Published a few days ago (2 Feb 2021), The Economics of Biodiversity by Partha Dasgupta is a compelling and urgent piece of work. It is all the more important because it was commissioned by the UK Treasury, under former Chancellor Philip Hammond.
The review perhaps states many things that deep down we already knew – that in addition to the linked crisis of climate change, other challenges to our ecosystem are not simply constituted of specific causes, such as plastic waste and a decline in insect populations. Instead, the challenge is one of a fundamental collision between the economic model which underpins our society and the natural world. This is fundamental because it is the natural world within which the model and society operate and that they are dependent upon.
As Dasgupta puts it (p27) ‘……our economic possibilities are circumscribed – even if several steps removed by technological progress – by the Earth System’s workings. We are embedded in Nature; we are not external to it. No amount of technological progress can make economic growth as conventionally measured an infinite possibility.’
Dasgupta’s review is underpinned by an impressive depth of evidence, ranging from a look back at GDP per capita and life expectancy changes over the past 2,000 years, to land use changes across the globe and calculation of the costs and benefits of protecting 30% of the world’s land and oceans.
At its centre is the concept of inclusive wealth – the accounting price not only of produced and human capital, but also of natural capital. This is linked to the central proposition that (p43) ‘…..social wellbeing is maximised if and only if inclusive wealth is maximised.’ This approach takes into account depreciation of the stock of all assets, including Nature, something which is not accounted for by GDP because it doesn’t regard Nature as an asset and is by definition a gross, not a net measure.
The steps set out in the review are broad ranging, under the following headings:
- Address the Imbalance Between Our Demand and Nature’s Supply, and Increase Nature’s Supply
- Our Demand: Shifting to a Sustainable Ecological Footprint
- Changing Our Measures of Economic Progress
- Transforming Our Institutions and Systems
Action is required at the macro-level under these headings. However, individual and local actions are important too.
A key theme of the review is that of community – trust, shared beliefs and empowered citizenship. These are all things that are very relevant to development and placemaking.
At a fundamental level, making space for nature within projects contributes to the essential stock of Nature and its inter-connectedness. This in turn provides people with opportunities to experience nature, with the well-evidenced benefits to wellbeing that this brings, as well as the economic ones in providing places attractive to people, investment and economic activity. Routine contact with Nature also raises awareness of its importance and provides motivation to practice, request and influence change.
The forthcoming Environment Bill will strengthen requirements for biodiversity net gain and this is something also evident in new Local Plans being prepared by local planning authorities. It will be an important consideration in assessing sites and designing development proposals.
The challenge is a big one but responding to it can help us create better and more successful places for current and future generations.
- Written by Mel Clinton.