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Posts Tagged ‘The Economics of Ecosystems and Biodiversity’

Natural Capital and Ecosystem Services are provided to us free by nature and contribute invisible or unaccounted for economic value to our global economy, including such simple things as clean air, clean water and the ability to grow crops.

Inspired by the 2006 Stern Review for Climate Change, the TEEB (The Economics of Ecosystems and Biodiversity) initiative, a G8+5 commissioned project, has taken on the challenge to draw attention to the economic benefits of biodiversity, and highlight the growing cost of biodiversity loss and ecosystem degradation.

TEEB provides guidance to important policy makers, national governments, local governments and regional decision makers, to help them internalise the value of nature in proper policy making frameworks, in order to properly account for these valuable services.

The top 3,000 businesses are estimated to have externalities of almost $2.1 trillion, which is equivalent to 3.5% of global GDP, every year. These significant externalities can be described as third party (or external) effects arising from the production and/or consumption of goods and services, for which no appropriate compensation is paid.

It is believed that accounting for these externalities and our preciously-limited Natural Capital now, will result in significant cost savings in the future. If we continue our current consumption levels of these valuable services, without accounting for them, the cost of replicating them once they have been exhausted, is almost incalculable.

To find out more, see this video where the TEEB Study Leader and UNEP (United Nations Environment Programme) Special Adviser introduces and explains the project.

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