António Guterres has warned that the global economy must move beyond gross domestic product as its primary measure of progress if it is to avoid long-term environmental and social damage. Speaking to diplomats and policymakers, the UN Secretary-General described the current moment as decisive for the planet, urging governments to prioritise sustainable development over narrow economic growth targets.

According to Guterres, the world’s economic model is undergoing rapid transformation driven by technological change, but this shift has intensified environmental pressures rather than eased them. He argued that continuing to equate growth with wellbeing risks accelerating climate change, biodiversity loss, and social inequality.

Why GDP Fails to Measure Real Progress

Guterres criticised GDP for rewarding activities that degrade natural systems, even when they undermine long-term prosperity. He noted that deforestation and overfishing both contribute positively to GDP figures, despite causing irreversible environmental harm.

“We must place true value on the environment and go beyond gross domestic product as a measure of human progress and wellbeing,” Guterres said. “When we destroy a forest, we are creating GDP. When we overfish, we are creating GDP.”

He stressed that economic indicators should reflect environmental integrity, human wellbeing, and resilience, rather than short-term output alone.

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Technology, Inequality, and the Need for Cooperation

The UN chief also highlighted how automation and artificial intelligence are reshaping labour markets worldwide. While new technologies can boost productivity, Guterres warned they are also widening inequality if left unmanaged. He argued that global cooperation is essential to ensure technological progress supports inclusive development rather than deepening social divides.

In this context, Guterres pointed to the UN Sustainable Development Goals as a framework for aligning economic activity with environmental protection and social equity. He framed the transition away from GDP-led growth not as an obstacle, but as an opportunity to redesign economies around people and planetary boundaries.

Germany Signals Shift in Grid Policy to Support Energy Transition

Alongside the UN chief’s remarks, Germany has proposed a draft law that would require renewable energy developers to cover the costs of their first grid connection. The move would replace the existing first-come, first-served system and aims to ease congestion on the country’s power network.

Currently, grid connection costs are not fully borne by developers, contributing to bottlenecks as renewable capacity expands. The proposed policy is intended to streamline grid expansion, prioritise viable projects, and support Germany’s broader efforts to modernise transmission infrastructure while scaling wind, solar, and other clean energy sources.

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Nature Loss Poses Systemic Risks to Business

Experts speaking at an international sustainability forum warned that companies across sectors must act urgently to protect and restore nature or risk undermining their own survival. Agriculture, mining, energy, construction, and finance were identified as particularly dependent on healthy ecosystems for raw materials, water availability, and climate regulation.

While many corporate strategies focus on cutting greenhouse gas emissions, speakers cautioned that ignoring biodiversity loss and ecosystem degradation creates systemic risks comparable to the climate crisis. Continued damage to forests, soils, oceans, and freshwater systems could disrupt supply chains, increase costs, and threaten long-term economic stability.

A Broader Redefinition of Economic Success

Taken together, the messages from policymakers and business leaders point to a growing recognition that economic resilience depends on environmental health. Guterres’s call to move beyond GDP reflects a broader shift in thinking about how success is measured in a world facing climate disruption, ecological decline, and technological upheaval.

As governments and companies reassess their strategies, the challenge will be translating this recognition into policies and metrics that reward long-term sustainability rather than short-term growth alone.

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