Economics of climate change:Nature loss 'dwarfs bank crisis'
The Global economy is lossing more money from deforestation than the current banking crisis.The study puts the annual cost of forest loss at between $2- $5 trillion, including the value of services such as providing water and carbin absorber.
"It's not only greater but it's also continuous, it's been happening every year, year after year,"
"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 first phase concluded in May when the team released its finding that forest decline could be costing about 7% of global GDP. The second phase will expand the scope to other natural systems.
Key to understanding his conclusions is that as forests decline, nature stops providing services which it used to provide essentially for free.
So the human economy either has to provide them instead, perhaps through building reservoirs, building facilities to sequester carbon dioxide, or farming foods that were once naturally available.
Or we have to do without them; either way, there is a financial cost.
The Teeb calculations show that the cost falls disproportionately on the poor, because a greater part of their livelihood depends directly on the forest, especially in tropical regions.
The greatest cost to western nations would initially come through losing a natural absorber of the most important greenhouse gas.