Boreal forests 'worth $250 billion a year'

London, 28 September: Boreal forests are worth around $250 billion a year in 'ecosystem services', according to a report by a Canadian economist.

These coniferous forests, located in the sub-Arctic regions of the northern hemisphere, have value in trapping carbon dioxide and filtering water, said Mark Anielski. He presented his research to the 10th National Forest Congress in Canada this week, calling for governments to develop an accounting system that would highlight the economic benefits of protecting the environment.

Logging, oil and gas extraction and hydroelectric generation contributed $48.9 billion to Canada's economy in 2002, the report finds. However, Anielski estimates that the environmental costs of these activities remove $11.1 billion from this value.

In contrast, Anielski says that Canada's boreal ecosystem services – such as carbon sequestration, biodiversity, water supply regulation and pest control – were worth $93.2 billion in 2002, or 2.5 times as much as resource extraction.

For example, Canada's forests absorb an estimated $1.8 billion worth of carbon dioxide a year, while flood control and water filtration from wetlands and peat lands contribute $80.4 billion a year.

These figures were calculated from an estimate of how much it would cost to replicate these effects if the forests and wetlands disappear.

Extrapolated to take account of the 10 million square kilometres of boreal forest in Canada, Russia, Sweden, Finland, Norway and Alaska, the total global value of these ecosystem services reaches $250 billion a year.

"If these ecosystem services were counted in Canada, they would amount to roughly 9% of GDP. Ignoring these values would be like leaving out the combined annual contribution to GDP made by Canada's health and social services sector and half of the public sector," Anielski said.

But he added: "It's only valuable in economic terms when it's gone or it's scarce."

As well as informing government decision making, and providing a basis for companies to value their efforts to preserve the environment, the data could be used by reinsurance companies to assess risk, he said.