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18
Introduction
26%
tIMBeR AnD
otheR nAtuRAL
ResouRCes,
MAkes uP
26% oF totAL
WeALth
Habitat loss,
alteration, and
fragmentation:
Over exploitation
of wild species
populations:
Pollution:
Climate change:
Invasive
species:
Ecosystem Services and a Green Economy
All economies ultimately rely on goods and services derived from
the natural environment. For low-income countries, these goods and
services are especially important and are often directly linked to local
natural capital. The World Bank (2006) calculated that in low-income
countries, natural wealth in the form of agricultural land, timber,
mineral deposits, and other natural resources makes up 26% of total
wealth. This is a higher share than produced capital (16%), which can be
defined as the sum of machinery, equipment, and structures (including
infrastructure) and urban land.
The report on the Economics of Ecosystems and Biodiversity (TEEB
2010) estimates the annual global economic impact of the loss of
biodiversity2 at between $2 trillion–$4.5 trillion. However, the fact
that losses in the natural world have direct economic consequences is
systematically underestimated. There is also a lack of understanding
about the importance of sustainably managing natural assets in efforts
to reduce poverty. The rural poor are especially hard-hit by loss of
natural capital because they rely on ecosystem services for direct
benefits, such as flood protection, food, shelter and fuel.
The five greatest direct pressures that result in depletion of natural
capital and loss of ecosystem services are identified in the World
Wide Fund for Nature (WWF) Living Planet Report 2012
(WWF 2012) as follows:
Mainly due to the conversion of land for agricultural, aquaculture,
industrial or urban use; dams and other changes to river systems
for irrigation, hydropower, or to regulate flow; and damaging
fishing activities.
Harvesting of animals and plants for food, materials, or medicine
at a rate above the ability of the population to reproduce.
Mainly from excessive use of pesticides and fertilizer in agriculture and
aquaculture, urban and industrial effluents, and mining waste.
Due to rising levels of greenhouse gases in the atmosphere, caused
mainly by the burning of fossil fuels, the clearing of forests, and
industry.
Introduced deliberately or inadvertently from one part of the world to
another, they then become competitors, predators, or parasites of native
species.
2 Biodiversity is the variability among living organisms from all sources including terrestrial,
marine and other aquatic ecosystems, and the ecological complexes of which they are a part,
including diversity within species, between species, and of ecosystems.