Environmental Issues
Expert reviewed • 14 August 2024 • 10 minute read
Environmental sustainability is an important economic issue which addresses the need to preserve natural environments, reduce pollution, combat climate change, and manage the depletion of renewable and non-renewable resources. These types of issues occur across the global economy. As a result, governments must implement policy decisions to help improve overall environmental sustainability.
The Preservation of Natural Environments
Preservation of natural environments involves protecting ecosystems, wildlife habitats, and biodiversity from degradation and destruction. This is essential for maintaining ecological balance and ensuring the availability of natural resources for future generations. Furthermore, Australia's unique ecosystems are not merely national treasures; they are significant economic assets. However, the preservation of these natural environments faces increasing challenges.
For example, the Great Barrier Reef is a current Australian economic powerhouse, at risk of coral bleaching. It has an annual contribution of $6.4 billion to the Australian economy, making it a large contributor to overall GDP, through tourism. There is a critical concern for Australia, not just economically but also environmentally, as 91% of surveyed reefs among the GBR were affected by bleaching in 2022.
Conservation Efforts
Australia has made significant strides in environmental conservation efforts. As of 2023, the country has expanded its protected areas to cover 20.1% of its land mass, a substantial increase from 12.8% in 2000. This expansion is complemented by targeted biodiversity conservation programmes, such as the Threatened Species Strategy 2021-2031, which aims to safeguard and restore populations of endangered species. These initiatives reflect Australia's growing commitment to preserving its unique ecosystems and biodiversity for future generations.
Pollution and Climate Change
Pollution refers to the introduction of harmful substances into the environment, while climate change refers to long-term changes in temperature and weather patterns, primarily due to human activities such as burning fossil fuels. Both challenges represent significant environmental and economic challenges for Australia and the world.
What are key Pollution and Climate Change Issues?
- Greenhouse Gas Emissions: Australia is one of the highest per capita emitters of greenhouse gases among developed nations. As of 2022, Australia's total emissions were 487 million tonnes CO2.
- Water Pollution: Runoff from agriculture and urban areas affects water quality in rivers and coastal areas. For example, the Great Barrier Reef faces threats from agricultural runoff, contributing to coral bleaching.
Due to these pollution and climate change related issues, there are various economic implications, including:
- Health Costs: Air pollution-related health issues cost the Australian economy an estimated AUD 5.3 billion annually.
- Agricultural Productivity: Climate change is projected to reduce agricultural productivity. It is projected that by 2030, there will be up to 10% decline in agricultural production due to climate change.
How is Australia Mitigating These Challenges?
- Emissions Reduction Target: Australia aims to reduce emissions by 43% below 2005 levels by 2030. Additionally, they aim to have net-zero emissions by 2050.
- Renewable Energy Transition: Rapid growth in renewable energy sector. For example, renewables accounted for 32.5% of Australia's total electricity generation in 2022.
Depletion of Renewable and Non-Renewable Resources
Resource depletion refers to the consumption of resources faster than they can be replenished. Renewable resources, such as timber and fish, can regenerate if managed sustainably, while non-renewable resources, such as fossil fuels and minerals, are finite and can be exhausted. The management of both renewable and non-renewable resources is crucial for sustainable economic development. When exploring this topic, the following two terms must be properly understood to obtain a complete understanding of the concepts presented:
- Sustainable Yield: The rate at which a renewable resource can be used without reducing its available supply.
- Resource Scarcity: A situation where resources are limited in supply and cannot meet current demand.
What are Types of Non-Renewable Resources?
- Fossil Fuels: Australia is a major exporter of coal and natural gas. In 2022-23, coal exports were valued at $58 billion.
- Minerals: Australia has significant reserves of minerals like iron ore and rare earth elements. For example, Australia holds 29% of the world's economic demonstrated resources of rare earths.
What are Types of Renewable Resources?
- Water Resources: Australia is the driest inhabited continent, making water management crucial. However, the Murray-Darling Basin, which accounts for 40% of Australia's agricultural production, faces ongoing water scarcity issues.
- Forests: Sustainable management of forest resources is vital for biodiversity and carbon sequestration. For example, Australia's forest area is 134 million hectares, covering 17% of the country's land area.
- Fisheries: Sustainable fishing practices are essential to prevent overfishing. As of 2022, 77% of assessed fish stocks in Australia were not overfished.