Future of Human Civilization and Biodiversity

By Devasnhi Singh | December 11, 2022

More than 50% of global GDP, $44 trillion in economic value, depends on natural resources

Biodiversity is a cornerstone of development, and its loss threatens many hard-won

development gains. Biodiversity blunts the impact of other crises, like climate change and

conflict, on development. It is also the wealth of poor nations and poor communities within

nations as a producer of jobs and GDP. Take the fisheries sector as an example, where 60

million jobs globally are tied directly to fishing and fish farming. For every one of those jobs, 2.5 more are created in the fisheries value chain. That is 200 million jobs, 60 percent of which are in the developing world. The same can be said for industries such as forestry and nature-based tourism.

We cannot ignore the fact that nature and biodiversity loss is a material risk to our economies, our financial sector and therefore to development. A recent World Bank report found that in the case of a partial ecosystem collapse, Malaysia – one of the most biodiverse countries in the world – could suffer 6 percent annual loss of its GDP by 2030. That’s a scale of loss similar to the COVID crisis of 2020. A recent study was carried out by World Bank along with the Bank Negara, Malaysia's central bank, found that more than half the commercial loans made by the banking sector are to sectors which are highly dependent on ecosystem services, and almost 90% are to sectors which themselves have a high impact on ecosystems.

Around the world, nature -- the biodiversity of living organisms and accompanying ecosystem services they provide -- are vanishing at an unprecedented rate and scale with already catastrophic implications for economies and livelihoods. And we can't deny this reality that loss and degradation of biodiversity affects the poorest economies most.

NATURE DOES NOT NEED US, BUT WE NEED NATURE

World Bank have a way to understand the losses from overexploitation and the opportunities

from preservation, using natural capital accounting (NCA). It is used to measure the contribution of natural capital to a country’s wealth and development opportunities demonstrates how shifting investments toward nature-smart actions and behaviors can simultaneously contribute to sustainable growth, fight climate change, and preserve nature.

Consider what is at stake: more than half of global GDP is generated in industries that are

highly or moderately dependent on ecosystem services, such as pollination, water filtration, and raw materials. Renewable natural capital, including land assets like agricultural soil and forests, and blue assets like fisheries and mangroves, account for 23 percent of the wealth in low-income and 10 percent in lower-middle income countries.

Conserving and restoring our planet’s nature is a critical development issue. It should not be

seen as charitable, rather it is crucial in order preserve the economic well-being on which our

lives and livelihoods depend. As we convene at the United Nations Biodiversity Conference

(COP-15), we have the tools to actualize the economic contributions of nature and biodiversity in order to influence economic decision making so that investors and policymakers can eliminate the blind spots that are trading away our future prosperity.

BIODIVERSITY SUPPORTS JOB GROWTH

The World Bank is helping revitalize fishery industry in Yemen through a $45 million grant that places sustainability at its core. This project works with local partners, fishery communities, and associations to make fishery management more sustainable so as to increase production, and create jobs while protecting fish and their ecosystem. By helping diversify the economy, the grant enhances economic opportunities in Yemen and improves food security. Reestablishing a sustainable fishery value chain makes these livelihoods more secure for the future.

The fish-market in Hodeida, Red Sea, Bab El Mande, Yemen

PROTECTING BIODIVERSITY PROTECTS OUR CLIMATE TOO

India restores its mangroves

Biodiversity and climate crises are intertwined, with declines in each accelerating us toward an irreversible tipping point. Rather than tackling them as separate problems, we can address them together. The World Bank Group’s new diagnostic tool, the Country Climate and Development Report (CCDR) identifies nature-based solutions as an intervention area to strengthen climate, nature and development outcomes.

Mangroves are powerful coastal trees that act as a “bio-shield” to prevent erosion and absorb storm surges. They are an important habitat for fish and sequester four times more carbon than rainforests. When they become degraded, there are severe climate, social, and economic consequences. That is why the World Bank invested $285 million in an Integrated Coastal Zone Management Project to plant 200 square kilometers (an area more than 3x the size of Manhattan) of mangroves along India’s coast. These revitalized forests sequester 1.5 metric tons of carbon per hectare per year. Now, during cyclones, the tidal wave forces are reduced by increased mangrove coverage.

India has focused on nature-based solutions to protect against disaster and climate challenges while increasing biodiversity. This triple win means increased productivity for marine ecosystems and the protection of coastal communities for 11.9 million residents.

Nature lies at the core of climate solutions by Aligning biodiversity and climate goals leads to sustainable societies and inclusive development.

ENGAGING COMMUNITIES SECURES FUTURE

Whether through nature-smart projects that create jobs in the local community or facilitating regional collaboration to ensure the sustainable use of shared resources, the heart of every project is to engage and empower local communities.

The Mozambique Integrated Landscape Management (ILM) portfolio is fostering a healthy coexistence between humans and nature by working across issues and sectors to tackle deforestation and resource exploitation, together with challenges such as rural poverty, community rights and land management. One way the Mozambique ILM portfolio ensures it maintains its gains, is to inspire conservation by funding environmental clubs for students. Eighty scholarships are awarded to girls between the ages of 13-17 for vocational and general education. It is a cornerstone for raising environmental awareness, promoting changes in action, and adjusting behavior.

Public-private partnerships (PPP) are another way we collaborate with communities. The World Bank has used a PPP model with 15 governments in Africa to establish Collaborative Management Partnerships (CMPs) across 40 protected areas. Protected area authorities (government, private or community) partnered with 13 organizations (private and NGO) to co-manage or delegate management of protected areas covering 11.5% of Africa’s protected area estate. A comprehensive review of these CMPs found that the median funding for PAs in Africa with CMPs is 2.6 times greater than the baseline of PAs without CMPs, and 14.6 times greater for delegated CMPs. This increase in funding strengthens the effectiveness of the PA model, making them more attractive for sustainable investment.

FINANCE: THE STIMULANT FOR BIODIVERSITY SOLUTIONS

$700 billion in annual biodiversity conservation financing will be needed over the next decade to meet global biodiversity goals. The world currently spends $120-140 billion.

The World Bank Group is uniquely positioned to mobilize financial instruments for nature-smart investments. That can mean ‘greening finance’ by influencing policymakers to steer existing investments away from activities that degrade our environment and ecosystems and into those that preserve them.

With a blend of concessional financing from the World Bank’s International Development Association, Korea-World Bank Partnership Facility and the Global Partnership for Sustainable and Resilient Landscapes, Uzbekistan accessed capital at below-market rates to implement and expand a program of sustainable landscape management. This is different from traditional financing models, which are too costly for low- and middle-income countries. Today, Uzbekistan has increased resilience to further desertification, landscape degradation and climate change.

Forward-thinking financial instruments are needed in the transition to an inclusive, sustainable and more adaptable economy.

CESSATION

Protecting and nurturing our planet’s biodiversity is a cornerstone for economic development and an investment in our future prosperity. World Bank has provided the tools to measure its value and understand tradeoffs with natural capital accounting. They also have the financial instruments to fund nature-based solutions that will result in a triple win: increasing biodiversity while cultivating local jobs that support environmental protection and climate resilience.

"No single solution is enough. We must conserve, we must produce and consume more sustainably, we must account for the value of natural capital in development plans. MDBs, policymakers, the private sector and the public all have a role in preserving our future."

-Mari Pangestu

World Bank Managing Director of Development Policy and Partnerships