New Delhi [India], July 3 (ANI): The shift toward a cleaner economy could create significant economic opportunities as sectors generating less PM2.5 pollution per unit output create significantly more jobs and investment, according to a World Bank report.

As per the World Bank report, decoupling economic growth from environmental degradation remains a key challenge for economies as environmental conditions shape employment and productivity.

Natural resource endowments -- fertile soils, healthy fisheries, and forests -- offer a foundation for millions of jobs in agriculture, fisheries, and tourism. 'Globally, 3.2 billion people rely on food systems and primary production for their livelihoods, making agriculture the world's largest employment sector,' it said.

As per the report, sectors generating less PM2.5 pollution per unit output generate significantly more jobs and investment. For example, forestry generates on average more than 38 jobs per USD 1 million.

The World Bank categorised three main factors driving environmental change -- scale, composition, and efficiency. As economies expand, the scale effect increases resource use and pollution because production and consumption rise. On the other hand, composition effects reflect shifts toward industries that are either more or less resource-intensive, which can worsen or improve environmental outcomes.

On the other hand, the efficiency effect comes from better technology and production processes that reduce environmental impact per unit of output, helping offset some of the environmental costs of economic growth. 'For land, air, and water resources, efficiency is the main factor offsetting the scale effect,' it noted.

Adding to this, the report highlighted over 50 per cent of nitrogen fertiliser never reaches crops, while just 36 per cent of primary energy provides useful work or heat, as 37 per cent is lost before delivery and 27 per cent at the point of use.

Furthermore, 'globally, about 30 per cent of supply, or half the Ganges River's flow, is non-revenue water, lost to leaks, theft, and metering errors.'

As a result, these inefficiencies waste resources and reduce economic returns. Notably, pollution, resource depletion, floods, and droughts can threaten jobs, undermining human capital.

'The shift toward a cleaner economy can create new economic opportunities. Investing in renewable energy, sustainable agriculture, and circular economy sectors often generates more employment per dollar invested than investing in more polluting sectors,' it said. (ANI)