What is the Biodiversity Economy?

Although the term “biodiversity economy” sounds intangible, it actually talks about the most tangible assets in the world. In other words, life itself. In economic terms, biodiversity is described as a part of “natural capital.” Just like financial or human capital, nature also contributes directly to the production capacity of a country. However, conventional economy models do not measure this contribution. Whereas, pollination, treatment of water, carbon sequestration or fertility of the soil are all services that have monetary equivalents.

According to the 2023 report of the United Nations, 50% of the world economy directly depends on nature-based sectors. Agriculture, fishing, forestry, tourism and energy... All of these depend on healthy ecosystems. Therefore, protecting nature is not just an environmental responsibility anymore, it became an economic necessity. The concept of “nature-positive economy” emerges at this exact point.

The biodiversity economy adds financial incentives to environmental protection policies. Putting a price on ecosystem services, providing financial support for nature-based investments, and considering production processes together with their ecological costs are the cornerstones of this approach. In other words, the issue is not about making donations for nature, it is about putting nature at the center of economy.

Click here to check out our blog post titled ‘What is Biodiversity?’

Nature is not only an asset that should be protected; it is also a productive economic partner when managed correctly. This idea gained power with the rise of the concept of “nature-based solutions.” Many sectors grow with nature, from forest restoration to ecotourism, from carbon sinks to sustainable agriculture.

According to the United Nations Environment Program (UNEP), nature-based sectors can create more than 32 million new employments by 2030. For example, communities restoring mangrove forests in Kenya turn their local economy around with the carbon credit revenues. Cooperatives established around Amazon in Brazil develop sustainable revenue models from forest products.

A similar logic is also applicable for Türkiye. Anatolian lands are the heart of economy based on agriculture and tourism. However, the future of these sectors is directly connected with the health of nature. A Türkiye, in which erosion is decreased, forests are protected, water resources are kept clean, means a country that is economically resilient. Protecting biodiversity is a long-term investment in itself: low cost, high revenue, moreover sustainable.

This approach does not strengthen only ecosystems, but also communities. Women’s cooperatives increase local people’s participation in nature-based production. Heirloom, clean water, natural food chains ensure economic diversity. In other words, the biodiversity economy invests in people as much as it does in nature.

Global companies now report not only their financial statements, but also their impact on nature. This approach is called as “natural capital accounting”. The purpose is to measure the impact of a business on soil, water, air, and biodiversity, and to integrate this impact into their economic decisions. These reports are not only reputational tools, but also a risk management strategy. Because the loss in nature triggers many risks, from crises in supply chains to financial losses.

In Türkiye, steps are taken in this direction. Istanbul Stock Exchange Sustainability Index encourages companies to disclose their sustainability performance, including their environmental performance. Some energy and agriculture companies started to report damages to nature as “economic costs.” As this approach becomes widespread, protecting nature will not be limited to “social responsibility” anymore, it will become a natural part of doing business.

In Türkiye, agriculture, tourism, fishing, and forestry comprise nearly 15% of the national income. However, all of these sectors are dependent on the health of nature. When water resources get scarce on the Mount Ida, olive yield decreases. When sea ecosystem weakens on the coasts of Antalya, tourism revenues reduce. Consumption of fish stocks in the Black Sea effects the livelihoods of thousands of families.

This picture shows that protecting nature is an economic insurance. Small-scale wetland restorations conducted in Göksu Delta can revive local fishing activities. For example, ecotourism routes developed around Cappadocia can present a more sustainable model compared to conventional tourism revenues. In other words, protecting nature is not a romantic choice, it can be the key to economic resilience.

For more information on ecologic tourism, click here.

Although the biodiversity economy presents a promising vision, there are many structural challenges in practice. The most fundamental problem starts with measuring the value of nature. How to calculate the monetary equivalent of the service of a bee, the contribution of a forest in rain cycle or the function of a wetland in preventing floods? Economic systems are based on tangible measures; nature, however, produces intangible benefits. Therefore, the concept of “ecosystem services” is not an easy concept to put a price on exactly, despite being scientifically strong

Another challenge is to commercialize nature while measuring it. Giving value to biodiversity as long as it brings income would damage the idea of ecological justice. Because nature is not an asset provided for the use of people; it has an independent value. Profit-oriented approaches carry the risk of turning nature into a commodity in the long term. This means that “green economy” would turn into “greenwashing.”

You can check out our blog post about greenwashing here.

For more information about green economy, you can visit our blog post here.

Moreover, the tension between protecting nature and development has not yet been completely resolved. In many countries, especially in developing economies, short-term gains take precedence over long-term ecologic investments. For example, mining or energy projects create “growth” by destroying biodiversity. However, this growth is temporary; the damage to nature reduces the economic capacity of the future.

For all these reasons, the success of the biodiversity economy will be measured not only with the power of financial models, but with the transformation of value systems. Of course, the economic revenue for protecting nature is important; but the real gain is for people to learn how to establish an equal relationship with nature once again.

The biodiversity economy is not just a financial model but also the redefinition of the relationship between human and nature. This approach makes the idea of “giving back to nature while taking from it” a systematic idea. In other words, producing without exploiting nature means redefining growth.

Profitability is not the only purpose here. The main goal is to make economic system sustainable together with nature. Because each gain obtained by destroying nature would be becoming indebted to the future. Real gain is in the resilience of ecosystems and welfare of communities.

The economies of the future will be systems that do not exclude nature, which work together with nature. Agriculture policies will be determined based on water cycle, energy investments based on ecological balance, urban planning based on carbon sinks. This novel approach redefines growth: not producing more but living smarter.

The biodiversity economy wants us to think of nature not as a cost, but as an investment. Because nature is the silent partner of economy. Without nature, none of the production, employment, or development would be sustainable.

Economic systems can be long-lasting only if they respect natural cycles. Otherwise, growth figures would turn into short term illusions. Whereas nature calculates return with patience. Today, protecting biodiversity is protecting not only the planet, but also the economy. Forests capture carbon, the soil produces nutrients, and aquatic life carries food. These are not only ecological, but also economic services. In conclusion, protecting nature is not an idealist goal anymore, it is a rational strategy. The safest investment is nature itself. Protecting nature is the most profitable way to guarantee the future.