Protecting Nature Can Unlock Growth and Create Jobs

A new World Bank report, Reboot Development: The Economics of a Livable Planet, reveals that 90% of the global population is affected by degraded land, polluted air, or water stress. Yet, the report stresses that restoring natural systems is possible — and doing so could generate substantial economic and social returns.

In low-income countries, eight out of ten people lack access to all three essential resources: clean air, safe water, and healthy land. This situation severely restricts economic growth and opportunities. The report highlights how deforestation disrupts rainfall patterns, depletes soil moisture, and intensifies droughts, costing economies billions each year. It also points to the “nitrogen paradox”: while fertilizers can raise crop yields, their overuse damages ecosystems and reduces productivity, with estimated losses of up to $3.4 trillion annually. Meanwhile, air and water pollution continue to quietly undermine health, productivity, and cognitive development, draining human potential.

The report emphasizes that when well-managed, nature can be a powerful driver of development — creating jobs, stimulating growth, and strengthening resilience. Efficient use of natural resources could cut pollution by up to 50%. Smarter fertilizer practices could generate benefits worth 25 times their costs while boosting yields. Expanding water and sanitation services could save lives, with simple measures like household-level chlorination potentially preventing one in four child deaths linked to unsafe water. “Pollution markets” are also cited as highly cost-effective, with every dollar spent producing $26–$215 in returns.

“Communities worldwide are facing both environmental and economic crises,” said Axel van Trotsenburg, Senior Managing Director at the World Bank. “The encouraging news is that solutions are within reach. Strategic investments today can restore natural systems, accelerate economic growth, and create jobs. This report reframes environmental challenges as opportunities for smarter, more sustainable development.”

The report outlines three critical focus areas for countries seeking to balance growth and sustainability:

• Information: Use real-time data, from air quality monitors to satellite imagery, to pinpoint problems, empower citizens, and strengthen accountability.

• Coordination: Align policies across sectors to maximize impact and avoid unintended consequences, such as shifting pollution from one region to another, while balancing efficiency with equity.

• Evaluation: Continuously monitor and adjust policies to keep them effective, scale up successful initiatives, and respond to changing conditions.