Development in the World of Limited Resources
Towards Development
T he
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
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