The North West of England has recently unveiled an ambitious plan to create 600,000 green jobs and a £30 billion project pipeline, aiming to reach net-zero emissions by 2040[1][2]. This initiative highlights the importance of biodiversity and the need for sustainable development. The loss of forests, for instance, means the loss of carbon sinks, further accelerating climate change. The Amazon, once a significant carbon sink, now emits more carbon than it absorbs due to deforestation[1].
Biodiversity plays a critical role in development, particularly in poor nations and communities within nations, as it is a significant producer of jobs and GDP. The fisheries sector, for example, supports 60 million jobs globally, with 200 million jobs in the fisheries value chain, 60% of which are in the developing world[1]. The same applies to industries such as forestry and nature-based tourism.
The loss and degradation of biodiversity pose material risks to economies and the financial sector, affecting the poorest economies the most. More than 50% of global GDP, $44 trillion in economic value, depends on natural resources[1]. In Malaysia, a partial ecosystem collapse could result in a 6% annual loss of GDP by 2030, similar to the impact of the COVID crisis of 2020[1].
The UAE’s Perspective
The UAE, with its Vision 2021 and the UAE Green Agenda 2030, has been making significant strides in promoting sustainable development and combating climate change. The country recognizes the importance of biodiversity and the need for sustainable development, as evidenced by its commitment to reducing carbon emissions and promoting renewable energy[3]. The success of the Net-Zero North West initiative can serve as an inspiration for the UAE and other countries to prioritize sustainable development and biodiversity conservation.
The Importance of Natural Capital Accounting
Natural capital accounting (NCA) is a systematic way to measure and report on stocks and flows of natural capital, helping decision-makers understand how the environment interacts with the economy. The World Bank’s Global Program on Sustainability provides tools and expertise for governments and the financial sector as they integrate NCA and other environmental and sustainability considerations into public and private decisions[1].
Conserving and restoring our planet’s nature is a critical development issue, as more than half of global GDP is generated in industries that are highly or moderately dependent on ecosystem services, such as pollination, water filtration, and raw materials[1]. Renewable natural capital, including land assets like agricultural soil and forests, and blue assets like fisheries and mangroves, account for 23% of the wealth in low-income and 10% in lower-middle-income countries[1].
In conclusion, the Net-Zero North West initiative highlights the importance of biodiversity and sustainable development. The loss and degradation of biodiversity pose significant risks to economies and the financial sector, affecting the poorest economies the most. Natural capital accounting can help decision-makers understand the value of natural capital and the importance of preserving it for sustainable growth and development.
References:
