Damage to nature puts 44% of cities’ GDP at risk, says report

Almost half (44%) of global GDP from cities is at risk from loss of nature and biodiversity. Considering all the possible disruptions to economic activities, about US$31 trillion (R$170 trillion) is currently threatened by the problem.

The data are part of a report published this Sunday (16) by the World Economic Forum, which shows how failures in climate action can harm the economy of municipalities around the world.

Made by BiodiverCities by 2030 —an initiative of the Forum that aims to support governments, companies and citizens towards a more sustainable relationship between cities and nature — the study explains that biodiversity contributes positively to economic activities by influencing air quality, cycles water and flood regulation, in addition to sustaining the production of energy, food and medicines.

“These contributions are essential to support economies and societies. As a result of the loss of biodiversity, critical economic activities that depend on nature are at risk of disruption,” the document says.

According to the report, rapid urban sprawl has come at the expense not only of climate and nature, but of the economy itself.

Financial damage related to sea flood risk, for example, is expected to double by 2030 and — considering freshwater events — could quadruple by 2050. This equates to an increase of US$35 billion per year (R$192 billion) to US $140 billion per year (R$770 billion), according to studies mentioned by the Economic Forum.

Another risk cited by the report is urban heat, which is often related to the lack of green areas or smart surfaces. Consequences of this increase in temperature are the greater use of energy and the fall in labor productivity.

“Tokyo’s temperature, for example, has increased by 3°C in the last 100 years due to the city’s heat island effect. As a side effect of rising warming, air conditioning use now accounts for 10% of global electricity use. and should triple by 2050”, says the text.

Air quality is another issue related to the suppression of nature that threatens the economies of cities. According to the report, exposure to pollution cost US$5.1 trillion in losses to the world economy in 2013.

The Economic Forum initiative reinforces the crucial role of municipalities in reversing the loss of biodiversity and climate change.

Cities account for 80% of global GDP and will be home to 75% of the world’s population by 2050. However, urban areas are also responsible for more than 75% of global carbon emissions.

Reconsidering production models not only helps address the climate emergency, it can provide new economic opportunities.

According to the study, so-called nature-based solutions (NbS) are, on average, 50% more cost-effective than “gray” alternatives and offer 28% more added value.

Spending US$583 billion (R$3.2 trillion) on NbS for infrastructure and interventions that release land to nature, for example, has the potential to create more than 59 million jobs by 2030.

“Nature can be the backbone of urban development. By recognizing cities as living systems, we can support conditions for the health of people, the planet and the economy in urban areas,” said Akanksha Khatri, head of nature and Biodiversity from the World Economic Forum.