By Faridat Salifu
About two-thirds of global climate mitigation policies in agriculture, forestry, and other land use (AFOLU) sectors are driven by financial incentives such as subsidies, according to new data from the Organisation for Economic Co-operation and Development (OECD).
The finding is contained in the 2025 update of the OECD’s Policy Inventory for Mitigation Actions in the Agriculture, Forestry, and Other Land Use Sectors (PIMA-AFOLU), which tracks nearly 1,500 climate policies implemented across member and partner countries.
The report shows that governments continue to rely heavily on economic instruments — including subsidies, tax incentives, and trading systems — to promote sustainable practices and reduce greenhouse gas (GHG) emissions such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O).
Regulatory and other non-financial instruments, such as research and development (R&D) programmes, information-sharing initiatives, and voluntary agreements, account for the remaining one-third of mitigation measures.
According to the OECD, countries have adopted a wide range of policy tools aimed at curbing emissions while improving carbon sequestration in land use systems. Many of these measures indirectly contribute to mitigation through environmental co-benefits.
“For instance, policies that limit nitrogen concentration in waterbodies may also reduce the use of agricultural fertilisers near waterways, cutting nitrous oxide emissions,” the organisation explained.
The PIMA-AFOLU database covers OECD members, European Union countries, G20 economies, and emerging nations. Most of the tracked policies have been introduced within the past two decades, reflecting the growing urgency to align land-use practices with global climate targets.
By offering a comprehensive inventory of policy actions, the OECD says PIMA-AFOLU serves as a “knowledge-sharing platform” to help governments learn from each other’s experiences and strengthen climate action in agriculture, forestry, and related sectors.
