The conversion of agricultural land, forests or grassland to settlements and transport infrastructure has significant environmental impacts. Much of the land is covered with buildings and other facilities or sealed to expand transport networks. This destroys the natural fertility of soils, thereby impeding future (re-)use for agriculture and forestry. Sealed surfaces (i.e. asphalted or paved) lose their ability to regulate the microclimate and are unable to mitigate the overheating of towns and cities in summer. In addition, the loss of these areas has an adverse effect on species diversity as the new settlements and transport infrastructure increase fragmentation of landscapes and reduce the size of habitats.
Furthermore, newly developed settlements and transport infrastructure generate additional traffic which in turn creates noise and pollution. Material consumption also increases for the construction of buildings and development infrastructure. New buildings and infrastructures have to be operated, thereby energy consumption increases as well.