The Value of Nature to People and Planet

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The Value of Nature to People and Planet

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The nature loss and climate change crises are two sides of the same coin: the two are intrinsically linked and reinforce each other. Climate change is one of the main drivers of biodiversity and ecosystems services loss as, even under a 1.5-2°C global warming scenario, biodiversity is expected to be hard hit (IPBES, 2019). Conversely, the loss of nature contributes to climate change. The World Bank’s flagship analytical work, including The Changing Wealth of Nations 2021, The Economic Case for Nature (2021), and the approach paper Unlocking Nature-Smart Development (2021) highlight some of the future risks posed by climate change and nature loss, and underscore the importance of investing in nature.

The event will discuss how nature loss is an economic and development issue, and how it is linked to climate change, as well as pathways to undertake both nature and climate-smart development in the future, including through expanding our economic toolkit beyond GDP to account for the wealth provided by nature.

See the list of speakers ˅

00:00 Welcome! COP26: The Value of Nature to People and Planet
04:55 World Bank’s analytical work valuing natural capital
17:27 Nature and economic planning in Uganda
20:33 Natural capital as a key priority for the World Bank
24:43 Drivers of nature loss in Uganda
30:04 World Bank's efforts in putting a value on natural capital
35:14 Protecting Uganda's forests / Innovative financing tools
39:48 The connection with the UN Biodiversity COP
46:03 Closing remarks

 

Speakers

Moderator

Read the transcript


  • 00:20 [Male voice]: How do you measure the wealth of a country?  
  • 00:24 For many, gross domestic product is the first and  perhaps only measurement that comes to mind. GDP  
  • 00:31 measures the monetary value of the goods and  services a country produces, but it doesn't  
  • 00:36 provide information on a country's wealth, or how  sustainable development will be in the long-term.  
  • 00:43 To do that, we need to consider all of a country's  assets, the ones used to produce those goods and  
  • 00:49 services in the first place. So what assets ought  to be considered? Let's explore some of them.  
  • 00:56 First, the natural capital, like forests,  agricultural lands, fisheries, and minerals. Also,  
  • 01:04 the human-made or produced capital, buildings,  roads, machinery, and such. And of course,  
  • 01:11 the skills and experience of the population,  a country's human capital. Taking stock of a  
  • 01:19 country's assets can help determine whether or  not growth is sustainable. Exploiting natural  
  • 01:24 resources may look like economic growth today,  but what about the future? Forest degradation,  
  • 01:31 air pollution, overfishing, and more deplete  wealth and threaten future prosperity.  
  • 01:37 Overdependence on certain non-renewable resources,  especially fossil fuels, also poses risks.  
  • 01:45 Steps to increase future prosperity are possible  however. Protecting and investing in renewable  
  • 01:51 natural capital is imperative, particularly in the  face of climate change. For example, consider how  
  • 01:58 storms are increasing in frequency and intensity,  all while coastlines are further developed.  
  • 02:04 What can be done to protect these coastal assets?  One innovative approach, replant mangroves,  
  • 02:11 a renewable natural resource. Mangroves are  becoming even more valuable because of the  
  • 02:16 protection they offer coastlines. Investments  in replanting and protecting mangroves,  
  • 02:21 especially where they are protecting  other assets can safeguard future wealth.  
  • 02:26 Natural and produced capital aren't the only  types of resources in need of protection though.  
  • 02:31 Did you know that in most countries, human capital  represents the greatest fraction of wealth?  
  • 02:37 The global COVID-19 pandemic shows just how  at risk human capital and livelihoods can be  
  • 02:42 and reinforce the need to address ongoing issues  like gender gaps and the health impacts of air  
  • 02:48 pollution. The World Bank's Changing Wealth of  Nations 2021 provides the most comprehensive  
  • 02:55 data to date with full accounts of wealth for 146  countries. Through wealth accounting, decision  
  • 03:02 makers can promote future economic viability and  growth with policies that promote sustainable use  
  • 03:08 and diversification of assets. Look ahead  to the future with an eye on climate change  
  • 03:14 and other risks and continually invest in  a nation's greatest resource, its people.
  • 03:21 [Elisabeth Mealey]: 
  • 03:27 Hello, and greetings from COP26 in Glasgow.  I'm Elisabeth Mealey, Communications Manager  
  • 03:33 for Sustainable Development at the World Bank. I'm  pleased to welcome you to today's event, The Value  
  • 03:39 of Nature to People and Planet. This is especially  timely on the eve of Nature Day at COP here where  
  • 03:45 many of the major discussions will focus on the  connections between the drivers of nature loss and  
  • 03:51 climate change. As you saw in our opening video,  nature loss is an economic and development issue  
  • 03:58 that is very closely linked with climate change.  Today's discussion looks at how we can better  
  • 04:03 account for the value of nature and what nature  and climate smart development really look like.
  • 04:08 [Elisabeth Mealey]: I'm joined today by Mr. Alfred Okot  
  • 04:12 Okidi. He's the Permanent Secretary for the  Ministry of Water and Environment in Uganda.  
  • 04:17 Welcome. Mari Pangestu, World Bank Managing  Director for Development Policy and Partnerships.  
  • 04:24 Welcome Mari. And Karin Kemper, World  Bank Global Director for Environment,  
  • 04:28 Natural Resources and the Blue Economy.  Welcome everyone, and thank you for joining.
  • 04:33 [Elisabeth Mealey]: Karin, who's coming to us from Washington,  
  • 04:36 DC today will start with a presentation on recent  analytical report work from the bank that makes  
  • 04:42 the case for the economic and development  
  • 04:46 value of investing in nature.  Karin, welcome and over to you.
  • 04:51 [Karin Kemper]: 
  • 04:54 Thank you, Elisabeth. It gives me a really great  pleasure to welcome you all to the World Bank  
  • 05:02 COP26 high-level MDB Pavilion event, The Value of  Nature for People and Planet. For the World Bank,  
  • 05:11 the biodiversity and climate crisis critical  development issues, which are interlinked, and  
  • 05:18 sustainable use and degradation of ecosystems  affect their ability to act as carbon sinks  
  • 05:26 undermining climate change mitigation efforts.  Climate change in turn further threatens the  
  • 05:33 integrity and resilience of ecosystems and their  key role in climate mitigation and adaptation.  
  • 05:40 And failure to address both crises will give  rise to real material and systemic risks.  
  • 05:48 It's estimated that more than half of the  world's gross domestic product is generated  
  • 05:55 in industries linked to nature and its  services. So a combined approach that  
  • 06:00 enables nature and climate smart development  is needed. And let's go to the first slide.
  • 06:08 [Karin Kemper]: So to come to this approach, we need to  
  • 06:13 make an economic case for nature. It requires data  on natural capital as well as tools to integrate  
  • 06:20 the cost of nature into policymaking, and we need  to mobilize finance for nature. So we have worked  
  • 06:28 to contribute some of the analysis needed to weigh  trade-offs and make sustainable and nature smart  
  • 06:34 development decisions through a series of recent  World Bank flagship reports. So the Changing  
  • 06:40 Wealth of Nations 2021, where you just saw the  video, produced the most comprehensive global  
  • 06:47 estimates of wealth and natural capital covering  146 countries from 1995 to 2018. This report  
  • 06:58 fills an important data gap because as you know,  countries regularly track GDP as an indicator of  
  • 07:06 their economic progress, but they don't track  wealth, the assets such as infrastructure,  
  • 07:12 forests, minerals, and human capitals that commit  countries to produce the GDP in the first place.
  • 07:19 [Karin Kemper]: So changes in GDP measure whether growth  
  • 07:24 is growing, but changes in wealth measure whether  this growth is sustainable. So the Changing Wealth  
  • 07:31 of Nations report produces these wealth estimates  using an internationally accepted methodology  
  • 07:38 that allows wealth estimates to be used by  ministries of finance and other policymakers.  
  • 07:45 Now, there are limitations to this  methodology when considering the  
  • 07:49 value of biodiversity and ecosystem services,  and therefore our other flagship publication,  
  • 07:56 The Economic Case of Nature, estimated for the  first time the economic costs of collapse in  
  • 08:03 key ecosystem services. And our approach  paper, Unlocking Nature-Smart Development,  
  • 08:09 which came out in 2021, outlines global responses  that could unlock nature-smart development.
  • 08:17 [Karin Kemper]: So let me tell you a bit in the next slide  
  • 08:20 and the following slide what all of this means in  practice. What are the results of these analysis?  
  • 08:27 So when we look at our latest findings on this  global wealth, we see that also total wealth  
  • 08:34 increased everywhere per capita total wealth,  which as a better measure of sustainability  
  • 08:40 did not. If resources, especially natural  resources are depleted for short term gains,  
  • 08:47 countries may be on an unsustainable development  path. And in fact, 26 countries across every  
  • 08:54 income group experienced a decline or stagnation  in per capita wealth. The countries most at risk  
  • 09:02 include fragile conflict, resource-rich, and  low income states. If the trend continues,  
  • 09:09 then future generations in these countries  will be worse off than present generations.
  • 09:15 [Karin Kemper]: Now, on the next  
  • 09:17 slide then, we can see that natural capital  represented 6% of total global wealth in 1995  
  • 09:26 and in 2018 with a share equally divided between  renewable and non-renewable natural capital.  
  • 09:33 However, the importance of renewable  natural capital varies greatly with  
  • 09:40 income level. In particular, for low income  countries, renewable natural capital remains  
  • 09:46 critically important and it accounts for  about a quarter of their total wealth in 2018.  
  • 09:53 Nature has too often been invisible to national  finance. The Changing Wealth of Nations report  
  • 10:00 sheds light on this issue by putting natural  capital on the balance sheets of countries.  
  • 10:05 And this allows policymakers to proactively  account for the assets now and to make policies  
  • 10:12 based on their wealth for the future. There  are countries that are doing this already  
  • 10:18 as we will soon hear from the Permanent Secretary  of the Ministry of Environment of Uganda.
  • 10:24 [Karin Kemper]: On the next slide, you see  
  • 10:28 that our wealth accounting this time included  for the first time mangroves and marine capture  
  • 10:35 fisheries, which are a major component of blue  natural capital. The findings are concerning. The  
  • 10:43 value of blue natural capital fell by half from  1995 to 2018 as the value of capture fisheries  
  • 10:52 collapsed by 83%. So overfishing, subsidies  and rising fishing costs have undermined marine  
  • 11:01 capture fisheries wealth. Meanwhile, the value of  mangroves has risen 157%. And you may say, why has  
  • 11:09 it done that? Well, mangroves are valued for their  coastal protection services, which are increasing  
  • 11:17 in value as coastlines are more developed and  as climate change poses higher storm risks.  
  • 11:24 So this indicates to us the great economic  value that nature-based solutions can have.
  • 11:30 [Karin Kemper]: 
  • 11:32 The next slide shows you that there are  limitations to our ability to value biodiversity  
  • 11:39 using this wealth accounting methodology for  now, and how in fact we are addressing that  
  • 11:46 in order to think through how we can really  measure biodiversities for other analytical  
  • 11:53 work at the World Bank. So earlier this year, we  developed a first-of-its-kind integrated global  
  • 11:59 [inaudible 00:12:00] economy model to model the  interaction between nature services and the global  
  • 12:06 economy. We studied the impact of changes in  selected ecosystem services on the global economy  
  • 12:12 and vice versa between 2021 and looking forward to  2030. These services are pollination, provision of  
  • 12:22 timber and food from marine fisheries, and carbon  sequestration by forests. Next slide please.
  • 12:30 [Karin Kemper]: The analysis of  
  • 12:32 that reveals that the world cannot afford the  collapse of ecosystem services. Even a partial  
  • 12:39 collapse would cost 2.3% of global GDP that makes  it $2.7 trillion in 2030. The negative growth  
  • 12:50 impacts are highest for low-income countries,  particularly in Sub-Saharan Africa and in South  
  • 12:57 Asia. And this does not even include the direct  effects of climate change that run in parallel,  
  • 13:04 making these figures of very, very  conservative estimate of losses.
  • 13:09 [Karin Kemper]: Now, what policies can we put in place?  
  • 13:14 The next slide shows our policy simulations and it  shows that there are already nature-smart policies  
  • 13:22 which can both reduce systemic  risks and generate economic gains.  
  • 13:27 Examples considered in our report include  domestic and global forest carbon payments,  
  • 13:33 shifting agricultural subsidy incentives, and  increasing agricultural research and development.  
  • 13:40 And we see that ambitious targets, including  the 30 by 30 target are within reach,  
  • 13:46 particularly when synergies with climate change  are exploited. This would require an effective  
  • 13:54 global and country level response which builds  on a whole-of-economy approach that addresses the  
  • 14:00 drivers of biodiversity and economy and ecosystem  loss across the economy, a solid science and  
  • 14:08 the economic base for action, and measures to  support an equitable and inclusive transition.
  • 14:15 [Karin Kemper]: So once these building blocks are in place,  
  • 14:18 nature-smart development could be unlocked through  six global response areas. You can see them on the  
  • 14:24 right hand side of the slide. I'm not going to go  through all of them, but you can see that it is  
  • 14:31 both on the economic side, but also on the people  side working with people and through communities  
  • 14:40 and of course, mobilizing finance  and leveraging partnerships.  
  • 14:45 This in our report, it is quite developed  if you are interested to look at that.
  • 14:51 [Karin Kemper]: And then coming to the final slide,  
  • 14:55 what is needed going forward? And of course, one  of the big discussions is about mobilizing finance  
  • 15:02 and public policy will only be truly effective  if we can leverage the necessary resources  
  • 15:10 to support nature-smart development. In order to  adequately scale nature and climate action to meet  
  • 15:17 today's challenges, mobilizing finance is  really key because delaying investments on  
  • 15:24 nature and climate could actually trigger a  vicious cycle where climate shocks and the  
  • 15:29 collapse of ecosystem services impact economies  further, making it impossible to address the  
  • 15:36 consequences of climate change and nature  loss that we are already experiencing. It's  
  • 15:43 therefore necessary to create the adequate and  affordable finance flow to developing countries,  
  • 15:51 removing key obstacles that stand  in the way on both the demand  
  • 15:55 and on the supply side. And the private  sector there has a really key role to play.
  • 16:02 [Karin Kemper]: To mobilize sufficient  
  • 16:04 private finance, a two-pronged approach is  necessary. One that finances green activities  
  • 16:11 that promote and enhance the ecosystem services  that nature provide, but also ones that greens  
  • 16:18 finance and that greens financial markets. That  will involve directing financial flows away from  
  • 16:25 projects with negative impact on biodiversity  on ecosystems, but it also means to incentivize  
  • 16:33 achievement of sustainability objectives. For  example, encouraging the adoption of green bonds,  
  • 16:40 the further issuing of green bonds, and  ensuring that the scoring of sovereign bonds  
  • 16:45 ensures that the state of the environment and  its economic value are taken into account.
  • 16:51 [Karin Kemper]: So with that,  
  • 16:53 I want to thank you. It's been an honor  to share our work with you today. And now  
  • 16:58 I'm looking forward to the discussion on how  these important analysis can be put into action  
  • 17:04 with our distinguished guests joining  us in Glasgow. Over to you, Elisabeth.
  • 17:09 [Elisabeth Mealey]: Thank you, Karin.  
  • 17:11 Very interesting presentation there and some  startling figures, including $2.7 trillion  
  • 17:18 in potential losses to economies if we lose some  of these incredibly important ecosystem services  
  • 17:24 that nature provides. Let me turn to our  guests, Mr. Okidi, who's the Permanent Secretary  
  • 17:32 for the Ministry of Water and Environment in  Uganda. I understand you've been working on  
  • 17:40 understanding the value of nature to Uganda's  economy and even factoring nature into your  
  • 17:47 planning and development planning. Can you just  talk us through what Uganda has been doing and  
  • 17:54 how you're figuring nature more  squarely in your economic planning?
  • 18:00 [Alfred Okot Okidi]: Thank you. Uganda's development,  
  • 18:06 that is captured in Vision 2040, and the National  Development Plan III is actually nature-led.  
  • 18:16 And we realize as a country that there's  a big disconnect in terms of understanding  
  • 18:28 to what extent the natural capital of  Uganda is actually contributing and driving  
  • 18:37 the development of the country. And therefore,  what we opted for with support of the World Bank  
  • 18:45 is opted to get into natural capital accounting  because if you know what you're measuring,  
  • 18:51 then you can manage it. Because the biggest  concern for us as a country right now is the  
  • 18:59 amount of degradation and the losses in some of  the ecosystems. And yet when you look at the basic  
  • 19:10 figures like the foreign earnings, for example,  tourism is actually I think the number two foreign  
  • 19:16 exchange earner before the COVID pandemic came in.  It was actually projected to be the number one.
  • 19:22 [Alfred Okot Okidi]: So it is very important  
  • 19:24 for us as a country that  these natural resources basis  
  • 19:28 are actually understood and then we protect them.  So it has led to now at the development level,  
  • 19:39 highest development level, the country adopting  the national capital accounting. It has also  
  • 19:44 driven the government to come up with a decade  of restoration which was launched just about  
  • 19:52 two months ago after being passed by cabinet to  see how we can restore all these ecosystems that  
  • 19:59 are critical to ensure that future generations  also benefit from these nature-given resources.  
  • 20:11 The reason why we want these natural capital  accounting really in is because we need to  
  • 20:20 understand and value because if we value,  then we can treasure what roles it plays.
  • 20:26 [Elisabeth Mealey]: I'll come back to this  
  • 20:30 a little more in detail, but first I want to  turn to Mari Pangestu, our managing director,  
  • 20:37 to talk about how the World Bank has been  working on this for quite a long time. It's  
  • 20:43 really been over 10 years that natural capital  accounting has been a key priority for the World  
  • 20:49 Bank and supporting countries like Uganda to  do it. How do you see this work contributing  
  • 20:54 to the broader mission of the bank on poverty  reduction and promoting shared prosperity, Mari?
  • 20:59 [Mari Pangestu]: Yes. Thank you for the question, Elisabeth.  
  • 21:03 I think we can start by where the permanent  secretary left off. Mother nature doesn't need us,  
  • 21:10 but we need mother nature because it provides  the ecosystem services that allows us to breathe,  
  • 21:17 to eat, and to live. And the loss of nature  
  • 21:23 and it's critical ecosystem services hurt the  poor the most. That's why it's a development  
  • 21:29 imperative for us to address it. Karin mentioned  some of the numbers and it comes from the three  
  • 21:39 major reports that Karin mentioned, including  the one that we are talking about today,  
  • 21:43 which is the Changing Wealth of Nations. Just to  add to Karin's numbers, 3 billion people depend on  
  • 21:49 marine and coastal biodiversity for protein  intake and livelihoods. 75% of food crops  
  • 21:56 rely on animal pollination. And the poorest  rural areas get income from forest resources  
  • 22:02 more so than agriculture. And so they will  suffer the most from the depletion of forests.
  • 22:08 [Mari Pangestu]: And the collapse of ecosystem services,  
  • 22:11 Karin mentioned the 2.7 trillion number. If you  translate that into loss of GDP, it's 10% lower  
  • 22:19 GDP for Sub-Saharan Africa and 7% loss of GDP in  South Asia by 2030. So this is all the loss of  
  • 22:30 nature and ecosystem services also impacts on  climate change as Karin mentioned. And that  
  • 22:35 will have a double impact on poverty because  business as usual scenario is leading us to  
  • 22:42 an estimate of 130 million more people which will  enter into extreme poverty. So we need to address  
  • 22:49 and reverse the decline in natural capital. And  to do so, as the permanent secretary mentioned,  
  • 22:56 we need to put a value to nature. We need to  measure the value of nature going beyond GDP  
  • 23:04 and provide the economic argument for protecting  nature, conserving nature, and restoring nature.
  • 23:13 [Mari Pangestu]: And this is key to internalize  
  • 23:16 the value of nature in markets and government  policy. So natural capital accounting is one tool  
  • 23:24 and the data and the analysis that's coming  out of the Changing Wealth of Nations  
  • 23:28 is addressing this very important data  gap for policymakers to help them guide  
  • 23:36 to have more nature and climate-smart policies  that will... I think it's very important to  
  • 23:43 emphasize because we are making the economic  case for development as to why you need to  
  • 23:50 protect nature and ecosystem services and it's  linked to climate. It's about conservation, it  
  • 23:56 is about restoration in some instances, but it's  also about the use of the natural assets that you  
  • 24:03 have in a sustainable way, right? It's not about  just conservation because a lot of times there is  
  • 24:09 kind of a pushback because, oh, conservation. Then  where do the livelihoods go? But you can do all  
  • 24:17 three, conserve, restore, and sustainable use of  the resources like tourism as was mentioned by the  
  • 24:26 permanent secretary. And it creates a lot of value  if you can measure it and then you can manage it.
  • 24:33 [Elisabeth Mealey]: It's a line we've heard before,  
  • 24:35 but it's certainly true when it comes down to  protecting what matters most. So thanks Mari.  
  • 24:43 Mr. Okidi, you did mention there that nature is a  key part of your tourism, what's attracting people  
  • 24:52 to Uganda and it's therefore becoming a huge  driver of economic growth in your country.  
  • 24:59 Can you tell us more about some  of the drivers of nature loss?  
  • 25:02 You have a massive forest resource in Uganda.  What's driving this degradation and how is  
  • 25:10 something like natural capital accounting that  we've heard about today helping make a difference?
  • 25:15 [Alfred Okot Okidi]: 
  • 25:17 Okay. There are primarily about four drivers of  degradation in Uganda. The first one is poverty.  
  • 25:29 People go to look for livelihood  and resources to survive  
  • 25:34 in these forests because of the poverty level.  The second one is because of the rapid growth in  
  • 25:43 population and the demand for agricultural land.  And given that our agriculture is nature-based,  
  • 25:50 you find that people are moving into the forest,  the swamps, and even the slopes of the mountainous  
  • 25:59 areas that are quite dangerous to do cultivation.  So the drive is for agriculture. And then  
  • 26:07 nearly 95% of the population of Uganda still  depend on the energy sources for cooking  
  • 26:16 on biomass. That is charcoal, firewood.  So the venture, especially into the forest  
  • 26:25 to look for that energy for cooking. We  have also witnessed opportunities traders,  
  • 26:34 especially from without Uganda who have gone  after very exotic species and rare species  
  • 26:41 and they have been actually harvesting them like  the [inaudible 00:26:45] africana and the shea nut  
  • 26:49 tree with disastrous consequences. So these are  the four primary drivers of degradation in Uganda.
  • 26:59 [Elisabeth Mealey]: So in a way you have to attack multiple problems  
  • 27:05 in a whole development plan taking  on all of these drivers at once.  
  • 27:09 How do you go about doing that? Your new Vision  2040 is interesting from that point of view.
  • 27:16 [Alfred Okot Okidi]: The solution lies in actually addressing  
  • 27:19 these drivers in an integrated and holistic  way. And one of the things that Vision 2040  
  • 27:28 tries to is actually transform the country  into middle income by 2040. And to do that,  
  • 27:35 we need to move the agricultural practices  from the peasantry type into commercial,  
  • 27:42 which is matte. And therefore, it implies  using less or the same amount of land,  
  • 27:50 but producing more. So the issue of technology  comes into place, the issue of water storage  
  • 27:57 so that people can cultivate the same piece of  land maybe three or four times in a year and end  
  • 28:04 up earning six to 10 times what they're earning  right now. So that is one of the solutions.
  • 28:10 [Alfred Okot Okidi]: The other solution is to look at  
  • 28:14 shifting the energy usage from  biomass. And in this regard,  
  • 28:22 it is a gradual transition looking at  energy-efficient solutions like the  
  • 28:27 energy-efficient cooking stoves, but also  encouraging people not to go to the natural  
  • 28:36 forest or the natural trees for biomass,  but instead plant the fast maturing species  
  • 28:44 that they can use because some of them within a  period of one and a half to two and half years,  
  • 28:48 they're already ready. So that is a drive for  now as we transition into cleaner energy sources.
  • 28:58 [Alfred Okot Okidi]: On the other side, enforcement  
  • 29:02 is being strengthened and we are also coming  up with more robust legal protection because  
  • 29:08 some of the laws at the moment we realize  actually do not give commensurate punishment if  
  • 29:16 you compare with the value of the resources that  is being laid to waste. Because somebody destroys  
  • 29:24 exotic species worth maybe 200 million  shillings, but he pays a fine of just about  
  • 29:31 80,000 shillings. So there's a disconnect. So we  want to address that. But the principle is let  
  • 29:40 the population coexist with nature. So it  is something like the MD said, really making  
  • 29:49 sure that you don't ban people, but make them  co-exist peacefully and in a sustainable way.
  • 29:55 [Elisabeth Mealey]: So it's this value on nature that we're  
  • 29:58 talking about today that has a benefit for people.  So it's bringing that value to that awareness.  
  • 30:04 Mari, given what we've heard here today on the  importance of natural capital for development,  
  • 30:10 how is the bank as a big institution working  with countries actually making a difference? And  
  • 30:16 what are we actually doing to support this  effort to put a value on natural capital?
  • 30:22 [Mari Pangestu]: I think we are doing quite a lot globally and  
  • 30:26 at the country level because we see the critical  link between nature, climate, and development.  
  • 30:34 And we need to invest in both nature and climate.  So globally, we have the data and analytical work  
  • 30:41 that was described and presented by Karin. Today  we talked about the Wealth of Nation's report.  
  • 30:48 Karin also mentioned other reports, but the  data and analytics are key to be able to guide  
  • 30:55 policymakers so that they can make the informed  decisions that will lead you to, I like the way  
  • 31:02 permanent secretary put it, so that nature and  people can coexist in a sustainable way. So you  
  • 31:07 want both, right? You want the development, but  you also want to protect the value of nature.
  • 31:13 [Mari Pangestu]: And at the national level,  
  • 31:16 we are helping governments with the data  and analytics to calculate the trade-offs  
  • 31:24 and figure out what types of policies you can  achieve both. So once you identify the drivers of  
  • 31:31 the natural resource depletion, you can't  just say, let's stop it. You need to find  
  • 31:36 an alternative. People's livelihoods are at stake,  so you have to provide an alternative. Like in the  
  • 31:42 case of many of the forest fires, for instance,  in Indonesia, it's traditional slash and burn  
  • 31:48 agriculture. And if you're not providing them  alternative ways to do their agriculture in a  
  • 31:54 sustainable way, they'll still continue to do it,  right? No matter how much enforcement you do. So  
  • 32:00 you do need to provide the kind of policies in an  integrated way and provide the incentives as well  
  • 32:07 as the disincentives like the enforcement  and the fines that was just mentioned.
  • 32:11 [Mari Pangestu]: So I think we need to really  
  • 32:15 link efficient management of natural capital in a  country with also the development outcomes. And in  
  • 32:23 our new Climate Change Action Plan with commitment  for 35% of our financing going to climate  
  • 32:31 action, we are including nature-based  solutions in all aspects, territorial,  
  • 32:39 coastal, marine, and mobilizing additional  resources for nature and climate building on  
  • 32:46 our long history of working on biodiversity.  And in particular for IDA20 because earlier,  
  • 32:53 we mentioned that the decline in natural capital  and ecosystem services hit the poorest countries  
  • 33:00 the most and hit the poorest in these countries  even more. So in the IDA20 replenishment,  
  • 33:06 we are very much focusing on the synergy  between nature, climate, and development.
  • 33:11 [Mari Pangestu]: Just a few examples. In India,  
  • 33:13 we are doing integrated coastal zone management  restoring 19,500 hectares of mangrove  
  • 33:21 and investing in pollution management. In the  lower Mekong region, which is the third largest  
  • 33:28 area for tropical forest, we are doing sustainable  forest to scale. And another example, basically  
  • 33:37 last year we did 116 million hectares of marine  and coastal protected areas, 10 million hectares  
  • 33:45 of terrestrial protected areas, and over 300  protected habitats, biological buffer zones,  
  • 33:52 and resources. So this is just examples of just  how much work we can do and that we should do.
  • 33:59 [Mari Pangestu]: And Karin and permanent secretary  
  • 34:03 also mentioned to do that you need financing,  right? So how do we expand financing beyond  
  • 34:11 our commitment for 35% of our financing going  for climate, including nature-based solution?  
  • 34:18 I think we were the first institution actually  to issue a global green bond in 2008 catalyzing  
  • 34:27 sustainable investment in capital markets.  So I think countries sovereign such as Uganda  
  • 34:32 have the potential to issue green and blue  bonds, sukuk, green sukuk bonds. These are all  
  • 34:39 instruments that countries have actually issued  to raise funds for this. And then there's the  
  • 34:46 public-private partnership with blended  finance solutions where again, conservation  
  • 34:53 with other nature-based activities that  is about conservation, restoration,  
  • 34:57 and livelihoods. I think we need to keep our focus  on that and help countries develop such policies.
  • 35:06 [Elisabeth Mealey]: Well, thank you.  
  • 35:08 You make the connection there between nature and  climate, which is good because we are at a climate  
  • 35:12 COP. Mr. Okidi, here in Glasgow, how is what your  country doing being noticed in terms of climate,  
  • 35:23 the importance of keeping Uganda's forests  intact to addressing climate change. How  
  • 35:32 is that connection being made? And then as Mari  raised, the need for finance. Are some of these  
  • 35:39 innovative financing tools like green bonds  interesting to Uganda potentially going forward?
  • 35:45 [Alfred Okot Okidi]: Okay. Thank you.  
  • 35:50 We have signed onto stopping deforestation and as  a country, we're one of the signatories already.  
  • 36:03 We are on the taskforce for long-term  financing. We are actually one of  
  • 36:10 the pioneers that are going to actually  pilot it globally on behalf of the LDCs,  
  • 36:20 but also on the side of adaptive resilience, we  are also one of the seven LDCs that are actually  
  • 36:30 chosen. And we have started the implementation of  that so that what we do in terms of adaptation and  
  • 36:39 at the same time, conserving the environment,  we can share with colleagues in the least  
  • 36:43 developing countries. So we had quite a lot  of interaction and a lot is happening. And  
  • 36:51 the proposal, the promise of 100 billion I  think is welcome. And from the various fronts,  
  • 36:58 we see a lot of proposals coming in and we wait  for the implementation to make sure that the  
  • 37:06 100 billion comes on board. And our emphasis is  that it should go a lot more towards adaptation.
  • 37:12 [Alfred Okot Okidi]: Now, coming to financing, yes,  
  • 37:19 the talk in the past has been between  government to government to look for funding  
  • 37:25 to address climate change, but it is pretty  obvious that we need to look at solutions beyond  
  • 37:34 the government or the regional blocks, or  even from the multi-national government banks  
  • 37:41 to address this problem. And  
  • 37:47 coming up with blended financing I think is one  which I think Uganda has already done it with  
  • 37:54 the World Bank because we have a project that  I think we've just launched. And it is actually  
  • 38:00 investment in forest and protected areas. And we  have loan from the World Bank, we have grant that  
  • 38:08 is coming from the GCF that has been blended.  And the quantum of the money has grown to the  
  • 38:15 extent that we believe it is a kind of arraignment  that can help us address issues of climate change.
  • 38:22 [Alfred Okot Okidi]: The same with the private sector.  
  • 38:27 In Uganda, we have already started and we have  actually a framework where we are bringing  
  • 38:32 on board the private sector, and they've made  voluntary undertakings using their own resources  
  • 38:39 and they're committed to every year for the next  five years, planting at least 75 million trees.  
  • 38:46 And two of the breweries who anyway use the  water resources from the swamps and the forest  
  • 38:54 [inaudible 00:38:55] have come up and they're  very active in this particular program and they're  
  • 38:58 also involved in the restoration of swamps and  protection of some of two rivers in the country,  
  • 39:05 which is actually a very good development.  What I noticed is that the gap between the  
  • 39:13 public sector and the private sector on issues  to do with climate change is too wide and it  
  • 39:18 needs to be brought up so that the private sector  understands why they need to get involved in this  
  • 39:24 and why they need to commit resources because  it is their sustainability that is at stake.
  • 39:29 [Elisabeth Mealey]: Very interesting and a  
  • 39:31 very big theme here in COP this week  and probably into next week as well.  
  • 39:37 How do we get the policies right  so that the investment flows? So  
  • 39:42 all part of the same conversation around wealth  accounting. Let me bring this to a conclusion  
  • 39:48 with you, Mari, on the other COP that is important  to us all as well, the UN Biodiversity COP coming.  
  • 39:58 It was recently kicked off in Kunming, China,  but that will be playing out during 2022. What  
  • 40:07 do you see as the connection between these two  COPs, COP15, CBD, and COP26, 27 coming forward?
  • 40:14 [Mari Pangestu]: They are intricately  
  • 40:18 linked because they're interrelated crisis.  The biodiversity loss and the climate change  
  • 40:25 crisis are interrelated, as we have been  discussing. And as I was walking to have this  
  • 40:32 session, I passed a sign which said on one side,  nature is climate. And then on the other side,  
  • 40:38 climate is nature. So it's two sides of the same  coin. And climate change leads to ecosystem losses  
  • 40:46 and you need healthy ecosystem services  to play a role in mitigation, adaptation,  
  • 40:52 and resilience. We need healthy forests, wetlands,  oceans, grasslands, to serve as carbon sinks  
  • 41:00 to mitigate. And it is also a source of  economic value as was just mentioned.  
  • 41:08 These sinks, carbon sinks, it's a lot  of talk about it here in this COP.  
  • 41:13 How can you get carbon credit and offsets  for that to be able to finance that effort?
  • 41:20 [Mari Pangestu]: So I think climate change and ecosystem  
  • 41:24 services protection is very key again, because  we know the impact... If we don't do that,  
  • 41:30 the impact on development and the poorest. If we  didn't do anything business as usual scenario,  
  • 41:37 it will really hurt the poor the most. So we need  transformative and coordinated actions on both  
  • 41:44 natural and ecosystem services losses and the  climate crisis. We need to manage both crises  
  • 41:50 in an integrated and interrelated way. And in  fact, our estimate is showing that nature-based  
  • 41:57 solutions can provide 37% of  cost-effective climate mitigation  
  • 42:05 efforts till 2030. So that's quite a huge  proportion or contribution to climate mitigation.
  • 42:13 [Mari Pangestu]: And we've been mentioning mangrove. So  
  • 42:17 let me give you an example from my own country,  Indonesia. World Bank is helping Indonesia to  
  • 42:23 do mangrove restoration. I think it's 600 million  hectares over the next five years. And it has  
  • 42:33 a triple benefit because it's part of the green  fiscal stimulus program of Indonesia right now. So  
  • 42:41 you create cash for work for the communities that  live around there and benefit from that coastal  
  • 42:48 area to do the restoration. So they're getting  cash for work as the economy hasn't picked up.  
  • 42:55 And then once the restoration happens, they  will have improved livelihoods from the restored  
  • 43:01 mangrove and the coastal area that becomes more  healthy and so on. So you have a triple benefit  
  • 43:08 of livelihoods, income, and then the climate  benefit and then of course protecting the  
  • 43:17 ecosystem services benefit. And it's not just  livelihood today, but livelihood in the future,  
  • 43:24 right? So I think that's really the value of  nature capital that we really need to protect.
  • 43:31 [Mari Pangestu]: So just to close on the financing gap that was  
  • 43:36 mentioned, totally agree. It can't just come from  public funding. The financing gap is $700 billion  
  • 43:44 per year on average till 2030. So we really  need an integrated nature and climate  
  • 43:53 approach and a link between the biodiversity  framework that's going to emerge from Kunming  
  • 44:02 post-2020 and the Paris Agreement.  This is the work for us ahead.  
  • 44:09 And with that and government policies and the  value of nature being more measured and managed  
  • 44:16 and clearly monitored, I think you can draw in  private sector funding as we had just discussed.
  • 44:23 [Mari Pangestu]: We really need all that to come together  
  • 44:26 in an integrated way, whole of economy approach  and really clearly measuring the value that you  
  • 44:33 are protecting and monitor the actions that go  with protecting and conserving and utilizing  
  • 44:45 the value of nature. And that's the only way  that you'll be able to draw in blended finance.  
  • 44:52 That was an interesting example with the  brewery and the forest. I think we can find  
  • 44:56 many examples where the private sector is  actually benefiting from the protection of  
  • 45:03 the nature. They can also come in to co-invest  not just government in protecting the nature.
  • 45:10 [Mari Pangestu]: I have a similar example in Indonesia  
  • 45:13 in an area which grows rubber and it's below the  conservation... It's in a conservation forest  
  • 45:19 area. So it's a sustainable rubber plantation, but  they pay for the buffer around them because it's  
  • 45:29 right below a conservation forest and it's also  the migration path for the wild animals. So they  
  • 45:37 protect the buffer because it's in their interest  because they're doing the sustainable rubber  
  • 45:41 plantation there. And it was a blended finance.  It was funded by blended finance, no government  
  • 45:47 involved, with bank that came in and USAID came in  with a guarantee and impact investors coming in as  
  • 45:57 well. So it can be done, put it that way. Yeah,  you just got to be able to structure it right.
  • 46:02 [Elisabeth Mealey]: That is the message. It can be  
  • 46:04 done. We have the economic analysis that Karin  has outlined. It's clear there's a value that  
  • 46:11 needs to be protected and built upon. And there's  a huge link to climate. So I think that's the sort  
  • 46:18 of great summary of this conversation. I want  to thank you all. Mr. Okidi from Uganda, thank  
  • 46:24 you for joining us. Mari Pangestu, our managing  director at the World Bank, and Karin Kemper in  
  • 46:29 Washington, thank you so much for this excellent  presentation. That brings us to our conclusion.  
  • 46:34 Thank you all for joining and a fantastic prelude  to Nature Day tomorrow here at COP. Thanks.
Read the chat
KatieJ

Welcome to “The Value of Nature to People and Planet” event featuring the World Bank’s Managing Director for Development Policy and Partnerships Mari Pangestu, the Hon. Alfred Okot Okidi, Permanent Secretary, Ministry of Water and Environment, Uganda, and Karin Kemper, Global Director for Environment, Natural Resources, and Blue Economy, World Bank.
Fri, 11/05/2021 - 09:45
Diana Manevskaya

Welcome and take a minute to watch our video on wealth accounting. It explains how we measure the wealth of a country and why we must look at the value of all the assets that generate income, and ultimately well-being, to better understand the sustainability of growth. The video can be watched and shared on YouTube
Fri, 11/05/2021 - 09:46
KatieJ

Karin Kemper speaks about the biodiversity and climate crises being interlinked, critical development issues. Failure to address both crises would give rise to material and systemic risks.
Fri, 11/05/2021 - 09:50
KatieJ

Karin Kemper: The best solution is a combined approach that enables nature- and climate-smart development.
Fri, 11/05/2021 - 09:51
Diana Manevskaya

The Economic Case for Nature is another worthwhile report to check out - it estimates the economic costs of collapse in key ecosystem services.
Fri, 11/05/2021 - 09:53

The World Bank Group at COP26

As COP26 takes place in Glasgow, UK, the clock is ticking for high-impact climate action to deliver on the promises of the Paris Agreement. World leaders and national delegations, representatives from businesses, civil society and youth are gathering to tackle the climate crisis. See the full program.