World is facing a natural resources crisis worse than the financial crisis

The world is heading for an "ecological crisis" far worse than the current financial crisis because humans are over-using the natural resources of the planet, an international study warns today. The Living Planet report calculates that humans are using 30% more resources than the Earth can renew each year, which is leading to deforestation, degraded soils, polluted air and water, and dramatic declines in numbers of fish and other species. As a result, we are running up an enormous ecological debt every year - double the estimated losses made by the world's financial institutions because of the credit crisis. The figure is based on a UN report which calculated the economic value of services provided by ecosystems destroyed annually, such as diminished rainfall for crops or reduced flood protection.

Based on figures from 2005, the index indicates global biodiversity has declined by nearly a third since 1970. Breakdowns of the overall figure show the tropical species index fell by half and the temperate index remained stable but at historically low levels. Divided up another way, indicatives for terrestrial, freshwater and marine species, and for tropical forests, drylands and grasslands all showed significant declines. The problem is also getting worse as populations and consumption keep growing faster than technology finds new ways of expanding what can be produced from the natural world. This had led the report to predict that by 2030, if nothing changes, mankind will need two planets to sustain its lifestyle. "The recent downturn in the global economy is a certain reminder of the consequences of living beyond our means," says James Leape, WWF International's director general. "But the possibility of financial recession becomes unimportant in comparison to the growing ecological credit crunch."