Hey Lykkers! Have you ever thought about how closely our lives are linked to nature? Our future depends on it. Biodiversity, the variety of life forms on Earth, is a treasure we can't afford to lose. It forms the foundation for the world's economy and is vital to our survival.

But if we lose it, we risk everything—health, resources, and even stability.

The Cost of Losing Biodiversity

When we lose forests, we lose carbon sinks, which accelerates climate change. The Amazon rainforest, for example, used to reduce 5% of global carbon emissions annually. But that's changing. In just the first half of 2022, deforestation in the Amazon region was over 1,500 square miles—an area larger than two Beijings! On top of that, 40% of conflicts around the world are fueled or worsened by the loss of natural resources.

Biodiversity also helps us cope with other crises like climate change and conflict. It provides jobs and economic value. For example, the global fishing industry directly supports 60 million jobs, and for every job in fishing, over 2.5 more jobs are created in related industries. These jobs are especially important in developing countries, where the majority of the workforce relies on natural resources for a living.

The Economic Risks of Losing Nature

We can't ignore the economic risks of losing biodiversity. Just look at Malaysia, one of the most biodiverse countries in the world. A recent World Bank report warned that if Malaysia's ecosystems collapse, the country could lose up to 6% of its GDP each year by 2030—a loss comparable to the economic hit from the 2020 COVID-19 pandemic.

A study by the Central Bank of Malaysia also revealed that more than half of the commercial loans in the country are given to sectors that depend heavily on natural ecosystems. This shows how closely tied our economy is to the health of the environment.

Why We Need to Value Nature

We often overlook the value of nature. Natural capital, like forests, water, and biodiversity, is undervalued and poorly understood. For example, logging might boost a country's GDP in the short term, but it's depleting the country's wealth in the long run.

Luckily, there's a way to address this—by measuring natural capital. This approach allows us to understand the true economic value of nature and guide investments toward more sustainable practices that protect the environment while supporting economic growth.

The Role of Natural Capital Accounting

Natural capital accounting is a way of measuring and reporting on the stocks and flows of nature's assets. It helps decision-makers understand how environmental health impacts the economy. The World Bank's Global Sustainability Program is equipping governments and financial sectors with tools and knowledge to integrate natural capital into policy decisions.

It's clear that natural resources are the backbone of many industries. Over half of global GDP relies on ecosystem services like pollination, water filtration, and raw materials. In low-income countries, renewable natural capital—like forests and fisheries—makes up a significant portion of national wealth. Protecting this wealth is not just about conservation; it's about securing our economic future.

The Importance of Protecting Biodiversity for All of Us

Let's take food production as an example. More than 75% of food crops depend on animal pollination, yet over 40% of known insect species have declined in recent decades. Without biodiversity, our food systems would collapse.

That's why protecting and restoring nature is not a charity effort; it's essential for our economy and our survival. At the UN Biodiversity Conference (COP15), we discussed how we can use tools to measure the economic contribution of biodiversity and influence economic decisions. By doing so, we can guide investors and policymakers to make decisions that ensure future prosperity.

How Biodiversity Drives Employment and Economic Growth

Biodiversity isn't just about ecosystems; it also supports employment and growth. For example, Yemen's fishing industry was severely damaged by a decade of conflict, leaving millions without food security. The World Bank provided a $45 million grant to help rebuild Yemen's fishing industry with sustainability at its core. The project worked with local communities and fishing associations to create a more sustainable fishing system, boosting employment and preserving the fish populations that people rely on.

Protecting Nature: A Win-Win for the Environment and Economy

Protecting biodiversity isn't just good for the planet—it's good for the economy. Over 3 billion people rely on the ocean and coastal biodiversity for protein and their livelihoods, but 90% of global marine fisheries are either fully exploited or overfished. By protecting marine biodiversity, we can ensure sustainable food sources and livelihoods for future generations.

Conclusion: The Future of Biodiversity is in Our Hands

Biodiversity and climate change are closely connected, and both need urgent attention. When one worsens, the other accelerates. We can't afford to treat them as separate issues—we must address them together. Tools like the World Bank's Country Climate and Development Reports (CCDR) are helping governments find natural solutions to these intertwined problems.

For example, mangrove forests act as natural barriers against storms, protect coastal communities, and sequester carbon. In India, a $285 million investment is helping plant mangroves along the coast to protect communities from hurricanes and other climate challenges.

We need to take action now, Lykkers. Protecting biodiversity is protecting our future.

Let's keep the conversation going—what do you think we can do in our daily lives to help protect biodiversity? Let us know your thoughts!