Scotland can play a transformative role in creating a sustainable future for the planet and combatting the climate emergency according to a world-renowned economist.

Professor Matthew Agarwala, a Cambridge University environmental economist and honorary professor at Scotland’s Rural College, delivered the annual James Mirrlees Lecture at Wigtown Book Festival.

He highlighted how economic development has transformed human life across the planet – increasing health, wealth and wellbeing and vastly reducing the numbers living in poverty.

However, the price has been high and he called for a new economic model to secure a sustainable future for all.

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He said: “We have released one and a half trillion tons of CO2 into the atmosphere and we have pushed nearly a million species to the brink of extinction. In just the past 50 years we have seen a 70% drop In wildlife populations.”

Prof. Agarwala likened nature to the store cupboard we rely on for all our needs and our current economic approach as one where we only think about the goodies we have on the table.

He said: “The size of the pie you can produce in the future depends on the stock of ingredients in your pantry. Run out of ingredients in the pantry and tomorrow's pie will be much smaller.”

The professor, a regular adviser to governments, believes that with determined effort the future offers promise.

He said: “When we decide we're going to invest in the technologies and when we decide we're going to take climate change seriously, we can install the capacity needed for Net Zero compliant energy.

“We can make a shift in the vehicles, the modes of transportation, that we use on a day-to-day basis.

“We absolutely can change our agriculture. And one of the things that excites me most about coming here to Scotland is the work at Scotland's Rural College, the number one Research Institute for agricultural science in the United Kingdom.

“The work they are doing is absolutely transforming agricultural science. One of the most exciting pieces for me, is that they are working on new genetics for beef that can increase milk production, increase meat production. We can really reduce the greenhouse gas impacts of milk and beef production all around the world.”

“There is room for optimism, but it's going to depend on the choices that we make.”

The fundamental question, according to Prof. Agarwala, is who will pay. He argued that the emphasis must be on making sure that those who benefit from using resources are the ones who pay for them.

Right now, he argues, the poorer parts of the world where many of our resources come from, are being used to effectively subsidies the wealthier area.

Prof. Agarwala also addressed the need to restore the world’s biodiversity, and that it makes clear economic sense to do so.

He said: “The World Bank estimates are that a loss of the benefits that we get from biodiversity, the loss of the marine fisheries, of the tropical timber, the pollination services the insects provide to agricultural output amounts to $2.7 trillion a year.

“The cost of restoring it is $700 billion a year. So, here's your question, Would you pay $700 billion to save $2.7 trillion?”