Urgent action is needed to safeguard biodiversity, the foundation of the global economy
In 2021 the seminal Dasgupta Review commissioned by the United Kingdom, then assuming the G7 presidency, confirmed that the socio-economic systems that generate the world’s output are embedded in nature, not external to it. Four years later, that confirmation remains as relevant as it was at the time of the publication of the review. It deserves more attention from world leaders, including those attending the G7 summit in Kananaskis.
In essence, the Dasgupta Review used the tools of economic analysis to confirm a fundamental fact: biodiversity underpins all life on Earth. The corollary is that when biodiversity is lost, economies are impacted, food security is imperilled and vulnerability to climate change is exacerbated. That is grounds for escalating biodiversity to the pinnacle of political attention.
Investing in natural assets will unlock lasting benefits
One of the chief propositions in the Dasgupta Review is that nature should be considered an asset. Investing in natural capital, which encompasses biodiversity and ecosystems, is crucial for pursuing sustainable development, stabilising the climate system and protecting human rights, including the right to a clean environment. Given that environmental degradation is a well-recognised driver of conflict, investing in nature also yields benefits in peace and security.
Every new year brings clarity on the alarming pace at which the twin crises of biodiversity loss and climate change are unfolding. The ominous succession of record-breaking global average temperatures is the most evident sign that the world is hurtling towards dangerous tipping points. Unsustainable consumption and production are fuelling this race to cataclysm. The science distilled in the assessments of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services is clear: business as usual is not viable. Transformative change is required.
What is needed to make a dent in biodiversity loss is the subject of a universal consensus. Adopted by the Conference of the Parties to the Convention on Biological Diversity in December 2022, the Kunming-Montreal Global Biodiversity Framework, with its set of 23 time-bound and measurable targets, is the world’s masterplan to halt and reverse biodiversity loss. The world needs the G7 to throw its weight behind the accelerated implementation of the KMGBF. This is humanity’s insurance policy against the unthinkable consequences of run-away biodiversity loss. This also makes solid economic sense.
Developing the global architecture to close the biodiversity finance gap
The multilateral process under the CBD has given the countries of the world the means to address biodiversity loss in a coordinated manner, recognising that no one country, however rich or powerful, can make it alone. The 16th Conference of the Parties to the CBD, which started in Cali, Colombia, last year and recently concluded in Rome, secured essential agreements on how the KMGBF is to be implemented, funded and monitored.
Closing the biodiversity finance gap remains crucial. This is an area where the G7 can become a game changer. The universal goal adopted as part of the KMGBF is to mobilise at least $200 billion per year by 2030, including $20 billion per year in international flows by 2025, rising to $30 billion by 2030. Repurposing subsidies that currently go to sectors and activities harming nature is essential.
Ahead of the Fourth International Conference on Financing for Development in Seville, Spain, and the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change in Belém, Brazil, in November, the G7 members can bring impetus in favour of a global finance architecture that values nature and acknowledges synergies among the complementary biodiversity, climate and sustainable development agendas. As the Dasgupta Review reminds us, integrating biodiversity into economic frameworks is crucial for sustainable development and long-term prosperity.
