Cost of Forest Loss Exceeds Current Banking Crisis

An EU study has concluded the economic impact of world forest loss exceeds the current banking crisis. The study by economists, which quantified the vital services the worlds' forests provide (absorbing carbon dioxide, cleaning water) places the cost of the disappearing forests between $2 and $5 trillion per year.

The global economy is losing more money from the disappearance of forests than through the current banking crisis, according to an EU-commissioned study... study leader Pavan Sukhdev emphasised that the cost of natural decline dwarfs losses on the financial markets.

"It's not only greater but it's also continuous, it's been happening every year, year after year," he told BBC News. "So whereas Wall Street by various calculations has to date lost, within the financial sector, $1-$1.5 trillion, the reality is that at today's rate we are losing natural capital at least between $2-$5 trillion every year."

The report cites the advantages forests provide as basically free and points out that, without them, the services will either have to be provided through costly technology or through the increasing cost and consequences of growing climate change (which will fall disproportionally upon the world's poor).

"Times have changed," Sukhdev explained, "almost three years ago, even two years ago, their [governments and business] eyes would glaze over. Today, when I say this, they listen."

Several countries have begun efforts toward forest conservation. Ecuador has gone so far as to enact laws that proclaim their trees and water have specific rights to life.

A review is set for completion by 2010 to coincide with the "date by which governments are committed under the Convention of Biological Diversity to have begun slowing the rate of biodiversity loss."

More on this topic at THE ENVIRONMENTALIST

Comments

[jschmidt]

This was some interesting results. I did a post that put these values in additional context...(http://www.globalwarmingisreal.com/blog/2008/10/15/deforestation-costs-to-the-world%e2%80%a6wow-big/)...
Like:
- More than the world currently provides as aid to developing countries.
- Close to the combined gross domestic product of all of the top 15 deforestation emitting countries.
- More than the total exported value of wood products, meat products, and palm oil of the top 15 deforestation emitting countries.

[Stephen308]

Yet another reason why McCain and Obama should come out now and declare they will repeal the law, somehow, that they passed demanding more use of ethanol. They should at least modify US law to FORBID ethanol from food products such as corn grain and sugarcane. Not only is it bad for forests and other carbon sinks as they are destroyed to grow food for American cars.....it is helping to push up global food prices and to starve people.