A new report from the Asian Development Bank (ADB) emphasizes that protecting ecosystems is essential for driving job creation, productivity, and fiscal stability across Asia and the Pacific. The Asia-Pacific Climate Report 2025: Unlocking Nature for Development warns that 75% of the region’s economic output comes from sectors that rely heavily on nature, which is rapidly degrading. The report urges governments to make nature protection a fundamental part of their economic systems by reforming governance, policy, and data frameworks to attract greater private investment in conservation, resilience, and innovation.
ADB Chief Economist Albert Park highlighted that healthy ecosystems are not optional but central to Asia’s growth and resilience. Investing in nature, he noted, strengthens both competitiveness and fiscal stability, as natural resources form the foundation of many key industries in the region.
Despite its importance, nature remains severely underfinanced. Of the more than $270 trillion in global financial assets, less than 1%—around $200 billion annually—is directed toward nature-positive investments such as sustainable agriculture or the restoration of wetlands and mangroves. To close the biodiversity and climate financing gap in Asia and the Pacific, the report estimates that over $1 trillion in annual investment will be needed.
The report calls for governments to use public finance strategically to attract private capital by improving governance, reforming policies, and enhancing data systems. It outlines a 10-year roadmap to integrate nature into economic and financial planning, recommending near-term actions such as subsidy reform, natural-capital accounting, and cross-border ecosystem planning. Longer-term measures focus on aligning governance structures, data systems, and financial frameworks to achieve both environmental and economic gains.
Several economies in the region have already begun valuing nature as productive capital and are well positioned to lead the global shift toward sustainable prosperity. The report underscores that development finance institutions like ADB can play a pivotal role by mobilizing funds, offering technical assistance, and fostering regional cooperation to unlock nature’s full potential for development.
As a leading multilateral development bank, ADB continues to champion inclusive, resilient, and sustainable growth across Asia and the Pacific. Since its founding in 1966, ADB has worked with its 69 member countries to address complex challenges through innovative financial tools, strategic partnerships, and investments that promote long-term prosperity and environmental stewardship.
