Why is biodiversity conservation economically relevant?

Biodiversity conservation is economically relevant because it supports ecosystem services that are crucial for human survival and economic activity.

Biodiversity, the variety of life on Earth, plays a significant role in the functioning of ecosystems and the services they provide, which are the basis of human economies. These services include provisioning services such as food, water, timber, and fibre; regulating services that affect climate, floods, disease, wastes, and water quality; cultural services that provide recreational, aesthetic, and spiritual benefits; and supporting services such as soil formation, photosynthesis, and nutrient cycling.

The economic value of these ecosystem services is immense and often underestimated. For instance, pollination by insects, a service reliant on biodiversity, is essential for the production of crops and has an estimated global economic value of £153 billion per year. Similarly, forests, which are rich in biodiversity, play a crucial role in carbon sequestration, helping to mitigate climate change and its potential economic impacts.

Moreover, biodiversity is a source of economic value in itself. Many sectors, including pharmaceuticals, agriculture, and cosmetics, rely on genetic resources. The sustainable use of these resources can generate significant economic benefits. For example, the global market for genetic resources was estimated to be worth between £22.6 billion and £39.5 billion in 2010.

Biodiversity conservation can also create jobs and contribute to local and national economies through ecotourism. In 2018, the global ecotourism market was valued at £15.8 billion and is expected to grow in the future. This not only provides income but also incentivises the protection of biodiversity and ecosystems.

However, biodiversity is declining globally at unprecedented rates, threatening these ecosystem services and the economies that depend on them. This makes biodiversity conservation not just an environmental issue, but a significant economic concern. Investing in biodiversity conservation can therefore be seen as investing in the natural capital that underpins our economies. It is a cost-effective way to ensure the long-term sustainability of economies, compared to the potential costs of biodiversity loss and ecosystem degradation.