The world economy urgently needs to transform into a truly sustainable global economy, according to two new reports. Released by the Organisation for Economic Cooperation and Development (OECD) and by the Washington-based World Watch Institute, the reports outline the growing environmental damage caused by the global economy and propose various alternatives to achieve a more sustainable path.
The OECD’s “Environmental Outlook to 2030″ discusses policy scenarios and costs of combating environmental challenges such as climate change, biodiversity loss, and water scarcity. The report found that some key environmental challenges could be addressed at as little as approximately one percent of GDP in 2030. The report also discussed the consequences of doing nothing, and concluded that under ‘business as usual,’ greenhouse gas emissions could result in a 1.7 - 2.4 degree Celsius increase in temperatures by 2050, continued loss of biodiversity, increased water scarcity and increased negative health impacts. To transition to a sustainable economy, the OECD report proposed that implementing policies that would ensure efficient resource use and encourage innovation. Nations should increase environmental cooperation and policy actions should target key sectors such as energy, transport, agriculture and fisheries. Some of the policy actions considered included issues dealt with under the WTO Doha Round of trade negotiations, such as removing agricultural and fishing overcapacity subsidies.
The World Watch Institute recently released its annual State of the World report, with the 2008 edition focusing on “Innovations for a Sustainable Economy.” In its report, the World Watch Institute discussed the importance of merging environmental and economic policies to promote continued economic growth, and to “[take] advantage of the ability of markets to allocate scarce resources while explicitly recognising that our economy is dependent on the broader ecosystem that contains it.” On the trade front, one chapter focused specifically on possible reforms to the international trading system that could help advance sustainable economic activity.
Additional information
Information on obtaining the OECD “Environmental Outlook to 2030,” and the Executive Summary of the report can be found at http://www.oecd.org/document/20/0,3343,en_2649_37465_39676628_1_1_1_37465,00.html
Information on obtaining the World Watch Institute report “State of the World 2008: Innovations for a Sustainable Economy,” can be found at http://www.worldwatch.org/stateoftheworld
“Environmental Safeguards Affordable, Urgent - OECD,” REUTERS, 6 March 2008, “This Time, World Should Heed OECD Call to Action on Environment,” WWF RELEASE, 5 March 2008.