Figure 1. Flows among nature, economy and society
SOCIETY
Indirect drivers
Societal benefit
ECONOMY
Direct use
Direct drivers
NATURE
Figure 2. Growth in global wealth and population, 1970 to 2020
Global wealth
Global population
90,000
8
67,500
6
ACTIONS ON THE ECONOMY The direct drivers of nature’s decline are delivered through economies, and are generally increasing. The IPBES Global Assessment showed that habitat conversion, over- exploitation, pollution and invasive alien species are increasing. Climate change, the fifth and increasingly dominant driver, is itself driven by the thirst for energy to fuel economic growth, through the use of fossil fuels. The dominant economic and financial systems reward minimising or discounting costs of inputs from nature – and outputs back to it – to maximise the conversion of natural assets into financial assets. Wealth grows faster than the global population, and inequalities in its distribution are increasing, among and within countries (see figures 2 and 3). Current market systems strongly disincentivise investment that halts and reverses growth. Changing these factors requires action by the dominant economic countries and private actors, by multilateral organisations such as the World Trade Organization, and by sectoral entities such as those in food, water and energy. ACTIONS ON SOCIETY The values and behaviour that underpin the institutions and decisions in society determine what is incentivised in the links among nature, economy and society. The dominant value system maximises material flow and profit, and the fungibility of the final repository of wealth – financial assets – incentivises the accumulation and concentration of that wealth. By accommodating a plurality of values, and understanding we must not exceed (and in some cases must return within) certain planetary boundaries, actors can rebalance the flows among nature, economy and society, and thus achieve greater equity. ACTION NOW As the leading economies globally, G7 members control the levers that will enable the necessary economic and societal actions (see table 1). The time is now to leverage all trade, economic and political resources necessary to enable achievement of the SDGs, the Paris Agreement and the Global Biodiversity Framework by 2030.
45,000
4
22,500
2
0
0
1970 2020 1970 2020
1970 2020 1970 2020
Figure 3. G7 compared to low-income country economies, 2000 and 2020
LIC economies
G7 economies
500
40,000
375
30,000
250
20,000
125
10,000
0
0
2000 2020
2000 2020
Table 1. Actions needed to complement and enable success
ECONOMY ∙ Reduce demand and excess extraction ∙ internalise costs to minimise impacts ∙ circularise flows to eliminate or minimise end products and byproducts
SOCIETY ∙ P raise minimum wealth and well-being for every person ∙ reduce overconsumption and overaccumulation of wealth ∙ improve and achieve equity for current and for future generations
85
globalgovernanceproject.org
2024 — G7 ITALY: THE APULIA SUMMIT
Made with FlippingBook. PDF to flipbook with ease