Unsustainable management of terrestrial ecosystems, particularly forests, grasslands, savannas and shrublands, is exacerbating the climate and biodiversity crises. When tailored to local contexts and implemented appropriately, improved management practices can reduce emissions, increase carbon sequestration and bolster climate resilience, all while supporting productivity and local livelihoods.

Emissions-intensive management practices — particularly those associated with timber, paper and pulp production — spur forest degradation, while land-use changes coupled with increasing temperatures and shifting precipitation patterns are heightening the risk of catastrophic wildfires, even in ecosystems where fire is a natural part of the ecological cycle.
 

Improved forest and land management can reduce emissions and bolster carbon uptake

When locally tailored and appropriately implemented, improved management practices can help combat these harms and generate benefits for climate, biodiversity and development, especially when employed alongside protection and restoration efforts. Improving forest management across already managed forests can help reduce greenhouse gas (GHG) emissions from logging and enhance carbon sequestration in regrowth following wood harvesting, while improved grazing practices across grasslands can play a role in slowing and reversing degradation, enabling these ecosystems to rebuild depleted carbon stocks. In addition, better fire prevention and fire suppression practices can help reduce the frequency and intensity of extreme fires across these ecosystems.

By one estimate, improving management practices across the world’s forests, grasslands, savannas and shrublands can contribute about 15% of the cost-effective mitigation potential needed from terrestrial ecosystems in 1.5-degree-C pathways. While this mitigation potential is smaller than those associated with protecting and restoring terrestrial ecosystems, improved management practices may prove less challenging to implement. They are often more cost-effective than restoration; entail few, if any, changes in land use; and generate co-benefits, including to productivity and local livelihoods.
 

Why management practices must be adaptive, evidence-based and site-specific

But to achieve this potential, these measures must be carefully planned and implemented. Climate change is already rapidly changing forest conditions and increasing fire severity, and knowledge bases are constantly evolving, altering the ways forests and other terrestrial ecosystems are managed. Successfully improving management practices requires being adaptive, evidence-based and site-specific.

Some practices, for example, involve trade-offs that must be proactively addressed to minimize harmful or unintended impacts. Challenges also arise when the long-term benefits and effectiveness of techniques across different ecosystems are uncertain, as with some fire management practices. Additional research is needed to close knowledge gaps and ensure that management practices are appropriate for each ecosystem where they are adopted.
 

Data gaps and barriers hinder the widespread adoption of improved management practices and make global progress difficult to assess

To date, comprehensive data measuring the hectares of terrestrial ecosystems under improved management practices globally does not yet exist, nor is there scientific consensus on what practices count as “improved” across these ecosystems. Still, available evidence suggests that current efforts are likely insufficient, in large part due to a weak enabling environment.For example, many countries have sustainable forest management policies on paper, but far fewer have policies in place for improved management across other ecosystems like grasslands or support adoption of improved fire management practices. Insecure land tenure has also limited Indigenous Peoples’ ability to use traditional practices such as cultural burning without interference.

Even when strong legal frameworks exist, efforts to uphold these policies are often constrained by limited financial resources and technical capacity; weak monitoring, evaluation and learning systems; poor coordination among diverse stakeholders, including a failure to meaningfully partner with Indigenous Peoples in fire management strategies; and inadequate private sector action.
 

Improved management must go beyond climate change to combat other direct drivers of biodiversity loss

While this shift focuses on management practices that can reduce GHG emissions and enhance carbon sequestration, these actions should be complemented by additional management measures to combat other primary direct drivers of biodiversity loss — namely, overexploitation of wild species, pollution and the spread of invasive alien species.

Tracking progress on global outcomes

Key enablers and barriers to change

Data challenges

Currently, there are no data sources that track which countries and international financial institutions (IFIs) are adjusting their economic analytical approaches to mainstream climate, nature and equity. This is fundamentally tied to the need for governments, businesses and IFIs to establish and track indicators and goals for these aspects. Measuring how much they mainstream these aspects is also made more difficult by the varying perceptions of what constitutes “mainstreaming.” A survey approach such as that used by the OECD to track green budgeting practices, however, could be employed.

No international targets have been established for 2030 or 2050 for these indicators. However, ideally, all countries’ economic planning agencies and relevant IFIs are moving to ensure that they use the most fit-for-purpose analytical approaches for addressing complex questions around climate change, nature and biodiversity loss and improving equity. In some cases, countries may need to test which analytical approach is best suited for their national context. Ideally, all IFIs will also use the most fit-for-purpose macroeconomic models to inform development financing decisions.

There are also important enabling factors for promoting improved analytical approaches by governments. The Coalition of Ministries of Finance for Climate Action conducted a survey of ministries of finance and identified the following bottlenecks: 1) limited awareness of climate change issues; 2) lack of economic tools and models and associated skill sets; and 3) the need for increased financing and technical capacity to test and improve analytical approaches over time.

Governments can also improve analytical approaches by stimulating the academic and research community to strengthen economic theory on, for example, understanding processes of innovation and structural change and capturing diverse values and worldviews associated with nature. We identified proxy indicators for these enablers which focus on awareness and training or skill sets for economists.

Limited awareness of climate change issues can be reflected by both the economic analysis approach used and by research in mainstream economic journals that might inform analysis approach selection or awareness of global challenges. Lack of economic tools and associated skillsets is reflected by indicator NE-6, which assumes economics curricula in universities enhance economists’ skill sets and awareness of how major global challenges impact the economy. No datasets are available to track these two indicators, though we list initiatives and one-off research efforts that identified the importance of these enabling factors. A survey of relevant stakeholders could be deployed to track progress on these enablers.

Other shift Other shifts needed to transform the system

Effectively halt deforestation, other forms of conversion, and degradation across terrestrial ecosystems

Not only is land-use change across forests, peatlands, grasslands and coastal wetlands the leading direct driver of terrestrial biodiversity loss, but it also releases substantial emissions and weakens these ecosystems’ ability to sequester carbon.

Restore deforested and degraded terrestrial ecosystems

Restoring deforested and degraded ecosystems — including forests, peatlands, grasslands and coastal wetlands — can help limit global warming and reverse biodiversity loss. Done right, reforestation and other forms of ecosystem restoration can also deliver far-reaching, sustainable development benefits for communities around the world.

Sharply reduce pollution in terrestrial ecosystems

Sharply reducing pollution in forests, grasslands, peatlands and coastal wetlands is essential to halt biodiversity loss, maintain ecosystem services and protect human health. Key contaminants include heavy metals, persistent organic pollutants such as PFAS, pesticides, nutrient pollution, plastics and artificial light.

Halt the overexploitation of terrestrial wild species and ensure sustainable use

Human-driven overexploitation of wild species — including legal and illegal logging, hunting and trade — is a major driver of biodiversity loss and species extinction. Reversing this trend requires better monitoring of wild populations, stronger protection of threatened species, sustainable management of species use and effective regulation of wildlife trade.