Nature is a blind spot in economics that we ignore at our peril, says Dasgupta Review - HM Treasury
A fundamental change in how we think about and approach economics is needed if we are to reverse biodiversity loss and protect and enhance our prosperity, an independent, global review on the Economics of Biodiversity said today (Tuesday 2 February).
Professor Sir Partha Dasgupta’s review presents the first comprehensive economic framework of its kind for biodiversity. It calls for urgent and transformative change in how we think, act and measure economic success to protect and enhance our prosperity and the natural world.
Grounded in a deep understanding of ecosystem processes and how they are affected by economic activity, the new framework presented by the Dasgupta Review – which was commissioned by HM Treasury - sets out the ways in which we should account for nature in economics and decision-making.
Professor Dasgupta said: "Truly sustainable economic growth and development means recognising that our long-term prosperity relies on rebalancing our demand of nature’s goods and services with its capacity to supply them. It also means accounting fully for the impact of our interactions with Nature across all levels of society. COVID-19 has shown us what can happen when we don’t do this."
Nature is our home. Good economics demands we manage it better.
The Prime Minister said: “This year is critical in determining whether we can stop and reverse the concerning trend of fast-declining biodiversity. I welcome Professor Dasgupta’s Review, which makes clear that protecting and enhancing nature needs more than good intentions – it requires concerted, co-ordinated action. As co-host of COP26 and president of this year’s G7, we are going to make sure the natural world stays right at the top of the global agenda. And we will be leading by example here at home as we build back greener from the pandemic through my 10 point plan.”
The Exchequer Secretary to the Treasury, Kemi Badenoch said: “Protecting and enhancing our natural assets, and the biodiversity that underpins them, is crucial to achieving a sustainable, resilient economy. That is why the UK is already investing more than £600 million in nature-based climate solutions, such as tree planting and peatland restoration. I want to thank Professor Dasgupta for his landmark Review. We will examine the Review’s findings and respond formally in due course.”
Sir David Attenborough said: “The survival of the natural world depends on maintaining its complexity, its biodiversity. Putting things right requires a universal understanding of how these complex systems work. That applies to economics too. This comprehensive and immensely important report shows us how by bringing economics and ecology face to face, we can help to save the natural world and in doing so save ourselves.”
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Posted On: 02/02/2021