Development in the World of Limited Resources

 

Towards Development

The universal goal that all nations aspire to is ‘human well-being and development’. Natural resources such as minerals, biomass, air, water, soil as well as renewable (wind/tidal/geothermal/solar) and non-renewable (coal/gas/shale) energy sources serve as the basis for development. However, ‘economic and social’ development has been achieved partly through an intensive, inefficient and unsustainable utilisation of the planet’s limited resources resulting in the global ecological footprint reaching the level of 1.5. This means that the global economy is using resources 50% faster than they get regenerated (GFN, 2012).

It also means that the global use of materials has jumped from 35 billion tonnes in 1980 to nearly 68 billion tonnes in 2009 (SERI, 2012). Total material extraction increased by a factor of about 8 to support the 23-fold GDP growth (UNEP, 2011). Annual extraction of ores, minerals, hydrocarbons and biomass has grown from 7 billion tonnes in 1900 to 60 billion tonnes today and with current trends of population growth and economic activity, it is set to reach 140 billion tonnes by 2050 (idem).

The Resource Crunch

The challenges of this level of resource consumption and its impacts are increasing because of the growing population (estimated at 8 billion by 2030 and over 9 billion by 2050) with a burgeoning middle class projected to reach 5 billion in 2030, rapid urbanisation and expansion of the production and service sector. Today, one person in India ‘consumes’ on an average, 4 tonnes of resources per year, while one in Canada ‘consumes’ an average of 25 tonnes (IGEP, 2013). As developing countries prosper and grow, there is bound to be an increasing demand for resources. This implies that global metal needs will be 3 to 9 times higher than all the metals currently used in the world (UNEP-IRP, Reuter, M et al 2013). Global annual energy demand projections show an increase by almost 80% between 2010 and 2050, with 90% of the demand growth in developing and emerging countries (EU, 2011).

Furthermore, negative effects of the high demand can be seen in the form of rising prices of our limited resources. Since 2000, metal prices have increased by 176%, rubber prices by 350%, energy prices by 260%, and food prices by 120% (McKinsey Global Institute, 2011). Global food prices are predicted to increase by 120-180% by 2030 (Willenbroek et al 2011). This will translate into higher prices for goods and services which in turn can have a negative impact on economic growth, efforts to reduce poverty and food security.

Needs of the Next 9 Billion

Inequality has been rising all over the world. The global GDP is around US$ 70 trillion, while nearly 80% of the population lives on less than US$ 10 a day, with 40% subsisting on less than US$ 2 per day (World Development Indicators, 2008). Global inequalities also manifest in access to and use of natural resources. A reduction in stocks of natural capital and flows of ecosystem services harm the poor disproportionately. The poor may exert a negative impact on the environment by damaging the productivity of the ecosystem when they try to meet their basic needs. Hence, a vicious cycle of impoverishment of man and of environment gets created. The most imminent problem facing us is how to eradicate poverty and meet the needs of 9 billion people in 2050 in terms of energy, land, water and material supply, while keeping climate change, biodiversity loss and health threats within acceptable limits.

Decoupling Resources from Growth

The key to this problem lies in sustainable resource management which can be achieved through ‘decoupling natural resource use and environmental impacts from economic growth’. Then, to produce the same output, fewer inputs will be used because resources will be utilised more efficiently.

Technology can play in key role in this process. The Development Alternatives World Headquarters in New Delhi is one of the first buildings in India that aims at zero emissions through use of innovative indigenous construction materials and technology. The key impacts include: 30% less embodied energy, 40% less operational energy, 100% waste water recycled, 15% recycled materials used, 30% less steel and cement and CFC free operations. The construction of the building involved a wide range of resource-saving strategies ranging from the use of eco-materials to rainwater harvesting and provision for natural lighting. A unique feature is the use of hybrid air-conditioning which cuts down energy and water use up to 40%. Estimates say that 70% of the infrastructure needs in India by 2030 (CWF, 2010) is yet to come up, offering a huge potential to decouple growth from resource constraints.

There are many other examples of decoupling occurring around the globe. However, when applied in practice decoupling sometimes faces the problem of ‘Jevon’s Paradox/Rebound Effect’ which occurs when efficiency gains are outweighed by increase in consumption. Usually this is driven by prices - innovative technology helps in lowering prices which in turn motivates increases in consumption. Thus, to successfully decouple economic growth from resource consumption what is needed is a clarity of purpose and a policy change to support the same.
 





Resource decoupling
means reducing the rate of resources use per unit of economic activity. Impact decoupling means maintaining the same amount of economic output while reducing the negative environmental impact on human and ecosystem health arising from any economic activity. When there is a smaller increase in use of resources than the increase in growth; there is relative decoupling as compared to an actual reduction in the use of resources through absolute decoupling.


Vicious to Virtuous Cycle

Tapping into the resource management potential creates a virtuous cycle which not only contributes towards environment protection but also strengthens the social and economic pillars of sustainable development. It helps in:

Eradicating poverty – by breaking the vicious circle of over-consumption, environmental degradation and poverty

Ensuring food security – by adopting sustainable use of land based resources

Achieving universal access to safe and clean habitat, water and sanitation – by enhancing use and material efficiency

Securing access to universal energy – by incorporating resource efficient renewable energies

Creating sustainable livelihoods and equitable growth – by promoting innovations for sustainable resource use

Towards Well-Being

Given the various resource consumption challenges faced by the global economy today, a ‘one size fits all’ approach cannot be applied. Natural resources are interrelated but at the same time there are a number of trade-offs that need to be accounted for. For example, expansion in agriculture for food security will result in deforestation while at the same time demand for water and energy will increase. Special measures are required to facilitate improvement in resource management. These include creating conditions under which innovations and technology development are encouraged and investment in resource efficient technologies is increased, while education and awareness of resources productivity and design at all levels are taken care of for products, services, city, infrastructure etc.

One of great lessons from the implementation of the Millennium Development Goals and processes is that globally agreed goals were followed by concerted efforts towards achieving them. The recent dialogue on Post -2015 processes offers an opportunity towards integration of efficient and sustainable utilisation of our resources via decoupling across the board. q

Kriti Nagrath
knagrath@devalt.org

Mandira Singh Thakur
msthakur@devalt.org

References

Climate Works Foundation (CWF) (2010), Reducing GHG Emissions in the Building Sector in India: A Strategy Paper, Climate Works Foundation, India

European Union (2011), EU Resource Efficiency Perspectives in a Global Context

Global Footprint Network, 2012

Indo-German Environment Partnership (IGEP), 2013, India’s Future Needs for Resources: Dimensions, Challenges and Possible Solutions

McKinsey Global Institute, 2011, Resource Revolution: Meeting the World’s Energy, Material, Food and Water Needs

Sustainable Europe Research Institute (SERI), 2012, Material Flow Database

UNEP, 2011, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth, A Report by the Working Group on Decoupling to the International Resource Panel.

UNEP, 2013, Decoupling in Practice (Decoupling 2), Draft Paper

UNEP-IRP, Reuter, M et al 2013

Willenbroekel et al, 2011, Expanding Food Price Scenarios towards 2030

 

Back to Contents

 

Share

Subscribe

Home

Contact Us

About Us