EnviromediaNews

Eco investments earn unbeatable returns

The financial benefits of conserving and restoring the environment outweigh the costs by a ratio of between 25 and 100 to one, according to a major international report on the economic value of ecosystems and biodiversity.

The so-called TEEB report for policymakers, hosted by the UN and sponsored by the European Commission and individual European nations, concluded that countries which invested in “ecological infrastructure” would soon begin to outperform those which failed to nurture their natural systems.

More than 100 scientists, economists and policy experts contributed to the report, evaluating 1,100 studies across a variety of ecosystems around the world.

Among the “invisible” and uncosted benefits provided by natural systems like forests, wetlands and oceans they listed the regulation and enhancement of fresh water supplies, improvement in air quality, the provision of food and fuel, soil creation, pollination services, carbon sequestration and cultural services.

The leader of the TEEB study, Deutsche Bank economist Pavan Sukhdev, says the loss of forests and biodiversity in general could cost the global economy between $2 trillion and $4.5 trillion a year.

Yet an annual investment of just $40 billion would secure the delivery of ecosystem services worth $5 trillion.

“Nature’s multiple and complex values have direct economic impacts on human well being and public and private spending”, he says.

“Recognizing and rewarding the value delivered to society by the natural environment must become a policy priority.”

Sukhdev blamed our “consumption-led, production-driven, and GDP-measured” economic model for failing to take into account the value of natural services.

“This model is in need of significant reform. The multiple crises we are experiencing – fuel, food, finance, and the economy – serve as reminders of the need for change.”- enviromedianews

Returns on investment

In Vietnam, the TEEB researchers found that an investment of $1-million in planting and protecting nearly 12,000 hectares of mangroves saved more than $7-million every year in dyke maintenance.

In Thailand, on the other hand, the conversion of mangroves to government-subsidised shrimp farms generated about $1,220 annually per hectare but cost local communities more than $12,000 per hectare in lost wood and non-wood forest products, fish resources and coastal protection services. A further $9,000 a hectare would need to be spent to restore the mangroves after the shrimp farms reached the end of their productive lives after just five years.

For a cost of less than $5-million (R37 million) South Africa’s Working for Water programme had restored more than 3,000 ha of land, created hundreds of sustainable jobs in poor, rural areas, and was saving between 1.1 and 1.6 million cubic metres of water a year.

In Venezuela, investment in the national protected area system is preventing sedimentation that otherwise could reduce farming income by around $3.5 million a year.

Investment in Guatemala’s Maya Biosphere Reserve is generating close to $50 million a year, and has created 7,000 jobs.

For the full report and summary, visit http://www.teebweb.org/