Long-term trends and strategic challenges
Managing the environmental impacts of growth
The region needs to ensure that economic growth is environmentally sustainable - which means ensuring that the natural resource needs of future generations are not compromised by current activities. The threat of global warming is very significant for the region as it is very vulnerable to the increases in sea levels associated with climate change. There is increasing evidence that, to limit global warming, industrialised economies may need to make an 80 per cent cut in their 1990-level CO2 emissions by 2050. This represents an annual reduction in the order of 3.5 per cent.
The region also needs to:
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radically change patterns of resource-use - energy, materials, water - to reduce our unsustainable ecological footprint and carbon emissions
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conserve existing landscapes, biodiversity and heritage assets and prevent habitat fragmentation
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develop a network of new and restored, large-scale habitats, bringing major ecological, leisure and tourism benefits
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encourage and support businesses to better understand the risks posed by climate change and adapt. Some of the effects of climate change will be specific to certain locations (eg industrial developments close to fluvial or coastal environments) or sectoral (eg on agriculture and food processing), however others will have effects across the economy - for instance, through disruption to supply chains, utilities and the transport system. It will be key for businesses to build the skills for adaptation and for all sectors to work together to build a more resilient system.

