Reversing Asia Pacific's biodiversity and nature loss crisis could result in US$4.3 trillion worth of nature-positive business opportunities
PR92015
SINGAPORE, Sept. 29, 2021 /PRNewswire=KYODO JBN/ --
-A new study by AlphaBeta, Temasek and the World Economic Forum estimates that
63 percent of Asia Pacific's GDP, US$19.5 trillion, is threatened by
biodiversity and nature loss
-It also identifies 59 nature-positive business opportunities that can unlock
US$4.3 trillion in business value and create 232 million jobs annually in Asia
Pacific by 2030
Asia Pacific, a region rich in endemic biodiversity found nowhere else in the
world, is at the heart of the biodiversity and nature loss crisis. It contains
the world's largest concentration of hotspots with natural capital
depletion[1], and under business-as-usual, up to 42 percent of all species in
Southeast Asia could be lost, half of which would be global extinctions[2].
Systemic transitions are needed to enable a sustainable future for Asia
Pacific, and innovative solutions can unlock the investment required to reset
our relationship with the planet.
These are among the findings of a new report by AlphaBeta, Temasek, and the
World Economic Forum, 'New Nature Economy: Asia's Next Wave', launched today at
Ecosperity Week 2021. The report makes the business case for nature-positive
solutions in the region by exploring the risks, opportunities and financing
needed for a nature-positive economy.
Threats to nature are threats to business
Three major socioeconomic systems in Asia Pacific pose the biggest threat to
nature but also present the largest opportunities for nature-positive economic
growth. Together, the value of these opportunities, US$4.3 trillion, is
equivalent to 14 percent of Asia Pacific's GDP in 2019:
-Business-as-usual practices in our food, land and ocean use system are
unsustainable. Changing both the way we farm and fish and the quantity of food
and clothes we consume is imperative, given the challenges in sustaining the
region's population, which is projected to grow to 5.5 billion by 2050[3].
We need to "spare" nature – by increasing the amount of land and water left
undisturbed to allow natural ecosystems to thrive – and "share" space with
nature – by ensuring that working land and water is more hospitable to
biodiversity. Achieving this two-fold objective will require implementing and
scaling 28 business opportunities that could create over US$1.6 trillion in
business value and around 118 million jobs.
-Urbanisation has fuelled the rapid and often unplanned expansion of the
infrastructure and built environment, which has led to substantial negative
impacts on both nature and humanity. Asia is now home to 99 of the top 100
cities facing the largest environmental risks[4], and as urbanisation continues
to intensify, the built environment's contribution to biodiversity and nature
loss will only continue to grow if left unchecked.
The built environment will need to be more hospitable to nature and wildlife,
while reversing its negative impact on the surrounding natural environment.
Achieving this requires implementing and scaling 16 business opportunities that
could create over US$1.2 trillion in business value and around 65 million new
jobs.
-While the energy and extractives system has been a key driver of the region's
growth, energy, electricity, and industry together account for 79 percent of
Asia Pacific's greenhouse gas emissions. Providing reliable access to energy
while achieving decarbonisation targets in the region will be a significant
challenge and meeting the needs of the region within the means of our planet
will require the entire energy and extractives system to be radically revisited.
We need to improve consumption efficiency to reduce the amount of resources we
need to extract, improve how we extract those resources to minimise impact on
ecosystems, and shift to more renewable energy while not causing further harm
to ecosystems. Achieving these will require implementing and scaling 15
business opportunities that could create over US$1.4 trillion in business value
and around 49 million new jobs.
In total, unlocking the 59 nature-positive business opportunities across these
three systems will require an annual investment of US$1.1 trillion. While
substantial, this is a fraction of the US$31.1 trillion announced by the Asian
Development Bank's 45 member countries to combat the COVID-19 pandemic[5].
"We must halve carbon emissions and begin to reverse nature loss by 2030 to
avoid catastrophic consequences, and this can be achieved with new business
models that are economically self-sustaining and resilient," said Dr Steve
Howard, Chief Sustainability Officer at Temasek. "The business and investment
communities must work together with governments and civil society, and together
we can unlock the financing to help drive growth that delivers for people and
the planet and the economy."
Innovation and collaboration needed to catalyse investments for a
nature-positive transition
In an exclusive survey conducted for the report, investors and business leaders
across Asia Pacific identified key challenges to overcome in the pursuit of
nature-positive business models. These barriers can be broadly categorised into
four areas: regulatory challenges, market barriers, information gaps, and the
lack of supportive enablers for investment.
To overcome these barriers, business and community leaders proposed a range of
innovative solutions to galvanise the investment required in the coming decade.
The top three suggestions include:
-New externality pricing models to capture the true cost of natural capital and
environmental externalities;
-Harmonised biodiversity reporting standards to ensure accountability towards
biodiversity goals; and
-New financial products and mechanisms, such as blended finance models as well
as regulations to enforce compliance with existing and future environmental
policies.
More research and development, as well as greater public-private dialogue, will
be critical to creating an enabling environment for investment in a
nature-positive economy.
"The COVID-19 pandemic has been the much-needed system shock forcing us to
rethink humanity's relationship with nature. To recover towards a resilient
future, we must suitably allocate our investment into protection, restoration
and sustainable management of natural capital and valuing ecosystem services",
said Akanksha Khatri, Head of Nature Action Agenda at the World Economic Forum.
"Our research and engagement with governments, the private sector, investors,
and civil society underscores the need to create new collaborative pathways for
a nature-positive economy".
"Biodiversity and nature loss is a core concern for businesses across the Asia
Pacific region, and all available evidence indicates that business-as-usual is
no longer an option", noted Dr. Fraser Thompson, Founder and Managing Director
of AlphaBeta. "The good news is that this report demonstrates that there is a
pathway for businesses that can not only strengthen the resilience of their
operations and actively contribute back to nature, but also create major new
growth opportunities. Multistakeholder action between businesses, government,
and civil society in Asia Pacific can unlock these nature-positive
opportunities."
The report by AlphaBeta, the World Economic Forum and Temasek can be downloaded
at https://bit.ly/NewNatureEconomy
About AlphaBeta
AlphaBeta is a strategy and economic advisory business serving clients across
the world from its headquarters in Singapore.
About Temasek
Temasek is an investment company with a net portfolio value of S$381 billion
(US$283b) as at 31 March 2021. Our Charter roles as an investor, institution
and steward shape our investment stance, ethos and philosophy, to do well, do
right and do good. We actively seek sustainable solutions to address present
and future challenges, as we capture investment and other opportunities that
help to bring about a better, smarter and more sustainable world. Headquartered
in Singapore, Temasek has 13 offices around the world. For more information on
Temasek, please visit www.temasek.com.sg.
About World Economic Forum
The World Economic Forum, committed to improving the state of the world, is the
International Organization for Public-Private Cooperation. The Forum engages
the foremost political, business and other leaders of society to shape global,
regional and industry agendas. (www.weforum.org).
[1]https://encore.naturalcapitalfinancealliance.org/map?view=hotspots
[2]https://www.fao.org/fileadmin/templates/rap/files/NRE/Forestry_Group/1_Forest
s_for_a_greener_future.pdf
[3]https://population.un.org/wpp/DataQuery/
[4]https://www.maplecroft.com/insights/analysis/asian-cities-in-eye-of-environme
ntal-storm-global-ranking/
[5]https://covid19policy.adb.org/
SOURCE Temasek
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