Date post: | 19-Dec-2014 |
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The resource revolution
“The world is more at risk as persistent economic weakness saps our ability to tackle environmental challenges”
World Economic Forum, January 2013
“We use it because it is valuable, we lose it because it is free”
Pavan SukhdevThe Economics of Ecosystems and Biodiversity (TEEB) Study Leader, November 2012
Dr Richard MattisonChief Executive, Trucost
"In the next 40 years we need to produce as much food as we produced in the past 8,000." WWF
•3bn more middle class consumers by 2030
•40% water shortfall by 2030
•>100% increase in real commodity prices since year 2000
•3X increase in volatility since year 2000
Drivers of the Resource Risk Mega-trend
The World Economic Forum’s Global Risks 2013 report is developed from an annual survey of over 1,000 experts from industry, government, academia and civil society, who were asked to review a landscape of 50 global risks.
WHY NOW?
..........5 of the top 8 global risks identified by the World Economic Forum in 2013 have been explored in this study
WHY NOW?
Was the Arab Spring triggered by a natural capital shock?
Source: Centre for American Progress
WHY NOW?
Fact: There is a negative correlation between the price of water and water scarcity*
*GWI/OECD 2008 Global Water Tariff Survey
10
NATURAL CAPITAL AT RISK
TEEB for Business Coalition ReportNatural Capital at Risk: The top 100 externalities
“We use it because it is valuable, we lose it because it is free”
Pavan SukhdevThe Economics of Ecosystems and Biodiversity
(TEEB) Study Leader, November 2012
METHODOLOGY: AIR POLLUTION
TOP 10 OF THE GLOBAL 100 INDIVIDUAL EKPI IMPACTS BY REGION-SECTOR
Top 100 externalities (‘Global 100’) total cost of US$4.7 trillion
Total externalities measured by the study were US$7.3 trillion
RESULTS
3. Coal power generation, Northern America, US$317bn, 1.3x revenue
2. Cattle ranching, Southern America, US$354bn, 19x revenue
1. Coal power generation, Eastern Asia, US$453bn, 1.0x revenue
4. Wheat farming, Southern Asia, US$267bn, 8.4x revenue
5. Rice farming, Southern Asia, US$236bn, 3.6x revenue
RESULTS: COMBINED EKPI IMPACTS BY REGION-SECTOR (TOP 5)