My Lords, an independent review of the economics of biodiversity, produced by Professor Sir Partha Dasgupta of the University of Cambridge—I declare my interests—describes nature as “our most precious asset” and finds that humanity has collectively mismanaged its global portfolio. Our demands far exceed nature’s capacity to supply the goods and services that we all rely on, and the last few decades have taken a devastating ecological toll. The review highlights that recent estimates suggest that we would need 1.6 earths to maintain humanity’s current way of life. As Professor Dasgupta said:
“Truly sustainable economic growth and development means recognising that our long-term prosperity relies on rebalancing our demand of nature's goods and services with its capacity to supply them.”
Since 1970, there has been an almost 70% drop, on average, in the populations of mammals, birds, fish, reptiles and amphibians. Some 1 million animal and plant species—almost a quarter of the global total—are believed to be threatened with extinction.
The CBI, of which I am president, has been addressing resources and waste reforms. In the wake of Covid-19, the new UK-EU relationship, rapid technological advancement and climate change, the country has a defining opportunity to set an ambitious target and course for the next decade and beyond. Protecting the environment for future generations should be at the heart of any economic vision for the UK. We have just launched our economic strategy—Seize the Moment: An Economic Strategy for the UK—for the next decade until 2030; climate change, biodiversity and the environment are key pillars of this.
Just as the CBI and our members stand with the Government on meeting the UK’s target for net-zero carbon emissions by 2050, we are supportive of the ambition behind the resources and waste strategy to move towards a circular economy. The drive towards a circular economy, where resources are used efficiently and waste kept to a minimum, presents a genuine opportunity for the UK to be a world leader in sustainability. This could bring huge economic benefits, increasing our lagging productivity and improving prosperity for all. Responsible businesses know that they have a crucial part to play in protecting our environment and are acutely aware of the high consumer demand for firms to be proactive. We look forward to business continuing to work with the Government to ensure that we establish a pathway to a circular economy that enhances business competitiveness and empowers consumers to make positive choices. Does the Minister agree with this?
Some of the key points are that businesses need more visibility over how the reforms will work in practice. Taken together, the Government’s reforms are the most comprehensive overhaul of England’s waste and recycling system in a generation. Reforms on this scale are inherently disruptive, so it is crucial to ensure that their implementation, both logically and practically, take the pressures facing business into account. Many CBI members feel that the pace of reforms and lack of clarity of their design, so close to implementation, mean that many could struggle to make the necessary changes in time. Do the Government agree with that?
There are additional costs and burdens on business that need to be kept to a minimum. Consumers must be encouraged and empowered to make positive choices. The BBPA, which is a member of the CBI and of which my business is a member, says that it is crucial that the implementation of a deposit return scheme does not further hinder pubs, brewers and producers, but provides them with a platform to play an important role in supporting our environment, while continuing to operate efficiently and profitably.
The B7, which I was privileged to chair last month, feeds into the G7. There are important milestones to deliver successful outcomes and build momentum ahead of the B20, the G20 and COP 26. As we address the challenge of reducing carbon emissions, business also needs to consider wider impacts on the environment, particularly biodiversity, where more work needs to be done to understand how business and government can work together to create a sustainable future for all. G7 nations should prioritise national policies to support the development of markets that value diversity, biodiversity, natural environments, natural carbon sinks and nature-positive business activity. Biodiversity loss is occurring worldwide, and the decline is set to continue under business-as-usual patterns of activity. The World Economic Forum estimates that over half of global GDP is threatened by nature loss. Therefore, preserving nature is central to a sustainable future.
The G7 Energy and Climate Ministers issued a joint communique on G7 climate and biodiversity, and it is encouraging that they have taken the B7 recommendations on board. The OECD speaks about natural capital underpinning all economic activity. Greener UK says that the stakes could not be higher for this first dedicated environmental Bill in over 20 years. The World Wildlife Fund welcomes the Environment Bill and calls for a statutory deforestation target. Are the Government considering this? The UK NGO Forest Coalition says that halting the global loss of forests and other natural ecosystems is essential.
I conclude with Sir David Attenborough, the famed Cambridge alumnus, who welcomed the Dasgupta review, saying that it is
“the compass that we urgently need.”
He said:
“Economics is a discipline that shapes decisions of the utmost consequence, and so matters to us all. The Dasgupta Review at last puts biodiversity at its core … This comprehensive and immensely important report shows us how by bringing economics and ecology face to face, we can help to save the natural world and in doing so save ourselves.”