World Economic Forum: Global Risks 2013
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After a brief respite fuelled by a trillion euros of cash the European Central Bank (ECB) lent Europe's banks in early 2012, by mid-year markets were ... more
Around 1.2 billion people, or almost one-fifth of the world's population, live in areas of physical water scarcity, and another 1.6 billion people, ... more
The aging of the world’s population will require changes to healthcare and pension systems, as well as reassessment of labor markets, infrastructure ... more
Rising greenhouse gas emissions: Governments, businesses and consumers fail to reduce greenhouse gas emissions and expand carbon ... more
Food and fuel price volatility has a variety of impacts on both producers and consumers, many of them negative. Rising fuel costs have been citing as ... more
As climate change continues to result in more extreme weather, from droughts to floods to heat waves, countries – especially disaster-prone ... more
Widening gaps between the richest and poorest citizens reflect ongoing inequality and the potential for political and social unrest around the world. ... more
In 2012, losses from natural disasters equaled $160 billion worldwide according to reinsurer Munich Re, with much of the figure to due to damage from ... more
Extreme weather, population growth, rising prices and geopolitical discord all contribute to food shortages. The global food system has become ... more
In an increasingly globalized, interconnected world, localized risks have now become global risks. The global financial crisis and climate change are ... more
After a trillion euros of cash was lent to Europe's banks from the European Central Bank in early 2012, by mid-year markets were plagued with fears that Spain might follow Greece, Ireland and Portugal in needing a financial bailout. On January 10, Spain will begin selling its debt in the form of government bonds; the Spanish Treasury says it plans to sell €121.3 billion ($158.53 billion) worth of bonds in 2013, which it hopes will help it avert further financial crisis.
In the final months of 2012, U.S. legislators only narrowly thwarted the “fiscal cliff” crisis – a crucial impass of expiring tax cuts with planned budget federal spending cuts – underlining the country’s ongoing struggle with its massive debt load. (Source: Reuters)
Around 1.2 billion people, or almost one-fifth of the world's population, live in areas of physical water scarcity, and another 1.6 billion people face economic water shortage in which countries lack the necessary infrastructure to take water from rivers and aquifers, according to the U.N. Department of Economic and Social Affairs.
Water shortages have serious implications for health and stability, according to the InterAction Council (IAC), a group of 40 prominent former government leaders and heads of state, which released an August 2012 report warning, “Using water the way we have in the past simply will not sustain humanity in future." (Source: United Nations Environment Programme (UNEP) )
The aging of the world’s population will require changes to healthcare and pension systems, as well as reassessment of labor markets, infrastructure and transportation. The number of persons over the age of 60 will exceed 1 billion in less than 10 years, according to the United Nations – that’s about 15% of the world’s current total population, and equal to the population of the continent of Africa.
“We must commit to ending the widespread mismanagement of aging,“ says Richard Blewitt, Chief Executive Officer of HelpAge International, a partner to the U.N. Population Fund. “Social protection and age-friendly health care are essential to extend the independence of healthy older people and prevent impoverishment in old age.” (Source: Reuters)
Activists, environmentalists and representatives from developing nations had tentatively high hopes for 2012’s Doha climate talks, but once again the reality fell far short of expectations. Dismissed by some as a failure, the talks did produce a 2015 deadline for further greenhouse gas emissions reductions, but critics claim this is simply yet another stall tactic that will result in developed nations continuing to “kick the can down the road” rather than make solid financial and political commitments to tackling climate change. (Source: Reuters)
Food and fuel price volatility has a variety of impacts on both producers and consumers, many of them negative. Rising fuel costs have been cited as affecting everything from corporate profits and efficiency to unemployment rates. The interconnected nature of food and fuel means that a price spike in one commodity causes a price spike in the other, and the increase in biofuel production and consumption has only further complicated the issue. (Source: Reuters)
As climate change continues to result in more extreme weather, from droughts to floods to heat waves, countries – especially disaster-prone developing nations – must invest effort and money into mitigating the effects. This could require a financial investment of over $100 billion per year, according to the World Bank.
But the risk of failing to adapt and address climate change are even greater: a 2012 report from DARA, an international humanitarian agency, revealed that climate change is responsible for global economic losses close to 1% of world GDP for 2010 – and that climate change-related deaths could exceed 100 million by 2030. (Source: Reuters)
Widening gaps between the richest and poorest citizens reflect ongoing inequality and the potential for political and social unrest around the world. This map visualizes differences in national income disparities around the world measured by their Gini coefficient. The Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality – everyone has the same income; and 1 corresponds with perfect inequality – one person has all the income, and everyone else has zero income. The areas shown in dark red on the map have the greatest income inequality, while those in bright blue have the lowest inequality. (Source: Wikimedia Commons, CIA World Report 2009)
In 2012, losses from natural disasters equaled $160 billion worldwide according to reinsurer Munich Re, with much of the figure to due to damage from Hurricane Sandy, which cost approximately $50 billion overall. The severe U.S. drought caused agricultural crop losses of around $20 billion.
Elsewhere in the world, Typhoon Bopha caused over 1,000 deaths in the Philippines – the most deadly natural catastrophe of the year.
Munich Re also noted that the year’s catastrophic events were “dominated by weather extremes” attributable to climate change. “With no apparent prospect of progress in international climate negotiations like those held recently in Doha, adaptation to such hazards using suitable protective measures is absolutely essential,” said Prof. Peter Höppe, Head of Munich Re's Geo Risks Research. (Source: Reuters)
Extreme weather, population growth, rising prices and geopolitical discord all contribute to food shortages. The global food system has become critically unstable, and political unrest has worsened the issue in countries such as Syria, where the ongoing civil war has blocked humanitarian efforts to deliver food to at least 1 million people.
Approximately 14% of the world’s population, or 1 billion people worldwide, already suffers from malnutrition, and increases in food prices due to commodities speculation, climate change and other factors can worsen already dire prospects. (Source: Reuters)
In an increasingly globalized, interconnected world, localized risks have now become global risks. The global financial crisis and climate change are only two of the major issues which require global collaboration and coordinated policy-making efforts. The ongoing struggles of the Eurozone have highlighted the various economic and political difficulties in achieving this collaboration across multinational borders; nevertheless, the challenges and risks of the 21st century have so far compelled the EU to remain intact.
From the Global Policy Journal: “The rise of systemic risk requires a systemic response. Effective global governance and policy development has never been so necessary and urgent. “ (Source: Reuters)
A Chinese woman boils water in a kettle using solar energy panels. The world economy continues to career along its fossil-fuelled trajectory towards resource wars and climate chaos. Alternative solutions for economic development are urgently needed. In its 2011 report “Towards a Green Economy - Pathways to Sustainable Development and Poverty Eradication”, the United Nations Environment Programme (UNEP) charts a future course towards an alternative model of development that claims to be not just green but also “pro-growth, pro-jobs and pro-poor”.
As part of its economic analysis, UNEP singled out encouraging solutions from around the world, many in developing countries, that point the way forward. They are shown in this photo gallery, along with other schemes that show the positive benefits of sustainable investments, policies and grassroots initiatives. (Source: Reuters)
A small hydro-electric plant generates renewable energy in Kaggefoss, Norway.The Norwegian Pension Fund Global is one of the largest sovereign wealth funds in the world. Funded by surplus revenues from the country’s oil and gas sector, it has over 650 billion dollars worth of investments in more than 8000 companies worldwide. Its Ethical Council has excluded companies involved in tobacco and arms production, environmental degradation, and violations of human rights.
The Norwegian Finance Ministry has established a new investment program for the fund, which will focus on environmental investment opportunities such as climate-friendly energy, improving energy efficiency, carbon capture and storage, water technology, and the management of waste and pollution. (Source: Shutterstock)
Described as a “double dividend for jobs and the environment” by UNEP, the German government in 1999 increased taxes for engine fuels, electricity, oil and gas in incremental steps up to 2003. The revenue raised was used to offset a lowering of employers’ contributions to workers’ pensions and social security, thereby reducing non-wage labour costs. The German Institute for Economic Research found that the effect was an additional 250,000 full time equivalent jobs and a three percent drop in CO2 emissions in 2010.
Eco-taxes are designed to put a price on pollution and the use of scarce natural resources and to stimulate employment by reducing the cost of labour. The International Labour Organization estimates that imposing a price on carbon emissions and using the revenue to cut labor costs by lowering social security contributions would create 14.3 million net new jobs over five years. (Source: Reuters)
When Indonesia, faced with unsustainable spending on energy subsidies, raised fuel prices and cut subsidies in October 2005, the government sought to soften the blow. It gave cash handouts of 30 dollars each quarter for a year to 15.5 million poor households. The program performed well, says UNEP, and was repeated when fuel prices were raised in May 2008, with 1.52 billion dollars in cash transfers being allocated to low-income households.
The program provided a model for identifying poor households which was later used in the Hopeful Family Program, intended to increase the education and health of poor communities. Cash payments are made to female household heads through post offices on the condition that they use health and education services.
Learn more about the importance of energy subsidy reform in Green short cut: Abolish fossil fuel subsidies (Source: Reuters)
An articulated bus powered with biodiesel made from soybeans operates in the Brazilian city of Curitiba. Since the 1960s, the city has more than quadrupled its population to over 1.8 million without experiencing worsening congestion, pollution, or reduction of public space. The population has doubled since 1974, but its car traffic has declined by 30 percent.
The city has closely integrated city and transport planning and zoning regulations that protect green space and divert traffic from the city center. Curitiba has the highest rate of public transport use in Brazil (45 per cent of journeys), uses 30 percent less fuel than other major cities, and has one of the country’s lowest rates of urban air pollution.
Learn more about new forms of urbanization in New Urbanism: Cities for people not cars (Source: Reuters)
Children hug trees as they prepare to take part in an attempt to create a Guinness World Record for the most number of people hugging trees for two minutes in Kathmandu on World Environment Day on June 5, 2011.
Since 1980, about 14,000 locally-organized Community Forest User Groups (CFUGs), representing more than 35 per cent of the total population, have been formed and they now manage about one quarter of Nepal’s national forest resources, deciding rules for harvesting, setting prices for forest products, and providing employment, income and wood fuel energy.
UNEP reports that community forestry has contributed to reversing forest decline in Nepal from an annual rate of 1.9 per cent during the 1990s to an annual increase of 1.35 per cent over the period 2000 to 2005, and has also resulted in improved soil and water management. (Source: Reuters)
The city of Quito and its surrounding areas, home to over 1.5 million people as well as agricultural, industrial and hydropower concerns, gets 80 percent of its water from upstream ecological reserves. The Fund for the Protection of Water – FONAG – was established in 2000 as a trust fund to which all water users in Quito contribute, paying differentiated rates for the ecosystem services the water provides.
FONAG uses the proceeds to finance watershed management projects, land acquisition for key hydrological functions, and river basin management education and training. Through the fund, more than 65,000 hectares of watersheds are now under improved management, according to UNEP, and FONAG has inspired similar schemes in Latin America and beyond.
Learn more about payment for ecosystem services in How Costa Rica’s eco-economy saved its forests (Source: Reuters)
Following the collapse of the Soviet Union and the subsequent loss of cheap agrochemicals, Cuba suffered a food crisis. Cuban agriculturalists turned the declining availability of pesticides, fertilisers and petroleum into an opportunity to shift towards organic production.
Havana became a world-leading center of urban agriculture, with more than 35,000 hectares of land in the city now being used to grow food on small-scale allotments—known as ‘organiponicos’. State farms were leased back to individuals and co-operatives while local markets developed, transport costs were reduced, and derelict areas of the city revitalized.
To learn more read our interview with Humberto Rios, winner of the 2010 Goldman Environment Prize. Support Cuba's organic farmers (Source: Reuters)
To reduce the country’s dependence on oil and gas, Tunisia’s government has passed a law establishing an “energy conservation system”, created the National Fund for Energy Management funded by a levy on the registration of private cars, and introduced a national Solar Energy Plan to increase the share of renewable energy sources from just under one percent to 4.3 percent in 2014, using solar photovoltaic systems, solar water heating systems, and solar concentrated power units.
The energy savings expected could reach 22 percent for 2016, with a reduction of 1.3 million tons per year of CO2, estimates UNEP. Between 2005 and 2008, clean energy plans have already saved the government 1.1 billion dollars in energy bills, relative to initial investments of 200 million dollars in clean energy infrastructure. (Source: Shutterstock)
A wind turbine is seen near a gate of the ancient city of Wushu in Diaobingshan, Liaoning province. According to UNEP China is “taking considerable steps to shift to a low-carbon growth strategy based on the development of renewable energy sources.” China has committed itself to producing 16 percent of its primary energy from renewable sources by 2020 and its Renewable Energy Law offers a national fund to foster renewable energy development, discounted lending and tax preferences, and a requirement that power grid operators purchase renewable energy.
China is already the world’s leading solar PV manufacturer, the largest wind power market in the world, and the world’s largest market for solar hot water, with more than 10 percent of Chinese households relying on the sun to heat their water. The solar water heater sector has proven profitable for both households and manufacturers and also provides “considerable health and sanitation benefits.” (Source: Reuters)
Feed-in tariffs guarantee payment of a fixed amount per unit of electricity produced from renewable sources, or a premium on top of market electricity prices. In Kenya, feed-in tariffs cover electricity generated from wind, biomass, small hydropower, geothermal, biogas and solar. They are intended to rebalance the country’s energy mix away from imported petroleum. Critically for the long-term development of the sector, the feed-in tariffs stipulate power purchase agreements of a minimum of 20 years.
This could stimulate an estimated 1300 megawatts of electricity generation capacity in the coming years or nearly double installed capacity, reports UNEP, which anticipates a “triple-win” of additional renewable, enhanced employment and poverty alleviation in rural areas, and increasing business development. (Source: Reuters)
People walk past flowerpots made of old jeans during a recycling campaign at a jeans shop in Seoul. Waste management and recycling in South Korea has not only reduced waste generation, but has also encouraged reusing waste as an energy resource creating thousands of jobs, says UNEP. A policy of Extended Producer Responsibility (EPR) has been enforced on packaging (paper, glass, iron, aluminum and plastic) and specific products (battery, tire, lubricating oil and fluorescent lamp) since 2003. This increased the recycling rate by 14 percent between 2003 and 2007 and created an economic benefit equivalent to 1.6 billion dollars.
Learn more about recycling in Recycling finds hidden resources (Source: Reuters)
In central London, since 2003, the world’s largest traffic congestion charge has charged motorists a fee (currently 10 pounds, about 16 dollars) for entering the city center on weekdays during peak times. The system uses cameras to monitor the licence plates of motorists and levy fines if the charge is unpaid. The scheme has reduced daily vehicle journeys by 70,000 and CO2 emissions by 20 percent, reports UNEP, as well as encouraging an increase of bicycle and public transport usage in the city center. A similar scheme in Singapore Singapore’s has also slowed increasing car use and motorization. (Source: Reuters)
Bogota’s bus rapid transit system TransMilenio was introduced in 2000 and has been expanding ever since due to high public satisfaction and its success in reducing emissions per passenger by 14 percent. The system consists of 11 lines comprising dedicated bus lanes and elevated stations in the center of a main avenue (usually accessed via a bridge). Like a subway station, the station platforms and bus floor are at the same height making boarding easy and quick. Users pay with smartcards.
Bogotá has also built many bicycle paths built throughout the city in conjunction with TransMilenio and stations at each end of a line have large bicycle parking facilities. Today five percent of trips in Bogotá are by bicycle. Thanks to its success, TransMilenio-style bus rapid transit systems have been replicated in Lagos, Ahmadabad, Guangzhou and Johannesburg. (Source: Reuters)
Labourers work on a dried lake to try and revive it under the National Rural Employment Guarantee Act (NREGA) on the outskirts of Hyderabad. NREGA guarantees 100 days of employment every year to tens of millions of the rural poor on projects that contribute to the restoration and maintenance of natural assets, such as water sources and soil, that are used by the poor to earn their livelihoods.
The scheme has grown fourfold since its inception and investment in 2010 amounted to over 8 billion dollars, creating 3 billion workdays and benefiting 59 million households. About 84 percent of this investment goes into water conservation, irrigation and land development.
Learn more about watershed conservation in India in Combating water scarcity: Watershed management in India (Source: Reuters)
According to the Environment Protection Agency, Americans throw away 40 percent of all the food in the supply chain. Meanwhile 1 in 6 Americans struggle to feed themselves. University of Maryland student Ben Simon founded the Food Recovery Network to tackle both these problems by picking up waste food from his college canteen and distributing it to local food banks and charities.
The resulting meals cost about 10 cents each as all the pickup and transport costs are borne by the student volunteers. The Food Recovery Network has spread to 11 campuses and donated over 90,000 pounds of food, worth an estimated 72,000 meals. All of this food would otherwise have been sent to a landfill.
Learn more about food banking at Food banking helps feed hungry in Japan (Source: Food Recovery Network)
African women being trained as solar power engineers in the Barefoot College in Tilonia, Rajasthan state, India. At the Barefoot College, illiterate women villagers learn how to assemble charge controllers and inverters, establish a rural electronic workshop, install solar panels on roofs, connect them to batteries, and solar electrify each house in the village. And they do all this without lectures, textbooks, manuals, exams, or formal qualifications.
The Barefoot approach trains the women using demonstration, practice and sign language. The first three solar engineers trained a further 27 women (speaking many different languages) from all over India. They went on to electrify some 200 rural villages and now the program has spread from India to Africa.
Learn more at Barefoot solar engineers electrify villages (Source: The Barefoot College)
To avoid the social, economic, health, and environmental damage associated with modern food systems, particularly processed foods lacking nutrients, the “Canastas Comunitarias” movement has established direct links between farmers and urban consumers. A Canasta Comunitaria can range from 15 to 100 or more member families. Groups make bi-weekly bulk purchases; individual shares include an average of 20 foodstuffs per family.
These arrangements can lead to better prices for consumers as well as producers, greater control over food quality (e.g. pesticide use), and increased benefits for marginalised families.
Learn more at Learn more at The massive carbon footprint of the global food supply chain (Source: Reuters)
A boy takes a drink using a LifeStraw personal, a portable water purifier that kills bacteria and viruses responsible for waterborne diseases, such as cholera, typhoid, diphtheria, and common diarrhea, which afflict millions of people each year.
This model, which can purify a minimum of 700 liters of water—enough water for between six months and a year—costs around 3.50 US dollars. The LifeStraw won an Index International Design Award in 2005, and was named "Invention of the Year" in 2005 by Time magazine. (Source: Vestergaard Frandsen)
A child collects water using a Q-Drum portable container. Collecting water is a daily burden in rural Africa, with people often forced to carry limited amounts of water back home from the nearest water source—sometimes kilometers away.
The Q-Drum is made of durable polyethylene and designed to reduce the burden of fetching water. Even when filled up to its 50-liter capacity, the makers of the Q-Drum say that a child can easily pull the roller over flat terrain. (Source: PJ Hendrikse)
A man empties freshwater from a Watercone into a bottle. The Watercone is a lightweight, portable solar still that uses the sun's heat and the condensation process to produce drinkable water out of salty or brackish water.
In the sun's heat, the salty water evaporates, condenses on the plastic, and drips down into the circular trough at the inner base of the cone. The Watercone could be especially useful for coastal communities, which may be located next to huge bodies of undrinkable water. Each device can desalinate up to 1.5 liters of water per day. (Source: Stephan Augustin / www.watercone.com)
This small fog collector is one of several energy- and water-saving features at the Chartwell School in Seaside, California, which was awarded a LEED Platinum certificate from the U.S. Green Building Council in December 2007.
When fog blows through the nylon mesh net, it condenses and water trickles down into a tank. Fog collectors have become a primary source of freshwater in some areas, such as the coastal Chilean village of Chungungo, where around 90 large fog collectors can supply between 15,000-100,000 liters per day. (Source: Planet Relations / Chartwell School)
Clay pot filters purify water by passing it through the pores of a ceramic fired in an open fire. The filters are made of clay with a filling of organic materials often coffee, which makes them affordable even for poor communities in developing countries.
The concept has been developed by Australian scientist and potter, Tony Flynn. First test show that a high percentage of bacteria and protozoa are being filtered from treated water. The NGO abundantwater is currently running a series of tests in Laos, introducing traditional potters to the technology. (Source: abundantwater.org)
Over 2.6 billion people do not have adequate toilets, sewers, or latrines. People living in Kibera, a slum in Kenya’s capital Nairobi, solved the problem by using plastic bags. But these “flying toilets” break easily and smell. They also pollute fresh- and groundwater.
According to its inventors, the Peepoo bag solves the problem. It is made of biodegradable material and can be used as fertilizer after use. The bags are odor free for at least 24 hours after use. The only water required is to wash the hands after use. (Source: Camilla Wirseen/Peepoople)
Children playing on a PlayPump Water System, a merry-go-round that pumps groundwater into an adjacent water storage tank. The 2,500-liter tank stands seven meters off the ground, using gravity to give the community easier access to water.
According to PlayPumps International, the NGO that produces the system, the device can pump up to 1,400 liters of water per hour. The systems cost 14,000 dollars to install and operate. Billboards on the water tanks can carry public health messages or advertising from local companies, which can help cover costs. (Source: PlayPumps International / Frimmel Smith)
Iysha Zawde stands next to the 1,500-liter rainwater harvesting jar outside her home in Wakiso District, Uganda.
The various methods of harvesting and storing rainwater are widely seen as effective, low-cost alternative sources of water for drinking, sanitation, and irrigation, particularly when there access to centralized water is either ineffective or simply non-existent. (Source: WaterAid / Caroline Irby)
Sewage is treated at Aqwise plant in Yavne, Israel. The recycling system uses millions of small, plastic rings to breed bacteria and break down organic waste.
The system can be found in about 30 sewage plants worldwide. In a process called Attached Growth Airlift Reactor (AGAR), millions of such rings are propelled through the sewage, wearing away at the harmful waste. (Source: Reuters)
Lime-storage silos at the Tuas desalination plant in Singapore, which produces 110 million liters of freshwater every day. Singapore is one of several countries hoping to meet some of its growing water needs through desalination, the energy-intensive process by which salt water is converted to freshwater.
The United Arab Emirates and Saudi Arabia both get around 70 percent of their drinking water from desalination plants. Spain, Britain, Australia, China, India, and the United States are among the other countries with plans to build more desalination facilities. (Source: Reuters)
During a drought, the Water Feature in front of the Parliament House in Canberra, Australia is shut down. Water conservation not only helps to ensure availability of water, but it also reduces the energy and environmental impact of extracting, treating, and delivering water.
Water-saving measures include changing to more efficient and low-flow toilets, showers, and faucet heads, recycling "greywater" in the garden, or taking shorter showers. Fixing leaky water pipes can also help save huge amounts of water in cities with aging infrastructure. (Source: Reuters)













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