Biodiversity loss will cost the world $2.7 trillion annually

    05 Jul 2021

    The global economy could lose about $ 2.7 trillion annually due to biodiversity loss by 2030 due to the impact on fish food and wood from forests.

    This is stated in the calculations of the World Bank, according to Bloomberg.

    At the same time, the World Bank noted, the current economic forecasts are too optimistic, as they do not take into account the losses that the environment is experiencing now.

    Under the baseline scenario, the world will lose about 46 million hectares of agricultural land, and fish stocks will continue to decline. With the implementation of the so-called 30*30 plan, which provides for the conservation of 30% of the world’s land, the world economy will still shrink, but only by 0.1%.

    In the worst-case scenario, if the world reaches a critical point where countries fail to adapt to the shock to ecosystems, the global economy will shrink by 2.3% each year.

    By comparison, last year the world economy shrank by 3.3% due to a pandemic, the worst downturn in peacetime since the Great Depression, according to the IMF.

    Developing economies will be particularly affected as they are more dependent on raw materials and ecosystem-related goods and services. The World Bank said that in sub-Saharan Africa and South Asia, real GDP would shrink by 9.7% annually and 6.5%, respectively.

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