What Connects Obesity, Water Pollution, Habitat Loss and Costs Us USD 10 Trillion?

Every year, companies along the food chain externalize risk in the amount of USD 10 trillion regarding environmental damage and damage to human health, says the report of the Food and Agriculture Organization of the United Nations (FAO) which assesses the state of global food systems.

The report was published ahead of the annual global summit of the UN on climate, COP28, which begins on November 30 in Dubai.

FAO estimates that the current weaknesses in our food systems result in over USD 7 trillion in costs related to human health each year. Losses in productivity and public health costs related to obesity in many parts of the Global North are cited, as are problems related to the lack of food, primarily in the Global South.

The report emphasizes the proven links between poor diets and conditions such as diabetes and certain types of cancer.

A majority of the remaining costs – around USD 2 trillion – is caused by the degradation of the natural environment. FAO claims that this number is probably underestimated due to the lack of high-quality data on the global level.

The costs include facing water pollution and the loss of habitats due to changes in how land is used.

No country is immune to these hidden costs, the report says. However, poorer countries are disproportionately affected, because the costs comprise over 25% of their GDP, whereas those costs comprise 12% of the GDP in medium-income countries and 8% in wealthier countries.

UN FAO has promised a more detailed estimate of the hidden costs in next year’s update of this analysis. The 2024 report will also give recommendations for concrete political interventions, including changes in tax and subsidy systems which currently support the food system.

For the time being, it invites policy makers to start including the real costs of the current systems in their political decision, noting that, without an intervention, those costs will grow.

Fossil fuels in the food chain

The UN FAO report arrives only a few days after the Global Alliance for the Future of Food published a new analysis of the use of fossil fuels in the food system and how that harms the living environment.

This analysis has determined that at least 15% fossil fuels which are used every year worldwide are applied in the food chain. This primarily pertains to the use of fertilizers and pesticides which require large amounts of fossil-based energy for production. Fossil fuels are also used to power the systems of temperature control in food storage and farm equipment like tractors. In addition to that, they are incorporated in the plastic that is used in food supply chains.

The Global Alliance for the Future of Food calls on policy makers to make an effort to help expand low-carbon alternatives for the food production sector. Their analysis identifies solutions, including alternative fertilizers, methods of agricultural production which limit the use of pesticides and fertilizers, as well as electrical technologies powered by renewable energy.

– Shifting away from fossil fuel dependency towards renewable energy and regenerative and agroecological farming would not only protect our planet, but make food more affordable, enhance food security, create jobs, improve health, and help tackle hunger – said Patty Fong, Program Director at the Global Alliance for the Future of Food.

Food, agriculture and water will be the topics of discussion at COP28 on December 10, the last day of the summit before the closing negotiations about the official agreement.

M. D.

Food and Agriculture Organization of the United Nations

FAO

UN FAO

Global Alliance for the Future of Food

COP28

food chain

obesity

habitat loss

water pollution

food supply

alternative fertilizers

pesticides

food industry