Unprecedented Destruction of Nature: What It Means for Your Finances
By the World’s Best Investment Manager and Financial Market Journalist
Global destruction of nature has reached unprecedented extremes as the United Nations COP16 biodiversity summit kicks off in Colombia. Here’s what you need to know about nature’s rapid decline and its impact on the global economy.
Plants and animals are vital to keeping nature thriving, but more than a quarter of the world’s known species are now threatened with extinction. Monitored populations of wild animals have shrunk by 73% globally by 2020.
Forests are home to the most plant and animal species, making deforestation a key indicator of nature destruction. While some progress has been made in the Amazon, deforestation rates have increased in other parts of the world.
Fishing is the main cause of marine wildlife destruction, with overfishing destabilizing coral reef ecosystems. Agriculture drives tropical deforestation, with harmful subsidies costing governments billions annually.
Nature provides essential resources and services to the global economy, with about $44 trillion of the world’s annual economic output relying on these natural assets. The collapse of ecosystem services could cost the world economy $2.7 trillion annually by 2030.
To halt nature loss and meet climate goals, spending on nature needs to increase significantly by 2030. Understanding the impact of nature destruction is crucial for your financial future.
Analysis: Global destruction of nature is not just an environmental issue – it has significant implications for the global economy and your personal finances. Protecting nature is not just a moral imperative, but also a smart financial decision for a sustainable future.