£300BN HIT TO ECONOMY OVER NATURE DAMAGE

DAMAGE to nature could wipe billions from the economy, say experts.

The deterioration could see GDP shrink by 12%, costing the country up to £300billion.

The analysis looked at soil health decline, water pollution, water scarcity, air pollution and biodiversity loss.

Experts also examined the “acute shock” caused by heatwaves, drought and wildfires.

The research was led by the official-backed Green Finance Institute with input from the Department for Environment, Food and Rural Affairs and the Financial Conduct Authority.

Environment minister Lord Benyon said: “Nature underpins the health of our economy, and it is under threat from a global nature crisis.

Sustain

“The findings in this report will help people and institutions across the corporate and finance sectors understand that it is in their own interests to go further and faster for the planet to protect it for future generations.”

The financial crisis of 2008 took around 5% off GDP, while the pandemic cost 11% in 2020.

Neville Ash, director of the UN Environment Programme World Conservation Monitoring Centre, said to avoid similar losses “steps will need to be taken to reduce negative impacts on the ecosystems that sustain the UK economy”.

Helen Avery, at the GFI, said: “This is the first time the material risk posed by nature degradation to the UK economy and financial stability has been comprehensively assessed.”

She said it was a vital step towards a financial system that “values and invests in the natural environment”.