The Asia Pacific is at the heart of the global biodiversity crisis. The region is rich in endemic biodiversity found nowhere else on the planet, with diverse ecosystems ranging from the tropical forests of Southeast Asia to the coral reefs of the Pacific Ocean. However, changes in land and sea use, overexploitation of natural resources, the devastating effects of climate change, pollution, and the increased prevalence of invasive species have placed significant strain on this biodiversity, while causing significant disruptions to the services nature provides us including protection from extreme weather and the food and fibre on which our economies depend. All evidence indicates that there is no future for business-as-usual. Businesses, governments, investors, and civil society across Asia Pacific need to work together to develop a nature-positive economy.
AlphaBeta is proud to have partnered with Temasek and the World Economic Forum in creating the New Nature Economy: Asia’s Next Wave report, launched at Ecosperity Week 2021. The report follows on from the World Economic Forum’s joint report with AlphaBeta, The Future of Nature and Business, which was released in July 2020 to set the international roadmap for a nature-positive economy. This report covers risks, opportunities, and financing for a nature-positive economy in Asia Pacific. It has 6 main findings:
- Biodiversity and nature loss is a major economic risk for Asia Pacific. 63% of GDP in Asia Pacific, is at risk of disruption from biodiversity and nature loss, higher than the global average due to the significant economic contributions of sectors that are highly dependent on nature (e.g., food and agriculture).
- Fighting climate change is essential, but not enough to address the biodiversity crisis. Climate change drives 11-16 percent of biodiversity and nature loss – changes in land and sea use and direct exploitation of natural resources pose greater threats, while pollution and invasive alien species are also key to address.
- Systemic transitions are needed in three socioeconomic systems. Three systems of critical socioeconomic important to Asia Pacific are responsible for the most prescient business-related threats to biodiversity, but are also those with the larges opportunities in pursuing nature-positive growth: (1) Food, land and ocean use system; (2) Infrastructure and built environment system; and (3) Energy and extractives system.
- Nature-positive business models hold tremendous economic potential. 59 identified nature-positive business opportunities across the three systems could unlock US$4.3 trillion of opportunities annually in 2030, equivalent to around 14 percent of Asia Pacific’s GDP in 2019. These could also create 232 million associated jobs by 2030.
- Significant capital investment is required. US$1.1 trillion in capital investment will be required annually through 2030 to unlock these opportunities. However substantial, this is a fraction of the US$31.1 trillion fiscal stimulus measures announced by the ADB’s 45 member countries to combat COVID-19.
- Innovative solutions can unlock the investment needed. Through an exclusive survey of business and community leaders in Asia Pacific, a number of innovative solutions have been proposed, including new externality pricing models, harmonised biodiversity reporting standards, new financial products and mechanisms, and regulations enforcing compliance. Greater R&D and better public-private dialogue are key enablers.
Below are a number of resources related to the New Nature Economy: Asia’s Next Wave report:
- The full report can be accessed here.
- Coverage related to Ecosperity Week 2021, including the launch event and report at Ecosperity Week 2021, can be accessed here.
- An op-ed published by Temasek and the World Economic Forum can be accessed here.
- Media coverage of the report has been significant, including on Channel News Asia, Euromoney, The Japan Times, The Jakarta Post, Race To Zero (UNFCCC), and Mothership Singapore.
- The Future of Nature and Business may be referred to here.
