LIST OF TABLES, FIGURES AND BOXES  vii

ABBREVIATIONS  xi

ACKNOWLEDGMENTS  xiii

FOREWORD  xv

PREFACE  xviii

EXECUTIVE SUMMARY  xx

1 OVERVIEW  1

1.1 Objective and Background of the Report  1

1.2 Global Economy: Nature's Contributions  1

1.3 Nature as Infrastructure: A Transformative Development Concept  3

1.4 Protecting Nature and Development  4

1.5 Responsibilities and Opportunities for MDBs  5

2 DO NATURAL AND ECOSYSTEM CAPITAL AFFECT GDP? GROWTH REGRESSION ANALYSES  7

2.1 The Importance of Natural and Ecosystem Capital to Growth  8

2.2 A New Approach to Account for Natural Capital and Biodiversity  10

2.3 Results Show Sizeable Contribution of Ecosystem and Biodiversity  10

2.4 Nature Is Still Undervalued and Investments Should Be Scaled Up  12

3 NATURE AND SOVEREIGN DEBT  15

3.1 Nature Loss and Climate Change  16

3.2 Public Debt, Creditworthiness and Ratings  16

3.3 Nature and Biodiversity Loss in Debt Sustainability Analysis  19

3.4 Nature as an Asset – A Key Opportunity  21

4 NATURE AS INFRASTRUCTURE  23

4.1 China's Sanbei Program  24

4.2 Indonesia's Mangroves  33

4.3 Bangladesh's Wetlands as Infrastructure  42

5 VALUING NATURAL CAPITAL FOR NATURE-POSITIVE INFRASTRUCTURE INVESTMENT  49

5.1 Challenges in Fostering Nature-positive Infrastructure Investment  50

5.2 A Model to Value Natural Capital across Infrastructure Projects  50

5.3 Economic and Social Benefits of Including Biodiversity in Infrastructure Project Design  64

5.4 The Imperative of Developing Tools to Value Nature  65

6 THE IMPACT OF INFRASTRUCTURE ON ENVIRONMENT  67

6.1 Biodiversity Characteristics of Infrastructure  69

6.2 The Impact of Energy Infrastructure  73

6.3 The Impact of Transport Infrastructure  80

7 CITIES AND URBAN BIODIVERSITY  91

7.1 City Characteristics and Urban Biodiversity  93

7.2 City Development Programs and Urban Biodiversity  98

8 FIRMS, MARKETS AND NATURE — A NEED FOR BETTER DATA AND INCENTIVES  109

8.1 Firms Have Large Impact on Nature but Data and Actions Remain Inadequate  109

8.2 How Firms in Different Sectors Impact Nature  110

8.3 Do Markets Act as a Constraint?  111

8.4 Strengthening Data Collection and Incentives  115

9 TOWARD SOLUTIONS  119

9.1 Data and Technology as Enabling Conditions  119

9.2 Policies and Regulations  121

9.3 Financial Instruments and Markets  122

APPENDICES  125

Appendix 1 Data and Estimations for Chapter 2  125

Appendix 2 Data and Estimations for Chapter 4  135

Appendix 3 Data and Estimations for Chapter 5  136

Appendix 4 Data and Estimations for Chapter 7  140

Appendix 5 Data and Estimations for Chapter 8  141

REFERENCES  142