Good morning. Five years ago, our organization embarked on a journey to establish a new mission and vision. To me, that journey starts with asking ourselves the question, what is our purpose? Why do we exist as a company? By asking ourselves that question, involving a broad part of our organization and talking with external stakeholders, we concluded with a mission, which is to responsibly feed the world and protect the planet. It is that duality of growing more food, but at the same time, looking after the planet, which drives our organization every day. I believe that all of our 17,000 employees not only are able to state what our mission is, but to live that mission. Today, we are really excited to show you how we as an organization are taking significant steps towards a carbon neutral future.
First, let me set the scene by mentioning a few companies that are very familiar to all of you. Walmart just announced that they will become a regenerative company. Unilever has set an ambition to become carbon neutral by 2039, and Nestlé has made commitment to become net zero emissions. What do all of these companies have in common, and I could mention several more as well, while all of them work together with Yara to achieve these ambitions. All of them, including Yara, need to work according to Sustainable Development Goal Number 17, partnerships for the goals. We will only be able to achieve this if we think and work across the whole value chain, from farm to consumer.
Let me also take the broader view with the European Green Deal and the Farm to Fork Strategy embedded in that, the fact that 30% of the economic recovery plan is earmarked sustainable action. Let's look at Japan with their ambition for zero emissions. China and South Korea are doing the same. What about the U.S.? Well, the U.S. is rejoining the Paris Agreement. Food companies want to reduce carbon emissions, governments want more sustainable food, and consumers want to know how the food is produced so that they can make the right choices when they are in the supermarket. I believe that at the center of this is the farmer, and we need to think about the farmer as the guardian of the soil. Yara, through our farmer-centric approach, can help to enable this throughout the value chain.
This is what we are positioned to do, and this is the promise that we will deliver on. To be direct, if you believe that fertilizer is just a commodity and that Yara is just another commodity player, and that government regulation will not impact our industry, and that consumers don't care, well, then we will have a lot of news for you. We do hope that you will spend the next 2 hours with us to listen to our perspectives. If, on the other hand, you believe in the push to decarbonize food and you believe that the fertilizer industry will be impacted as a result of this, you have definitely come to the right place. I fully expect that you will find the next 2 hours to be both exciting and engaging.
Today, we will show you how we're broadening our core as a leading food solutions company with significant value-creating potential. We will show you how we are ready to lead the way as the ammonia champion in the hydrogen economy, and how we will drive sustainable performance, improving returns, reducing emissions while maintaining strong capital discipline. Our agenda today follows these main themes, and you will hear from two external speakers, Paul Polman and Richard Mayfield, as well as several members of my management team at Yara. All over the world, consumers, retailers, food companies, farmers, regulators, and governments are all driving towards a common goal, the goal of climate neutral food. The question is, how do we get there? Well, first of all, agriculture has a major role to play, representing about 20% of greenhouse gas emissions. Secondly, it's about making better use of the land.
About half of the emissions come from the change of land use. Getting farming right, we can reverse that. We can turn farmland back into nature, and through that abate emissions and also have a positive impact on biodiversity. Let's look at an example. Yara's products already contribute to lower the global carbon footprint of food. First, through more efficient operations, meaning that the emissions of our products are significantly lower than the global average. Second, our premium products are more efficient, meaning that they have lower emissions in the field. Finally, our products enable farmers to produce more food per hectare of land, and through that, preserve forests as natural carbon sinks and ultimately reverse land use change. At this point, I would like to introduce to you Paul Polman. One of the first people I reached out to after starting in Yara in 2015 was Paul at Unilever.
He wasn't necessarily the first one to embed sustainability into a company strategy, but no one had done it at his scale before. That I'm not only talking about the size of Unilever, I'm talking about the impact that he has had on all businesses worldwide. Doing well by doing good. In Paul's time in Unilever, the share price increased by 300%, while the London Stock Exchange increased by 130%. It is possible. Since then, we worked together on several initiatives. First, in the World Business Council for Sustainable Development, as commissioners in the Business and Sustainable Development Commission, and also from the private sector side in the Food and Land Use Coalition. Since retiring from Unilever, Paul Polman has dedicated his time to change industries.
Through his IMAGINE Collective, he has embarked on this with the philosophy that by collecting 20-30 CEOs across the value chain, you can create tipping points to change an entire industry. Let's listen to what Paul has to say.
Well, hello, everybody. I'm Paul Polman, the former CEO of Unilever and now the co-founder of IMAGINE. I'd like to thank you for the opportunity, above all, to address you today. Yara's 115-year-old history speaks to its values and culture that I believe drives the right behavior. After all, few companies are built to last. Yara is. It also speaks to its ability to be agile and adapt and change over the years to the changing demands of the marketplace and society. Now, probably undergoing the fastest transformation as a company, moving from a pure commodity producer to becoming a crop nutrition solutions provider, a change that positions it well for the future, I believe, in light of the fast-changing external environment. In fact, Yara is not only adapting, I believe it's actually actively shaping that internal environment, which makes it a very appealing thing to me.
To combat the global challenges that we have, like climate change and poverty, we need to change the way we feed ourselves. That's what I'm focused on currently. I have a long connection with Yara, actually, over the years as a vital part of an industry collective, which is trying to address the current challenges. I believe that Yara has always worked to be a responsible social citizen and is well-regarded across the industry. Perhaps the Norwegian mentality might have something to do with it here. I have observed Yara for a long time.
First, when leading the Food Security Task Force for the G20 in Los Cabos way back in 2012, also over the years through the various initiatives with the World Economic Forum, such as the New Vision for Agriculture, working with the World Food Programme, and lately, the Food and Land Use Coalition, which Yara helped to kickstart. Especially the Food and Land Use Coalition, which brings together all the major organizations in food to get to healthier, more sustainable and equitable food systems that can feed the world's population, is a key driver, I believe, behind the upcoming food summits, but also the policy thinking that we see now in many parts of the world. I'd like to thank Yara for its leading role that it plays in this Food and Land Use Coalition. I don't pretend to be an expert on Yara, nor am I.
However, after stepping down from Unilever, I decided that my new foundation, IMAGINE, had to focus on the bigger transformations that the world now needs, especially when it gets to climate change and inequality. I want to focus on where I can have the biggest impact in my short life to ensure that we have a better future of all and that we stay within the planetary boundaries. The reason I'm taking 15 minutes of your time is because I believe that Yara holds a bigger part of the solution, and they are playing a very proactive part in the food collective that we've brought together with IMAGINE to exactly drive these systems changes. We all know that COVID has been a great refuter. GDP has declined by an estimated 4%- 4.5%.
100 million more people have been pushed back into poverty, and 500 million equivalent jobs have been lost. Once more, it is the poor and the disadvantaged, the women and the girls that again pay a disproportionate price. I believe we've set ourselves back about 10- 15 years on the sustainable development agenda. Undoubtedly, there are many lessons in COVID, but let me just mention a few. The first one is that we cannot have healthy people on an unhealthy planet. The relationships between biodiversity, climate change, human health, economy, and social inequality are now much better understood. The second learning, perhaps, and a positive one, is that we've also seen a rapid awareness of the power of ESG, environmental, social, and governance, of running your businesses on a longer-term multi-stakeholder platform. That's now more important than ever, but also increasingly understood as being more profitable.
Not surprising that despite the crisis, we have seen a further explosion of ESG funds across the world. The opportunities to design right as we come out of this crisis are enormous, and we're seeing that already starting to reflect in valuations of companies that are well-positioned as solutions providers for the future. From green energy to green infrastructure, to electrifying mobility, to driving more sustainable food systems, if you are providing solutions that respond to that, I believe you are well-placed. Companies that understand the power of long-term multi-stakeholder focus, putting purpose at the core, seem to be doing better. Purpose defined as to profitably address the issues of people and planet. The market now increasingly selects companies that are environmentally friendly or socially minded, realizing also that companies that impose negative externalities or others are simply poor investments.
I think the final learning is that we can react fast, especially when we deal with existential threats. Although many are rising to the challenge, and Yara certainly does, business cannot do it all alone. New partnerships will equally be key, partnerships that Yara is used to. Above all, we also need governments. We need, at the end of the day, governments to put the right rules, laws, and regulations in place to get us there and pivot the markets in total. I'm positive because we're starting to see it happen on climate change and slowly in other areas as well. Increasingly, governments are putting net zero commitments in place, and broader coalitions are formed to achieve this. Together with inequality, climate change is definitely one of our most burning issues. We now clearly understand that climate change cannot be solved without attacking our food system.
Currently, about 20% of the problems and potentially 30% of the solution to climate change lie in the food system, and the system is broken despite numerous efforts to fix it. Climate change, inequality, poverty, lack of health, food waste, stunting, deforestation are all hallmarks of a broken food system. Now we've learned that nature provides about $125 trillion of services to the planet, if you want to, in nature-based services. According to the World Economic Forum, about $44 trillion in economic value generation is moderately or highly exposed to nature loss. Addressing the nature crisis is not only one of the biggest business opportunities as a result of this, but also is likely to create 400 million new jobs at a time, as you agree with me, that we need it most. Companies that understand this once more do well. The ones that don't are at risk.
I believe that Yara is at the intersection of the food system's transformation and well-placed to capitalize on these fast-changing trends. It requires, like other companies, to continuously pivot itself and its business model. Many might still see Yara as the old agro chemical company from the past, but I believe that's grossly outdated as a perception and is changing fast as the company is changing fast. Just as Unilever saw itself pivot to a hygiene and personal care company with dominant footprint in the emerging markets, so can Yara pivot itself to become the crop nutrition solution provider for a healthier and more sustainable world. From what I have seen in working with all the industry players, Yara has been one of the most progressive ag efficiency and sustainability strategies that they've put in place versus its competitive set.
Its competitive set, obviously, are many of the smaller local players. I believe that global players like Yara integrated all the way from plant to farmer and globally playing are certainly well-positioned. As the big food companies are changing rapidly, they indeed will be looking for global solutions with intimate local knowledge. Leading companies understand increasingly that you don't have to compromise anymore between profits and purpose. Increasingly, they understand that economic growth can only be successful long term if sustainable. They understand that thriving to become a net positive company in its total global footprint and working a broader transformational change of society at the same time is actually the best way for long-term shareholder value creation. Profits through purpose if you want. Especially with the food revolution starting to happen, companies doing well will not only succeed but prosper.
Not different from what we see in other areas, like mobility with Tesla or energy with Ørsted. Yara over time is well-positioned once more as food and solutions company rather than agrochemical, and has started that trajectory already. The transformation globally is happening. CEOs of the 20 biggest companies have recently come together across the food value chain to commit to drive these systemic changes, and markets, as a result, are moving rapidly. Perhaps at the scale, I would say, of the Industrial Revolution, but undoubtedly at the speed of the technological revolution. Collectively, these incredible leaders have already committed to putting an open data exchange in place, helping Europe accelerate the Green Deal and the Farm to Fork packages. Yes, restoring soil health and farmer income by moving to regenerative agriculture. Huge opportunities in all of them where Yara will have to play a leading role.
From my discussions with the Yara board, it is clear that there is an alignment on what needs to be done, and that all energy now needs to go in how we are going to do this. Undoubtedly, the global focus on solving climate change will be an accelerator, but not the only one. The world is moving fast. Consumers are asking for it. Countries are starting to move with serious commitments, I believe the financial markets equally, the Task Force on Climate-related Financial Disclosures, just being one example. The smart companies are responding, seeing the enormous opportunities that are there. Over 1,000 have signed up to science-based targets, de facto committing themselves to stay below one and a half degrees by 2050. Many announce carbon labeling on their products. Others are building nature-based solutions into their overall strategies.
Increasingly, more importantly, commitments are made for across the value chain, not only in Scope 1 and 2 of what is under direct control. There are still companies that think that they can outsource their value chain, and by doing so, outsource their responsibilities as well. The leading companies understand that that is not anymore the case. They have to take responsibility across the total value chain. With the European Green Deal, the Farm to Fork Strategy, the collectives we've put together in food that we talked about, the many climate commitments that are made across the world, and the biodiversity that is getting higher on the agenda, including in the U.S. with the new administration, I think we are going to see a revolution at a speed that we've never seen before.
Interestingly, the solutions that we need to respond to the challenges are well within reach, and well within reach, certainly, of Yara, who holds the key to most of them. We've seen disruptions of our energy systems with hydrogen, wind, and solar, we will also see the same disruptions now in our food supply. Yara can easily adjust their climate change footprint by moving their energy supply to green energy, which I believe on the total system approach will soon be cheaper than the conventional methods currently being used. It will also play a leading role in carbon farming, which will change the livelihoods of smallholder farmers and restore the soil health. It will change pricing dynamics. It will move from yield to farmers, which is the current measure, to more holistic impact measures around livelihoods.
To attack poverty, we indeed need more income stream to go to the smallholder farmers without short-circuiting the citizens or consumers on the other end of the value chain. I believe it can be done. We can fund all what needs to be done by the hidden cost of our current food system, reaping the benefits of increasing yield, reducing food waste, getting rid of perverse subsidies that are still around, and developing a carbon market to create healthier soils and farmer income. Yara is leading many of these efforts and is increasingly being seen as a friend of the farmers. With 80% of investments already in green and 40% of its revenue already being there, I think Yara itself is well on its way. We've talked a lot about the silver linings of this broader crisis for the world.
COVID has been a real trigger of change, not only reshaping businesses, but also drawing attention to sustainability, both on the human and on the climate side, among other critical societal topics that require more action. I believe once more that this is an exciting moment, a moment of opportunity, a moment of right design, and a moment for companies to accelerate and increase their contributions to create the more sustainable, equitable world that we all aspire to.
Yes, ultimately, also a more profitable world for the shareholders that understand this. I thank you for your attention. I wish you lots of success with the rest of the conference, and above all, a prosperous and hopefully healthier and safer 2021. Thanks for your attention.
Thank you so much, Paul. As he pointed out, there is a massive environmental and societal improvement potential in addressing the key aspects of agriculture. With efficient and knowledge-based agriculture, we can grow more on the same area of land, and thereby reducing the negative impacts of agriculture through pollution, emissions, and harm to wildlife. Al Gore once said that the most efficient technology for carbon capture and storage is already invented. It's called a tree, and when you put several of those together, it's a forest. Returning land to nature could be an extremely powerful tool to combat climate change.
If we could restore 40% of cropland, that would equate to 88 Gt of reduced and abated emissions. That's one and a half year of the global emissions. Agriculture can also be a very strong tool to reduce poverty. If we could improve the livelihoods of the rural poor that live off the land, this would add $800 billion to the world economy. It's very clear that none of us can do this as individual companies. We have to do this together through collaboration throughout the whole value chain. Retail has a very important role to play. I thought, why not talk with the biggest of them all? Walmart is the biggest retailer in the world, and with $500 billion in annual turnover, they have changed and are changing industries just by their purchasing power.
When you combine that with sustainability leadership, it becomes a massive force for positive change. That means that with the commitment from Walmart, they need and will have an opinion on what happens at the field or the farmer. Some days ago, I sat down with Richard Mayfield of Walmart to make sure that I understood that right. Thank you so much for joining us here. I wanted to ask you a few questions.
At the sustainability challenge and the drive towards climate neutral food as the single most important issue for agriculture sector in the years ahead. I wanted to ask you, what does sustainability challenge look like for the world's biggest retailer?
Yeah. Svein, firstly, thanks for inviting me. I think I'd start by saying that the evidence is really clear that we're at a moment, all I'd say, is climate crisis. Whether you look at the impact of wildfires that are still going on, a record hurricane season, the species loss is now 60% over the last 40 years on deforestation in Amazon. It's very clear that we've not just got to act aggressively, but we've got to act quickly if we're going to reverse that change. As food retailers, our customers rely on us to continue to produce affordable, sustainable food, and that's going to become impossible if we don't change our practices. With that in mind, you may have seen in September during Climate Week, our CEO, Doug McMillon, announced some pretty big changes in our own sustainability agenda.
Those changes really summed up to changing our company to becoming a regenerative business. There were two new goals that we set that I think are important to mention. The first one is that we are setting a goal to achieve zero emissions across our global operations by 2040. The other really big new one for us was a nature goal, which looks at protecting, managing and restoring 50 million acres of land and 1 million sq mi of ocean by 2030. I think that mindset, that shift to a regenerative company is probably the biggest change, and that focus on nature and regeneration that goes with it.
How would you say, or how important is agriculture and the food sector in your work to reduce emissions?
Yeah, it's huge. Obviously, food is a very big part of our business. If you look at the sector, agriculture and food as a whole, it represents roughly a quarter of greenhouse gas emissions globally. It's about the same as the energy sector, it's big. From our perspective, our biggest impact on the environment is through our supply chain. Probably the biggest initiative we have is Project Gigaton, which works with our suppliers to remove a gigaton of greenhouse gas emissions by 2030, that's through sustainable practices in areas like energy, packaging, waste, but also agriculture and forestry. Through the research we've done, we believe that with a few areas like optimizing fertilizers, feed inputs in both animal and crop agriculture, we've got an opportunity to save about 300 million metric tons, it's huge. We're starting to see some changes.
Kellogg is one example, has just announced a goal that by 2025 they're going to support 500,000 farmers in shifting to climate smart agriculture. I think this is the one that's getting started. The focus historically has been on energy, but we're just starting to see some momentum get started on agriculture and food, and the opportunity is big, and it's critical that we drive change there.
This is truly inspiring and really ambitious as well. I see that you're going really deep in the value chain, Richard. To what role does collaboration across the value chain play in order to achieve all this?
Yeah, look, our view is, as I know, consistent with yours, Svein, that we're not going to achieve this without collaboration. I think that's both because of the scale of change we've got to drive and the speed we've got to drive it at, because the food chain is complex. We're going to have to drive changes with governments, NGOs, large companies, farmers, and consumers working together. Just as a couple of examples, I mentioned Gigaton. In the first three years, we've already saved 230 million metric tons. The number of suppliers I mentioned recently has changed. It's now roughly 3,000 suppliers across more than 50 countries working together. We're already on track, on a linear track to achieve the goal. We thought it would be much slower than that.
You know the IMAGINE Collective, we're working together, Yara, ourselves, other retailers, Unilever, Nestlé, other big companies working together to drive changes to achieve climate positive agriculture. That's another big group. The only other one I'd mention is actually some smaller scale things. We do a lot of work in local place-based agriculture projects. One example would be in Malaysia, in Sabah, where we're working with Unilever and Nestlé to drive changes in palm oil production to stop deforestation. There's lots of good schemes like that we're also working on. Collaboration is absolutely fundamental if we're going to drive this change fast enough.
Couldn't agree more. Richard, one of my greatest ambitions for the food sector is that we can make carbon footprint measurements and labeling of products happen, creating stronger incentives for farmers, producers, and through the value chain, all the way to consumers to truly promote and reward resource and environmental efficiency. How do you rate our chance for success? Is it even achievable in your point of view?
Yeah, look, I share your ambition and I share your optimism. I think it's going to be a complex change. Just to give a couple of thoughts. If you look at the U.S., between 2013 and 2018, roughly half of the growth in consumer packaged goods sales came from sustainably marketed products. We know that consumers are increasingly interested in demanding quality, sustainably produced products rather than just focusing on price. We know the opportunity is there. We do a lot of work with our suppliers to drive standards up and to drive them to achieve certifications to communicate to customers. Whether that's things like the Roundtable on Sustainable Palm Oil, Forest Stewardship Council. There's a number of those certifications.
What we're going to need to do, and I know how much work you're doing on this, Svein, we're going to need to get governments together and companies together to define common standards. There's a lot of work to do around data gathering, because we need all of those things to be in place to put on standard labeling so that customers can easily understand the messages we tell them. I do think the opportunities are. I'll just give one example. We recently did a test in our U.S. stores around seafood, so fresh seafood, and it was just around signage communicating the benefits of sustainable quality produced seafood. In that test, we saw a 25% increase in sales in the stores that had that test against the ones that didn't. We know the opportunity is there.
There's just a lot of groundwork that's got to be done. I share the ambition, and I'm really optimistic that we can do it.
That's great. You touched on something really important in my view, and that's standards, so that we do this in a way that supports the farmers as well and doesn't create additional complexities. Obviously with the strong position of Walmart and what you're doing, that's really key. Richard, thank you so much for joining. Thank you for your leadership and thanks to Walmart for showing all of us the way forward and inspiring the further work in this area. Thank you.
Thanks, Svein. Thanks for your leadership. I know how much work you're doing in all of this, and particularly that last one, I know how much effort you're putting into getting those data standards in place, and I'm delighted to just be part of anything we can achieve on those fronts. Thank you for having us.
Great. Thank you. As you can see, we are collaborating across the whole food chain to accelerate change and improvement, moving towards a climate neutral future. In Yara, we are broadening our core to play an even stronger role in this transformation as a leading food solutions company. By enabling a hydrogen economy, we are contributing to the decarbonization of agriculture, food systems, and other sectors as well. We will leverage our competitive edges to achieve this. Our people, our knowledge, our connection to farm, and our global footprint. Let's now move to hear more about how we are broadening our core, and I will hand over to our EVP, Americas, Chrystel Monthean.
I'm Chrystel Monthean, EVP Americas since October 1st, based in Colombia. Prior to moving to Colombia two years and a half ago, I was working at our headquarters in Oslo as value chain director, contributing to moving our company from being a producer to a solution provider. Our evolution began 115 years ago with innovative nitrogen production and nitric-based products, which quickly became valuable exports, allowing us to grow into the global company we are today. Along the way, we have built a number of plants and acquired a number of companies, giving us the most comprehensive crop nutrition product portfolio of any global player, also developed the world's leading crop nutrition marketing and distribution business with a strong focus on agronomy and science, using our product and knowledge to provide farmer-centric solutions.
Farmer-centric because we've learned along the way that crop have needs, but farmers may have others, in particular, financial one. We have worked to find the best compromise between both, but always with the objective to move farmers' practices towards efficient ones in order to deliver through them and with them on the first part of our mission to responsibly feed the world. Our next step in our evolution have been about strengthening the environmental element into our offering and recommendations at farm in order to deliver on the second part of our mission to protect the planet. Very often, the environmental element was already there in our offerings, but neither expressed nor valued as the world had not put climate change at the top of the agenda. Working on the environmental sustainability of food production is a natural next step for us.
Naturally, this has led us to embark on discussions with food value chain, from local off-takers to well-known global brands. The drive for climate-neutral food is not just a vision for the future. It's happening right now as a response from companies to the Paris Agreement. In my everyday work, I see growing focus on productivity, produce more on the same land, traceability, product quality, environmental footprint from food chain companies. I see more and more companies in the value chain recognizing the true price of crops. This means awareness about externalities in food production is growing. While awareness is growing, it's still sometimes challenging to make farmers change their practices towards improved ones, as they do not always have immediate incentive to do so. This is a key challenge we are working on at Yara right now.
The increased focus on sustainability, in particular, the environmental sustainability one from consumers, food companies, and authorities everywhere, adds momentum to this work. We are confident we will get there. I really hope you share my views, and I would say passion on those matters. Beyond being my job, working along those lines gives a purpose to what I do and what we do as a company. Not only are we contributing to feeding the world, but we are also tackling a major threat to our planet together with key partners who share the same ambitions. All this while keeping farmers, big or small, professional or survivors, at the center of what we do. Thank you. I leave the screen to Terje Knutsen.
As Chrystel just highlighted, Yara has already been through a substantial transformation from being a Europe-centric producer of nutrients to becoming a company with a global reach, aiming to solve problems at farm with our crop nutrition solutions. As part of the regionalization that the company went through earlier this year, we established farming solutions to support the regions in the next phase of transformation. We are addressing both the downside risk, we are obviously focusing more on the opportunities that the new technological shifts and other trends present to us. I will now present some examples of what this next phase will entail before we dive into one more specific example, which we are particularly excited about. In short, we see the transformation along three dimensions.
Firstly, we seek to innovate and transform our business models to ensure that we capture a bigger portion of the value that we bring to farm. While we continue to produce and deliver high-quality nutrients, we will develop models where the nutrients and the knowledge is monetized through an outcome, or if you like, yield-based model, instead of through the physical products as we do today. We will, in 2021, run pilots targeting specific crops and specific markets, and we have an ambition to shift a meaningful part of our revenue onto new models. Going forward, we will quantitatively report on our ability to convert existing business into such new markets. Secondly, we will transform and expand our offering beyond the physical fertilizer products. Digital subscription revenues is an example of this. Another example, which we believe strongly in, is to generate carbon credits at farm.
Such credits can then be sold to buyers that need to offset their own emissions. I will, in a minute, come back to this specific opportunity. A third example of expanding our offering is within the field of organic and organo-mineral fertilizers, which are products that we, to a very limited extent, have in our portfolio today. This will be core in Europe in 2021 and onwards. Thirdly, we will drive the channel disruption and go more direct to farmer, and thereby shorten the channel. The channel transformation is also key to enable us realizing the transformation of the business models. For instance, in the case of carbon credits at farm, it is important that we have the transformation in place. We see, for instance, Brazil as a key market for channel transformation. Our transformation agenda is ambitious.
On the one hand, we will shift revenue from the existing business to new business models and channels. This, we will believe, will touch as much as $4 billion of our present revenues. On top of that, we have the target to create new business generating about $1.7 billion coming from new offerings and new geographies. Combined, we have the ambition to generate additional earnings in the magnitude of $300 million-$600 million by 2025. Let me now explain a bit more in depth the business opportunity by decarbonizing at farm. For centuries, farmers have been making a real difference by providing food to all of us. Going forward, every farmer has the opportunity to also make a considerable difference in climate action by decarbonizing their farms, and thereby addressing as much as 20% or more of the global carbon emissions.
We see clear opportunities to significantly contribute to a sustainable agriculture, while at the same time, we build a business not only for Yara, but definitely also for the farmers. The ambition is to generate 1 million credits within the next two- three years. I will now walk through what we are working on and how we want to progress with this initiative. Our new business will holistically address decarbonization at farm level, which comprises both emission reductions as well as carbon sequestration. The decarbonization benefits can then be converted into value, either through carbon credits, but also through certified low carbon harvests that will enable a low carbon food through the value chain. Both of these avenues will create value for the farmer.
We believe that Yara is uniquely- positioned to succeed with this new initiative, as we have a very trusted relationship with millions of farmers across the 65 countries in which we operate, also because we have the digital farming platform where we presently are connected with more than five million farmers. We have unmatched knowledge and also an ambitious innovation agenda in optimizing crop nutrition for carbon, which gives a unique position in emission reductions. We can, for instance, directly address 70% of farm emission in corn. We have already started to build our capabilities and onboard farmers in the U.S., U.S. obviously being one of the largest agricultural markets. We expect to have the first credits generated already in 2021.
Farmers that are connected will get paid to adopt a set of soil carbon sequestration practices, and that will then be backed by precision farming technology. Credits generated will be sold by Yara to buyers, and we are currently working to identify and contract with those buyers. In parallel with running the pilot in the U.S., we are preparing a fast scale-up and globalization already in 2021. For the scale-up phase, and to achieve our high sustainability and business ambition, we are launching our global carbon business under a new brand, the Agoro Carbon Alliance, with the ambition to build a highly scalable business and a climate positive future. Building on Yara's strengths, we are actively inviting global and local partners to jointly build the business together with us.
Innovation is absolutely key in order to succeed to decarbonize farms worldwide, and we would like to accelerate the innovation and bring game-changing ideas to farms quickly. The Agoro Carbon Alliance team, jointly with Radicle, will therefore launch an innovation challenge in January 2021. We invite startups to join us in the journey towards a climate positive future. With that, I have finished the first part of my presentation, and I would then like to introduce Tove Andersen, EVP for Europe, who will present how we work on broadening our core in our regional segments, as well as how we work with operational improvements. Thank you.
Thank you, Terje. The transformation that Terje has just told you about will be driven by Yara Farming Solutions, in close collaborations with the regions, because the regions will be responsible for commercializing the new offerings, while the region also have the role to maintain and safeguard existing business. That's why the regions have both operational and transformational focus areas as shown here. In Europe, we have just finished now a process to update our strategy, where we focus on balancing the Farming Solutions transformation with operational excellence. Within Farming Solutions, our focus area is to launch climate-smart solutions for our key crops. These will typically be solutions with a mix of physical products and digital tools, all founded upon our agronomic expertise. We will also accelerate our growth of high-value products with a focus on micronutrients and fertigation.
Within operational excellence, we will build upon our productivity system and focus on how to get value out of the new regional setup. That means really working at optimizing the whole value chain, and we will have a special focus on our existing nitrate business in Europe, on how we can improve that through both commercial and operational levers. Let me now give you some more insights into how we drive operational excellence in Yara. On our Capital Markets Day in 2019, we extended the Yara Improvement Program. We increased the scope, and we increased the ambition level. The key elements of the improvement program is to improve reliability and efficiency at our production plants and reduce our fixed cost base. It's all founded upon our productivity system and driving a culture of continuous improvement.
Illustrated here is our current performance. If you look at the production performance, both on ammonia and finished products, we are not satisfied. We have had too many issues at several of our plants. In 2019, our focus have, of course, been to maintain operations through the COVID-19 crisis, and I'm truly impressed by our production plants, how they have managed to do that, because we have not had any significant outages due to the pandemic. The performance issues we've had the last several months are due to other reasons. However, the good thing is that the last month we have been able to turn the trend, and we have seen significant improvements. We have shown that here by using the October production figure and how our annual production would have been if we were able to replicate October for the next 12 months.
It shows that we know already how to take a new step in our operational performance. If you look at our energy efficiency, we have consistently improved that as well and reduced it. If you look at the fixed cost element of the Yara Improvement Program. We are on target. In total, we have so far delivered $500 million in EBITDA improvement from the program. Also, as you see from the targets here for 2023, there is still a significant potential. The good thing is that we know how to achieve those targets. We know how and what we need to do to improve our operational performance. Let me give you a couple of examples to illustrate this. Belle Plaine, that is our ammonia and urea plant in Canada, they had a long history of technical issues, downtime, or the turnaround had significant overruns.
By implementing the Yara productivity system, and not only focusing on the tools, but also on the people, the competence, and the culture, they have really been able to turn that site around. That site is now really a role model in Yara on productivity. The financial results that they have achieved is impressive. They have now achieved an annual recurring improvement of $55 million. Their maintenance costs have been reduced with 40%. Also on safety, they've had a very good improvement, and they've not had a recordable injury the last 500 days. Another example is Tringen, our ammonia site in Trinidad. Tringen struggled with several trips, recurring issues, and significant production losses. Last year when we were implementing or wanted to pilot our reliability improvement program, we decided to pick Tringen as the pilot.
We had a central team working with the local team, really looking at the issues that they've had, finding the true root causes, and implementing mitigating actions. The results we have seen are very promising. Their OEE, so equipment efficiency, has gone from mid-80s to now being at 92%. If you look at their performance in 2020, their losses of production has been more than half compared to the last five years. As I said, we know what it takes to improve the performance on our sites. The focus now for next year is really about accelerate the implementation of our productivity system and our reliability improvement program. As a part of that acceleration, we want to include also and integrate also digital applications. A couple of years ago, we decided to step up our efforts in digital production.
So far, we have developed seven applications, or deployed seven applications. We have more than 15 in the pipeline. 18 of our production plants have deployed one or more of these solutions. To give you some insights into what type of applications we are talking about. First of all, I want to talk about the Golden Batch. This is an application that we have deployed at our NPK plants in Finland, Uusikaupunki. At an NPK plant, you produce many different grades. The different grades need different parameters, different set points to have optimal production. It's quite complicated or difficult for an operator to really know what is the optimal settings. The Golden Batch is an assistant to the operator, giving advice based on weather data, based on raw material data, and based on technical data on how the set point should be for optimal production.
As a result, you will get additional volume. This is a tool that is easy to scale also to other NPK plants, and it represents a value potential between $3 million and $7 million annually. Another tool is the Energy Load Curve that we have rolled out to many of our ammonia plants. Natural gas is a key raw material and a key cost when you produce ammonia. Small improvements on energy efficiency has a significant impact on the cost base. The Energy Load Curve display in real time, the energy efficiency, and it gives advice to the operator about what changes she should do to really optimize production. By that, reducing the cost and reducing the CO2 footprint. These are a couple of examples on applications that we are deploying as part of our digital program, and there are many, many more out there.
They do represent a significant value potential also beyond what we have put into the current improvement program. That concludes my part of the presentation. We will now enter into a short break. After that, Terje Knutsen will be back, and he will then talk about what role Yara will play in enabling a hydrogen economy. Thank you.
[Break]
Thank you, Tove. As mentioned previously by Svein Tore, we are broadening our business model, not only focusing on food solutions, but also enabling the hydrogen economy. The hydrogen economy is coming at scale, and we believe that ammonia will play a crucial role in enabling the hydrogen economy across a broad range of industries and applications. We see evidence that the hydrogen economy is developing faster than previously anticipated. Decarbonization has reached a point of no return, and clean hydrogen is now strongly positioned to lead the energy transition. Ammonia is the most promising hydrogen energy carrier, even better than hydrogen itself. Ammonia is easier to transport and has a higher energy density than liquid hydrogen. Also important to mention is that there already is a global infrastructure in place based on existing and mature production and storage technologies.
Furthermore, existing ammonia production can be scaled based on renewable electricity and clean hydrogen. We believe that the shipping fuel market will be amongst the first to reach scale in the green ammonia market. This belief is based on IMO's greenhouse gas targets to reduce carbon intensity, as well as the current trajectory for engine developments, which could put ammonia into conventional marine engines by 2023. We see emerging and realistic economics in the medium term for ammonia-based clean hydrogen, and expect that public co-funding will be in place to support first movers in the transition period. Time to act is now. Value chains are developing, and we want to take a leading position in hydrogen economy through our ammonia capabilities. We believe that both blue and green ammonia will facilitate decarbonization of several industries.
Low-carbon blue ammonia based on carbon capture and storage is expected to play an important role in the transition phase, particularly for those existing plants having access to carbon storage. However, green ammonia based on renewable energy and electrolysis will be the ultimate end game, and we, as Yara, want to take a strong position. Although our core markets today are fertilizer and industrial applications of ammonia, we expect ammonia-based clean hydrogen to go beyond today's ammonia applications. Ammonia as a shipping fuel and energy source represent potential end-use applications that could reach significant scale over the next decade and a half. We want to take a leading position in developing these markets. We believe that there will be value to be captured as well as clear synergies with our existing fertilizer business.
Simply as scale in shipping fuel and power markets would facilitate the rollout of green ammonia for green fertilizers as well. Simply said, ammonia's chemical properties mean it can play a key role in the hydrogen economy. It does not need to be cooled to extreme temperatures to be stored and has a higher energy density than liquid hydrogen, meaning it is more efficient to transport and store. As a shipping fuel, it is the most promising zero carbon alternative. This is increasingly acknowledged by major players in the shipping and energy industries, and also by the scientific community. Yara has a unique starting point to capture value as the ammonia champion. We are a major ammonia producer with leading operational knowhow. Our ammonia production spans the globe with production plants in Europe, in Australia, and in the Americas.
Our history and track record confirms our ability to provide a stable and reliable supply of ammonia. This can be illustrated by Sluiskil Unit D, which currently holds the world record for the longest continuous run and most consecutive days of production for any ammonia plant in the world. Furthermore, we are the only global trader backed by its own supply system. We have greater than 20% market share of global ammonia trade. With export plants around the world to supply ammonia, including four fully owned ammonia export plants in Europe. We are also able to optimize logistics to save costs by balancing imports and exports across our supply network. Finally, we have an established and growing global fleet with marine ammonia terminals and storage facilities located close to important bunkering hubs around the world.
In essence, we are already ready to start serving the shipping and other industries right away. In addition to our ammonia supply network, we are actively working on bringing green ammonia to the market. We have three ongoing pilot projects enabling us to gain valuable knowledge and experience. These pilots represents a diverse portfolio. It ranges from project at our ammonia facility in Pilbara, Australia, which we do in collaboration with the French ENGIE, and where we are piloting carbon neutral ammonia based on solar power. In Sluiskil, Holland, we are partnering with the Danish Ørsted to provide up to 70 kt of green ammonia based on offshore wind power. Finally, in Porsgrunn, Norway, we are having a pilot, a 5 MW production in collaboration with Nel, which represents the first electrolyzer project of industrial scale with system integration into existing ammonia plant and power grid.
We are presently tendering a 20 MW extension of that pilot. Although the pilots provide us with valuable learning, it is clear that the world needs full-scale green ammonia plants to reach the decarbonization targets that have been set. We want to be able to provide major clients as food companies, shipping players, and industrial producers, large quantities of green ammonia to enable them to lower their carbon footprints at scale. That is why we are evaluating a world-scale project in Porsgrunn, Norway. We believe that Porsgrunn is an attractive site to start on, as the location requires relatively limited infrastructure investments compared to other sites. It is located on a deep sea coastal location, which enables export of green products and which can enable physical delivery on top of future ammonia certification systems.
Furthermore, it is possible to ensure 100% utilization of the hydrogen electrolyzers through renewable power supply from the Norwegian grid, resulting in emission savings of roughly 800,000 tons CO2 per year. This project is only possible with the right partnerships and public funding in place. The cost of green ammonia is estimated to be 2x- 4x that of conventional production, even if we have a world-scale plant. We therefore invite the Norwegian government to develop funding mechanisms and regulations to support projects such as this. This project would enable Norway to reach its Paris Agreement commitments. We rely on strong partnerships to make this a reality and will actively explore this in order to successfully electrify Porsgrunn ammonia production and help pave the way for green ammonia at scale in the clean hydrogen economy.
In summary, Yara is ready to lead the way and be the ammonia champion in the hydrogen economy. We will commercialize and drive business development in the green ammonia space to deliver value. This includes building on our global leadership in ammonia trading, distribution, and storage, delivering our pilot projects to build knowledge to support market development and evaluate partnerships, structures to enable quick scaling while maintaining strong capital discipline. Through these focused efforts, we will make Yara the undisputed ammonia champion, enabling the hydrogen economy. With this, I now hand over to our CFO, Lars Røsæg. Thank you.
Standing here today, we are representing an organization of 17,000 people, and if there's one thing that we all have in common, it's a fantastic desire to perform and to transparently share how we are performing and how we can further improve.
Today, we are presenting our approach to sustainable performance. It is based on our belief that shareholder value creation is higher when we are able to align all aspects of performance towards the people dimension, towards the planet dimension, and towards the prosperity and profit dimension. We do that on the back of a track record of improved performance, with improving sales of premium products, reaching more farmers, turning our cash flow generation around, and not the least, demonstrating commitment to our capital allocation policy and to capital discipline through improved cash flow, improved TSR, and strict focus on our CapEx. It leaves us very comfortable with the potential in our broadened business model. It leaves us with a lot of value to capture. I'd also like to make one additional point on Yara's resilience to market dynamics.
In this slide, we've taken the baseline, and we've added, for illustration purposes, a high case and a low case.
This picture shows the resilience to market prices on gas and urea compared to our base case, i.e., that's before even taking into consideration any of the value pockets that I described on the previous slide. What we see here is that even in a less favorable scenario, here illustrated by the low case, the current Q3 baseline would still generate an EBITDA in the range of $1.3 billion-$1.5 billion. In the high case, as illustrated here, an EBITDA from the baseline and the market dynamics alone north of $3 billion. Let me talk a bit about our journey when it comes to greenhouse gas emissions. Let me be clear, even though we've made significant improvements over the past decade and more, we still have a long way to go to climate neutrality.
We are leading in our industry when it comes to reducing emissions through catalyst technology and our energy efficiency measures. We are well on track to meet EU's target of reducing emissions by 55% compared to 1990 levels before 2030. Our new target and our commitment today is the ambition to a 30% reduction in our absolute Scope 1 and Scope 2 emissions by 2030. There are multiple paths to that target, including the one showed here. Active portfolio management and a forward-leaning approach to the hydrogen economy are all the levers that we will explore. Green ammonia enables us to also set new and more ambitious targets for our direct emissions, and it accelerates our contribution to the sustainable development goals on climate action.
To ensure that our goals are aligned with climate science and with the Paris Agreement, we are also today announcing our commitment to establishing science-based targets. This will accelerate our journey towards full climate neutrality in 2050, and we are partnering up with Nutrien, as well as with the World Business Council for Sustainable Development, to establish a sectoral decarbonization approach, a blueprint for the nitrogen fertilizer industry, which we aim to complete during 2022. Initiatives to raise awareness and build capacity on respecting and securing human and labor rights is essential to us as a company. We are embedding human rights in our culture and policies, exercising due diligence, and ensuring remediation where we have an impact. We're also focusing on identifying salient risks through human rights impacts assessments and providing effective grievance mechanisms to all affected stakeholders.
Placing a commitment on our business partners to adhere to our high standards through the code of conduct for Yara's business partners is also an essential part of our commitment, and providing an inclusive and responsible workplace free from discrimination and harassment. Lastly, we are deeply committed to respecting the right of freedom of association and the right of collective bargaining. This is a cornerstone and part of our license to operate. It often presents us with challenging dilemmas, but we are committed to improving the societies in which we operate through dialogue and through firm action when needed. Let me spend a couple minutes on the value of diversity. I deliberately here choose the word value, because diversity is not something we need to do to comply. It's a mere question of unlocking value, of increasing value creation.
Improving our diversity across both primary factors like ethnicity, gender, and sexual orientation, but it also along the axis of personalities, upbringing, cultural background, and experience. It's both a must to transform as a company, and it's a must for us to lead in the 21st century. Yara's organization is one of capability, loyalty, competence, and sense of humor. As a CFO, I am deeply attracted by the return potential in enabling the diversity in our organization and measure progress as we mature. In June 2019, we introduced a new capital allocation policy, and we have since then demonstrated both improved solidity and our commitment to shareholder returns. We remain deeply committed to this capital allocation policy. The backbone of this policy is our commitment to a mid-investment grade rating through net debt EBITDA, mid to long- term in the range of 1.5- 2.
In addition to that, we are today confirming that we walk the talk from the past couple of years, indicating a max annual CapEx level of $ 1.2 billion per year. This does, of course, not mean that we will automatically have a CapEx of $1.2 billion per year. It means it demonstrate our commitment through maximum level subject to business case attractivity. It does represent our belief that good decisions come from a need to prioritize both capital and organizational capacity to be able to swiftly execute and transform business cases into shareholder value creation. Under this policy, as also demonstrated in recent years, improving returns on cash flow may lead to increased payout capacity beyond the ordinary dividend. What's new in this policy is that we also introduced targets for our ratings on Sustainalytics and MSCI.
On Sustainalytics, we are currently at our target level and leading in our sector, while we have a clear target to lift our MSCI rating to an A level. Needless to say, these ratings represent the floor of our ambition and would, of course, not prevent us from improving further in line with what we and society expect from Yara as a company. Hopefully, we have over recent years and recent quarters, through our commitment to integrated reporting and through the ongoing implementation of the recommendations from the Task Force on Climate-related Financial Disclosures, managed to convey our belief in a holistic performance management approach and how it increases shareholder value creation. It means that we look at our contribution and our value creation across all three dimensions of people, planet, and prosperity, and we are taking the actual steps to implement this in how we report our business.
We're also walking the talk through third-party assessments like CSIRO and reinforcing our commitments through updating our governance and the executive compensation policies. Today's presentation shows Yara entering into its next phase. That's not new. That's what we've been doing for the past 115 years. We want to make sure that we demonstrate our progress and that we remain accountable to our ambitions. It means that we will also describe and measure our progress in a new way, and as of Q1 2021, we will have fully embedded tracking of our new KPIs and the ammonia positions. We believe in walking the talk. We believe in transparency. We believe in long-term value creation through focusing on all aspects, people, planet, and prosperity. We sincerely look forward to getting on this journey together with you.
In fact, we've already started, and by that, it is my pleasure to hand back over to our CEO, Svein Tore Holsether, to summarize the events of today.
I hope you have found today's seminar exciting and engaging. I certainly have, and you can count on Yara working passionately to achieve our key objectives. Broadening our core as a leading food solutions company, leading the way as the ammonia champion in the hydrogen economy, and driving sustainable performance, improving returns, reducing emissions, while maintaining strong capital discipline. We consider our prospects attractive. Firstly, the industry opportunities with agriculture's resource and environmental challenges that create business opportunities for Yara. We have a strong competitive position with a focused and sustainable long-term strategy, and our strategy execution is already delivering increased returns and cash flow. I want to leave you with a short film about our Action Africa initiative. Thank you.
The consequences of not addressing the food system challenges is quite dire. We can change the narrative of food insecurity by enabling smallholder farmers with knowledge and technology.
The Action Africa initiative is not about giving smallholders fish. It's actually about helping smallholders to know how to fish.
Bringing together all the players towards ensuring food production is happening, you create both demand and supply for goods and services, so everyone has something in it towards ensuring a food secure Africa.