This POSTnote was originally published on Parliament UK.
It has been estimated that the UK’s population will rise by nearly 10 million in the next 25 years, increasing demands on natural resources. Evidence suggests degradation of ecosystems will negatively affect human wellbeing. Reports such as the UN’s Millennium Ecosystem Assessment and The Economics of Ecosystem and Biodiversity (TEEB) global reports have highlighted the importance of incorporating the natural environment into national accounting frameworks. One way to achieve this is through natural capital (NC) valuation.
Key points in this POSTnote include:
- Natural capital is a term used to describe those elements of the natural environment that provide benefits for humans.
- In 2015, the Natural Capital Committee, a Government advisory group, made nine recommendations on how to account for natural capital. These included the creating of a 25-year plan for the environment.
- Valuing natural capital in this way can help to manage environmental risks and to inform a wide range of decisions.
- There are a number of challenges to accounting for natural capital including a lack of financial, environmental and social data and the UK’s use of other countries’ natural capital.
Download the POSTnote here.