Mainstreaming Nature into World Bank Macroeconomic Models : Overview Report

Overview & Synopsis

Nature underlies economic activity, while natural capital contributes to growth and more and better jobs. But the world’s natural capital - its renewable natural resources, ecosystems, and biodiversity is in decline. Terrestrial, freshwater, and marine ecosystems are all under threat. The World Bank is committed to supporting a livable planet. The World Bank’s Forests for Development, Climate, and Biodiversity global challenge program seeks to further sustainable forest management through a people-centered approach to generate meaningful economic opportunities and mobilize significant private sector resources to develop cross-sectoral forest-based economies. Macroeconomic models are an integral part of the World Bank’s core advisory services and analytics (ASA), which underlie its policy and investment dialogue with client country decision-makers. The Bank’s core diagnostic products include the Country Economic Memorandum (CEM)/Country Growth and Jobs Report (CGJR), the Public Finance Review (PFR), and the Country Climate and Development Report (CCDR). In fiscal years (FY) 2023–2025, a global ASA focused on mainstreaming nature in two widely-used World Bank macroeconomic models : the Mitigation, Adaptation, New Technologies Applied General Equilibrium Model (MANAGE-WB) and Macro-Fiscal Model (MFMod). This report presents the state of integration of nature in MANAGE-WB and MFMod at the completion of the global ASA in April 2025.