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Nature destruction will cause bigger economic slump in UK than 2008 crisis, experts warn

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Thursday, April 25, 2024

The destruction of nature over the rest of the decade could trigger a bigger economic slump in Britain than those caused by the 2008 global financial crisis and the Covid pandemic, experts have warned.Sounding the alarm over the rising financial cost from pollution, damage to water systems, soil erosion, and threats from disease, the report by the Green Finance Institute warned that further breakdown in the UK’s natural environment could lead to a 12% loss of gross domestic product (GDP) by the 2030s.In a report that received input from experts across academia and government, the authors argued that “gradual, year-to year environmental degradation is as detrimental or more so than climate change”.The continued loss of natural habitats in urban and rural areas would compare unfavourably with the financial crisis of 2008, which took about 5% off the value of UK GDP, while the Covid pandemic cost the UK 11% of its GDP in 2020.The academics used three scenarios to construct the report: domestic risks from continued UK environment breakdown; international risks – including destruction to nature in countries which are key UK trading partners; and a health scenario, focusing on the dangers of a fresh global pandemic.All three took into account current trends in environmental breakdown – including water and air pollution, soil health erosion and biodiversity loss – resulting in a hit to GDP worth up to 3%, or about £70bn by the late 2020s.The report then added “acute risks” on top of these trends – including floods, droughts and wildfires – which would result in a 6% loss to GDP in the domestic and international scenarios, and a 12% hit in a health scenario, reflecting the extreme dangers to the UK economy from a renewed pandemic.Ministers are expected to take an interest in the report amid concern over the potential dangers to the economy from nature breakdown. Environment minister Richard Benyon said the report showed that nature “underpins the health of our economy and it is under threat from a global nature crisis”.The former Conservative MP, whose family controls a 5,600-hectare (14,000-acre) estate in west Berkshire, southern England, said the responsibility to conserve nature “lies with all sectors and sections of society, and green finance has a crucial role to play”.He said: “The findings in this report will help people and institutions across the corporate and finance sectors understand that it is in their own interests to go further and faster for the planet to protect it for future generations.”Shadow environment secretary, Steve Reed, blamed the government for the UK becoming “one of the most nature-depleted countries in the world”.Saying that the UK needed “to reverse the tide of destruction”, Reed committed Labour to cleaner air and water “and growing nature-rich habitats for wildlife to thrive”.The Green Finance Institute describes itself as the UK and Europe’s “principal forum for innovation in green finance” bringing together banks, academics, philanthropists and government bodies to develop climate-friendly policies and financial products.The report warned that unless action is taken, UK banks will need to reduce their exposure to the worst hit industries or find themselves increasing the risk of losses from bad loans. About 50% of the extra cost will come from the loss of nature overseas that the UK relies on to provide food, natural resources and trade.Partly funded by the government with input from the Treasury and the Department for Environment, Food and Rural Affairs (Defra), the authors also relied on advice and information from the Bank of England, Oxford and Reading universities, the UN’s environment programme, and the National Institute of Economic and Social Research.The report said: “The impacts of biodiversity loss and environmental degradation will not be felt alone but will compound with climate risks. Both are happening at once and there are strong feedback effects between the loss of natural capital and climate change.”The study follows a Treasury-backed review in 2021 by the Cambridge economist Sir Partha Dasgupta, who found that the world was being put at “extreme risk” by the failure of economics to take account of the rapid depletion of the natural world.Last year, the government agency Natural England launched its Nature Returns programme to coordinate efforts across government and the private sector to explore how the UK can best use land in England “to address climate change whilst producing food and promoting thriving nature”.The agency said it wanted “to mobilise the billions in private investment that government estimates we need to meet our national net zero commitments”.

Green Finance Institute report said further pollution could cut 12% off GDP by 2030sThe destruction of nature over the rest of the decade could trigger a bigger economic slump in Britain than those caused by the 2008 global financial crisis and the Covid pandemic, experts have warned.Sounding the alarm over the rising financial cost from pollution, damage to water systems, soil erosion, and threats from disease, the report by the Green Finance Institute warned that further breakdown in the UK’s natural environment could lead to a 12% loss of gross domestic product (GDP) by the 2030s. Continue reading...

The destruction of nature over the rest of the decade could trigger a bigger economic slump in Britain than those caused by the 2008 global financial crisis and the Covid pandemic, experts have warned.

Sounding the alarm over the rising financial cost from pollution, damage to water systems, soil erosion, and threats from disease, the report by the Green Finance Institute warned that further breakdown in the UK’s natural environment could lead to a 12% loss of gross domestic product (GDP) by the 2030s.

In a report that received input from experts across academia and government, the authors argued that “gradual, year-to year environmental degradation is as detrimental or more so than climate change”.

The continued loss of natural habitats in urban and rural areas would compare unfavourably with the financial crisis of 2008, which took about 5% off the value of UK GDP, while the Covid pandemic cost the UK 11% of its GDP in 2020.

The academics used three scenarios to construct the report: domestic risks from continued UK environment breakdown; international risks – including destruction to nature in countries which are key UK trading partners; and a health scenario, focusing on the dangers of a fresh global pandemic.

All three took into account current trends in environmental breakdown – including water and air pollution, soil health erosion and biodiversity loss – resulting in a hit to GDP worth up to 3%, or about £70bn by the late 2020s.

The report then added “acute risks” on top of these trends – including floods, droughts and wildfires – which would result in a 6% loss to GDP in the domestic and international scenarios, and a 12% hit in a health scenario, reflecting the extreme dangers to the UK economy from a renewed pandemic.

Ministers are expected to take an interest in the report amid concern over the potential dangers to the economy from nature breakdown. Environment minister Richard Benyon said the report showed that nature “underpins the health of our economy and it is under threat from a global nature crisis”.

The former Conservative MP, whose family controls a 5,600-hectare (14,000-acre) estate in west Berkshire, southern England, said the responsibility to conserve nature “lies with all sectors and sections of society, and green finance has a crucial role to play”.

He said: “The findings in this report will help people and institutions across the corporate and finance sectors understand that it is in their own interests to go further and faster for the planet to protect it for future generations.”

Shadow environment secretary, Steve Reed, blamed the government for the UK becoming “one of the most nature-depleted countries in the world”.

Saying that the UK needed “to reverse the tide of destruction”, Reed committed Labour to cleaner air and water “and growing nature-rich habitats for wildlife to thrive”.

The Green Finance Institute describes itself as the UK and Europe’s “principal forum for innovation in green finance” bringing together banks, academics, philanthropists and government bodies to develop climate-friendly policies and financial products.

The report warned that unless action is taken, UK banks will need to reduce their exposure to the worst hit industries or find themselves increasing the risk of losses from bad loans. About 50% of the extra cost will come from the loss of nature overseas that the UK relies on to provide food, natural resources and trade.

Partly funded by the government with input from the Treasury and the Department for Environment, Food and Rural Affairs (Defra), the authors also relied on advice and information from the Bank of England, Oxford and Reading universities, the UN’s environment programme, and the National Institute of Economic and Social Research.

The report said: “The impacts of biodiversity loss and environmental degradation will not be felt alone but will compound with climate risks. Both are happening at once and there are strong feedback effects between the loss of natural capital and climate change.”

The study follows a Treasury-backed review in 2021 by the Cambridge economist Sir Partha Dasgupta, who found that the world was being put at “extreme risk” by the failure of economics to take account of the rapid depletion of the natural world.

Last year, the government agency Natural England launched its Nature Returns programme to coordinate efforts across government and the private sector to explore how the UK can best use land in England “to address climate change whilst producing food and promoting thriving nature”.

The agency said it wanted “to mobilise the billions in private investment that government estimates we need to meet our national net zero commitments”.

Read the full story here.
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L.A.’s Twin Crises Finally Seem Fixable

The city is gradually revamping America’s most infamous sprawl.

Los Angeles has seen better days. Traffic is terrible, homelessness remains near record highs, and housing costs are among the worst in the country. Several years ago, these factors contributed to an alarming first: L.A.’s population started shrinking.This is no pandemic hangover. With a few exceptions, the local economy has come roaring back. Many of its major industries proved resistant to remote work—you still can’t film a movie over Zoom—and perfect year-round weather continually drew digital nomads. The quick rebound has had the paradoxical effect of kicking L.A.’s pre-pandemic problems into overdrive, by clogging freeways, eating up limited housing supply, and forcing out residents who couldn’t afford to stay.The city’s traffic and housing crises date back a century, when Los Angeles first became dependent on the automobile and exclusionary zoning. Ever since, municipalities across the country—from Las Vegas to Miami, and nearly every suburb in between—have followed L.A.’s example, prioritizing cars over public transit and segregating housing by income. Predictably, Los Angeles’s problems have become urban America’s problems.In recent years, a critical mass of state policy makers, housing reformers, and urban planners understood that L.A.’s problems are reversible, and started to lay out an alternative path for the future. The city has made massive investments in transit and—partly because of pressure from statewide pro-housing laws—experienced a surge of permitting for new homes. Even though rampant NIMBYism remains a barrier, the breadth of the city’s progress is becoming clearer: Los Angeles is gradually revamping America’s most infamous sprawl.L.A.’s quest to reinvent itself holds national implications. Savvy urban planners and policy makers are watching to see how Los Angeles addresses the issues that are intensifying in many of their own cities. They know that a congested, unaffordable future awaits if they don’t intervene.It’s often said that Los Angeles was planned around the car. But it was actually built around what was once the largest transit system in the world. In the early 20th century, the Pacific Electric Railway stitched together hundreds of historic town centers from Riverside to Venice. The rest of L.A. was subdivided into one of the largest street grids in history, marshaling growth along a coherent, interconnected pattern.Only in the 1930s did the city begin to redesign itself for driving. Freeways started carving up the grid, spewing pollution across Los Angeles. The railway closed. Walking and biking became unpleasant and unsafe. This transformation spawned today’s L.A., where car crashes kill more people than violent crime, and the average driver spends 62 hours a year sitting in traffic. It ended up being a model for suburbs across the country; the average American now spends an hour a day driving.The state of housing is equally bleak. By some measures, Los Angeles has arguably the worst housing-affordability crisis in the country. If a middle-class family ever wants to own a home, they’d better go somewhere else. The median home price in L.A. is over 10 times the median household income—more than double a healthy ratio.The many Angelenos who are locked out of homeownership are stuck paying some of America’s steepest rents. Most residents spend more than 30 percent of their income on housing; a quarter of residents spend at least half. To curb costs, many renters double or triple up, resulting in the country’s highest overcrowding rate. About 75,000 residents of Los Angeles County go without housing altogether.The housing shortage is by design: Beginning in the 1960s, policy makers tightened zoning regulations, slashing the city’s capacity by 60 percent. As a matter of law, Los Angeles could not grow. Today, building apartments is still illegal in about three-quarters of residential areas, where most land is effectively reserved for McMansions. The situation is even worse in the suburbs, where zoning allows virtually no new housing at all. The crisis has even spread to once-affordable places like Phoenix, as local growth butts up against restrictive zoning in more and more cities.Until recently, nearly every development in L.A.-adjacent cities such as Pasadena or Culver City entailed a costly environmental review and endless public hearings, both easily hijacked by NIMBYs. Impact fees increase the cost of a new housing unit by tens of thousands of dollars. For a long time, the number of permits issued across Greater Los Angeles looked more like it does in diminished cities like Detroit than in prosperous peers like Seattle.The city’s recent population decline might make you think that nobody wants to live there. But, really, Los Angeles hasn’t let anybody in.After decades of dysfunction, L.A.’s twin crises are starting to look fixable.Take transit: Los Angeles is currently building one of North America’s most ambitious rail expansions, which will rival the top systems in the country. Thanks in part to Measure M, a half-cent sales-tax increase that voters approved in 2016, the city is scheduled to open rail service to Los Angeles International Airport by the end of the decade, as well as new trains extending from West Los Angeles to East Los Angeles. In 2023, L.A. Metro completed the Regional Connector, which linked two light-rail lines, allowing for transfer-free rides across the metropolis.All this new rail will soon be supplemented by an expanded network of bus, bicycle, and pedestrian infrastructure. In March, a coalition led by the group Streets for All passed Measure HLA, which will add over 200 miles of bus lanes and protected bicycle lanes, and many hundreds of redesigned, pedestrian-friendly streets in the coming decades. If officials can unlock new revenue through congestion pricing—which will nudge some Angelenos out of their cars—the city might finally be able to tame traffic.The housing situation is turning around too, if in fits and starts. Recent experience shows that simply easing overly restrictive rules could unlock a lot of new home building. In 2022, Los Angeles issued more permits than it had in any of the previous 36 years. Although the average home price continues to hover around a million dollars, rents have fallen by about 5 percent compared with late 2023.A range of interventions have made this possible. Since 2017, Los Angeles has permitted nearly 35,000 accessory dwelling units—homes that were largely illegal prior to state intervention in 2017. Thanks to a newly strengthened state “fair share” law, cities across L.A. County will be required to permit thousands of new homes in coming years; Santa Monica, for example, will have to allow some 1,500 new homes over the next few years, more than the city has permitted in decades. A 2022 law green-lighting the construction of affordable housing in commercial zones has prompted Costco to agree to add 800 apartments above a planned storefront in South Los Angeles. Other state laws have eliminated parking mandates, streamlined permitting, and expedited townhouse subdivisions.Still, fixing the crisis will require much more work. By one state estimate, Greater L.A. must permit 168,000 homes each year to end the housing shortage. Even in the historically productive year of 2022, the region permitted fewer than 60,000. And in a major setback, the city council voted in December to preserve single-family zoning, which bans new apartments in nearly three-quarters of Los Angeles. (Never mind that a city-commissioned report admits that the decision will entrench segregation.)But reform continues bubbling up locally thanks to a growing YIMBY movement. Ten years ago, the idea of rolling back apartment prohibitions in Los Angeles was unthinkable; now it seems inevitable. The Transit-Oriented Communities program, part of a ballot measure that Angelenos adopted in 2016, has facilitated the construction of tens of thousands of new apartments near transit. When Mayor Karen Bass took office in 2022, she issued Executive Directive 1, speeding up permitting processes. Combined with a generous state incentive program for projects that agree to keep rents low, the initiative has attracted applications for more than 20,000 new homes and counting. At almost any public hearing, expect to bump into an Abundant Housing LA volunteer eager to share the good news.A century ago, Los Angeles pioneered an urban model that much of America made the mistake of replicating. Now, after many decades of strict zoning and car-centric growth, Los Angeles is figuring out what comes next. The city is starting to treat its dependence on automobiles by reintroducing bus lanes, bike lanes, and rail lines. Neighborhoods that had been locked up for a half century by zoning are finally growing again. Hundreds of urban areas across the country desperately require similar interventions.If history is a guide, L.A.’s ambitions might once again reshape the American city—this time for the better.

Water rates in Northern Ireland suggested to help address wastewater crisis

Manager of Lough Neagh Partnership praises actions so far on lake’s algae crisis but warns of wider problemsThe introduction of water rates in Northern Ireland could address crumbling wastewater infrastructure and the impact on waterways, it has been suggested.It comes as the Stormont executive works to halt an environmental crisis at Lough Neagh, where noxious blooms of blue-green algae have covered the surface of the water across the past two summers. Continue reading...

The introduction of water rates in Northern Ireland could address crumbling wastewater infrastructure and the impact on waterways, it has been suggested.It comes as the Stormont executive works to halt an environmental crisis at Lough Neagh, where noxious blooms of blue-green algae have covered the surface of the water across the past two summers.The lough is the largest freshwater lake by surface area in the UK and Ireland, supplies 40% of Northern Ireland’s drinking water and sustains a major eel-fishing industry.But it is facing a “perfect storm” caused by pollution, nutrients, the climate crisis and invasive species according to Gerry Darby, manager of the Lough Neagh Partnership.He praised the approach and actions taken so far by the agriculture, environment and rural affairs minister, Andrew Muir, but warned of wider problems that need a whole-of-executive approach.In an interview with the PA news agency, Darby said the Lough Neagh action plan, and particularly the setting up of a stakeholder forum led by Muir, was positive and was a first for a minister.He said 10 of the actions have already been implemented, including water inspectors and looking to the private sector for innovation, but it will take decades to start to see improvement.“Is the nutrient level going to come down immediately? No, it’s not. Is the level of phosphorus going to come down? Probably not, but at least you can now begin to look at setting targets,” Darby said.“It’s important to remember it’s not just farmers; there are a lot of nutrients coming in off the waste management processing units within NI Water and septic tanks – we’re all contributing to it and other factors such as topography, there is only one river out of the lough. There is not great flow to flush it out.“There is also climate change as well as invasive species in there. It all came together to create a perfect storm, and at least the minister has engaged with many organisations to try and find solutions.“It will be a long-term solution – nobody has ever suggested that the reduction of nutrients in Lough Neagh is going to happen overnight. It is estimated that it will take somewhere between 10 and 20 years before we’re beginning to see change.”However, Darby said part of the problem is that people assume the blue-green algae is the only problem in the lough, pointing out the absence of a navigation authority as well as the wastewater system that was described by the head of NI Water as being “at breaking point”.He said addressing the wastewater system will require the hard choice between trying to secure more money from the London government, rejigging the strained Stormont budget or considering charging water rates.While non-domestic water charges already apply in Northern Ireland, there has been strong political opposition to introducing domestic water charges.“The other elephant in the room is the money needed for infrastructure for wastewater management. This year the budget of NI Water for capital investment has been cut in half. That is a big, serious issue that politicians need to find an answer to,” Darby said.“There are three choices: you ask Westminster to cough up more, Stormont reprioritises budgets, or else the big, controversial one is that you introduce water rates, which is pretty standard in the rest of the UK.“I couldn’t comment on that personally, but I think it is something that needs to be given serious consideration in the context of the issues also facing Belfast Lough.“The problem, of course, is that it is political dynamite.”

In South Korea, Nations Meet in Final Round to Address Global Plastic Crisis

Negotiators are gathering in South Korea in what’s billed as a final push to address the global crisis of plastic pollution

Negotiators gathered in Busan, South Korea, on Monday in a final push to create a treaty to address the global crisis of plastic pollution.It's the fifth time the world's nations convene to craft a legally binding plastic pollution accord. In addition to the national delegations, representatives from the plastics industry, scientists and environmentalists have come to shape how the world tackles the surging problem. “Don’t kick the can, or the plastic bottle, down the road," U.N. Environment Programme Executive Director Inger Andersen said in a message aimed at negotiators. This “is an issue about the intergenerational justice of those generations that will come after us and be living with all this garbage. We can solve this and we must get it done in Busan,” she said in an interview.The previous four global meetings have revealed sharp differences in goals and interests. This week's talks go through Saturday. Led by Norway and Rwanda, 66 countries plus the European Union say they want to address the total amount of plastic on Earth by controlling design, production, consumption and where plastic ends up. The delegation from the hard-hit island nation of Micronesia helped lead an effort to call more attention to "unsustainable” plastic production, called the Bridge to Busan. Island nations are grappling with vast amounts of other countries’ plastic waste washing up on their shores.“We think it’s the heart of the treaty, to go upstream and to get to the problem at its source,” said Dennis Clare, legal advisor and plastics negotiator for Micronesia. “There’s a tagline, ‘You can’t recycle your way out of this problem.’” Some plastic-producing and oil and gas countries, including Saudi Arabia, disagree. They vigorously oppose any limits on plastic manufacturing. Most plastic is made from fossil fuels. Saudi Arabia is the world’s largest exporter of primary polypropylene, a common type of plastic, accounting for an estimated 17% of exports last year, according to the Plastics Industry Association. China, the United States and Germany led the global plastics trade by exports and imports in 2023, the association said.The plastics industry has been advocating for a treaty focused on redesigning plastic products, recycling and reuse, sometimes referred to as “circularity.” Chris Jahn, International Council of Chemical Associations secretariat, said negotiators should focus on ending plastic waste in the environment, not plastic production, to get a deal. Many countries won’t join a treaty if it includes production caps, he said.To continue to progress and grow as a global economy, there are going to be more plastics, Jahn added.“So we should strive then to keep those plastics in the economy and out of the environment,” Jahn said.The United States delegation at first said countries should develop their own plans to act, a position viewed as favoring industry. It changed its position this summer, saying the U.S. is open to considering global targets for reductions in plastic production.Environmental groups accused the U.S. of backtracking as negotiations approached.Center for Coalfield Justice executive director Sarah Martik said the United States is standing on the sidelines rather than leading, putting “their thumb on the scale throughout the entirety of the negotiations.” She hopes this does not derail other countries’ ambition. Democratic U.S. Sen. Jeff Merkley, of Oregon, said it's a mistake for the United States to settle for the lowest common denominator proposals, just to get some kind of agreement. Luis Vayas Valdivieso, the committee chair from Ecuador, recently proposed text for sections where he thinks the delegations could agree. The production and use of plastics globally is set to reach 736 million tons by 2040, up 70% from 2020, without policy changes, according to the intergovernmental Organisation for Economic Co-operation and Development. Research published in Science this month found it is still possible to nearly end plastic pollution. The policies that make the most difference are: mandating new products be made with 40% post-consumer recycled plastic; limiting new plastic production to 2020 levels; investing significantly in plastic waste management, such as landfills and waste collection services and implementing a small fee on plastic packaging. The treaty is the only way to solve plastic pollution at this scale, said Douglas McCauley, professor at UC Santa Barbara and UC Berkeley. McCauley co-led the research.Margaret Spring, chief conservation and science officer for Monterey Bay Aquarium, said plastic pollution used to be considered largely a waste problem. Now it is widely viewed as an existential crisis that must be addressed, said Spring, who represents the International Science Council at the negotiations.“I’ve never seen people’s understanding of this issue move as fast, given how complex the topic is,” she said. “It gives me hope that we can actually start moving the dial.”The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Photos You Should See - Sept. 2024

ICE Unveils Biogas Plan to Combat Costa Rica’s Growing Waste Management Crisis

The Costa Rican Electricity Institute (ICE) is taking bold steps to address the country’s mounting landfill crisis with an innovative biogas initiative that could transform waste management across the nation. Turning Waste into Energy: ICE’s Vision for Sustainable Solutions ICE’s executive president, Marco Acuña, revealed plans for a new biogas production strategy that will convert […] The post ICE Unveils Biogas Plan to Combat Costa Rica’s Growing Waste Management Crisis appeared first on The Tico Times | Costa Rica News | Travel | Real Estate.

The Costa Rican Electricity Institute (ICE) is taking bold steps to address the country’s mounting landfill crisis with an innovative biogas initiative that could transform waste management across the nation. Turning Waste into Energy: ICE’s Vision for Sustainable Solutions ICE’s executive president, Marco Acuña, revealed plans for a new biogas production strategy that will convert organic waste into renewable energy. The project, aimed at implementation within five to six years, could provide a much-needed solution to Costa Rica’s waste management challenges. The initiative comes at a critical time, as Costa Rica grapples with depleting sanitary landfills and ineffective recycling practices. According to a 2016 Comptroller General report, merely 1% of the country’s waste undergoes recycling, highlighting the urgent need for alternative solutions. ICE’s experience with biogas already shows promise. Their existing facility at La Uruca’s EBI plant successfully generates 140 kilowatts of energy from landfill gas, which is fed directly into the national grid. The new project aims to expand on this success, targeting the 53% of Costa Rica’s waste that consists of organic matter. Acuña also points to additional opportunities, suggesting that non-recyclable waste could serve as industrial fuel, further maximizing resource utilization and supporting sustainable waste management practices. The initiative aligns with the Ministry of Health’s “Waste to Energy” plan, which envisions regional waste-to-energy centers throughout Costa Rica. However, despite ICE initiating an eligibility process for such projects in May last year, no proposals have been submitted, revealing ongoing challenges with municipal engagement and infrastructure development. As the Greater Metropolitan Area faces immediate waste management pressures, authorities emphasize the need for quick action. While ICE’s biogas project offers a promising medium-term solution, immediate steps are crucial to protect public health and prevent environmental degradation. The post ICE Unveils Biogas Plan to Combat Costa Rica’s Growing Waste Management Crisis appeared first on The Tico Times | Costa Rica News | Travel | Real Estate.

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