The true cost of global land restoration commitments

As the world grapples with escalating land degradation, governments and organizations have pledged to restore up to a billion hectares of degraded land. However, uncertainty about restoration costs remains a major obstacle to achieving these commitments. A recent study published in Land Degradation & Development provides an in-depth analysis of global restoration costs, offering critical insights for policymakers, investors, and conservationists.

Understanding the cost of land restoration

Land degradation affects approximately two billion hectares worldwide, driven by deforestation, agricultural expansion, and climate-induced drought. The global response has been substantial, with commitments made under initiatives such as the Bonn Challenge and the UN Decade on Ecosystem Restoration (2021–2030). However, transitioning from commitment to implementation requires significant financial investment, and until now, reliable cost estimates have been lacking.

The study analyzed cost data from 243 restoration projects worldwide, providing a clearer picture of the financial requirements for different restoration measures. Costs vary widely depending on the restoration approach, location, and economic conditions of the implementing region.

Breaking down the numbers

The study found that the median cost of land restoration ranges from $185 per hectare for forest management to $3,012 per hectare for silvopastoral systems. Overall, the total estimated cost for fulfilling global restoration commitments falls between $311 billion and $2.1 trillion over a ten-year period, depending on the type and scale of interventions.

This equates to 0.04% to 0.27% of annual global GDP—an investment that, while significant, is overshadowed by the economic and environmental losses caused by land degradation, which amount to an estimated $6.3 trillion per year in lost ecosystem services.

Why costs vary

Restoration costs are influenced by several factors:

• Type of restoration: Interventions requiring physical infrastructure, such as irrigation and silvopastoral systems, tend to be more expensive than passive regeneration or assisted natural regeneration.
• Geographic and economic context: Costs increase in wealthier countries due to higher labor and material costs.
• Project scale: Large-scale projects often benefit from economies of scale, reducing per-hectare costs compared to smaller, community-led initiatives.

A heavy burden for developing nations

The study highlights a critical equity issue: most restoration commitments come from developing nations, particularly in Sub-Saharan Africa. Given their lower GDPs, the relative cost burden for these countries is disproportionately high—ranging from 6% to 38% of GDP in some cases. Without robust international financing mechanisms, these commitments risk remaining unfulfilled.

The need for international investment

To transition from pledges to tangible restoration, substantial funding must come from both public and private sources. Potential solutions include:

• International climate finance: Leveraging funds from climate adaptation and mitigation programs to support land restoration.
• Public-private partnerships: Encouraging businesses to invest in restoration as part of their sustainability commitments.
• Innovative financial mechanisms: Developing ecosystem service markets, debt-for-nature swaps, and carbon credits to fund restoration efforts.

Restoration is a smart investment

Studies consistently show that the benefits of restoration far exceed the costs. Every dollar invested in forest restoration, for example, generates between $7 and $30 in economic returns through improved biodiversity, climate resilience, and sustainable livelihoods.

With better cost estimates now available, the global community must shift its focus from commitment to action. By ensuring adequate funding and equitable cost-sharing, we can restore degraded lands, strengthen climate resilience, and build a more sustainable future for all.