ADB Report: Investing in Nature Can Boost Jobs, Growth, and Fiscal Resilience

Protecting and restoring ecosystems across Asia and the Pacific could yield enormous economic, employment, and fiscal benefits, according to a new report released by the Asian Development Bank (ADB). The report, titled Asia-Pacific Climate Report 2025: Unlocking Nature for Development, warns that rapid environmental degradation threatens the foundation of the region's prosperity — but also highlights how investing in nature can become a powerful driver of long-term growth and stability.

Nature at the Heart of Asia's Economy

The report reveals that 75% of the region's economic output comes from sectors that depend moderately or heavily on natural ecosystems, including agriculture, forestry, fisheries, tourism, and manufacturing. As biodiversity loss, deforestation, and pollution intensify, these industries face rising risks of disruption.

"Healthy ecosystems are not environmental extras in the region's growth story," said ADB Chief Economist Albert Park. "They are productive assets at the core of Asia's growth and resilience. Countries that invest in nature are investing in their own competitiveness and fiscal stability."

The report underscores that protecting ecosystems — from wetlands and mangroves to forests and coral reefs — is not just an ecological necessity but an economic imperative. These natural systems help manage floods, store carbon, regulate climate, improve soil fertility, and support fisheries and agriculture — services worth trillions of dollars annually.

The Financing Gap: Nature Remains Undervalued

Despite its importance, nature remains severely undervalued and underfinanced. Of the estimated $270 trillion in global financial assets, less than 1% (about $200 billion a year) is directed toward nature-positive investments, such as sustainable agriculture, ecosystem restoration, and green infrastructure.

The ADB estimates that Asia and the Pacific alone need over $1 trillion annually to close the financing gap in biodiversity conservation and climate resilience. Without urgent action, environmental degradation could slow economic growth, increase fiscal vulnerability, and worsen inequality, particularly among rural and coastal communities that depend most directly on natural resources.

Reimagining Economic Systems

To shift toward nature-positive growth, the report urges governments to "upgrade their economic operating systems" — meaning the governance, policy, and data foundations that shape investment decisions. Public finance, it argues, should prioritize creating the enabling conditions for private capital to flow into conservation and sustainable development.

"Governments can unlock large-scale private investment by reforming subsidies, improving data transparency, and integrating nature into national planning," the report states.

It proposes a 10-year roadmap for integrating natural capital into national accounting systems, aligning environmental goals with fiscal and financial frameworks, and encouraging businesses to assess their nature-related risks and opportunities.

Key Near-Term Actions

In the short term, the report identifies several critical policy priorities:

• Subsidy reform: Redirecting harmful subsidies in sectors like agriculture, fisheries, and energy toward sustainable alternatives.

• Natural-capital accounting: Measuring and valuing ecosystems as part of national wealth to better inform policy and investment decisions.

• Spatial planning: Coordinating land and water use beyond national borders to ensure ecosystem resilience at scale.

Longer-term reforms should aim to align governance, data, and financial systems with sustainability goals, creating what ADB calls an "economy of nature-positive growth."

Opportunities for Regional Leadership

Asia and the Pacific are already making strides in recognizing nature as productive capital. Several countries have launched national biodiversity strategies, carbon pricing systems, and green bond markets, laying the foundation for a nature-based growth model.

The region's unique combination of rapid development, biodiversity richness, and exposure to climate risks makes it both vulnerable and well-positioned to lead the world in rethinking the link between economic systems and natural capital.

ADB's role, according to the report, will be crucial in mobilizing finance, building technical capacity, and fostering regional cooperation. Through blended finance mechanisms, policy-based lending, and partnerships with the private sector, ADB aims to accelerate investments in sustainable land use, clean energy, and ecosystem resilience.

Investing in Nature for Prosperity

Ultimately, the report delivers a clear message: economic security and environmental security are inseparable. Protecting nature is not a cost, but an investment in the productivity and stability of future economies.

By aligning economic policies with ecological realities, countries can generate new jobs, attract private investment, strengthen fiscal resilience, and secure long-term prosperity.

"Nature is Asia's most valuable asset," said Park. "If we take care of it, it will take care of us — by supporting growth that is not only sustainable but also inclusive and resilient."