The loss of nature could slow UK growth by 12% by 2030, the report says

By Virginia Furness

LONDON (Reuters) – Nature loss could pose a bigger risk to the British economy than the COVID-19 pandemic and could wipe out 300 billion pounds ($373.83 billion) of British economic growth if no action is taken to slow it , as shown by the first research of this type.

Biodiversity loss and environmental degradation create major risks for the UK economy and financial sector and could slow growth by as much as 12% in the 2030s, the Green Finance Institute (GFI) said in its scenario analysis.

GFI is a forum for public-private partnerships in green finance, supported by the UK government.

The study is the first to fully assess how nature-related risks, such as antimicrobial resistance and the decline in soil health, are impacting the UK economy and financial sector and finds that they are as or more damaging than those associated with climate change.

“This is a defining moment and shows that we must start integrating these nature-related risks into financial risk management and investment decisions – to both reduce exposure and transition our economy to one that invests in the natural environment,” says Rhian-Mari Thomas, CEO of GFI. said.

The report calls on central banks, regulators and governments to better assess the risks that nature loss poses to financial stability and to help companies better understand the value they derive from natural capital and invest in its protection.

Seven of Britain’s biggest banks face losses of 4% to 5% on the value of their domestic assets over the next decade due to nature-related risks, GFI said.

As one of the most resource-stressed countries in the world, Britain is at greatest risk from zoonotic diseases, antimicrobial resistance, declines in soil health and the global impact of food security, the report said.

“Nature underpins the health of our economy, and is threatened by a global wildlife crisis,” said Lord Benyon, Minister of State at the Department for the Environment, Food and Rural Affairs.

“The responsibility for conserving nature lies with all sectors and sections of society, and green finance plays a crucial role.”

($1 = 0.8025 pounds)

(Reporting by Virginia Furness; Editing by Richard Chang)