Economics of Drought report: Invest in healthy lands to cut billion-dollar costs of human-made droughts

Breaking drought cycles

Report launch

Side event at UNCCD COP16

Launch of Economics of Drough report: Investing in nature-based solutions for drought resilience - proaction pays

As droughts fuelled by human destruction of the environment are projected to affect 3 in 4 people by 2050, investing in sustainable land and water management is essential to reduce their costs, which already exceed $ 307 billion per year globally, according to a new report launched at the Conference of the Parties (COP16) of the United Nations Convention to Combat Desertification (UNCCD) earlier today.

Drawing on a wealth of evidence and case studies from countries all around the world —like Chile, India, Jordan, Kenya, Spain, and Tunisia— the report makes the economic and business case for nature-based solutions (NbS) to drought. That is, for practices that restore ecosystem functions and soil health to enhance water flow, storage, and supply in support of human wellbeing —for example, reforestation, grazing management, and the management, restoration and conservation of watersheds

The report, ‘Economics of drought: Investing in nature-based solutions for drought resilience – proaction pays,’ is co-authored by the Economics of Land Degradation Initiative (ELD), the United Nations University Institute for Water, Environment and Health (UNU-INWEH), the United Nations Convention to Combat Desertification (UNCCD) and financially supported by the German Federal Ministry for Economic Cooperation and Development, the International Drought Resilience Alliance (IDRA) and the European Union.

The publication underscores that the long-term economic costs associated with droughts and related disasters are greatly underestimated. Especially, because costs typically escalate within and across borders due to the knock-on effects of drought on sectors like energy and health, as well as the wider economy.

The estimated costs of implementing measures as set out by countries in their national drought and related plans amount to a fraction of the costs of drought every year.

The triple dividend of natural-based solutions 

An economy that respects natural systems instead of undermining them could generate up to US$10.1 trillion annually in business value and create up to 395 million jobs by 2030. Tripling investment in Nature-based Solutions up to 2030 could generate 20 million additional jobs.

Nature-based solutions to drought yield a triple dividend: they reduce loss and damage from drought; increase the income of land and water users, and generate co-benefits for climate, nature and sustainable development more broadly. Most of these dividends –including food and water security— can be enjoyed regardless of the occurrence of drought, making nature-based solutions a no-regret option. 

Recommendations

The report offers a series of recommendations to realize the potential of sustainable land and water management at landscape scales. For example, it points out the need to embed nature-based solutions in national drought management plans; ensure land tenure and water rights; and strengthen local governance, which is essential to implement changes on the ground.

 

> Download the report <

> Access the press release <