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Carbon markets in Europe and Central Asia

Brief








FAO. 2025. Carbon markets in Europe and Central Asia – Brief. Budapest.


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    This publication has the objective of providing a comprehensive analysis of the key trends in greenhouse gas (GHG) emissions and vulnerability to climate change in the Europe and Central Asia (ECA) region, compiling the most relevant efforts and progress reported by countries in the implementation of mitigation and adaptation goals and measures in recent years. Considering the areas of the FAO mandate, this document aims to provide information with relevance for the agricultural, and land use, land-use change, and forestry (LULUCF) sectors as key contributors to country gross domestic product (GDP) and one of the most vulnerable areas of economic activity to the impacts of climate change. This policy analysis report consists of three main sections that consider the levels of economic development, as well as diverse geopolitical contexts, in the region. To reflect this diversity of country realities, the information is structured and presented by sub-regions, including the Caucasus, Central Asia, (European part of) the Commonwealth of the Independent States and Ukraine 2 (hereinafter referred to as CIS), EU27+UK, 3 European Free Trade Association (EFTA), and Southeastern Europe (SEE).
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    This publication provides a comprehensive analysis of mitigation and adaptation actions for agrifood systems in the nationally determined contributions (NDCs) of Europe and Central Asia, focusing on progress since the latest NDC Policy Analysis Report from the Food and Agriculture Organization of the United Nations (FAO) in 2021. As the third report in the FAO series “Policy analysis of nationally determined contributions in Europe and Central Asia,” it updates the region’s advancement toward climate commitments outlined in the NDCs. The report also shares information on national policies and legislative frameworks, aiming to support the revision and submission of updated NDCs anticipated in 2025.The report offers an update on GHG emissions for each country, spotlighting the highest-emitting categories within the agricultural sector. It highlights recent developments in national climate change mitigation (CCM) priorities, policies and legal frameworks, showcasing how countries are adapting to meet their commitments. It also thoroughly analyzes the integration of adaptation measures, especially those related to agriculture, into NDCs, and assesses the prioritization of adaptation in sectoral policies, the progress in developing NDCs, and the availability of climate finance to support these initiatives.The publication also assesses the countries’ existing national policies and strategies, Long-term Low Emission Development Strategies, National Adaptation Plans (NAPs) and other documents.In this report, the focus is on capturing efforts and progress made by countries in addressing the challenges posed by climate change in the context of agriculture and broader agrifood systems.
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    This report provides the latest updates on hunger, food insecurity and malnutrition in Europe and Central Asia, including the cost and affordability of healthy diets. It also explores the central theme of water security, highlighting its critical connections to agriculture, food security and nutrition.While the region has made progress in reducing hunger and food insecurity (SDG Target 2.1), challenges remain in eliminating all forms of malnutrition (SDG Target 2.2). Food insecurity and malnutrition persist in some countries, influenced by income levels, socioeconomic factors and climate risks. In 2023, global undernourishment remained at 9.1 percent, whereas the region has stayed below 2.5 percent since 2005, except in Central Asia (3 percent in 2023 and marginally higher in 2022). Food insecurity affected 11.5 percent of the population in 2023, well below the global average (28.9 percent).Many countries have reduced child stunting, wasting and low birthweight, but childhood overweight, anaemia in women aged 15–49, and adult obesity remain concerns. In 2022, 64.3 million people in the region couldn’t afford a healthy diet, though numbers have declined after the pandemic. At 16.3 percent, Central Asia had the highest unaffordability rate.Water security challenges – including scarcity, ageing infrastructure, pollution and weak governance – affect Central Asia, the Caucasus and the Western Balkans. Poor water, sanitation and hygiene infrastructure in some areas impacts nutrition and health. The report recommends improving water conservation and recycling and exploring the use of alternative sources such as desalination and groundwater. Strengthening transboundary cooperation and promoting sustainable water management are crucial. Reducing agriculture’s water footprint through efficient crop choices can enhance climate resilience and long-term water sustainability.

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