TSKB Economic Research Focuses on Pollution in Latest Issue of Ecosystem Review

The 15th issue of Ecosystem Review, prepared by TSKB Economic Research, has been published. In the latest issue of the quarterly publication Ecosystem Review, the theme of “pollution,” a critical aspect of the ecosystem crisis, is explored in its air, water, and soil dimensions. The study emphasizes the extensive negative impacts of air pollution, including its detrimental effects on biodiversity, agricultural production, and overall economic prosperity. It also highlights the consequences of water pollution on the global ecosystem and human health, as well as the dangers of soil pollution on healthy nutrient cycling and carbon storage capacity. In the 15th issue of Ecosystem Review, which delves into the need for financing to achieve climate goals, notable topics include the artificial intelligence investments of major technology companies and the climate-related challenges faced by island countries.

The 15th issue of Ecosystem Review, published quarterly by TSKB Economic Research, focuses on “pollution,” one of the most critical themes of the ecosystem crisis. In particular, it highlights the wide-ranging impacts of air pollution, including its effects on biodiversity, agricultural production, and overall economic prosperity. The publication focuses on comprehensive research on pollution, stressing the critical need for heightened attention to this pressing issue.

According to a study in Ecosystem Review, air pollution in 2019 caused excess ozone exposure that resulted in a total loss of EUR 1.4 billion in wheat production across 35 European countries. Türkiye experienced the fourth largest loss, amounting to EUR 132 million. Regarding water pollution, as of 2022, approximately 2.2 billion people worldwide lack access to safe drinking water. The economic value of water from freshwater ecosystems was approximately USD 58 trillion in 2021, which is equivalent to 60 percent of global GDP. Soil pollution is yet another significant issue that causes major problems within the ecosystem. According to the Food and Agriculture Organization of the United Nations, approximately 33 percent of the world’s soil is moderately or highly degraded.

The publication also highlights climate finance issues and includes outputs from a report prepared by the non-governmental organization European Round Table for Industry (ERT). According to the report, Europe will need to mobilize EUR 800 billion in energy resources by 2030 to meet its climate targets.

 This figure increases to EUR 2.5 trillion when considering the investments required until 2050. According to a report published by the Climate Policy Initiative, over USD 9 trillion in annual financing will be required globally by 2030, and more than USD 10 trillion from 2031 to 2050, to achieve the targets set by the Paris Agreement.

On the other hand, concerning technology investments, Ecosystem Review points out that major technology companies are heavily investing in data centers to meet the demands of artificial intelligence. These companies are projected to spend a total of USD 40 billion on energy infrastructure in 2024. According to US-based JP Morgan Chase, in 2022, tech companies are expected to consume a total of 90 terawatt-hours of electricity, which is equivalent to the electricity consumption of Colombia. This consumption could potentially double by 2026.

Here are the key highlights from the 15th issue of Ecosystem Review:

• Air pollution: Not only does it accelerate ecosystem degradation by negatively affecting our natural capital through biodiversity loss, but it also has impacts in many areas, from agricultural production to our overall economic welfare and health. 
• Water pollution: According to the World Bank, highly polluted water areas pose risks to water quality that could reduce economic growth by 33 percent. In addition, it is estimated that drinking water pollution caused 829,000 deaths worldwide in 2021, primarily due to diarrhea cases resulting from inadequate hygiene and cleanliness. 
• Soil pollution: This issue poses a significant threat to both ecosystems and human health. Healthy soil plays a critical role in sustaining the food chain, agricultural productivity, and human health. However, the leaching of antibiotics into the soil, leading to the emergence of antibiotic-resistant bacteria, poses a serious health concern. According to the FAO, the number of these bacteria, which currently cause around 700,000 deaths each year, is expected to increase by 2050. 
• Financing: Europe requires investments in energy infrastructure to achieve its climate targets. Global financing opportunities are being reassessed and innovative financing instruments are being developed. 
• Technology investments: As major tech companies continue to invest heavily in data centers to meet the demands of artificial intelligence, the growth trend in this sector is accelerating. 
• Climate justice: Tuvalu serves as a striking example for illustrating the impacts of the global ecosystem crisis within the framework of climate justice. Tuvalu, a small island country with a population of around 11,500 people, has a minimal contribution to the climate crisis but faces significant threats. Due to a 15 cm rise in sea level over the last 30 years, the country faces the risk of complete submersion by the end of this century. Under these circumstances, the future status of Tuvalu as a nation remains uncertain.

You can access Ecosystem Review here.