Banking on nature’s AssetS

The report advocates for Multilateral Development Banks (MDBs) to move beyond focusing on single ecosystem services toward a systematic approach that considers multiple services in all development operations. It highlights how overlooking regulating services—such as storm protection and water purification—can lead to adverse trade-offs and undermine poverty reduction. The document provides a portfolio of tools for identifying, prioritizing, and valuing ecosystem services, and suggests policy options including payments for ecosystem services, regulation, and community empowerment to sustain natural capital.

• Global ecosystem health is in decline, with the UN-led Millennium Ecosystem Assessment reporting that two-thirds of the 24 audited ecosystem services were degraded over the last 50 years.
• Development planning that focuses narrowly on a single provisioning service often overlooks regulating services, leading to unsustainable outcomes; for example, converting mangroves to shrimp farms in Thailand increased exports but caused declines in fish catches and increased storm damage.
• MDBs are uniquely positioned to lead the integration of ecosystem services into development due to their role in strategic priority setting, finance, and advisory services in poverty-stricken countries.
• Ecosystem-based approaches are considered an essential pillar for national strategies to address climate change, specifically for both mitigation (e.g., carbon sequestration in forests) and adaptation.
• The report identifies several critical entry points for MDBs to mainstream ecosystem services, including Poverty Reduction Strategy Papers (PRSPs), Country Assistance Strategies (CAS), Strategic Environmental Assessments (SEA), and investment loans.
• Economic valuation can prevent the destruction of ecosystems by revealing their non-market value; for instance, a study of the Nakivubo wetland in Uganda estimated $2 million in water quality services, leading the government to cancel plans to drain the area for housing.
• Effective policies to sustain ecosystem services include a mix of regulation (e.g., banning reef blasting), direct government provision (e.g., protected areas), public engagement (e.g., clarifying community rights), and market-based incentives (e.g., eliminating perverse subsidies).
• The report recommends five interrelated steps for MDBs: incorporating ecosystem services into environment strategies, integrating them into core operations, building implementation capacity, empowering local communities, and strengthening economic incentives.

APA

RANGANATHAN, J., IRWIN, F., & Repinski, C. P. (2009). Banking on nature’s AssetS. World Resources Institute. https://wriorg.s3.amazonaws.com/s3fs-public/uploads/banking_on_natures_assets.pdf

Chicago

RANGANATHAN, JANET, FRANCES IRWIN, and Cecilia Procopé Repinski. Banking on nature’s AssetS. World Resources Institute, 2009. https://wriorg.s3.amazonaws.com/s3fs-public/uploads/banking_on_natures_assets.pdf.

Wikipedia

{{cite report |last1=RANGANATHAN |first1=JANET |last2=IRWIN |first2=FRANCES |last3=Repinski |first3=Cecilia Procopé |title=Banking on nature’s AssetS |publisher=World Resources Institute |date=2009 |url=https://wriorg.s3.amazonaws.com/s3fs-public/uploads/banking_on_natures_assets.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ranganathan2009banking, author = {RANGANATHAN, JANET and IRWIN, FRANCES and Repinski, Cecilia Procopé}, title = {{Banking on nature’s AssetS}}, institution = {World Resources Institute}, year = {2009}, url = {https://wriorg.s3.amazonaws.com/s3fs-public/uploads/banking_on_natures_assets.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }