On April 15, the United Nations Environment Programme (UNEP) issued a media briefing stating that a new report, commissioned by the UNEP's International Project on Ecosystem and Biodiversity Research (TEEB) and compiled by the renowned British environmental consultancy TruCost, reveals that some major production and processing industries, including agriculture, forestry, fisheries, mining, and oil and gas exploration, cause environmental, health, and other critical losses to human well-being amounting to as much as $7.3 trillion annually. The report underscores the urgent need for the international community to take more stringent measures to ensure ecological sustainability.
The report, titled "Natural Capital at Risk – The Top 100 Externalities of Business," indicates that global businesses incur approximately $4.7 trillion in environmental losses annually, equivalent to 65% of the total environmental costs resulting from major industrial environmental shocks. The majority of these costs stem from greenhouse gas emissions, water and land use, accounting for 38%, 25%, and 24% of the total, respectively. Air pollution, water and soil pollution, and waste disposal account for 7%, 5%, and 1%, respectively.
The report states that the most environmentally damaging industry is currently coal-fired power generation, particularly in Asia and the Americas. Its annual losses due to greenhouse gas emissions, air pollution, and increased health expenditures amount to $453 billion in East Asia, ranking first among all production sectors; and approximately $31.7 million in North America, ranking third among polluting industries. The social costs it incurs far outweigh its economic benefits.
Other industries with significant environmental impact include agriculture and animal husbandry, primarily due to excessive water and land use. For example, in South America, the environmental cost of cattle farming is approximately US$35.4 million annually; in South Asia, wheat and rice production rank fourth and fifth, respectively, among the industries with the highest environmental costs. Furthermore, steel production has an environmental cost of US$225 billion, ranking sixth among the world's most polluting industries; cement production follows closely behind, emitting 6% of global carbon dioxide, while East Asia accounts for 55% of global cement production.
The report emphasizes that with the continued growth of middle-class consumption demand, problems such as resource scarcity and ecosystem degradation will worsen in the future. Therefore, the report calls on businesses and investors worldwide to pay closer attention to the impact of their production activities on natural capital during the decision-making process, and to take action to improve resource efficiency while continuously reducing their pollution footprint.
Sources: Environmental Information Center (2013-04-15)
