March 5 (Bloomberg) -- Spending more now on cleaning up the planet's water and air will save governments billions of dollars in health-care costs, the Organization of Economic Cooperation and Development said.

In the U.S. alone, air pollutants cost the economy as much as $277 billion, or almost 3 percent of gross domestic product annually, in health-related expenses, the OECD said today in a report that investigates the impact of environmental damage and climate change through 2030.

Governments around the world spend between 6 percent and 16 percent of GDP on health care, making it one of the largest budgetary expenses. By 2030, the number of premature deaths worldwide caused by airborne particles will double to almost 400 per million inhabitants, while deaths from ground-level ozone will quadruple, according to the OECD.

``The alternative, which is not doing anything, is expensive,'' said OECD Secretary-General Angel Gurria during a briefing in Oslo today.

Exposure to air, water and soil pollution, chemicals in the environment, or to noise, can cause cancers, respiratory and communicable diseases, as well as poisoning and neuropsychiatric disorders, the OECD said in the report. A quarter of all premature deaths globally are attributable to environmental factors, according to a recent World Health Organization study.

Air Pollutants

Road transportation, energy production and agriculture are the biggest contributors of particulate matter, including carbon dioxide, nitrogen dioxide and sulfur dioxide. Costs to make reductions in air pollutants are increasing significantly over time, the report said.

An additional 1 billion people will not have access to public sewage by 2030 compared with 2000, when 4.3 billion people lacked such services.

Unsafe water and lack of sanitation contribute to 3 percent of all deaths worldwide, the OECD said. A shortage of toilets is fueling a hepatitis E outbreak in Uganda that's killed at least 11 people and infected more than 300 others, the International Federation of the Red Cross and Red Crescent Societies said in a March 3 report.

The OECD study also highlights the importance of making policy changes and implementing regulations now to avoid the rising costs of adjusting to climate change, aging populations, rapid urbanization and other environment-related issues.

`Back Seat'

``For many, many, many years, environmental issues took a back seat to economic issues,'' said Norwegian Environment Minister Erik Solheim during the briefing. ``And now this has come to an end and economics and environment have to be merged.''

The world has less than two years to negotiate a replacement for the Kyoto Protocol, which required developed nations to reduce emissions of greenhouse gases blamed for global warming. The Kyoto treaty expires in 2012.

One percent of global GDP through 2050 plus an additional $400 billion will be needed to decrease carbon dioxide by as much as 29 gigatons, according to the United Nations Environment Program, or UNEP.

The UN Intergovernmental Panel on Climate Change, which shared last year's Nobel Peace Prize with former U.S. Vice President Al Gore, estimates that carbon-dioxide emissions need to be stabilized at 535 to 590 parts per million in 2050, from about 380 now, in order to avoid ``dangerous'' climate change that leads to increased flooding and droughts.

``The accumulated wealth by 2030 means that it will allow us to care about the environment,'' Gurria said. ``Simply looking at it from a business and economic view, it is better to start doing something. Climate change is mankind's most important challenge.''

To contact the reporter on this story: Jeremy van Loon in Berlin at jvanloon@bloomberg.net.

Last Updated: March 5, 2008 03:55 EST