Page 57 - WEF Reoprt 2020

Bio-economic transitions would create circular economy, in which waste is designed
feedback loops that must also be out and materials are kept in use for as long
considered. For example, developing as possible: besides helping to decouple
climate-resistant crop varieties could resource demand from economic growth,
help farming systems adapt to a warming this can contribute to lower emissions and
planet—but deepening our reliance on a less habitat loss.
handful of staple crops grown in large-
scale, intensive monoculture farming There is also a business rationale for
systems could ultimately undermine the preserving or restoring natural ecosystems.
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resilience of the food system by reducing On average, the costs of restoration are
genetic diversity and increasing vulnerability outweighed tenfold by its benefits to
to pests and disease. On a smaller scale, communities. Restoring coastal mangroves,
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urban tree-planting might actually result in for example, can protect land from storm
a net loss of street-tree carbon storage over surges and coastal erosion, develop fisheries
time because of the “unique demographics and support ecotourism. Investing in the
of urban ecosystems”. 68 restoration of wetlands, mangroves and
coral reefs could reduce insurance costs
Inequities in development trajectories that for businesses in coastal areas vulnerable
characterize the climate debate are also to flooding. Likewise, financing ecological
inherent in any coordinated response to forestry practices could reduce insurance
biodiversity loss. Certain costs for businesses, such as power and
countries, for example,
water utilities, that are exposed to wildfire
70 % may incur a stiffer penalty risks. According to the Organisation for
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Economic Co-operation and Development
for the protection of the
planet by virtue of their
(OECD), restoring 46% of the world’s
geography and natural
degraded forests could provide up to US$30
local employment and increasing community
conservation efforts do
agricultural land resources. However, in benefits for every dollar spent, boosting
awareness of biodiversity’s importance.
not necessarily require
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use accounted trade-offs in development 69
for by livestock priorities or human rights. A critical challenge for the biodiversity
agenda will be finding investment models
In fact, efforts to address
sector declining biodiversity ought that mobilize private finance to capture a
to be inextricably linked share of this opportunity. New approaches
to other social agendas, are emerging, such as resilience-financing
such as poverty alleviation, structures through which businesses can
healthcare, disaster relief and protection invest in the restoration of ecosystems in
of human rights. It is vital to expand return for a reduction in insurance premiums
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discussion around biodiversity loss to include or risk-financing costs. Better data to track
researchers from non-empirical disciplines the effectiveness of investments will be
as well as farmers, indigenous communities, critical. However, given the sums involved—
businesses and other stakeholders. one estimate puts the current cost of
protecting biodiversity at US$100 billion per
year —public funding will also be needed.
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The new nature economy Habitat protection and restoration are highly
beneficial public goods for which government
While trade-offs may be unavoidable, there investment is more than justified. The People’s
are also potential “win-wins”. Consider diets. Bank of China, for instance, now offers capital
The livestock sector accounts for 70% of relief for banks that make green loans.
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agricultural land use; it is also responsible The International Union for Conservation of
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for about 14% of global greenhouse gas Nature is developing a species conservation
emissions. Reducing meat consumption metric that will help companies, banks and
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would be good for nature and the climate. In governments to quantify their contribution.
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a growing number of countries it would be A renewed interest in nature-based solutions
good for people as well, as overconsumption can help combat climate change as well as
of meat could be leading to worse health mitigate the exacerbating effects of nature
outcomes. Another win-win example is the loss on the climate.
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52 Save the Axolotl