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FAO: Ecosystem Degradation Costs Up to $6.3 Trillion a Year

The UN Food and Agriculture Organization said on September 28 in Rome, releasing its State of the World’s Forests 2026 report, that failure to restore degraded ecosystems costs an estimated $878 billion to $6.3 trillion annually, equal to 2% to 8.3% of global GDP depending on the estimate. The FAO said restoring forests and landscapes is a cost-effective way to address food security and development challenges.

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AI take

The FAO's framing is notable for putting restoration in cost-effectiveness terms rather than conservation ones, which is the language that tends to move agricultural and development budgets. The wide $878 billion to $6.3 trillion range — a sevenfold spread — signals how contested the underlying valuation methods remain, and that gap is itself the story for anyone tracking how natural-capital accounting gets used in policy and, increasingly, in RWA-style ecosystem markets. Whether the FAO's cost-effectiveness claim gets picked up by finance ministries and land-use planners, or stays within the environmental ministries that commissioned it, is the open question.

Generated by AI for reference only.

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