Since the Industrial revolution, the fight between economic progress and ecological conservation has seemed like one long grudge match.
From redwood clearing in California to river pollution in New York, industry has fought nature tooth and nail — and up to this point, nature has taken quite a beating.
But a report from the Economics of Ecosystems and Biodiversity (TEEP) is making a strong plea for business and nature to hang up the gloves and start cooperating for mutual benefit. By harnessing all of the important functions that nature carries out free of charge, TEEP claims that we are poised to enter a new era of "natural capital."
Forests, wetlands, and protected areas often provide services like water purification at a much lower cost than man-made substitutes like water treatment plants. But there is a conspicuous lack of market prices for ecological systems, leaving many of the benefits to be neglected or flat-out ignored.
Recognizing the market values for these natural functions would be a paradigm shift that could redefine the way we think about commerce entirely.
"The end goal would be to develop markets that perfectly recognize the true value of environmental assets," Eron Bloomgarden, president of environmental markets for Equator LLC, told the BBC. Equator is seeking to create this type of value by investing in various ecosystems around the world.
Let's take a look at the "natural capital" model, using the example of protecting our oceans...
According to the report, if we expanded marine protection from around 1% to 30%, it would cost approximately $45 billion a year. But the resulting benefits could reach $4 or $5 trillion annually.
When you protect the marine ecosystem, fish populations expand and spill out into the surrounding, unprotected areas, providing fishermen with much higher yields. That's instant, measurable economic progress for the fishing industry.
And those crystal clear, pollution-free waves lapping at the coast are serious tourist bait — and a surefire way to spike hospitality and tourism revenues. The shores will also be better fortified, since the now-pristine coral reefs will be doing their natural duty of keeping destructive storms from wreaking havoc on the coastline, which expands savings on construction and repair.
All said and done, the decision to establish a large Marine Protected Area (MPA) could create up to one million new jobs.
The report's argument is that there should be a tangible market value placed on natural assets like these in order to encourage investment.
The UK and Norway have already joined Germany in accepting and implementing the report's findings. If economic successes mount for those countries, we can expect to see more of the report's suggestions cropping up all over the world.
As the report states, "Evidence presented here shows pro-conservation choices to be a matter of economic common sense."
While common sense doesn't always kick-start investment, dollars and cents do.
If the business community starts to see tangible, measurable value in ecological systems, you'll no doubt begin to see a huge upswing in sustainability measures like the ones mentioned above.
And this isn't one of those altruistic, pie-in-the-sky approaches to sustainability. It's no longer a black and white, environmentalist organization versus business issue. When we collectively begin calculating the benefits and value of the natural world, the only colors we'll be seeing are shades of green.
Until next time,
Jimmy
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