Asia overtakes rest of the world in materials consumption

The data indicate that at this rate, the region will be increasingly dependent on imports and unable to sustain its economies and lifestyles. The current rate of consumption is also having a negative impact on the environment.
The region’s trade balance indicates that the current rate of exploitation of its resource base is no longer sufficient to support its fast-growing economies and changing lifestyles. From 1970-2008, consumption of construction minerals increased 13.4 times, metal ores and industrial minerals consumption 8.6, fossil fuels 5.4, and biomass 2.7 times.
The report “Recent Trends in Material Flows and Resource Productivity in Asia and the Pacific” presents an update of the 2011 “Resource Efficiency: Economics and Outlook for Asia and the Pacific” (REEO) report. It brings together data extending the latest reported year up to 2008 and thus includes the onset of the global financial |crisis.
The report highlights the region’s material intensity – consumption of materials per US dollar of gross domestic product – as an area of serious concern, as this will increase pressures on the environment and exceed the region’s rapid growth. Currently, material intensity for Asia and the Pacific is three times that of the rest of the world.
“Each dollar of GDP requires an increasing amount of materials,” said Dr Park Young-Woo, director of the UNEP Regional Office for Asia and the Pacific. “The findings do not give signs of decoupling material consumption and natural-resource use from economic growth in the region.
“Resource efficiency needs to increase rapidly to offset material growth in the Asia-Pacific region, which needs systems innovations in urban areas, transportation modes, energy production and economic structure.”
Almost all of the world’s growth in domestic material consumption, from the onset of the global financial crisis in 2008, can be attributed to the Asia-Pacific region, which now shapes the world trajectory on growth in material consumption, according to the report.
Domestic materials consumption increased from 6.2 billion tonnes to 37.5 billion tonnes between 1970 and 2008, an annual growth rate of 4.8 per cent. China and India heavily account for consumption by 2008, with China accounting for more than 60 per cent of the regional total domestic material consumption, and India contributing more than 14 per cent. The regional average per-capita material consumption now stands at 89 per cent of that of the rest of the world.
The report found that the region is moving from a biomass- to minerals-based economy, indicating that the most populous countries such as China and India are transitioning from agrarian to industrialised economies. Thailand is also falling into the same condition. Biomass dropped from more than half to 25 per cent of the region’s domestic extraction, while construction materials grew to 51.4 per cent.
Population growth was also found to be the least important driver of growing extractive pressures on the environment. Growing affluence and material intensity were cited as primary drivers and any effort to stabilise extractive pressure will need to address both, according to the report.
“The findings of the report conclude that countries in Asia and the Pacific face even greater challenges to make the transition of current economic growth patterns towards green growth, and to transform the economies into truly green economies, despite the strong efforts in development of policies and strategies by member countries,” Park said.