Government response to the Dasgupta Review
The key messages of the Dasgupta Review of the Economics of Biodiversity (published on 2nd February 2021) include:
The economy is embedded within nature, not separate from it. Biodiversity is important to ensure that the environment is more resilient to shocks and more capable of sustaining all life. Expanding and improving those areas already protected for nature is an important tool.
Global demands on the environment currently outstrip its ability to support the population. We are drawing down on the natural capital of the world and this in turn endangers our prosperity and that of future generations. We need to both reduce demand and increase supply of natural capital, through, among other things, reducing food waste, changing patterns of consumption and addressing population growth.
Widespread institutional failure is largely to blame – governments must act globally and society at a local level to change the way that we measure economic success and then put in place the appropriate frameworks so that financial markets respond.
The UK Government response published on 14th June 2021 includes the following points, some of which are re-statements of earlier announcements or policies:
Re-confirming its commitment to protecting 30% of land and ocean by 2030, including increased funding for National Parks and AONBs.
Re-stating the commitment in the 25 Year Environment Plan to restore 75% of protected sites on land in England to ‘favourable’ condition by 2042.
Publication of the England Trees Action Plan and the Peat Action Plan.
Announcing the development of a Nature for Climate Impact Fund “which will leverage private finance into new natural capital markets for carbon, water quality, biodiversity, natural flood alleviation and other ecosystem services”.
Adding a new commitment in the Environment Bill to setting legally binding targets for species abundance in England by 2030.
Legislation through the Environment Bill so that Nationally Significant Infrastructure Projects (the largest schemes, which have their own consenting regime) will be required to deliver biodiversity net gain.
More funding for the Office for National Statistics for its work on natural capital estimates and Public Sector Net Worth.
Commitment to a consultation on proposals for reforming the Better Regulation Framework to consider how environmental impacts can be taken into account in the design and implementation of regulation.
HM Treasury has convened a group of experts to produce supplementary guidance on Biodiversity Valuation for the Green Book, due to be published later this year. Government says that it will “complement the Environment Bill’s biodiversity net gain provisions in supporting better consideration of biodiversity in decision-making”.
The Government will commit up to £3 million additional support to the development of the TNFD framework (Task Force for Nature-related Financial Disclosure).
A Green Financing Framework will be published on 30th June 2021. A Sovereign Green Bond (green gilt) will be launched in 2021 and a Green Technical Advisory Group has been convened to provide independent advice to the Government on the development and implementation of a UK green taxonomy for investment decisions.
To help embed the natural capital approach more widely across Government
the Government Office for Science will champion nature and biodiversity knowledge and understanding through the Government Science and Engineering profession and networks
the Government Economic Service will incorporate the economics of biodiversity and climate change within its revised GES Technical Framework and will offer regular training to promote understanding and application of natural capital analysis, including through application of the Green Book.