A sustainable economic pathway

 By S R Ranjan: Sustainable economic development calls for action to preserve and restore the ecosystem, because, it not only contributes to the production of goods and products that are used and consumed in our economies, but also supplement and supply various ‘indispensable’ services that drives the world’s economy, businesses  and investments.

In order to respond to such global urgency, the UN launched ‘Decade on Ecosystem Restoration’ as a global movement, co-lead by UN Environment Programme (UNEP) and the Food  and Agriculture Organization (FAO) to “re-imagine, recreate and restore ecosystems” as countries emerge from the COVID-19 and build back the economic development pathway. Besides, UNEP also released a synthesis report – Becoming #GenerationRestoration: Ecosystem Restoration for People, Nature and Climate – to highlight the state of degradation of the world’s ecosystems and details the economic, environmental and social rewards that restoration can bring.

In the build up to the ‘the new normal’ for the future, sustainable economic growth trajectory much depends on how we incorporate concepts of ‘circular economy’, nature-based solutions and green investments. Reportedly, the 2021 Dasgupta report identified investment in ecosystems to boost the supply of ecosystems services as essential for a transition to a sustainable economic development pathway. We need to channel such investments into economic activities that have potential positive returns.

“Half of the world’s GDP is dependent on nature (WEF2020), and around USD 10 trillion in global GDP could be lost by 2050 if ecosystem services continue to decline (Johnson et al. 2020). Every dollar invested in restoration creates up to 30 dollars in economic benefits (Ding et al.2018).” — The Report

Economies and business around the world need change to a sustainable economic growth model with sustained green investments. “Business as usual is not an option. As the world moves to recover from the pandemic, healthy ecosystems are more vital than ever,” said FAO director general Dr Qu Dongyu. UNEP executive director Inger Andersen said that governments must ensure their stimulus packages contribute to recovery that is sustainable and equitable. “Businesses and the financial sector must reform operations and financial flows so that they restore and not destroy the natural world,” she added.

The report states that ecosystem services worth more than 10 per cent of our global economic output are lost every single year. For future economic viability, we need to reverse this negative downfall. A UN agency and partners’ research revealed that investments in nature-based solutions will have to triple by 2030 to counter environmental emergencies. Everyone and anyone – policy makers, governments, businesses, institutions, civil society groups, individuals – must reset the economic development button.

(Singh Rakesh Ranjan)  

Freelance Journalist

(Representational images: source)