HQ Team
November 18, 2024: Climate inaction may cost the global economy $190 trillion by 2070 due to a decline in agricultural and labour productivity and damage to capital and land, according to a Deloitte report.
If action is taken to limit global warming to below 2° C and sustainable steps are taken to transform the global food system, then economic gains of $121 trillion are possible by 2070.
“To feed the world sustainably by 2070 would require limiting warming to below 2° C while producing 40% more calories to feed a projected global population of around 10 billion people,” according to the report, ‘Turning point: Feeding the world sustainably.’
The transformation of the global food system could also make significant progress toward enhancing food security by lowering global food prices by 16%.
Around 730 million people— nearly 10% of the global population —are presently undernourished. The global challenge is three-fold: addressing the needs of a growing population, lifting more people out of the undernourishment cycle, and decarbonizing the agricultural sector and food system simultaneously.
Minimum nutritional needs
A comprehensive and sustainable transformation of the global food system could result in meeting the minimum nutritional needs of an additional 1.6 billion people by 2070.
“COP29 is a pivotal moment for global leaders to come together to weigh the significant costs of inaction on climate change, which could have tremendous impacts for both human well-being and the global economy,” said Jennifer Steinmann, Deloitte Global Sustainability Business leader.
“Investing in and supporting sustainable food systems has the potential to lift hundreds of millions of people out of malnourishment, conserve resources, and mitigate climate change.
“This is a critical opportunity to not only limit the adverse impacts of climate change on agricultural productivity but also boost the global economy across industries at the same time,” she said.
The UN’s Food and Agriculture Organization estimates that approximately 730 million people around the globe are undernourished, and the Intergovernmental Panel on Climate Change estimates an additional 80 million people are at risk of hunger due to global warming.
‘Polycrisis’
Limiting this warming is crucial for enabling a sustainable food supply over the long term, the report stated.
“The world is facing a burgeoning ‘polycrisis’ of our global food system, given that the combination of climate change, biodiversity loss, a strain on finite resources, and smaller harvests significantly hinders our ability to feed the world sustainably,” said Randy Jagt, Deloitte Global Future of Food leader and co-author of the report.
“Transforming our global food system to focus on sustainability will not only address each of these challenges but will significantly benefit populations already disproportionately impacted by food insecurity and climate change, supporting the communities that need it most,” he said.
Feeding the world sustainably in the long term will require a system-level transformation. Successful strategies should address the inequities in food consumption, promote more sustainable production that can withstand environmental pressures, and evolve policy frameworks in the shift to net zero.
Vegetation, wildlife
Countries must invest in protecting, restoring and improving natural capital such as land, soil, water, vegetation, wildlife, and ecosystem services as a means to improve food production and food security.
They should reduce global emissions and limit climate change and the damage it causes. Nations should also support and encourage more sustainable consumer-led choices and diets.
Global government must enhance circularity to help address and limit food waste, use by-products of food production, avoid the exhaustion of critical resources, keep materials in circulation, and enhance efficiency, according to the report.
“The way we have historically increased food production is no longer viable. Sticking to the status quo will continue to exacerbate hunger and drive up food prices, which is not an option,” said Dr. Pradeep Philip, partner, at Deloitte Australia and co-author of the report.
“Feeding the world sustainably requires large-scale, fundamental change. Across every part of the global economy, we must align our goals and objectives to transform our food systems, whether through investment in agricultural research and development, protection of our land, water, and ecosystems, or continued decarbonisation efforts,” he said.
