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Monday, April 15, 2013

PRODUCTION SECTORS COST WORLD ENVIRONMENT MORE THAN GAINS THEY PRODUCE – UN-BACKED STUDY

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From: UNNews <UNNews@un.org>
Date: 15 Apr 2013 13:00:00 -0400
Subject: PRODUCTION SECTORS COST WORLD ENVIRONMENT MORE THAN GAINS
THEY PRODUCE – UN-BACKED STUDY
To: news11@ny-mail-p-lb-028.ptc.un.org

PRODUCTION SECTORS COST WORLD ENVIRONMENT MORE THAN GAINS THEY PRODUCE
– UN-BACKED STUDY
New York, Apr 15 2013 1:00PM
Primary production and processing in such sectors as agriculture,
forestry, fisheries, mining, oil and gas exploration and utilities
cost the world economy $7.3 trillion a year in damage to the
environment, health and other vital benefits for humankind, a new
United Nations-backed report warned today, calling for stricter
ecological sustainability.

High impact business sectors in fact make an economic loss when such
environmental costs as the negative impact on natural resources,
pollution and greenhouse gasses are accounted for, according to the
study, 'Natural Capital at Risk – The Top 100 Externalities of
Business,' released at a Business for the Environment summit in New
Delhi.

"The current business model creates significant environmental
externalities," the report stressed, using the term for by-product
costs such as greenhouse gas emissions, loss of natural resources,
loss of nature-based services such as carbon storage by forests,
climate change and air pollution-related health expenditure.

"However, businesses and investors can take account of natural capital
impacts in decision making to manage risk and gain competitive
advantage," it said, noting that consumer demand is set to grow
significantly over the next few years with the increase in middle
class consumers against a backdrop of increasing resource scarcity and
the degradation of natural ecosystems.

"Forward-looking companies are already recognizing that the key to
competitiveness in an increasingly resource-constrained world will
hinge in large part on escalating natural resource efficiencies and
cutting pollution footprints," Under-Secretary-General and Executive
Director UNEP Achim Steiner, said.

"The numbers in this report underline the urgency but also the
opportunities for of all economies in transitioning to a Green Economy
in the context of sustainable development and poverty eradication."

According to the report, the global top 100 environmental
externalities alone cost the economy world-wide around $4.7 trillion a
year in terms of the economic costs, or 65 percent of the total
primary sector impacts identified.

The majority of the costs are from greenhouse gas emissions at 38
percent, followed by water use (25 percent), land use (24 percent);
air pollution (7 percent), land and water pollution (5 percent) and
waste (1 percent).

The highest impact sectors by region include coal-fired power in
eastern Asia and northern America which rank as first and third
respectively - an estimated $453 billion annually in eastern Asia and
$317 billion in North America in the damage impact of greenhouse gas
emissions, and health costs and other damage due to air pollution. In
both instances, these social costs exceeded the production value of
the sector.

The other highest impact sectors are agriculture, in areas of water
scarcity, and where the level of production and, therefore, land use
is also high. Cattle ranching in South America, at an estimated $354
billion ranks second. Wheat and rice production in southern Asia rank
fourth and fifth, respectively.

Iron, steel and ferroalloy manufacturing ranks sixth at $225 billion.
Cement manufacturing globally accounts for six percent of carbon
dioxide emissions, and eastern Asia produces an estimated 55 percent
of the world's cement, coming in at seventh.

The report was authored by Trucost, an environmental data company, for
The Economics of Environment and Biodiversity for the Business
Coalition (TEEB), a UNEP-backed biodiversity-appreciation programme
that draws together expertise from the fields of science, economics
and policy to enable practical actions.
Apr 15 2013 1:00PM
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