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Protecting Asia’s Natural Resources is Profitable

Ecosystems and natural landscapes provide essential economic, social, and environmental benefits. Photo: Lukas Scheuter

By Albert Park, Madhavi Pundit

Restoring and protecting nature pays off in profits, jobs, economic growth and increased investment.

Nature is a core driver of economic performance in Asia and the Pacific. About 75% of the region’s GDP comes from industries that depend directly on nature.

This includes agriculture, fisheries, forestry, and tourism, making the health of ecosystems essential for growth, development, fiscal stability, and trade competitiveness.

Global and regional data show the enormous economic value of these natural systems, though these numbers capture only a fraction of their full value.

Ecosystems are foundations of productivity, fiscal stability, and trade. When they deteriorate, the costs of health care, food, and disaster response rise, just as when roads or bridges break down, while government revenues fall.

Healthy ecosystems bring multiple benefits. They strengthen public health, livelihoods, and productivity, and help communities adapt. They clean air and water, control disease, lower heat and pollution-related illness, and improve mental health.

A global shift toward development that restores and protects nature could unlock more than 10ドル trillion in business value and create 400 million jobs by 2030. Asia and the Pacific could capture 4ドル trillion of this value and 232 million of these jobs.

Nature-based infrastructure, such as wetlands, mangroves, or forests, can provide the same services as built structures like roads, dams, and sewage systems, but at up to 50% lower cost, saving as much as 248ドル billion a year. Coral reefs alone prevent millions of dollars in storm damage across Pacific economies.

It is clear that investments in nature are key drivers of overall economic well-being and resilience in Asia and the Pacific.
Governments, investors, and financial institutions are aware of this and are developing the knowledge and tools needed to align money with sustainability, through regulation, accounting reforms, and shared expertise from multilateral banks, think tanks, and civil society.

The European Union’s new Regulation on Deforestation-Free Products will restrict imports of commodities like palm oil, coffee, rubber, soy, timber, and cocoa linked to deforestation.

A global shift toward development that restores and protects nature could unlock more than 10ドル trillion in business value and create 400 million jobs by 2030.

For Asia’s exporters, it is both a challenge and an opportunity to improve transparency, reporting, and cleaner production, an example of the broader trend linking global trade with sustainable practices.

Governments must lead with stronger governance that enables investment, policies that integrate the economic value of ecosystems, and better data systems to track natural assets and environmental performance.

Ministries of finance, commerce, and transport, not only environment agencies, need to drive this shift. Without faster action, finance will fall short of the trillions required for global transformation.

Nature-based solutions, which harness ecosystems like forests and wetlands to solve environmental and economic problems, deliver immediate benefits at lower cost.

Every dollar invested in forest restoration returns 7ドル to 30ドル in value. Natural infrastructure such as wetlands and mangroves can cost half as much as concrete flood defenses and repair themselves over time.

Across Asia, these benefits are already visible. Mangrove restoration in Bangladesh and Indonesia reduces flooding, purifies water, raises fish stocks, and increases local incomes. Sustainable shrimp farms in Viet Nam earn premium prices.

Soil restoration in India has boosted crop yields by nearly half. These examples show how protecting ecosystems can generate jobs, food security, and investor confidence.

Beyond these immediate gains, nature positive investments build long-term resilience—strengthening communities, stabilizing economies, and safeguarding the environment for future generations.

Mobilizing private capital at scale requires projects to be "investment-ready," with transparent standards, trusted partners, effective risk management, and structures that deliver tangible benefits over time.

A single ecosystem, such as a forest, can generate multiple revenue streams, including clean air and water, biodiversity, timber, and tourism, making them attractive to investors.

These benefits can be monetized through environmental service payments (payments for keeping natural areas healthy), green bonds, carbon credits, conservation grants, or fiscal incentives. This demonstrates that protecting and restoring nature can be both profitable and sustainable.

Ultimately, sustainable finance must integrate all environmental costs and benefits into global markets and accounting systems.

Only when the hidden costs are fully priced can businesses and governments make informed decisions, allowing economies to grow in inclusive, resilient, and sustainable ways.

It has been nearly 30 years since economists first argued that nature is an asset with economic value. The world can’t afford another 30 years of delay. The need is urgent. The time to act is now.

Published: 20 November 2025

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The Asian Development Blog is a forum for high-quality commentary and insights from ADB staff and other development experts about issues and challenges facing Asia and the Pacific.

The views expressed in these blogs are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.

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