategies to set long-term targets to reduce carbon emissions while implementing short terms solutions to boost the transition towards a low-carbon agri-food sector. However, the uptake of the carbon neutrality process presents some limitations and difficulties. The paper analyzes the different aspects that characterize the carbon neutrality strategy in the agri-food sector also highlighting both drivers and shortcomings, specifically related to the sector. To better analyze companies' carbon neutrality approaches and to identify the costs of different approaches to carbon neutrality, this paper presents the results of semi-structured interviews with sustainability managers of agri-food companies and consultancy firms that are dealing specifically with the carbon neutrality process. Moreover, a survey was conducted to evaluate the interest of companies in receiving technical assistance, free or subsidized certifications/verifications, and favorable borrowing conditions. Results from this study show how major drivers for agri-food companies are the possibility of saving costs and increasing profit, external pressures, and the possibility of minimizing corporate risks. Moreover, costs related to the carbon neutrality process and companies’ lack of resources and budget has been found as one of the main barriers along with the lack of a strong and robust policy framework and carbon offsetting mistrust. Analyzing costs, time, and complexity of the different phases, the paper shows how the development of internal offsetting/insetting projects is the most complicated for companies, contrary to the acquisition of carbon neutral certifications and labels. Finally, from the survey, we found that financial enabling factors for companies are receiving free or subsidized certifications/verifications and accessing packages of technical assistance, especially for their supply-chain.