Cost of inaction
1. Land-Cover change and loss of ecosystem services:
1. Land-Cover change and loss of ecosystem services:
Nature of loss: Land-cover change typically refers to the transformation of natural landscapes into other uses, primarily due to urbanization, agriculture, and infrastructure development. This transformation results in the loss of natural habitats, which in turn affects the biodiversity they support.
Economic implications: The estimated loss of USD 4-20 trillion per year in ecosystem services is staggering. This range accounts for:
Direct use values: Such as timber from forests, fish from oceans and rivers, and medicinal plants.
Regulating services: Including carbon sequestration, waste decomposition, water purification, and pollination of crops.
Cultural services: Such as recreational, spiritual, and aesthetic values.
Supporting services: Like soil formation and nutrient cycling, which indirectly support other ecosystem services.
2. World Bank report on collapse of key ecosystem services:
Nature of collapse: The report suggests that if current trends of ecosystem degradation continue, key ecosystem services upon which human economies rely might collapse. This includes services like pollination, freshwater provision, and climate regulation.
Economic implications: The projected decline in global GDP of $2.7 trillion annually by 2030 can be broken down into:
Agricultural losses: Reduced pollination, soil fertility, and water availability can lead to decreased agricultural productivity, affecting food prices and food security.
Health costs: Degraded ecosystems can lead to the emergence and spread of diseases. For instance, deforestation can increase the spread of malaria as mosquitoes thrive in cleared areas.
Loss in fisheries: Degraded marine ecosystems can result in declining fish stocks, affecting coastal economies and global food supply.
Infrastructure costs: Healthy ecosystems, like mangroves and wetlands, act as natural buffers against extreme weather events. Their loss can lead to increased infrastructure damage and higher costs for rebuilding.
Loss of livelihoods: Many communities directly depend on local ecosystems. Their degradation can lead to unemployment and migration.
Broader context:
Non-monetized values: Beyond these tangible economic costs, there are values that are harder to monetize. The intrinsic value of biodiversity, cultural and spiritual values associated with natural landscapes, and the potential future uses of biodiversity (e.g., undiscovered medicinal plants) are all at risk.
Feedback loops: The degradation of one ecosystem can have cascading effects on others. For instance, deforestation can alter rainfall patterns, affecting agriculture in distant areas.
Inequitable impacts: While the costs are global, they are often disproportionately borne by the most vulnerable—indigenous communities, the poor, and those directly dependent on natural resources.
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Cost of inaction
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The costs resulting from the decline of biodiversity and ecosystem services are enormous: it is estimated that between 1997 and 2011, the world lost an estimated USD 4-20 trillion per year in ecosystem services owing to land-cover change. And a new World Bank report estimates that the collapse of key ecosystem services could result in a decline in global GDP of $2.7 trillion annually by 2030.
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Broader topics
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