Daily Management Review

More Efficient Resource Management Can Add A ‘$2tr’ To The Economy Of The World


04/15/2017


The cost that would go into keeping the effects of climate change at bay could be recovered by sustainable and efficient utilisation of global resources, shows recent IRP report.



At present, if the world turns towards smarter as well as “more efficient” usage of natural resources, the coming generation will be able to secure an “economic benefit” of around “$2tr” by the year of 2050. Moreover, a newly released research conducted by the “International Resource Panel” also added that smarter use of resources could off-set “the costs of ambitious climate change action”.
 
By the year of 2050, the population is likely to go up by twenty eight percent while seventy one percent more resources will be in use “per capita”, while if “urgent steps” are not taken towards increased efficient use of “metals, biomass”, and various minerals, their usage is set to go up “from 85 to 186bn tonnes” annual by the year of 2050.
 
The said research has been released under the name of “Resource Efficiency: Potential and Economic Implications” at the recent G20 meeting that was held in Berlin, whereby it also reported that investments made in the field of “ambitious climate action” are likely to drag down per capita of “Gross World Production” by “3.7%”. However, with “more efficient use of resources” the economic balance can be restored.
 
Similar experiment conducted between the year of 2005 and the year of 2010 by a U.K. based programme that utilised “7m tonnes of waste destined for the landfill” through recycling or reusing. Likewise, “6m tonnes” of CO2 emissions were avoided along with “10m tonnes of virgin materials and another 10m tonnes of water” were also salvaged. Furthermore, the said project brought an increment of “£176m” in the sales, costs of business came down by “£156m”, while additional “8,700 jobs” were generated.
 
According to the IRP report, if all over the world “more sustainable use of materials and energy” were to be promoted and practiced, it could make up for the cost required to keep “global warming below 2 degrees Celsius” besides adding an “extra $2tr to the global economy” by the year of 2050.
 
In the words of the United Nation Environment’s Head, Erik Solheim:
“This is an environmental win-win. By making better use of our planet’s natural gifts, we will inject more money into the economy to create jobs and improve livelihoods. At the same time we will create the necessary funds to finance ambitious climate action.”
 
Darrel Moore added that:
“The report analysed four paths that countries could take over the next three decades, ranging from ‘business as usual’ to a scenario where countries adopt both ambitious climate policies and improve resource efficiency”.
 
Here is a list of other “key findings” of the report, as mentioned by ciwm-journal.co.uk:
  • Increased resource efficiency is practically attainable.
  • There are substantial areas of opportunity for greater resource efficiency.
  • Resource efficiency can contribute to economic growth and job creation.
  • Improving resource efficiency is indispensable for meeting the costs of climate change targets.
 
Moreover, the report also added that the “economic gains” obtained through efficient uses of resources would be distributed unevenly. The slow pace of “resource extraction” will affect revenues and jobs especially in “mining and quarrying” sectors. Nevertheless, taking these concerns into consideration, countries have only to gain more by “implementing compensation and transfer policies” for a smoother transition towards “more efficient practices” instead of following the traditional path.
 
While, Moore also mentioned:
“In addition to economic benefits, the analysis also shows that resource efficiency and climate action would reduce global resource use by around 28 percent in 2050 compared to current trends.
“For G7 countries, resource efficiency, coupled with ambitious climate action, would increase Gross Domestic Product by $600bn in 2050 ($600 per person, or 1%)”.
 
 
 
 
References:
http://ciwm-journal.co.uk







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