Biodiversity loss: ecosystems and economies increasingly at risk

Invisible threat, huge consequences

Biodiversity loss often remains hidden until it reaches a critical tipping point. The loss of ecosystem services – such as maintaining air and water quality, waste decomposition or pollination – can cause enormous social and economic damage.

According to the latest World Bank estimate, the loss of ecosystem services could result in a global GDP loss of $2.7 trillion by 2030. This impact will be particularly severe in low-income countries, where economic losses could exceed 10 percent of GDP.

What causes biodiversity loss?

The main causes of biodiversity loss include:

• land and sea land use change,
• overexploitation of resources,
• climate change,
• pollution,
• the spread of invasive species.

Agriculture and industry play a significant role in this process. For example, the expansion of agricultural land is responsible for more than 90 percent of global deforestation, while palm oil cultivation alone accounted for 7 percent of deforestation between 2000 and 2018.

Economic consequences

Biodiversity loss has direct and indirect economic impacts. Direct impacts include a decline in agricultural productivity, for example due to the loss of pollinators. Disruptions through supply chains generate additional economic losses.

Overreliance on natural resources poses an increasing financial risk for companies. Industry revenues may decline, while raw material prices may increase and supply chains may become unstable.