Environmental destruction undercuts global economy to the tune of $6.6 trillion

Jeremy Hance
mongabay.com
October 06, 2010



The cost of environmental damage to the global economy hit 6.6 trillion US dollars—11 percent of the global GDP—in 2008, according to a new study by the Principles for Responsible (PRI) and UNEP Finance Initiative. If business continues as usual, the study predicts that environmental damage will cost 28 trillion dollars by 2050. The new study undercuts the popular belief that environmental health and economic welfare are at odds.

"This report sends a powerful message that the environment is also the business of business," Paul Clements-Hunt, executive director of UNEP Finance Initiative, said in a statement, adding that "Polluters must pay. Safeguarding the environment and using our natural assets efficiently entail collective action. Cohesive policy and regulation is required to fully account for externalities and speed up the integration of material environmental issues into investment decisions"

According to the report, one third of the environmental destruction (costing 2.2 trillion US dollars) was carried out by the world's top 3,000 public companies. The most destructive industries included utilities, oil and gas, and mining.

"An increasing number of large investors are recognizing that environmental externalities generated by one company are likely to come back and hit their portfolios in another place or time," James Gifford, Executive Director of PRI said in a statement.

Implementing clean energy and more efficient technologies could lower the projected cost of environmental damage by 23 percent in 2050, according to the report.







Related articles

Conserving nature with economics

(09/29/2010) While many factors come into consideration when the fate of forests are being determined, economics often play a key role in land use decisions. When the perceived value of forest land is higher as cattle pasture, cropland, or plantation, then trees fall. But what happens when economic assumptions underlying these decisions are wrong? Forests, including the services they provide and the biodiversity they shelter, are lost in vain, much to the detriment of society and the planet. Working to avoid these costly outcomes is the Conservation Strategy Fund (CSF), a California-based nonprofit that trains conservationists to use economics and strategic thinking as assets to conserve natural ecosystems in countries around the globe. CSF runs training programs that help emerging conservation leaders build and strengthen parks, influence policies, and avert damage from infrastructure projects.


Nation's wealth does not guarantee green practices

(08/11/2010) Developing countries are not the only ones that could benefit from a little environmental support. Wealthier countries may need to 'know themselves' and address these issues at home too. According to a recent study in the open access journal PLoS ONE, wealth may be the most important factor determining a country’s environmental impact. The team had originally planned to study "country-level environmental performance and human health issues," lead author Corey Bradshaw, Director of Ecological Modeling and professor at the University of Adelaide, told mongabay.com. Once they began looking at the available indexes, however, they saw the need for a purely environmental analysis.


The Gulf oil spill in context: US oil consumption

(05/31/2010) The US government has now confirmed that the oil spill in the Gulf of Mexico is the United States' largest oil spill and perhaps the nation's worst environmental disaster. While poor government oversight and negligence by oil giant BP certainly contributed to the disaster, the fact that the US is drilling over a mile below the surface in one of its most important marine ecosystems is directly related to US consumption of oil: the highest in the world.







CITATION:
Jeremy Hance
mongabay.com (October 06, 2010).

Environmental destruction undercuts global economy to the tune of $6.6 trillion.

http://news.mongabay.com/2010/1006-hance_pri.html