Tap the opportunities of biodiversity

Tap the opportunities of biodiversity

2010/10/01
By Zakri Abdul Hamid

from http://www.nst.com.my/nst/articles/17zakri/Article/


WE have all heard about climate change, but not many may be aware of the threat to life that experts are identifying as the next big environmental issue for us and business in particular.
This year is the United Nations International Year of Biodiversity. Biodiversity flourishes at all levels: from species to whole ecosystems, and represents the full measure of life on our planet. We are an integral part of this web of life. We also depend on it for our food, fuel, medicine and other essentials that we simply cannot live without.

However, life forms are being lost at an unprecedented rate due to human activities.


In world rankings, Malaysia is one of the world's 17 mega-diverse countries. In Asean, two other countries are members of this exclusive club, Indonesia and the Philippines. The region is home to 20 per cent of all known plant and animal species.

While we celebrate the abundance of biodiversity in our region, we should also be troubled about its loss of biodiversity. Consider these: 80 per cent of Southeast Asia's coral reefs are at risk due to destructive fishing practices and coral bleaching. Over 45 per cent of protected wetlands are considered threatened. While nearly half of Asean countries are covered by forest, during the last decade more than 10 million hectares of forest were lost due to fire.

I co-chaired the "Millennium Ecosystem Assessment" (MA), a global study undertaken by 1,400 scientists from 95 countries from 2001 to 2005. Its findings showed that despite significant steps to conserve biodiversity, the pressures continue to grow.


The findings of the MA are as follows. First, over the past 50 years, humans have changed ecosystems and biodiversity more rapidly and extensively than in any comparable period of time in human history.

This has resulted in a largely irreversible loss. For example, 20 per cent of the world's coral reefs were lost in the last several decades, and species extinction rates are now as much as 1,000 times higher than background rates typical over earth's history.

Second, although the changes made to ecosystems have contributed to gains in human well-being, particularly as a result of the spread of agriculture, these gains are being achieved at growing cost.


The MA examined the condition of 24 "ecosystem services" gained by people from ecosystems, such as food, freshwater and timber, the role of ecosystems in regulating climate and disease, and aesthetic, spiritual and recreational benefits. It found that 60 per cent of these services are being degraded on a global scale.

Third, the degradation of ecosystem services and the loss of biodiversity could grow significantly worse in the next 50 years. In particular, climate change is likely to become the single most important factor harming biodiversity by the end of this century.

Fourth, the scenarios developed by the MA show that it is possible to reverse the degradation of many ecosystem services but this would require political will. Indeed, the international community has missed achieving the 2010 target set during the World Summit on Sustainable Development in 2002 of a significant reduction in the rate of biodiversity loss at all levels.

The MA finding has serious ramifications for the world at large and will affect business and industry in three principal ways.

Firstly, if current trends continue, ecosystem services that are freely available today will cease to be available or become more costly in the near future.

Secondly, loss of ecosystem services will also affect the framework conditions within which businesses operate, influencing customer preferences, stockholder expectations, regulatory regimes, governmental policies, employee well-being, and the availability of finance and insurance.

Thirdly, new business opportunities will emerge as demand grows for more efficient or different ways to use ecosystem services. For example, palm oil and biofuel production will be radically changed over the coming decade as we run out of land to apply to these uses, new technologies are developed and demand skyrockets.

A recent McKinsey Global survey indicates that biodiversity now occupies a similar position in the public debate as climate change did in 2007. A majority of executives, 59 per cent, see biodiversity as more of an opportunity than a risk for their companies.

They identify a variety of potential opportunities, such as bolstering corporate reputations with environmentally conscious stakeholders by acting to preserve biodiversity and developing new products or ideas from renewable natural resources.

The above findings resonate well with our New Economic Model, which calls for Malaysia to build on its strategic advantages arising from its rich biodiversity. Our local business community should heed these findings as we ignore them at our own peril.



The writer is science adviser to the Malaysian Prime Minister and National Professors Council chairman. He is also former chairman of the 192-member Countries of the Convention on Biological Diversity's Subsidiary Body on Scientific, Technical and Technological Advice