ADB Report: India's $21 Trillion Economy Depends on Nature; Public Backs Conservation
SDG 13: Climate Action | SDG 15: Life on Land | SDG 17: Partnerships for the Goals
Institutions: Ministry of Environment, Forest and Climate Change | Ministry of Finance
The Asia-Pacific Climate Report 2025: Unlocking Nature for Development, released by the ADB, emphasizes the economic imperative of integrating Nature-based Solutions (NbS) into policy, asserting that 75% of Developing Asia’s GDP is tied to nature-dependent sectors. The report calls for urgently upgrading the region’s governance, policy, and data “operating system” to address the $942 billion annual global biodiversity financing gap.
India is highlighted in the region’s dual challenge and opportunity:
Economic Dependence: India’s economy is highly reliant on natural capital, with 61% of the country’s total value-added contribution coming from sectors moderately or heavily dependent on nature.
Decarbonization Leadership: India is identified as an early participant in Natural Capital Accounting (NCA), contributing to global efforts to integrate natural assets into economic statistics. The country has developed its own full ecosystem accounts, placing it among Asia’s leaders in nature-capital metrics, though the report notes the need for greater international visibility and data alignment.
Adaptation Priority: Survey data cited in the report indicates that Indian respondents prioritize ecosystem investment, with 41% ranking the “Conservation of natural areas” as a top-five government investment priority for climate action.
This report mandates a high-level policy focus on integrating nature valuation directly into fiscal and financial systems. The Ministry of Finance must lead the effort to fully institutionalize NCA within the national budget and debt planning to mobilize private capital and secure the economic resilience of nature-dependent sectors.
What are Nature-based Solutions (NbS)?→ Nature-based Solutions (NbS) are actions taken to protect, sustainably manage, or restore natural and modified ecosystems that simultaneously address major societal challenges and benefit both people and nature. Examples include restoring mangroves to protect coasts from sea-level rise and flooding, or implementing soil conservation practices to enhance agricultural resilience against drought. NbS are critical for climate mitigation, as they can provide up to 37% of the necessary CO2 reductions by 2030.
What is Natural Capital Accounting (NCA)? →Natural Capital Accounting (NCA) is a statistical framework that systematically organizes and measures the stock and flow of natural assets (like forests, water, and soil) alongside traditional economic indicators like GDP. NCA makes nature’s contributions visible in economic decisions by valuing ecosystem services such as carbon storage and water purification, thereby providing a robust evidence base for policymaking and financial risk assessment.
Follow the full update here: Asia-Pacific Climate Report 2025: Unlocking Nature for Development (ADB)