Put Tony Juniper
One of the biggest misconceptions of our time is the idea that there is a trade-off between economic development and protecting nature. The narrative used by politicians around the world is that environmental targets must be reduced in order to promote more growth.
However, the reality we live in is a little different. One hundred percent of economic activity is dependent on the services and benefits offered by nature.
Although many economists suffer from the kind of illusion that makes it perfectly rational for them to accept the liquidation of natural systems in the pursuit of “growth”, studies carried out by different experts reveal the enormous economic value that is lost when decisions and policies aimed at promoting economic activities degrade the services generated by nature.
We continue to degrade nature; it will be our children and grandchildren who will pay for this negligent plundering.
For example, as we strive to reduce fossil fuel emissions, one study estimates that the value of carbon capture services that could be obtained by halving the deforestation rate by 2030 is about US$3.7 trillion. Wildlife in the same forests has enormous value too – about 50% of the US$640 billion US pharmaceutical market is based on the genetic diversity of wild species, many of which are found in forests. And it’s not just the genetic diversity of wild animals that brings economic benefits.
Among other things, wildlife also helps control pests and diseases. The cost of losing India’s vultures has been estimated at US$34 billion, largely due to the public health costs associated with their deaths, including increased rabies infections. The annual pest control value provided by insectivorous birds on a coffee plantation has been estimated at US$310 per hectare, while the annual per hectare value added by pest control birds in timber-producing forests has been estimated at US$1,500. Large predatory caterpillars in a Dutch orchard improved the apple harvest by US$501.3 billion.
The services provided by animals, such as bees, which do the work of pollination, supporting the equivalent of US$1 trillion in agricultural sales was valued at US$190 billion per year.
Marine ecosystems are also generating huge economic benefits. The GDP value from marine fish stocks and the industries associated with them is around US$274 billion per year – and this could be worth an additional US$50 billion if fish stocks were managed more intelligently. But even these large numbers pale into insignificance when you consider the broader value of marine and coastal systems in protecting coastlines from storms, absorbing carbon dioxide from the atmosphere and replenishing their oxygen levels. The value of these and other ocean-based services has been estimated at around US$21 trillion per year.
On an individual country basis, marine services can support a significant proportion of their GDP. A study by the World Resources Institute and WWF found that at least a quarter of Belize’s GDP is dependent on coastal coral reefs and mangroves.
According to a study by Trucost, the degradation of nature costs the world economy around US$6.6 trillion per year (11% of global GDP) and, according to current trends, could reach US$28 trillion by 2050. In contrast, a study by a group of conservation leaders suggests that achieving global targets to prevent mass extinction of species would cost around US$76 billion per year – or 0.12% of annual global GDP.
While we are used to hearing that nature is an obstacle to development and a brake on growth, the situation is exactly the opposite. Caring for nature is a prerequisite for sustainable economic development. Some leading companies (such as Unilever and Nestlé) have already realized this and are changing their strategies as a result. Some countries, including Guyana and Costa Rica, have also understood that their natural systems are the basis of their wealth and are taking action to protect them. Therefore, preserving nature is not just about protecting the environment, it is also about maintaining the economy itself.
The longer we continue to ignore the roles played by natural systems and build our economic castles on foundations of sand, the greater the costs will be left to future generations. While we may enjoy some comfort now, as we degrade and plunder nature, it will be our children and grandchildren who will pay for this reckless plundering of the services that maintain the essential conditions for development.
This is a real economic issue, and it is becoming increasingly urgent, as a planetary-scale Ponzi scheme gathers momentum and steals away natural capital. Meeting the challenge of aligning human demands with what nature can provide indefinitely requires a huge injection of political will. The fact that this simply isn’t happening today is demonstrated by the way governments have rapidly mobilized stimulus packages worth over US$1,400 billion in response to the recent financial and economic crisis, but have devoted only a tiny (and diminishing) effort to protecting natural assets.
Economists and economic planners have become accustomed to seeing nature as a provider of resources and a dumping ground for waste. We have now reached a point, however, where we must realize that nature is also a provider of services, an inspiration for models and projects, and our greatest ally in ensuring human needs indefinitely into the future; and this conclusion is based not only on ecological science, but also on a huge body of economic evidence.
