Importance of biodiversity
a. Generation of soils and maintenance of soil quality :
The activities of microbial and animal species – including bacteria, algae, fungi, mites, millipedes and worms – condition soils, break down organic matter, and release essential nutrients to plants. These processes play a key role in the cycling of such crucial elements as nitrogen, carbon and phosphorous between the living and non-living parts of the biosphere.

b. Maintenance of air quality :
Plant species purify the air and regulate the composition of the atmosphere, recycling vital oxygen and filtering harmful particles resulting from industrial activities.

c. Maintenance of water quality :
Wetland ecosystems (swamps, marshes, etc.) absorb and recycle essential nutrients, treat sewage, and cleanse wastes. In estuaries, molluscs remove nutrients from the water, helping to prevent nutrient over-enrichment and its attendant problems, such as eutrophication arising from fertilizer run-off. Trees and forest soils purify water as it flows through forest ecosystems. In preventing soils from being washed away, forests also prevent the harmful siltation of rivers and reservoirs that may arise from erosion and landslides.

d. Pest control :
Around 99 per cent of potential crop pests are controlled by a variety of other organisms, including insects, birds and fungi. These natural pesticides are in many ways superior to their artificial equivalents, since pests can often develop resistance to chemical controls.

Extracted from : http://www.undp.org/biodiversity/biodiversitycd/bioImport.htm