Up to 40% of the world’s land is already degraded, threatening ecosystems that support roughly half of global GDP and exposing the global economy to losses projected at $23 trillion by 2050, as the World Economic Forum’s innovation platform UpLink launches a global challenge to scale land restoration and unlock private investment into a sector constrained by a $278 billion annual funding gap.
The 2026 Nature and Biodiversity Challenge, unveiled on International Mother Earth Day with backing from Mercuria Energy Group, aims to connect early-stage ventures with capital, technical partners and policy networks, while repositioning restoration as a commercially viable activity rather than a compliance-driven obligation. The initiative reflects a shift in how land degradation is being integrated into financial and governance frameworks, as regulators and investors increasingly treat natural capital as a material economic asset.
Land underpins food production, water systems and industrial supply chains, yet remains among the most degraded resources globally. According to UpLink, continued degradation could result in cumulative economic losses of $23 trillion by mid-century, driven by declining agricultural productivity, water stress and ecosystem disruption. Agriculture alone accounts for an estimated 80% of deforestation and 60% of biodiversity loss, while soil erosion continues at rates significantly exceeding natural regeneration.
For African economies, where agriculture contributes a substantial share of GDP and employment, land degradation carries direct macroeconomic and fiscal implications. Declining soil quality and water availability are already affecting yields across regions such as the Sahel, East Africa and parts of Southern Africa, increasing vulnerability to food price shocks and climate variability. Governments are facing rising costs linked to adaptation, food imports and rural support programmes, often within constrained fiscal space.
Despite the scale of the challenge, investment in land restoration remains limited. Private capital accounts for only around 6% of total funding, reflecting persistent barriers linked to early-stage risk, uncertain revenue models and the absence of standardised metrics to measure environmental outcomes. According to industry analysts, these constraints have prevented restoration projects from reaching scale, despite growing demand for nature-based solutions.
The UpLink initiative targets these structural gaps by supporting ventures that can deliver measurable outcomes while building investment-ready models. A central focus is the development of spatial intelligence and monitoring tools that improve how land use and restoration outcomes are assessed, enabling investors to better evaluate risk and performance. Enhanced data transparency is expected to play a critical role in attracting capital by reducing uncertainty around returns.
A second priority is soil restoration linked to financial mechanisms. Solutions in this area aim to quantify soil carbon, biodiversity and ecosystem health, creating pathways to monetise restoration through carbon markets, sustainability-linked finance and supply chain incentives. This approach reflects a broader trend toward embedding environmental performance into financial instruments.
The initiative also targets post-mining land rehabilitation, a significant issue in resource-dependent economies, including several African countries where extractive industries have left large areas of degraded land. By promoting business models that make restoration financially viable beyond regulatory compliance, the programme seeks to align environmental recovery with long-term economic value creation.
UpLink is working with partners including Fundo Vale to provide selected ventures with access to investors, corporates and policymakers, with the aim of accelerating deployment beyond pilot phases. Historically, many restoration projects have struggled to scale due to limited access to networks and financing structures capable of supporting growth.
The initiative comes as global policy frameworks call for restoring 30% of degraded ecosystems by 2030, a target that remains off track. Without significant increases in capital flows and improvements in project design and measurement, current trajectories suggest that restoration efforts will fall short, with implications for food systems, water security and economic stability.
For African stakeholders, the emergence of restoration as an investable asset class presents both opportunity and risk. On one hand, improved access to climate and nature finance could support rural economies, enhance resilience and reduce long-term fiscal pressures. On the other, failure to align with evolving global standards on measurement, reporting and governance could limit access to these capital flows.
The challenge underscores a broader transition in sustainability markets, where natural assets are increasingly incorporated into financial systems and corporate strategy. As land moves from being treated as an externality to a core economic variable, the ability of African economies to capture value from restoration will depend on policy alignment, institutional capacity and the development of credible data and verification systems.
