Safeguarding natural resources generates high returns in some sectors.
WASHINGTON, September 1, 2025-Ninety percent of the world lives with either degraded land, unhealthy air, or water stress, according to a new World Bank report, however, restoring natural systems is possible and can yield high returns.
In low-income countries alone, eight of out ten people live without all three - healthy air, water, and land - according to the report, Reboot Development: The Economics of a Livable Planet. This poses major constraints to economic growth and opportunity. New evidence shows that the loss of forests disrupts rainfall, dries soils, and worsens droughts, costing billions of dollars. The report also identifies a nitrogen paradox where fertilizers boost yields, but overuse in some regions harms crops and ecosystems, costing as much as $3.4 trillion annually. And air and water pollution silently damage health, productivity, and cognition, thereby sapping human potential.
If managed well, however, nature can create jobs, drive economic growth, and build resilience. Using natural resources more efficiently could reduce pollution by as much as 50 percent. Improving farm-level practices of nitrogen fertilizer use can deliver 25 times greater benefits than their cost, while boosting crop yields. Improving water and sanitation services could be lifesaving: chlorinating water at point of use could save a quarter of the children that prematurely die from water-related issues. "Pollution markets" not only reduce air pollution, they are also extremely cost effective: each $1 spent yields about $26-$215 in benefits.
"People and communities around the world are not just facing an environmental crisis, but an economic one. The good news is that solutions exist. If countries make the right investments now, natural systems can be restored, with substantial returns on growth and jobs," said Axel van Trotsenburg, Senior Managing Director, World Bank. "This report offers a new lens for looking at environmental challenges - not as constraints, but as opportunities for smarter development."
Countries have demonstrated that it is possible to grow an economy without further degrading the environment. Lessons from their experiences show the importance of three key areas:
Information: From air pollution monitors to satellite imagery, real-time data can help governments target problems, empower citizens, and drive accountability.
Coordination: Policies work best when they work together. A systems approach can align actions across sectors. It can also help avoid unintended consequences, such as cutting pollution in one area while increasing it elsewhere, and helping manage trade-offs between efficiency and equity.
Evaluation: Learning beats guessing. Regular evaluation keeps policies on track, helps scale what works, and ensures reforms can adapt to shifting realities.
