Undervaluing the environmental costs of development and governance decisions is particularly evident in decisions relating to land-use change, such as deforestation and damming of rivers. Often, this means that economic development is pursued in a way that ignores critical environmental impacts, which directly or indirectly increases risks.
Environmental degradation negatively affects livelihoods, food security and ecosystem functioning. As a result, it also has an impact on long-term development and social vulnerability, as well as on the ability of nature to reduce disaster risk. Normally, biodiverse habitats are resilient and can buffer the effects of various hazards, but when biodiversity is lost, so is resilience.