# Fund nature protection now or face huge losses, says World Bank
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: World Bank warns of $2.7 trillion losses by 2030 without nature investment
Meta Description: The global economy faces major losses if nature is not protected & restored. Green COVID-19 recovery essential. Act now to safeguard biodiversity &
URL: https://financedigest.com/fund-nature-protection-now-or-face-huge-losses-says-world-bankhtml

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By Michael Taylor

KUALA LUMPUR (Thomson Reuters Foundation) – The global economy faces annual losses of $2.7 trillion by 2030 if ecological tipping points are reached and countries fail to invest more in protecting and restoring nature, the World Bank said on Thursday, calling for a greener COVID-19 recovery.

In its first “Economic Case for Nature” report, the bank looked at how many economies rely on biodiversity and how they would cope if certain services provided by nature collapsed. It found that sub-Saharan Africa and South [Asia would be worst hit](https://www.financedigest.com/asia-shares-weigh-china-risks-yen-hits-6-month-high.html "Asia shares weigh China risks, yen hits 6-month high").

The study identified key “ecosystem [services” that it said were close to tipping points](https://www.financedigest.com/service-the-cfo-why-context-is-worth-80-iq-points.html "Service & The CFO: Why Context Is Worth 80 IQ Points"), including wild pollinators and provision of food from marine fisheries and timber from native forests.

“It’s not just about biodiversity – it’s about the economy. The moment to act is now,” report co-author Gianni Ruta, lead environmental economist at the [World Bank](https://www.financedigest.com/post-crash-banking-regulation-is-transforming-the-world-of-corporate-lending-for-the-better.html "Post-crash banking regulation is transforming the world of corporate lending – for the better"), told the Thomson Reuters Foundation by phone.

Better conservation and management of natural areas, such as parks, oceans, forests and wildernesses, are seen as essential for [protecting the natural](https://www.financedigest.com/u-n-summit-aims-for-global-pact-to-protect-nature.html "U.N. summit aims for global pact to protect nature") systems on which humans depend and meeting targets to reduce planet-warming emissions.

Global annual spending to [protect and restore nature on land needs](https://www.financedigest.com/regulators-need-to-strike-the-balance-between-protection-and-strangulation.html "REGULATORS NEED TO STRIKE THE BALANCE BETWEEN PROTECTION AND STRANGULATION") to triple this decade to about $350 billion by 2030 and rise to $536 billion by 2050, a U.N. report said in May.

But many [political leaders have yet to grasp the economic](https://www.financedigest.com/uae-plans-long-term-economic-ties-with-israel-despite-political-strains.html "UAE plans long-term economic ties with Israel despite political strains") benefits of conservation, relying instead on exploitation of natural resources to lift their people out of poverty, environmentalists say.

The World [Bank projected that 51 countries – with a combined population of 1.6 billion people – would experience](https://www.financedigest.com/transforming-the-banking-experience-to-be-mobile-first-and-people-centric.html "Transforming the banking experience to be mobile-first and people-centric") an overall fall in gross domestic product (GDP) of 10-20% by the end of this decade if vital ecosystem services collapse.

Sub-Saharan [Africa and South](https://www.financedigest.com/ancs-failed-foreign-policy-hurting-south-africa.html "ANC’s failed foreign policy hurting South Africa") Asia would face an annual GDP contraction of 9.7% and 6.5% respectively, it warned.

This is because they depend on pollinated crops and, in the case of sub-Saharan Africa, on forest products.

They also have a limited ability to switch to alternatives that will be less affected by [climate change](https://www.financedigest.com/exclusive-world-bank-seeks-more-funds-to-address-climate-change-other-crises-document.html "Exclusive-World Bank seeks more funds to address climate change, other crises -document"), pollution and land degradation, the report said.

Among the hardest-hit will be Democratic Republic of Congo, Angola, Madagascar, Ethiopia, Bangladesh and Pakistan, it added.

Ruta said governments should channel agricultural subsidies away from things that harm biodiversity such as fertilisers, diesel for irrigation [equipment and incentives to farm](https://www.financedigest.com/growth-in-sales-of-autonomous-farm-equipment-market-to-push-revenue-growth-in-the-market.html "Growth in Sales of Autonomous Farm Equipment Market to Push Revenue Growth in the Market") unsuitable land.

Instead he urged them to promote sustainable farming and reward groups that conserve [natural areas](https://www.financedigest.com/new-homes-released-in-area-of-outstanding-natural-beauty.html "New Homes Released In Area Of Outstanding Natural Beauty") on their land.

He also [called for a global](https://www.financedigest.com/german-industry-calls-for-delay-to-global-minimum-tax-bdi.html "German industry calls for delay to global minimum tax – BDI") funding mechanism to help developing nations achieve green shifts.

A coalition of about 60 countries is currently pushing to protect at [least 30%](https://www.financedigest.com/exclusive-foxconn-woes-could-hit-at-least-30-of-iphone-nov-shipments-from-china-plant-source.html "Exclusive: Foxconn woes could hit at least 30% of iPhone Nov shipments from China plant – source") of land and oceans by 2030 (30×30), ahead of a U.N. biodiversity summit in China, set for October.

The World [Bank report](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") urged more nations to back the 30×30 proposal, adding that the financial benefits from maintaining ecosystem services would almost completely offset the costs of protecting additional land to meet the target.

[Governments should also include more green policies in their pandemic](https://www.financedigest.com/big-pharma-may-have-to-reveal-government-deals-in-whos-draft-pandemic-rules.html "Big Pharma may have to reveal government deals in WHO’s draft pandemic rules") stimulus packages, it added.

Preserving nature and maintaining its [services are critical for economic growth,” said World Bank](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs") Group President David Malpass.

(Reporting by Michael Taylor @MickSTaylor; Editing by Megan Rowling. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people [around the world](https://www.financedigest.com/around-the-world-in-mobile-payments.html "Around the world in mobile payments") who struggle to live freely or fairly. Visit http://news.trust.org)


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