How much is the environment worth? And will corporates end up paying trillions of dollars in compensation for environmental damage?
That could well be the case with The Guardian telling us of an unpublished study for the United Nations finding that the world's top companies caused $2.2 trillion worth of environmental damage. That accounts for about one-third of their profits. Actually, the report might be understating the amount of damage because it doesn't include damage caused by household and government consumption of goods and services, such as energy used to power appliances or waste. Most of the damage here has been attributed to greenhouse gases blamed for climate change. Other major "costs" were local air pollution such as particulates, and the damage caused by the over-use and pollution of freshwater.
Companies most at risk here for big payouts would include power companies, heavy energy users like aluminium producers as well as food, drink and clothing companies.
The damage is done, and someone will have to pay for it. The burden should not fall on taxpayers.
If policy makers adopt a user pays principle, these companies' profits would be wiped out. We could well see that happening with firms now getting ready for potential liabilities.
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