Connect with us

Hi, what are you looking for?


World Bank calls for ecosystems to be valued

NAGOYA, Oct 28 – The World Bank on Thursday called for a radical shift in countries\’ economic models to include the value of forests, mangroves, coral reefs and other ecosystems.

India and Colombia will be among the first countries to take part in a five-year pilot programme with the World Bank to start the economic shake-up.

World Bank president Robert Zoellick announced the programme on the sidelines of a UN biodiversity summit in the Japanese city of Nagoya.

"The natural wealth of nations should be a capital asset valued in combination with its financial capital, manufactured capital and human capital," Zoellick said.

"National accounts need to reflect the vital carbon storage services that forests provide and the coastal protection values that come from coral reefs and mangroves."

Zoellick said that including in national accounts the trillions of dollars worth of value derived from ecosystems would help protect the world\’s rapidly diminishing biodiversity.

He gave an example of coastal mangroves being cleared for shrimp farming.

Under the new economic model, the value that mangroves have in protecting coastal areas from flooding and the loss of fish would also be factored in.

People would then be in a better position to determine the economic consequences of clearing the mangroves, rather than looking at the short-term benefit of shrimp farming.

Advertisement. Scroll to continue reading.

The World Bank move comes after a UN-backed report was released at the Nagoya summit saying degradation of the world\’s ecoystems was costing the global economy between two and five trillion dollars a year.

That report raised the alarm about the need for the global economy to put a value on ecosystems, and Zoellick said the World Bank wanted to work out a way to implement its recommendations.

"Through this new partnership, we plan to pilot ways to integrate ecosystem valuation into national accounts and then scale up what work to countries around the world," he said.

The UN summit is due to end on Friday with more than 190 countries aiming to agree a 20-point plan to protect the world\’s ecosystems over the next decade.

Scientists say that ecosystem degradation is causing the world\’s plant and animal species to vanish at up to 1,000 times the natural rate, threatening human existence.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...