65% of China’s total GDP is at risk due to nature loss. With growing middle income, changes in consumer behaviour and burgeoning urbanization, the current economic development trajectory will place enormous strains on China's natural ecosystem.
China is in a unique position to lead the transition to a carbon neutral and nature positive economy.
World Economic Forum’s New Nature Economy Report Series comes out with a deep dive on China, highlighting which 15 nature positive business transitions could create USD1.9 trillion in annual business value and 88 million new jobs by 2030 in the country.
Over half of the world’s GDP is moderately or highly dependent on nature and its economic services. Yet, human activity continues to push the climate and natural ecosystems towards irreversible tipping points.

The 2022 Global Risks Report ranks climate action failure, extreme weather events, biodiversity loss and ecosystem collapse as the top 3 most severe risks in the next decade.

A new report by the World Economic Forum’s focuses on the economic case for safeguarding nature in China, the world’s second largest economy and one of the most biodiverse countries in the world. It finds that Chinese businesses can and must play a key role to play in achieving a carbon neutral and nature positive future.

Through this, they can pave the way for new opportunities through collective action by Chinese government, businesses, investors and citizens alike. Here are three key takeaways from the report that will help businesses and policymakers alike support the transition:
1. 65% of China’s GDP at risk due to nature loss

China’s economy has experienced unprecedented growth in the last 40 years. Average income per capita has increased from $120 in 1978 to $9000 in 2019 and urbanization rates have gone up from 18% in 1978 to 63.9% today.

However, as home to nearly 10% of all plant species and 14% of animals on earth, China’s natural ecosystem has paid a price for this exponential economic growth. The country’s mangrove area declined by 40% since the 1950s and more than 20% of vertebrate animal species in China are at high risks of extinction.

A healthy natural ecosystem is not an environmental imperative alone, it also has significant economic and community implications. The World Economic Forum’s “Seizing Business Opportunities in China’s Transition Towards a Nature-positive Economy” report has found that 65% of the country’s total GDP, or the equivalent to 9 trillion USD, is at risk of disruption from nature loss.

Intertwined forces of urbanization, increased purchasing power and changes in consumer behaviour put enormous strain on China’s natural capital, pushing critical ecosystems to the cusp of irreversible tipping points. This ultimately becomes a threat to the very foundation of China’s economic growth and societal wellbeing.
2. Climate change and biodiversity loss are two sides of the same coin

China has pledged “Dual Carbon Goals” to achieve carbon peaking by 2030 and carbon neutrality by 2060, and has also pledged to reversing global deforestation by 2030. But addressing climate change alone will not be enough to safeguard our economies and societies from future shocks. Just as urgent is the need to build momentum across all sectors of society to combat nature and biodiversity loss.

China is in a unique position to strengthen its resolve and lead the transition to a nature positive, net zero and equitable economy.

3. Carbon neutral, nature positive economy for resilience and profit

The new report New Nature Economy Report III: Seizing Business Opportunities in China’s Transition Towards a Nature-positive Economy puts forward 15 priority transitions in three priority socioeconomic systems that can unlock USD1.9 trillion in annual business value and create 88 million jobs in China by 2030.
Food, land and ocean use: Shift the way we produce and consume

Six pathways across this system can create almost $596.1 billion of additional annual revenue while creating over 34 million new jobs by 2030.
China is one of the countries most severely impacted by desertification and land degradation. Desertification now encompasses 27% of its land area. Middle- and low-yielding cropland accounts for two-thirds of the total arable land area. Yet the efficiency of the food supply chain in China has huge room for improvement – nearly 27% total food
produced for human consumption in the country is wasted and lost.
The six complementary transitions outlined in Table1 can together steer this system on a pathway towards nature-positive development. The business opportunities associated with these six transitions could create almost $565 billion of additional revenuewhile creating 34 million new jobs in China by 2030.
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