Our Approach to Drought and Wildfire Is Economically Backwards
· fitness
Our Approach to Drought and Wildfire Is Economically Backwards
As the world grapples with devastating droughts and wildfires, it’s astonishing that governments seem oblivious to the fact that investing in land restoration could generate up to $1.8 trillion annually and create an additional 65 million jobs by 2030.
When we think of economic infrastructure, we envision steel beams, concrete foundations, and power grids. Yet the UNCCD estimates that roughly half of global output – $44 trillion of global GDP – relies on natural capital, including healthy land. Healthy land isn’t just an environmental nicety; it’s a critical component of our economy.
It underpins livelihoods, food production, water security, and supply chains. When we neglect this infrastructure, we’re essentially setting ourselves up for disaster. A drought that reduces agricultural output can quickly become a wider economic shock by raising food-import bills, reducing rural incomes, and increasing pressure on public budgets.
The COVID pandemic exposed the fragility of global supply chains, but recent wildfires and droughts have revealed another vulnerability: deteriorating natural systems on which those supply chains depend. For farmers already struggling with increased costs, land degradation and severe drought add yet another layer of risk.
Businesses are directly affected by these physical risks, as they affect the availability, cost, and quality of natural resources. The UNCCD estimates that the combined cost of land degradation, drought, and desertification to the global economy is $878 billion annually. Governments spend billions responding to disasters, yet they invest only a fraction in preventing the degradation that makes economies more vulnerable.
One major obstacle to progress is fragmented and misaligned policies. A global consultation led by the WBCSD has called for governments to create a coherent policy environment, develop a long-term investment vision, and strengthen accountability frameworks. The COP Action Agenda on Regenerative Landscapes reported a fourfold increase in business investment between 2023 and 2025, but this still falls short of what’s needed.
The Riyadh Action Agenda (RAA), launched by COP16 in 2024, provides a crucial starting point for creating a stable policy environment and developing a long-term investment vision. This framework brings public, business, and community actors together around land and drought resilience.
As leaders gather at COP17 in Ulaanbaatar, they have a unique opportunity to change course and prioritize land restoration. Investing in healthy land is essentially investing in economic resilience – a critical component of our collective future. The question is: will we seize this moment? Or will we continue down the path of neglecting our hidden infrastructure and risking catastrophic consequences?
Reader Views
- CTCoach Tara M. · strength coach
It's astonishing that policymakers still cling to the outdated notion that natural disasters are simply calamities to be mitigated with emergency funding. What we need is a fundamental shift in perspective: treating healthy land as an economic asset, not just an environmental nicety. This requires reorienting our investment priorities from post-disaster relief to proactive land restoration and conservation. By doing so, governments can tap into the vast potential of natural capital to stimulate growth, create jobs, and ensure long-term economic resilience – without breaking the bank.
- DRDevon R. · former athlete
The disconnect between our economic and environmental priorities is staggering. We throw billions at firefighting and disaster relief without acknowledging that land degradation is often the root cause of these catastrophes. What's missing from this narrative is a discussion about the role of industrial agriculture in perpetuating soil erosion, deforestation, and water depletion. Without fundamental changes to our farming practices, we'll continue to invest in Band-Aid solutions rather than addressing the systemic issues driving these crises.
- TGThe Gym Desk · editorial
While the article highlights the economic benefits of investing in land restoration, we often overlook one critical factor: scale. Restoring large tracts of degraded land is a monumental task that requires coordinated efforts from governments, corporations, and local communities. Without clear frameworks for prioritization and funding allocation, these initiatives risk fragmenting into isolated projects rather than achieving systemic change. A unified approach to scaling up land restoration efforts could indeed unlock the full potential of this trillion-dollar sector.