Expert reviewed • 22 November 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.
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.
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 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.
Due to these pollution and climate change related issues, there are various economic implications, including:
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: