A coastline
green weeds at the bottom of the sea

Seaview Seagrass, Solent, Isle of Wight, UK, image by photographer and marine biologist Theo Vickers. © Theo Vickers

As sea levels rise due to global warming, there are tremendous challenges for the environment, coastal communities and global supply chains. Mark Rowe reports and discovers ideas, initiatives and infrastructure measures to help stem the tide

The sea is on the rise. All around the world, over the past 100 years, sea levels have risen by up to 25cm. And they are expected to rise by a further one metre in the next 80 years. The main driver of this increase is climate change, caused by humans pumping carbon dioxide and methane into the atmosphere.

This is driving sea-level rise through one reason everyone is aware of: melting ice bodies like glaciers and polar ice caps. What is less evident is that, even if all the permanent ice in the world were to melt, oceans would continue to rise as long as temperatures did, due to the physics of thermal expansion: warm water occupies more volume.

A woman wearing glasses and a shirt

Dr Joanne Williams

“We can’t reverse what has already happened,” says Dr Joanne Williams of the UK’s National Oceanography Centre. Science, in the form of thermal lags, means sea-level rises are inexorable. Water warms slowly, so, due to deep ocean heat uptake, sea levels will rise for centuries, whatever we do. “The heat is already in the ocean, the rises are locked in,” Williams continues. “But if we act now, it costs less in the long term and we can plan without having to rush. It’s easier to adapt.”

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In a 2021 report, “Coastlines in Crisis”, by Deutsche Bank Private Bank’s Markus Müller, ESG Chief Investment Officer, and Daniel Sacco, Investment Officer, the authors cautioned that “rising sea levels will put coastal populations and critical economic assets under increasing stress… substantial population displacement is not an unlikely scenario”. These are not abstract observations, and they highlight the challenges, including the human cost.

A man wearing a black top and blazer

Dr Philipp Rode

Most of the world’s populations live by water. Around one in 10 of us live less than 10 metres above sea level and 70 per cent of the world’s largest cities are in low-lying coastal areas. Roughly 40 per cent of the US population lives in coastal cities. So communities, as well as their infrastructure, trade and buildings, both residential and commercial, are all at risk, making the adoption of adaptation planning even more of a priority. As Dr Philipp Rode, Executive Director of LSE Cities, puts it, “How sub-Saharan African cities will cope is very unclear. But the story of people being forced to move because it is too risky and too expensive to live there any more is one we will hear more and more.”

“The ways in which people are vulnerable varies,” says Williams. She cites Bangladesh, where a one-metre rise would shrink the country by one-third. “Bangladeshi people are used to flooding, but in the future it will happen more often, go further upriver and affect more farmland.” Much of the farming hinterland near Williams’s own city, Liverpool, in the UK, is at coastal level. “Not a lot of people live there,” she says, “but that’s a lot of food production at risk.”

It is apparent, then, that threats from sea-level rise affect more even than coastal ecosystems and coastal communities. They affect everyone through global economics in terms of agriculture, infrastructure, real estate, tourism and global trade. And all this affects the Global North as well as the Global South, the Netherlands as well as the Maldives.

This is because critical national infrastructure, most obviously ports, but also electricity and nuclear power stations, electricity cables, and gas and sewage pipes, are often located on the coasts. Twelve of the biggest US airports are built on coastal areas, and nearly one-third of US GDP relied on the coastal economy, employing almost 55 million people in 2016. It is estimated that 20 per cent of global GDP could be threatened by coastal flooding by the end of the century. Our seas handle 90 per cent of global trade and that means if ports get battered, then cargo – from plastic toys to grain consignments – will get tangled up with knock-on effects.

Yellow and green weeds at the bottom of the sea

An Island’s Wild Seas, the Needles, Isle of Wight, UK, image by photographer and marine biologist Theo Vickers. © Theo Vickers

In the Global South, particularly, effects on sectors such as agriculture and tourism will be especially disruptive, as developing countries are most reliant on them. Saltwater inundation from flooding contaminates freshwater aquifers, making agriculture difficult, threatening food supply and making water no longer potable. That spells trouble for the people of Suriname, where almost three-quarters of the population lives five metres below sea level and most of its fertile agricultural land lies on the coastal plain. The Maldives’ highest point is just two metres above sea level, and, while it performs well compared to its small island peers, tourism accounts for almost one-third of its economy, making its people extremely vulnerable to rising sea-level shocks.

“Rising seas will not see cities sink slowly, millimetre by millimetre beneath the waves. Instead, changes are complex and abrupt,” says Rode. “Sea-level rises make other things worse. If you get a combination of flash floods, storm surges, high winds and high tides, the peak height of impacts will hit places harder. The higher sea levels are, the harder it is to get floodwater from heavy rain out of a city.”

Society does not have a great track record of awareness, let alone action, when small communities, or those from the Global South, are involved. Barranquilla is the fourth largest city in Colombia, with a population of 2.4 million. Located next to the Magdalena River, near the Caribbean Sea, it is a major port. But because of mismanagement and lack of investment in water infrastructure – it has no rainwater drainage systems, for example – it is highly vulnerable to floods and landslides. When the city floods, and it does, the roads turn into dangerous, fast- flowing rivers, sweeping away cars – and people. Sea-level rise is set to compound the situation, and while there is a push for legislation and some agreement to avoid disaster, there is no clear plan, resulting in stressed infrastructure, increased food shortages and poor, often Afro-Colombian communities, displaced to informal slums.

While the residents of Barranquilla still wait for change, the Hurricane and Storm Damage Risk Reduction System was created in New Orleans right after the devastation of Hurricane Katrina in 2005. It is the most costly flood-control system on earth and one of the biggest public-works projects in US history. Governments around the world are becoming increasingly conscious of the risks of sea-level rise and are progressively implementing adaptation measures. Shanghai’s authorities place a high value on these because, by 2050, the city is predicted to endure floods and rainfall 20 per cent higher than the global average. To lessen its vulnerability to rising sea levels, the city has built 520 kilometres of defensive seawalls. The OECD warns against complacency, however. Solutions are out there, but they will need to come hand in hand with the regulation and business climate that allows them to become viable commercially.

A man with dark curly short hair wearing glasses

Guy Michaels

Grey or technological solutions are often the direct go-to approach. London, which is estimated to have a water level increase of up to two metres in a low-emissions scenario, has its retractable barrier system, begun in 1974 and in operation since 1982. “And London can always get the Thames Barrier to do a bit more lifting,” says Guy Michaels, Associate Professor of Economics at the LSE’s Department of Economics. “In New York, which is 10 metres above sea level, you can think of ways to potentially close off the harbour.”

Tokyo created a spectacular solution in 2006. The G-Cans flood project is a huge cathedral-like underground cavern supported by 59 towering pillars. Permeable surfaces and a network of pipes divert floodwaters to a reservoir, before being slowly released to the Edo river. The price tag was more than US$2 billion and costs for defending infrastructure along other coastal cities are similarly eye-watering. “You can build defences higher, but there comes a point where you have to ask whether costs justify the outcomes,” says Williams. “When you get a one in 100-year flood, people build back. But what if that event happens again the next year, and then the year after that?”

This is where nature-based solutions come in. While many cities in advanced economies – those, remember, primarily responsible for climate change – have the means to protect themselves through technological solutions, the picture is different in the Global South, says Rode, where emphasis is more on adaptation. Barrier islands, vegetated dunes, coastal wetlands, mangrove forests and reefs are examples of natural barriers to protect shorelines.

They provide several advantages in addition to flood protection, including carbon sequestration, biodiversity restoration, fish nurseries, cultural heritage, recreational activities, tourism and spiritual benefits. Crucially for the Global South, they can be quickly adapted to the real pace of sea-level rise. Planting mangroves can lower wave heights by 71 per cent or more.

Mangroves originally lined tens of thousands of kilometres of coastlines around the world; previously mistakenly seen by humans as a type of coastal weed that could be destroyed for development, they are a good example of the upside potential of mitigation. Properly managed, mangroves store immense amounts of carbon and support a rich ecosystem of biodiversity, as well as protecting the developments on the coasts they have previously been cut from. They survive in a variety of climates and in brackish water, and planting mangroves can provide carbon credits.

Meanwhile, studies in the UK have shown how fringes of saltmarsh 40 metres wide can reduce wave height by nearly 20 per cent; at 80 metres, waves reduce to near zero. Nature-based solutions also give quick returns: estimates for annual flood-damage reduction from coral reefs exceed US$400 million for Cuba, Indonesia, Malaysia, Mexico and the Philippines alone.

Fresh, innovative approaches to protect urban areas include creating holistic “sponge cities”, which absorb heavier rainfall. After a cloudburst in 2011 inundated Copenhagen’s main trauma hospital and caused US$1.04 billion of damage, the Danish government redesigned infrastructure to make roads and pavements more permeable, while using nature-based solutions to plant grass and lay soil to better absorb rain.

Information-gathering to facilitate decision-making is key. Many countries use Lidar, a remote sensing method that pulsates laser light across coastal areas to measure elevation on the Earth’s surface. Australia’s web portal CoastAdapt provides mapping software, coastline morphological information, guidance for decision-making in coastal climate adaptation, and local and international case studies. France, meanwhile, is one country using a combination of a tech-based approach to monitor and evaluate its progress to date, and using that to recommend the elaboration of nature-based solutions and proposals to spatially reshape coastal areas.

A coastline

The artificial peninsula whose sand, as it erodes, protects the natural beaches near The Hague © Craig Corbett

The Netherlands, with 25 per cent of land below sea level and scarred by the North Sea flood of 1953, is widely considered the gold standard, with a creative approach combining monitoring, preparation, and grey- and nature- based engineering. “It did a lot of learning, a lot of thinking,” says Michaels. Anticipating sea-level rises of one metre by 2100, its measures have included the 2003 US$70 million reconstruction project to protect The Hague by raising a dyke 10 metres above the mean water level in Amsterdam and depositing 2.4 million cubic meters of dredged sand along Scheveningen Beach, which pushed the ocean back 50 metres from the shoreline.

Meanwhile, the necessary shift to a more sustainable economy offers the opportunity to restructure many firms and their manufacturing processes. Physical damage to facilities as a direct consequence of flood events or other weather extremes interrupt production and make it hard for employees to show up at work. It makes sense that forward-thinking companies across the globe are preparing for climate change by investing in resilient structures that can resist storms, severe winds and flooding.

Coastal cities may have to be radically redesigned or risk becoming “misshapen”, as Michaels puts it. “Inland cities have development that radiates from a central business district in all directions,” he says. “For coastal cities this is not an option. Rising sea levels will further distort the shape of coastal cities, leading to them becoming misshapen and significantly lengthening the costs of commuting to work.”

Michaels is struck by how stubborn communities can be. “Between 1990 and 2010 we saw development increase by 26 per cent in city blocks prone to sea-level rises on the US east and Gulf coasts,” he says. “That was alarming. We assumed people would avoid building there – the exact opposite happened.”

Read more: YKK America’s CEO Jim Reed on creating sustainable products for less 

Thumbing a nose at climate science only partly explains this, suggests Michaels. “If you assume people have good foresight but still do it, then they’re building in riskier locations because that’s where the jobs are. It’s a trade-off.” Is there a link to the politicisation of climate change? “People who are least aware of climate change can be the most willing to take on risk,” he says, citing politically sceptical Florida. “Miami is at ground zero. The coast is long, low-lying and very vulnerable. Yet there doesn’t seem to be a wide acceptance of what is happening and many locals regard most events as ‘nuisance’ flooding.”

What will trigger meaningful long- term, joined-up action? “Disasters recede into the background quite quickly,” says Michaels. “Maybe that changes if we get a Hurricane Sandy or a Katrina every year.” Williams is more optimistic. “I see people putting the effort in. It’s important not to say things are impossible, otherwise people ask why they or their government should bother taking any steps.” Rode reckons a more fundamental societal shift is required. “Free-riding, the good life as we know it, goes far beyond levels of consumerism that are healthy for the planet. Maybe we need to rediscover the mundane, then decide whether what’s really meaningful in life is that your local river is clean enough to swim in.”

Find out more:

deutschewealth.com/dam/deutschewealth/cio-

perspectives/cio-special-assets/coastlines-in-crisis

This article first appeared in the Deutsche Bank Supplement of the Autumn/Winter 2023/2024 issue of LUX magazine

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Baby whales gathered together in the sea
Baby whales gathered together in the sea

Pilot whales in the Pelagos Sanctuary, which was co-created by the Prince Albert II of Monaco Foundation

As awareness grows of the need for a sustainable blue economy and for ocean restoration around the world, LUX invites thought leaders and experts to nominate their choice of individuals, non-profits and financial and investment wizards, whose efforts are helping save the planet’s troubled waters
A woman holding a jacket over her shoulder

Nathalie Hilmi

Dr Nathalie Hilmi, Senior Researcher at the Scientific Centre of Monaco, nominates:

Prince Albert II of Monaco Foundation
This international non-profit organisation is the only foundation in the world headed by a serving head of state. It was founded by His Serene Highness Prince Albert II in 2006 with the mission of protecting and advancing the health of our planet for future generations, with a focus on biodiversity, climate, renewable energy, oceans and water resources. In addition to funding hundreds of projects, the foundation has set up initiatives to be a driving force in these fields, operating in the Mediterranean Basin, the Polar regions and the least developed countries. It works with scientists, other NGOs and world leaders, and has branches in 11 countries.

fpa2.org

Meri Foundation
I like the work this non-profit foundation is doing for the planet and our environment, promoting scientific research and environmental education on ecosystems in Chile and around the word. It has a vision of inspiring communities to consider a sense of belonging in their ecosystem environment, promoting a society in harmony with the planet. Its philanthropic engagements are stunning.

fondacionmeri.cl

A man wearing glasses and a black suit with a white shirt

Marküs Muller

Markus Müller , Environmental, Social and Governance (ESG) Chief Investment Officer at Deutsche Bank’s Private Bank, nominates:

Anna Katharina Meyer
Anna Katharina identifies global challenges and launches tangible initiatives, with a focus on sustainable finance and accounting, renewable energies and entrepreneurship. Describing herself as a founder, activist and scientist with heart and soul, she combines professional competences with scientific ones and is shaping discourse on a sustainable and inclusive future with expertise.

unitedsustainability.com

trees in a swamp

Heritiera fomes mangroves in Sundarbans, West Bengal, India. Sundarbans is a national park and biosphere reserve; carbon-storing, coast-protecting mangroves are an essential component of nature-based solutions

Rayne Sullivan
Co-Chair of the Youth Advisory Council at Sustainable Ocean Alliance, Rayne represented the US at the inaugural UN Youth4Climate summit in Milan in 2021, advocating for Hawai’i and Oceans. Rayne is also pursuing a JD programme at Stanford, with a focus on the nexus between climate science, responsible AI and traditional knowledge systems, to empower frontline island communities in developing nature-based climate solutions.

soalliance.org

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Marie Claire Daveu

Marie-Claire Daveu, Chief Sustainability Officer and Head of International Institutional Affairs at Kering, nominates:

Conservation International
This NGO is a leader not only in its science-led work around the world, working on the ground to protect and restore nature, but also for its influence on global policies and within the business community. Its expertise when we set up the Regenerative Fund for Nature together was indispensable and its dedication to achieving a wide-scale impact on nature is to be applauded.

conservation.org

A man wearing a blue shirt holding fruit in his hand standing by a crate of fruit

Hugo Clément, from his docu-series, On the Front

Hugo Clément
The media has a significant role to rally awareness and support for the climate and biodiversity crises. French journalist Hugo Clément has brought these crises to the public through documentaries and investigative journalism, where his pursuit of the truth has uncovered corporate greenwashing. His long-time activism around animal rights has also brought this often overlooked topic into the spotlight. His dedication is far-reaching and he stands by his principles, which we need in our society today.

@hugoclementk

A man wearing a black top and blazer, with his arms folded

Chris Gorrell Barnes

Chris Gorrell Barnes, founding Partner of Ocean 14 capital and co-founder of Blue Marine Foundation, nominates:

Por el Mar
Martina Sasso, founder of this dynamic new Argentinian NGO, has used creativity and communications to advance a ban on open-net salmon farming in Argentina and delivered extraordinary wins by creating pivotal marine-protected areas in the region. I can see that Por el Mar will deliver outstanding conservation gains for the ocean in the next few years.

A penguin by the sea

Megallanic penguin at the Monte León National Park in Santa Cruz, part of a project supported by Por el Mar

porelmar.org

SyAqua
This, our first investment at Ocean 14, is a platform for our mission to transform shrimp farming. US and Asia-based SyAqua is a leading provider of genetics and tech in shrimp breeding. It provides farmers with virus-resilient broodstock, so reducing environmental externalities and make shrimp farming more sustainable.

syaqua.com

A man standing next to trees and grass wearing a suit

Christian Lim

Christian Lim, Managing Director of Blue Ocean, SWEN Capital Partners and Co-Chair of 1000 Ocean Startups, nominates:

Anne-Sophie Roux
Roux is a young but powerful voice in the global movement against reckless deep-sea mining. She and the Sustainable Ocean Alliance have been instrumental in changing the position of several governments, including in France and Switzerland. As founder and CEO of Paris-based Tenaka, she and her team have worked with partners to develop corporate responsibility programmes and nature-based solutions for ocean conservation.

people standing together weather pink t-shirts

Members of the Tanzanian Fisheries Research Institute being trained in environmental DNA collection for eBioAtlas, as devised by NatureMetrics

tenaka.org

Kat Bruce
In 2014, scientist Kat Bruce co-founded NatureMetrics, the world’s leading eDNA company. Its mission is to democratise measurement of biodiversity for different species through technology, to better align nature and markets. Disclosure: we have invested in NatureMetrics.

naturemetrics.com

A woman holding a microphone doing a presentation

Karen Sack

Karen Sack, Executive Director of Ocean Risk and Resilience Action Alliance, nominates:

Whitney Johnston
As the company’s first Director of Ocean Sustainability, Whitney leads Salesforce’s work on sourcing high quality blue-carbon offsets. Based in New Mexico and a climate scientist and oceanographer by training, she is a leader in developing high-quality blue-carbon principles and a key shaper of the Blue Carbon Buyers Alliance, companies committed to purchasing high-quality blue-carbon credits.

salesforce.com

small boats on the sand lined up next to eachother

Traditional line-fishing boats from the southernmost tip of Africa. The non-profit Abalobi supports small-scale sustainable fishing

Serge Raemaekers
Serge is co-founder of Abalobi, a South African non-profit aiming to elevate small-scale fisheries through technology, and empower them for social, economic and ecological sustainability. The name Abalobi means “fisher” in the isiXhosa language, reflecting its fisher-led nature. Abalobi has developed a digital platform connecting fishers directly with consumers, creating a more transparent and equitable value chain. Serge’s vision is to create thriving small-scale fisheries worldwide to feed the world sustainably, provide meaningful livelihoods and contribute to healthy ecosystems.

abalobi.org

A woman wearing a black top

Jessica Hodges

Jessica Hodges, Lead in Investment Management and Wealth ESG at Deloitte UK, nominates:

Net Purpose
Samantha Duncan’s London-based organisation is brilliant and was highly commended in the Finance for the Future Awards in 2021. It is a platform to facilitate impact measurement for investors and make it easy for people looking to invest, by collecting, cleaning and structuring data from thousands of global sources. This ensures a more transparent and rigorous approach to assessing the impact of portfolio companies.

netpurpose.com

A warehouse with good and machinery on the ground

LED lighting for a German warehouse, installed by UrbanVolt and financed by the Solas Sustainable Energy Fund

Solas Capital
Zurich-based Solas Capital is a specialist investment advisory firm founded and managed by Sebastian Carneiro and Paul Kearney, both professionals from the energy-efficiency financing sector. The company’s mission is to support the move to a carbon-neutral society through innovative financing. By understanding both the funding needs of energy-efficiency and self-consumption PV infrastructure projects, and the requirements of institutional investors, Solas Capital bridges the gap between investors and projects.

solas.capital

A woman giving a speech at a podium

Cathy Li

Cathy Li, UN Youth Advisor, nominates:

Klima Action Malaysia
This climate justice NGO was founded by youth activist friends of mine who work on the linkage between human rights and climate change. It promotes a rights-based approach to a just and equitable world and the climate emergency. KAMY works to empower vulnerable communities, including indigenous groups, women and youth, to participate in climate governance and decision-making.

klimaactionmalaysia.org

A woman with a fringe wearing glasses and a black shirt

Jennifer Morris

Jennifer Morris, CEO of The Nature Conservancy, nominates:

Vizzuality
Data is critical, but unless business leaders, policymakers and society understand it, its ability to drive change is limited. With offices in Cambridge, Madrid and Porto, Vizzuality is working on creating data visualisation and mapping tools. We need innovators like Vizzuality to help tackle the dual crises of climate change and biodiversity loss, and we’re excited to see how its work on projects like Trase, which maps global supply chains leading to deforestation, and Marxan, the open-source spatial-planning software, can lead us to a nature-positive, net-zero future.

vizzuality.com

A man wearing a suit and tie

Ted Janulis

Ted Janulis, founder and Principal of Investable Oceans, nominates:

Lea d’Auriol
Lea is founder and Executive Director of London-based Oceanic Global, and she and her team made World Ocean Day a
global phenomenon. Lea has pioneered new programmes and methods of engagement, including Oceanic Global’s Blue Standard, a set of tools to help businesses eliminate plastics. Lea also always reflects light on others to acknowledge their contributions.

oceanic.global

A man underwater wearing scuba diving equipment and a wetsuit, taking notes

Titouan Bernicot, founder of Coral Gardeners, monitoring the health of corals growing in the nurseries. Once mature, the corals will be planted back onto damaged reef to bring back life and biodiversity

Titouan Bernicot
Titouan, founder and CEO of Coral Gardeners in French Polynesia, was drawn to action by seeing coral bleaching as a teen surfer in Mo’orea. He has built a community-based organisation that has grown and planted over 30,000 corals in French Polynesia. Their new goal: engage the public to help plant a million corals, and develop tech to accelerate coral restoration around the globe.

coralgardeners.org

A bald man smiling wearing a suit and tie

Professor Connel Fullenkamp

Connel Fullenkamp, Professor of the Practice of Economics at Duke University, and co-founder of Blue Green Future, nominates:

Partanna
Cement production is a major emitter of carbon dioxide. While some firms are working on carbon-neutral cement products, California-based Partanna has developed a carbon-negative cement from brine – a desalination waste product – that captures carbon while it cures. This makes it possible to build homes in the developing world that generate carbon credits for their owners.

partanna.com

A house with a flat roof and sunshine around it

Rendering of a prototype home in the Bahamas made with Partanna’s carbon-negative cement

Belinda Bramley
Pivoting to environmental consulting from accounting, Belinda brings business sense and the ability to speak the language of companies and markets to a field that needs it. She can analyse the needs of a project, organise it and build the case for funding it. She currently supports Hinemoana Halo Ocean. I predict she will become the chief architect of many sustainability projects.

conservation.org/aotearoa/ hinemoana-halo

Read more: Rapha CEO Francois Convercey on diversity and sustainability in cycling

A man smiling wearing a white shirt and grey jacket

Dimitri Zhengelis

Dimitri Zenghelis, Special Advisor to the Wealth Economy project at the University of Cambridge, nominates:

Kingsmill Bond
I recommend energy strategist Kingsmill Bond for his work on low-carbon transition at the US-based Rocky Mountain Institute. He has always been ahead of the game in predicting the speed with which we will adopt renewables and other clean technologies.

rmi.org

A mosaic style painting in different shades of blue and red

Winds of Change, by Sarah Bond for Rocky Mountain Institute

A man wearing a white shirt, pocket handkerchief and a grey suit

Rakesh Patel

Rakesh Patel, founder and CEO of Alta Capital, an award-winning sustainable real-estate developer based in Hong Kong, nominates:

Eric Ricaurte
Founder CEO of Greenview, Eric is a pioneer in sustainable hospitality, starting in South America more than 25 years ago and building Greenview into a leading consultancy. Through his leadership, he has engaged some of the largest hotel groups in the world.

greenview.sg

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green mangroves in a green river

 

“Technologies like renewables have their limits,” says Markus Muller. “The real potential for a sustainable global economy lies in using the wonders of nature to help rectify the planet.”

As has been previously discussed, a fundamental issue underpinning climate change is that the current economic system does not recognise nature as capital. We use and degrade nature freely. But we can go further than that, and say that putting nature at centre stage and appreciating the ecosystem services that it can deliver, would significantly help us counter climate change.

A man in a black suit and white shirt wearing glasses

Markus Müller

It is easy to believe that technology, correctly implemented, will be enough to combat climate change. And it is true that technological transformation, moving away from fossil fuel based production chains towards more electric and alternative energy based production chains, will support the reduction in CO2 emissions and in mitigating the climate change problem. But, if we wanted to electrify the entire world so that everything is based on renewable energy, it would require a vast amount of commodities that we currently do not have. Current estimates suggest we would need 500% of the commodities we already use today. And the extraction of these commodities will harm nature as well. So, technology has natural limits in its ability of adapting to a future counteracting climate change.

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We need the help of nature.

Nature based solutions (NBS) are one of the most important ingredients here. As defined by the IUCN, they leverage nature and the power of healthy ecosystems, to protect people, optimise infrastructure and safeguard a stable and biodiverse future.

Their potential is massive. One exciting aspect is that they can include local communities, especially in the global south, which are currently excluded from global developments. NBS produce societal benefits in a fair and equitable way, in a manner which promotes transparency and broad participation. They also maintain biological and cultural diversity, as well as the ability of ecosystems to evolve over time.

a brown coral under the blue sea

Photo by Francesco Ungaro

The IUCN have estimated that NBS have the potential to reduce roughly 10-18 gigatonnes of CO2 emissions each year (by 2050). This would be a major contribution to reducing CO2 emissions. And NBS also mean the reinvigoration of nature, which will further increase the climate mitigation benefit, including in such crucial areas as the resilience of the coastline.

One discussion in the global market is how to use NBS for carbon credit trading. NBS are one of the carbon sinks and these credits can be traded by companies not just to offset their C02 emissions, but also to steer those companies, via these carbon credit markets, to reduce their greenhouse gas emissions.

And there are other potential benefits. In the ocean, if we put some areas under protection because of NBS, the fish stock will be very likely to recover. The fish stock will swim around, outside the protected area, which could benefit sustainable fisheries also outside such areas; scientists having found that this led to an increase in output. So NBS have multiple potential benefits to the entire planet.

Read more: Markus Müller On Natural Capital

As another example, a healthy coral reef absorbs 97% of the energy of a wave. And this speaks to the further economic potential of NBS. New jobs, for example. We have forest rangers, so why not have coral rangers or gardeners?

green mangroves in a green river

Photo by Vishwasa Navada

In fact, they already have coral gardeners in Tahiti, where they are a source of labour on this breakwater. Creating a coral reef produces environmental and biodiversity benefits, creates labour, and can generate a profit.

There is however, a challenge: complacency and the rebound effect. We know this from countries where recycling has become a tool for reducing plastic waste, but the high recycling ability of a country (Germany is a good example) leads to more plastic production. Therefore believing that NBS will do the trick and lead to absorption should not lead us to think that we can emit further CO2. NBS will only ever work while we are reducing CO2 emissions at the same time. The priority is to reduce CO2 emissions while using the ability of NBS for absorbing CO2 as a mitigation strategy.

Markus Müller is Global Head of the Chief Investment Office at Deutsche Bank’s International Private Bank

Find out more: deutschewealth.com/esg

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pink umbrellas in a town with people in a climate change protest
pink umbrellas in a town with people in a climate change protest

Nature provides services worth over $125 trillion per year globally

The planet’s species population sizes have decreased by 70% since the 1970s. Yet while scientists have proven that biodiversity loss is intimately linked with climate change, it continues to be kept in the shadows of the climate agenda

As the Nature-based Solutions Conference kicks off at Oxford University this week, we speak to Professor Nathalie Seddon about why boosting biodiversity is essential to building the resilience of our ecosystems in a warming world – and why planting trees is not the catch-all solution some think it is.

LUX: The mass of living creatures in the world is undergoing a dramatic diminution. What are the effects of this?

Woman

Professor Nathalie Seddon

Nathalie Seddon: The statistics are startling. We have lost about 80% of wild fish from the oceans and 82% of wild mammals on land, so our habitats and natural ecosystems are basically empty. 97% of vertebrates on the planet are people and their livestock; only 3% are wild creatures that we share the planet with. 9 million hectares of tropical forest are cut down a year; and we’ve modified over 50% of land use.

Biodiversity is important for multiple reasons – material, cultural and spiritual. Our health is intimately linked to the health of all these ecosystems that we are currently destroying. Our nature systems support us in countless ways, providing clean air, water, food, and genetic resources. Over half of GDP depends on natural ecosystems, which generate over $125 trillion worth of ecosystem services each year – from reducing the impacts of droughts and protecting coastlines from flooding or forests from wildfires. These services are dependent on the species and the diversity of the species within them, and are incredibly important to our resilience in a warming world.

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LUX: Why is there so little awareness around biodiversity loss?

NS: Climate still doesn’t get enough attention or funding, but it is considerably more prominent in discourse than biodiversity is. Our economy has also been developed on the assumption that nature’s resources are infinite. People assume that, with enough money, technology will come to the rescue. I think there is a fundamental reason to explain all of these: the age-old idea that humans are not part of nature but rather separate from it; that we must conquer nature rather than flourish as a part of it. This disconnect between humans and nature is the root cause, and therefore also part of the solution to the trouble we face.

Logs

Deforestation contributes to increases in temperatures and changes in rainfall patterns across the world

LUX: Are we at a turning point of the understanding of the importance of biodiversity – not just as a desirable end in itself but as an essential part of combating climate change?

NS: In principle, yes. In the international policy and business community, there’s a lot more talk about biodiversity and climate change as two sides of the same coin. But a lot more work is needed to make sure that there is a robust understanding of what that means in practice and how that translates on the ground. For instance, agriculture or commodity production are the biggest drivers of biodiversity loss and also the second biggest source of greenhouse gas emissions. Protecting and restoring our biodiversity can help reduce emissions, but about 23% of our emissions come from changes in the land use sector in agricultural and forestry and other land use, so improving what happens in those landscapes can also have important impacts on warming. It’s only still quite a small part of the solution.

There has been a step up in terms of the prominence and emphasis on nature as part of the negotiations on nature-based solutions. But there are huge misunderstandings, including a big conflation of commercial forestry with nature-based solutions. You can’t just plant trees and then delay decarbonisation and transition to renewables.

The Glasgow Science Centre played a key role in last year’s COP26 discussions

LUX: What are the most important steps leaders in business and wealthy individuals can take to combating this?

NS: A lot of businesses and governments are making net zero pledges, covering 90% of the global economy. But you look under the bonnet, and most of them are not underpinned by a really robust science based plan or any funding to enact it.

Talking about how nature, biodiversity and climate are connected is good, but we need to ensure that decision makers who are acting on that basis understand what that actually means in practice.That doesn’t mean offsetting carbon emissions by investing in cheap forestry plantations. It means doing everything they possibly can to reduce those emissions and reduce the damage that they’re doing to ecosystems within their supply chains whilst also investing in projects that are biodiversity based and community led and ideally doing that within their supply chains, which is a process that’s called insetting rather than offsetting.

Read more: Cary Fowler on Protecting the Biodiversity of our Planet

Offsetting is when a company will calculate its impact on climate or emissions so it will invest in probably some trees somewhere that probably shouldn’t be there and feel like it is addressing the problem. Insetting is looking within your own supply chain and investing in high quality, valuable projects within that supply chain, so insetting your damage to the biosphere and the climate within your supply chain. In doing so, you are not only meeting your ESG requirements but also increasing the value in resilience of the supply chain itself. It’s about investing in nature in your supply chains to reduce risk, operational risk, supply chain risks as well as reputational risk.

There is a real need to engage fully with the research community to ensure that those pledges can be met in a sustainable, ethical, biodiversity community-based way and so that’s where the work is. Public-private partnerships between researchers and businesses are really important. Companies in general should adopt a generative, circular economy model and then embed proper robust accounting on natural and social capital in their accounting procedures.

Rainforest

Humans have identified just 3 million of over 12 million complex life forms on the planet

LUX: Is it true that we are still discovering exactly how different species, seemingly unrelated, can have a dramatic impact on the health of the planet and the human race?

NS: There’s upwards of about 12 million complex life forms on the planet, and we have only named around 3 million of them. We don’t know what functions all those species play in the ecosystem, we just know that all species matter and that we can’t afford to lose the predicted 1 million species by the end of the century.

That diversity gives ecosystems the resilience they need in a warming world. It’s like having a diverse investment portfolio – the more different sorts of investments you have, the more likely it is to be able to weather the storm, in that case, a financial storm. In a natural world, the more species you have, the more likely it is that that ecosystem can deal with whatever is coming.

LUX: Are there any causes for hope, or is your feeling that we are doing too little too late?

NS: On one hand it’s all very frustrating because we’ve known for a very long time what causes climate change and what drives biodiversity loss, yet very little has been achieved. Put it into perspective: we have lost about 70% of species populations since the 1970s, despite a huge increase in the coverage of protecting it.

But there are lots of countries that are pledging to do the right thing: community and biodiversity based investments and nature-based solutions, at the same time as big commitments to renewables and reducing emissions. Costa Rica is leading on climate policy and the practice of renewables, plus large areas of land are under recovery and protection. [The same goes for] Moldova, Brazil, Chile and Cape Verde, at least on paper, in terms of how they’re incorporating nature into their climate change pledges.

There are also various companies that are taking a high integrity approach to tackling net zero. Netflix is an example of that: they are reducing emissions across all of their operations as fast as they can, as well as investing in projects that are truly verified in terms of their carbon, biodiversity and social benefits. That’s the real point. You can’t invest in nature if you’re not also doing everything you possibly can to reduce emissions.

Seaweed

Nature-based solutions involve the sustainable management and use of natural resources to tackle socio-environmental challenges

LUX: Who are the laggards?

NS: Most of the main fossil fuel companies are talking about decarbonisation but they’re not making enough progress. We need to keep fossil fuels in the ground and we need to invest in nature. It’s not ‘either or’, and some of those big fossil fuel companies are just greenwashing their operations by claiming to invest in so called nature-based solutions which often just turn out to be short rotation commercial forestry plantations. That’s a live issue that needs to be fully addressed.

At the government level, many countries are investing in tree planting, while not ensuring that their existing biodiversity and intact ecosystems are protected properly, and in fact actively opening them up. Decisionmakers seem to think that growing a tree is the same as a tree which is in an intact ecosystem, yet science is really clear that there is no equivalent: you can’t recapture the carbon lost through destroying our intact ecosystem in a timely or sensible way through planting trees. .

Read more: Julie Packard: All In Together

LUX: How would you explain to an intelligent but distracted business leader that the loss of a seemingly trivial habitat in one part of the world can have a fundamental effect on people in the other?

NS: The earth is a big, interconnected system. Deforestation rates in the Amazon are increasing to meet global demand for beef and soya, but because Amazonia is a big water pump, this can cause changes in global patterns of rainfall, therefore compromising food security and causing supply chain issues. For the intelligent but distracted business leader who thinks that it doesn’t really matter if we lose all the monkeys or toucans from a forest, it does, because those species play a critical role in the ecosystems and we need to extract carbon from the atmosphere to keep all of us safe.

Ultimately, we need systemic change in how we run our economies. Our economic system prioritises material wealth and infinite growth on finite resources. Unless that changes, we won’t avert climate change and biodiversity. We need to think about circular and regenerative economies, and we as individuals need to enact big behavioural change as part of that. Otherwise, you’re just rearranging chairs on the Titanic.

Nathalie Seddon is Professor of Biodiversity in the Department of Zoology at the University of Oxford.

Find out more: naturebasedsolutionsoxford.org

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