Desertification crisis deepens with 40% of global land degraded, UN warns

JOHOR, 18 AUGUST 2026 —

Land degradation now costs the world $900 billion a year, three times the annual GDP of Malaysia, the UN Convention to Combat Desertification said on Monday as its COP17 conference opened in Ulaanbaatar.

Delegates at the two-week meeting in Mongolia’s capital face evidence that 40% of the planet’s land is already degraded or affected by drought, threatening 3.2 billion people. Rangelands—natural areas that supply nearly 70% of global livestock feed—are among the worst hit.

Mongolia illustrates the human cost. Seventy-seven percent of the country’s land is degraded and one in three citizens depends on pastoralism. In 2023 and 2024 the nation lost more than seven million livestock to summer drought followed by the harsh winter known locally as dzud, the foreign ministry said.

“The health of our land has direct consequences for people’s lives,” said Foreign Minister Battsetseg Batmunkh.

The economic toll is rising. Droughts alone caused $300 billion in losses last year and have increased by almost one-third since 2000, UN figures show. Desertification and drought together drain the global economy by $900 billion annually.

COP17 aims to move from commitments to action. Discussions will focus on early warning systems, vulnerability assessments and international cooperation to strengthen drought resilience and sustainable agriculture.

“These issues are no longer distant environmental concerns,” Fouad said. “They are already affecting the food we produce, the water we depend on, the resilience of our economies and the ability of communities to build secure futures.”

A central challenge is finance. The UN estimates $355 billion is needed each year to restore land and build drought resilience, yet current investment stands at only $77 billion. The gap is $278 billion and only six percent of funding comes from the private sector, despite its heavy reliance on stable land and water supplies.

Organisers hope the Business4Land Forum will unlock private capital. Delegates will discuss collaboration between governments, development banks, businesses and investors to close the funding shortfall.

“The greatest change we want to see from COP17 is a shift from talk to action,” said Prime Minister Nyam-Osoryn Uchral. “From targets to implementation, and from commitments to measurable results.”

COP17 chair Sandag-Ochir Tsend struck a cautiously optimistic note. “I am confident that COP17 will mark an important step towards stronger international cooperation and accelerated global action,” he said.

For Malaysian business, the conference highlights the need to diversify supply chains away from regions facing high land-degradation risk.

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