Biodiversity is an essential resource for the livelihoods of millions. Sustainable management of biodiversity lays the groundwork for job creation, food security, climate resilience and inclusive growth. But decades of development progress are being slowed or even reversed because of environmental degradation and nature loss. This decline poses a grave threat to our very existence. For instance, about 3.3 billion people depend on fish as a vital source of protein. Without urgent action, up to 25% of global fish catches could be lost by the end of the century, severely impacting food security and livelihoods.
To combat this crisis, it is imperative to fully understand and value biodiversity within national development policies. Governments need tools that recognize nature’s contributions to economies and communities. One such tool is Natural Capital Accounting (NCA), a system that measures the economic value of ecosystems through frameworks like the System of Environmental-Economic Accounting (SEEA). By quantifying nature’s benefits, NCA is transforming how governments view and manage biodiversity. At its core, NCA allows countries to assess the full economic value of their natural assets, such as forests, wetlands, and wildlife. Through frameworks like SEEA, nations can integrate these assets into their traditional economic accounts, providing policymakers with a clearer picture and critical insights into how nature contributes to Gross Domestic Product (GDP), wealth creation, and poverty reduction.
At the forefront of advancing NCA is the World Bank’s Global Program on Sustainability (GPS), which works with countries to embed biodiversity considerations into national policies and economic strategies. In Lao PDR, deforestation and ecosystem degradation are creating challenges for this country rich in natural resources. With the support of GPS, Lao PDR is integrating NCA into its national policies, resulting in better managed forests, water resources, and biodiversity.
From 2019-2021 the government undertook a landscape valuation in Khammouane province, a key milestone which informed updates to the Forestry Law and shaped the Lao Landscapes and Livelihoods Project (LLL). This initiative promotes strategic forest management while also supporting livelihoods. To sustain these gains, GPS also helped build the capacity of the Lao Statistics Bureau to maintain and use natural capital data for policymaking.
NCA has also been pivotal in supporting sustainable forest and land use planning, ensuring that natural capital is reflected in the country’s economic growth strategies. The Non-Timber Forest Products (NTFPs) sector is one such example. NTFPs, including forest vegetables, fruits, fish, and rattan, are essential to the diets and incomes of rural Lao communities. NCA has revealed the economic contributions of these products, leading to better policies for managing forest resources sustainably. A guideline is currently being developed under the LLL Project to ensure the sustainable use of NTFPs, with a focus on protecting the rights of local communities living in and around protected areas.
Zambia, renowned for its vast national parks and diverse wildlife, faces similar challenges including human-wildlife conflict, droughts, and habitat degradation. With support from GPS, Zambia is advancing NCA and applying the SEEA framework to quantify the economic benefits of biodiversity, including tourism and ecosystem services. This work is crucial in addressing overexploitation and promoting sustainable resource management.
GPS is also helping Zambia integrate natural capital into national policies, development plans, and climate commitments. Notably, the macroeconomic modeling supported by GPS will inform the upcoming 9th National Development Plan (9NDP) and the government’s biodiversity and climate strategies. NCA is enhancing wildlife management efforts, mitigating conflicts, and promoting sustainable tourism, while updating land, water, and energy accounts to support comprehensive land-use planning. Tools like the Dynamic Computable General Equilibrium (DCGE) and Rapid Environmental Economic Assessment (REEA) models are being customized to ensure natural capital is integrated into Zambia’s economic and environmental assessments, paving the way for sustainable landscape management and addressing the intricate connections between natural resources and economic development.
