The Ring of Responsibility: Planetary Boundaries and Global Economics

Source: Doughnut of social and planetary boundaries monitors a world out of balance

As the COP30 Conference came to a close on Tuesday, the global community expressed concern over a lack of action on fossil fuel emissions and deforestation. Moving forward, global climate leaders must prioritize a zero fossil fuel emissions plan by 2040 and take action to protect the ecosystems our economies depend upon given that the global economy is surpassing its ecological limits – its planetary boundaries. By analyzing these planetary boundaries, we can determine the global tipping points in climate, land, biodiversity, and similar areas. The Doughnut Economics framework allows us to monitor social and planetary boundaries to gain a deeper understanding of the most critical global issues today.

Why This Matters

• Reducing GHG Emissions: Leaders must bend the GHG emissions curve in 2026 towards a 5% annual reduction to prevent compromising future availability of resources

• Forests at Risk: The necessity to bend the GHG emissions curve is urgent as recent evidence shows that many forests are becoming a carbon source due to the burning of fossil fuels, no longer functioning emissions-mitigating carbon sinks.

• The Doughnut Framework: By analyzing the social foundations and ecological ceiling shown by the Doughnut Economics framework, we can identify what challenges humanity faces and how we can change our economic thinking to better the planet.

• COP30: A real workplan is required to guide individuals on ways to work towards resolving these issues; the Doughnut model makes it clear that climate change and biodiversity loss are directly linked. Moving forward, a stronger COP30 plan would link fossil fuels to nature and biodiversity loss.

Doughnut Economics and Metrics

Source: The third iteration of the Doughnut of social and planetary boundaries

Doughnut economics is a framework that highlights the social foundation and ecological ceiling (planetary boundaries we cannot overshoot), which are necessary to sustain humanity safely. It is a way of thinking, dedicated to moving the world closer to tackling this century’s issues. Doughnut economics can be applied to a variety of global issues, as it utilizes economic thought, harnessing ecological, feminist, behavioral, and complex economics. Specifically, we are looking at ecological issues through the doughnut framework to design a plan that effectively addresses GHG emissions, deforestation, and a variety of other widespread social and ecological problems.

Doughnut Economics' Metrics

Doughnut economics provides a wider lens on markets, business, and finance, recognizing that the economy depends on human health and social collaboration. It acts as a visual framework for the public and pushes for regenerative and distributive economics.

While global GDP doubled between 2000 and 2022, during the same time period our world achieved only modest improvements in the social foundations of societies as well as a constant increase in ecological tipping points. Doughnut economics focuses on maintaining the global balance, prioritizing planetary health and quality of life.

The metric chart demonstrates the variety of social and ecological issues that contribute to the global climate crisis. The trends display a relevant indicator of the areas where improvement is most needed. Although many of the social foundation components are slowly improving, ecological ceilings are consistently declining.

Take Action

• Policymakers: Incorporate planetary boundaries and doughnut economics into your policy making process to ensure long-term economic balance

• Investors: Gain fluency in planetary boundaries and doughnut economics and prioritize strengthening the global social foundation and ecological ceiling in your long-term investment strategies.

• Corporations: Include planetary boundaries and doughnut economics in your long-term models that describe impact and dependence on natural capital and ecosystem services.