Investing in Planetary Health Could Add Trillions to Global Economy

UNEP’s Global Environment Outlook warns that investing in climate, nature, and pollution solutions can boost global GDP by $20 trillion/year by 2070 and save millions of lives.

The United Nations Environment Programme (UNEP) latest Global Environment Outlook (GEO-7) reveals a clear choice: prioritize a stable climate, healthy ecosystems, and pollution prevention—or face escalating environmental and economic crises. The report outlines how investing in these areas can unlock global macroeconomic benefits of up to US$20 trillion annually by 2070 and improve millions of lives worldwide.

According to GEO-7, climate change, biodiversity loss, land degradation, and pollution currently cost the global economy trillions of dollars every year. Without systemic changes, these tolls will intensify sharply, harming human health, food systems, and global growth. For example, annual costs from air pollution-related health damages stood at US$8.1 trillion in 2019, equating to 6.1% of global GDP.

Transformation Pathways for a Sustainable Future

The report presents two main pathways to transform global systems by changing behaviors and accelerating technological innovations. Both predict that starting around 2050, the world could see substantial macroeconomic benefits—growing to US$20 trillion annually by 2070 and potentially reaching US$100 trillion in later decades.

Key projected gains include:

Reduction of biodiversity loss by 2030

Expansion of natural lands

Avoidance of nine million premature deaths by 2050

Lifting nearly 200 million people from undernourishment

Pulling over 100 million people out of extreme poverty

Sweeping Changes Required Across Five Sectors

Recommendations

1. Economy and Finance:
Move beyond GDP to inclusive wealth metrics, price environmental externalities accurately, and phase out subsidies harmful to nature.

2. Materials and Waste:
Adopt circular economy principles, increase transparency in supply chains, and promote regenerative business models.

3. Energy:
Decarbonize energy supply, improve efficiency, secure sustainable mineral sourcing, and expand energy access to end poverty.

4. Food Systems:
Shift to sustainable and healthy diets, enhance circularity in production, and minimize food waste.

5. Environment:
Accelerate biodiversity conservation and ecosystem restoration, apply nature-based solutions, and implement climate mitigation strategies.

Inclusivity and Indigenous Knowledge Are Key

The report stresses involving diverse knowledge systems—including Indigenous and local communities—to ensure just transitions that protect both the environment and human well-being.

If current development patterns continue, global temperatures may rise beyond 1.5°C by the early 2030s and exceed 2.0°C in the 2040s or sooner, leading to:

Annual losses of 4% of global GDP by 2050 and 20% by century’s end

Continuous land degradation affecting over three billion people

Ongoing loss of fertile land the size of Colombia or Ethiopia each year

Building accumulation of plastic waste causing $1.5 trillion in annual health-related losses

A Simple but Urgent Choice

Inger Andersen, UNEP Executive Director, emphasizes, “This is no choice at all” between continuing down a destructive trajectory or investing in planetary health to secure flourishing economies and societies.

Questions and Answers About UNEP’s Global Environment Outlook

Q: What is the expected economic benefit of investing in planetary health?
A: The report projects up to US$20 trillion in annual global benefits by 2070, increasing further thereafter.

Q: How many premature deaths could be avoided with these transformations?
A: Approximately nine million premature deaths could be avoided by 2050 through measures like pollution reduction.

Q: What are the main sectors UNEP highlights for transformation?
A: Economy/finance, materials/waste, energy, food systems, and environment conservation.

Q: How does the report suggest measuring success beyond GDP?
A: By using inclusive wealth indicators that account for human and natural capital alongside economic output.

Q: Why is Indigenous Knowledge important in this transition?
A: Integrating diverse knowledge systems ensures social justice and effective, culturally sensitive environmental solutions.

Frequently Asked Questions (FAQs)

Q1: How urgent is the transformation recommended by UNEP?
Very urgent—the report warns that without action, environmental and economic costs will escalate uncontrollably within decades.

Q2: Can technological innovation alone solve these challenges?
Technological progress helps but must be paired with behavioral changes and systemic reforms for lasting impact.

Q3: What role does circular economy play in these pathways?
Circularity reduces waste, optimizes resources, and supports regenerative practices critical for sustainability.

Q4: How much investment is needed to achieve these goals?
Annual investments of about US$8 trillion are required until 2050 to reach net-zero emissions and support biodiversity.

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