Safeguarding Biodiversity: The World Bank’s Path to Sustainable Development and Resilience

The World Bank’s approach paper emphasizes integrating biodiversity into development projects to curb rapid species loss and enhance climate resilience. By prioritizing sustainable practices, risk management, and Indigenous engagement, the Bank aims to align biodiversity conservation with economic stability and community well-being.

The World Bank Group’s Independent Evaluation Group (IEG) has developed a strategic approach to evaluating the effectiveness of World Bank efforts in supporting biodiversity conservation, particularly over the years from FY15 to FY24. This new approach paper, "Biodiversity for a Livable Planet," highlights the urgency of addressing the rapid loss of biodiversity worldwide, a problem driven by human activities such as habitat destruction, resource overuse, and pollution, all of which are further intensified by climate change. The evaluation, prompted by the World Bank’s sustained focus on biodiversity and environmental resilience, will analyze how well the Bank’s interventions have achieved their biodiversity goals and whether they are advancing economic and social well-being in communities that rely heavily on natural resources. At the core of the World Bank’s approach is the recognition that biodiversity is essential to human survival and economic stability, given that nature contributes to over half of the world’s GDP. Biodiversity sustains critical ecosystem services, including climate regulation, water purification, food production, and disease control, all of which play a role in maintaining human health and well-being. However, with global wildlife populations decreasing by two-thirds in the past fifty years, the World Bank underscores that the crisis is severe, and protecting biodiversity must become integral to all developmental efforts.

Biodiversity as a Natural Climate Ally

Biodiversity is tightly linked to climate change and ecological resilience, which are increasingly essential as global warming accelerates. Ecosystems, from forests to peatlands, serve as carbon sinks, helping to capture greenhouse gases and stabilize local and global climates. However, the effects of climate change, such as shifting temperatures and extreme weather events, further degrade biodiversity, creating a feedback loop that undermines ecosystem resilience and amplifies environmental threats. For example, mangroves and wetlands, which protect coastlines and reduce disaster risks, are threatened by rising sea levels and extreme weather. The IEG approach will evaluate how effectively the World Bank has implemented conservation initiatives that address these interconnected challenges, emphasizing that conservation must consider both biodiversity and climate needs. The approach reflects growing awareness that biodiversity loss is not only an environmental issue but also a social and economic one. At least 75 percent of the world’s food crops depend on pollination, and natural ecosystems provide food, water, medicine, and income sources, particularly for people in poverty. Consequently, as biodiversity declines, the economic foundation of many vulnerable communities is eroded, potentially leading to increased poverty and food insecurity.

Embedding Biodiversity in Key Production Sectors

The evaluation will examine the integration of biodiversity considerations into key production sectors, such as agriculture, forestry, and fisheries, which often drive biodiversity loss through unsustainable practices. The World Bank promotes "nature-smart" investments, aiming to embed biodiversity and ecosystem services into productive practices, recognizing that conventional development projects can jeopardize biodiversity by failing to manage environmental risks. For instance, agriculture expansion often leads to deforestation, while overfishing destabilizes marine ecosystems. By focusing on sustainable land and resource management, the World Bank encourages practices such as regenerative agriculture, which seeks to restore soil health, enhance crop yields, and reduce ecological damage. Integrating biodiversity into sectors like agriculture is challenging, given that changes to these industries must balance the needs of economic growth and environmental preservation. To achieve this, the World Bank’s approach includes fostering policy reforms and promoting incentives for sustainable practices, which can align economic and conservation objectives. The evaluation will explore the success of these integration efforts and whether they have effectively encouraged governments, industries, and local communities to adopt practices that enhance biodiversity.

Managing Risks to Preserve Ecosystem Health

Risk management is also central to the World Bank’s biodiversity strategy, with a focus on assessing and minimizing the adverse impacts of development projects on biodiversity. Applying a mitigation hierarchy, the Bank requires projects in sectors with potentially high environmental impacts such as infrastructure, agriculture, and energy to avoid harming biodiversity, minimize any unavoidable impacts, and, where necessary, implement compensatory measures to offset biodiversity losses. By following this risk management approach, projects aim to achieve “no net loss” of biodiversity, with a preference for net biodiversity gains. The World Bank also works with Indigenous communities, whose land management practices have preserved biodiversity for generations, recognizing that their involvement and traditional knowledge are invaluable to conservation success. Indigenous populations often manage vast tracts of biodiverse lands, and studies have shown that forests under Indigenous management are often healthier and more resilient than other areas. The evaluation will assess how effectively World Bank projects have engaged these communities and whether they have contributed to conservation while respecting Indigenous rights and knowledge.

Holistic Evaluation for Long-Term Impact

The evaluation methodology will include geospatial analysis, qualitative interviews, and case studies to gauge the long-term impacts of World Bank projects on biodiversity, ecosystem services, and local communities. By analyzing a wide range of projects, the evaluation will look for patterns that indicate successful approaches, as well as areas where the Bank’s strategies may need adjustment. Findings are intended to inform future World Bank biodiversity initiatives, highlighting the importance of a holistic, inclusive approach to conservation that includes local community engagement, sustainable production practices, and stringent risk management. As biodiversity continues to decline, the World Bank’s approach paper suggests that integrating conservation into all sectors will be crucial for sustainable development, resilient ecosystems, and a livable planet.