Search

The COVID-19 pandemic and related social and economic emergencies induced massive public spending and increased global debt. Economic recovery is now an opportunity to rebuild natural capital alongside financial, physical, social and human capital, for long-term societal benefit. Yet, current decision-making is dominated by economic imperatives and information systems that do not consider society’s dependence on natural capital and the ecosystem services it provides. New international standards for natural capital accounting (NCA) are now available to integrate environmental information into government decision-making. By revealing the effects of policies that influence natural capital, NCA supports identification, implementation and monitoring of Green Recovery pathways, including where environment and economy are most positively interlinked.

Globally we are experiencing a decline in aggregate natural capital. Many primary industries and enterprises are highly dependent on renewable and non-renewable natural capital, but there has been little focus on measuring and monitoring the flows benefits from natural capital. Natural capital accounting can help by potentially enabling the enterprise to better adapt and respond to risks in the future. To assist future implementation of natural capital accounting we assess the value proposition perceived by primary industry stakeholders. We use three primary industries in Australia as case studies (cotton, forestry and fisheries), and surveyed 140 stakeholders across the three industries. Interviewees generally suggested natural capital accounting is of public benefit by improving environmental outcomes. Private benefits are obtained through industry gaining social licence, greater market access and better business models. Although there was general agreement over improved environmental outcomes and access to premium markets, there were differences between industries and stakeholders. There were some concerns across the industries about the potential costs natural capital accounting may add to normal business operations and the lack of consistency in practices. Mainstreaming natural capital accounting across primary industries will mean that the value propositions and the implementation barriers need to be addressed. Overall the value proposition of implementing natural capital accounts at the enterprise level must stack up favourably against its costs.

Natural capital accounting will confirm what we know — without change, we are headed for environmental disaster resulting from economic growth. We propose a natural capital bank, a new institution to help maintain natural capital adequacy and chart a course to a sustainable future via accounting.

A growing number of countries is setting up natural capital accounts (NCA) based on the system of environmental-economic accounting (SEEA); however, actually using them for better policy making turns out to be complex. This paper synthesises lessons on the institutional mainstreaming of the SEEA and its use in improving policy decisions affecting natural capital. It draws on discussions held at two Policy Forums organised by the World Bank Wealth Accounting and Valuation of Ecosystem Services program and the United Nations Statistical Division. Practical examples of how the SEEA helps to improve policy making are explored. Emerging from the Forums were ten principles for making NCA fit for policy. These principles promote a comprehensive NCA organisation, a purposeful use of accounts, trustworthy methods and institutionalisation of NCA mechanisms in government. To put these principles into practice, six strategies are outlined: (1) assure credibility of the accounts; (2) align supply and demand for NCA; (3) assure high level support for NCA; (4) encourage cooperation between institutions so NCA and policy are mutually constructive; (5) provide evidence that natural capital is economically important and; (6) assure policy-relevant communication of NCA results.

As one of the most important metropolitan areas in China, Xi’an City plays a leading role in the development of the western regions. To impede the decision and policy preferences for environmental and ecological factors, this paper took account of the natural capital depletion of Xi’an City during 1995–2011, considered in terms of constant 1990 price levels. The results are as follows. (1) Natural capital depletion in Xi’an City consistently increased from1995 to 2011, increasing from 14.31×108 yuan to 42.28×108 yuan, with an average annual growth rate of 12.22%. The primary component of natural capital depletion in Xi’an City was the cost associated with fossil fuel resource depletion, while the cost associated with ecological services contributed the least to the total cost. (2) During 1995–2011, the proportion of natural capital depletion to Xi’an City in Yanta and Lianhu districts dropped, whereas in counties such as Gaoling County, Chang’an District and Lintong District, it increased. In 2011, the proportion of natural capital depletion varied between the different counties: Yanta District (15.75%), Weiyang District and Lianhu District (10%–15%), Huxian County, Xincheng District, Beiling District, Chang’an District, Baqiao District, and Gaoling County (5%–10%), and in Lintong District, Lantian County, Zhouzhi County and Yanliang District, it was

Governments and businesses are beginning to account for natural capital, but must collaborate to promote sustainability, combat climate change and improve decision-making.

We intend to estimate the value of ecosystem services in the U.S. State of New Jersey using spatially explicit benefit transfer. The aggregated net rent, a conservative underestimate for the total economic value of the state's natural environment, ranged from $11.6 to $19.6 billion/year, conditional on how inclusive we were in selecting the primary studies used to calculate the central tendency values to transfer. In addition to calculating the range, mean, and standard deviation for each of 12 ecosystem services for 11 Land Use/Land Cover (LULC) types, we also conduct a gap analysis of how well ecosystem service values are represented in the literature. We then map these values by assuming a mean value for each LULC and apply this to spatial data. As to sensitivity analysis, we calculate the net present value of New Jersey's natural environment utilizing three different methods of discounting. These research results provide a useful, albeit imperfect, basis for assessing the value of ecosystem services and natural capital, and their comparison with the value of conventional human and built capitals.

Metadata only record The services of ecological systems and the natural capital stocks that produce them are critical to the functioning of the Earth''s life-support system. They contribute to human welfare, both directly and indirectly, and therefore represent part of the total economic value of the planet. We have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations. For the entire biosphere, the value (most of which is outside the market) is estimated to be in the range of US$16-54 trillion per year, with an average of US$33 trillion per year. Because of the nature of the uncertainties, this must be considered a minimum estimate. Global gross national product total is around US $18 trillion per year. PES-1 (Payments for Environmental Services Associate Award)