View source for Natural capital

{{Short description|World's stock of natural resources}}
[[File:Mangrove swamp, Iriomote Island, Okinawa, Japan.jpg|thumb|Mangrove swamp at Iriomote Island, Japan, providing beneficial services of sediment accumulation, coastal protection, nursery and fish-spawning grounds which may in turn support coastal fishing communities. At least 35% of the world's stock of mangrove swamps was destroyed in the past 20 years.<ref>{{cite journal|title=Mangrove Forests: One of the World's Threatened Major Tropical Environments|journal=BioScience|date=2001|volume=51|issue=10|pages=807–815|url=http://bioscience.oxfordjournals.org/content/51/10/807.full|access-date=5 January 2016|issn=1525-3244|doi=10.1641/0006-3568(2001)051[0807:mfootw]2.0.co;2 | last1 = Valiela | first1 = Ivan | last2 = Bowen | first2 = Jennifer L. | last3 = York | first3 = Joanna K.|doi-access=free}}</ref>]]
[[File:Extemporaneous remarks at Harve, Montana - NARA - 197750.tif|150px|thumb|Remarks from 1937 by [[Franklin Delano Roosevelt|FDR]] on "natural capital" and "balancing the budget of our resources"]]
[[File:Honeybee (Apis mellifera) pollinating Avocado cv.jpg|thumb|Honeybee (''Apis mellifera'') pollinating an Avocado crop. Healthy stocks of wild and cultivated pollinator species are important to support the farming industry and help ensure food security.]]
[[File:Aerial view of the Amazon Rainforest.jpg|thumb|Aerial view of the Amazon Rainforest. Looked at as a natural capital asset, rainforests provide air and water regulation services, potential sources of new medicines and natural [[carbon sequestration]].]]
[[File:Fires along the Rio Xingu, Brazil - NASA Earth Observatory.jpg|thumb|Fires along the Rio Xingu, Brazil – NASA Earth Observatory. Loss of natural capital assets may have significant impact on local and global economies, as well as on the climate.<ref>{{cite web|title=Why are Rainforests Important?|url=http://www.rainforestconcern.org/rainforest_facts/why_are_rainforests_important/|website=www.rainforestconcern.org|access-date=5 January 2016|archive-url=https://web.archive.org/web/20160120235348/http://www.rainforestconcern.org/rainforest_facts/why_are_rainforests_important/|archive-date=2016-01-20}}</ref>]]
[[File:Natural Capital graphic.jpg|thumb|The many components of natural capital can be viewed as providing essential goods and [[ecosystem services]] which underpin some of our key [[list of global issues|global issues]], such as food and water supply, minimising [[climate change]] and meeting energy needs.]]

'''Natural capital''' is the world's stock of [[natural resource]]s, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called [[ecosystem services]]. All of these  underpin our economy and society, and thus make human life possible.<ref>{{cite web|title=What is natural capital?|url=http://naturalcapitalforum.com/about/|website=naturalcapitalforum.com|publisher=World Forum on Natural Capital|access-date=31 December 2015|archive-date=6 October 2019|archive-url=https://web.archive.org/web/20191006151859/https://naturalcapitalforum.com/about/}}</ref><ref>{{cite web|title=What is Natural Capital|url=http://www.naturalcapitalcoalition.org/why-natural-capital/natural-capital.html|website=www.naturalcapitalcoalition.org|publisher=Natural Capital Coalition|access-date=31 December 2015|archive-date=2 June 2016|archive-url=https://web.archive.org/web/20160602213230/http://www.naturalcapitalcoalition.org/why-natural-capital/natural-capital.html}}</ref>

It is an extension of the economic notion of [[Capital (economics)|capital]] (resources which enable the production of more resources) to goods and services provided by the [[natural environment]]. For example, a well-maintained forest or river may provide an indefinitely sustainable flow of new trees or fish, whereas over-use of those resources may lead to a permanent decline in timber availability or fish stocks. Natural capital also provides people with essential services, like [[water catchment]], [[erosion control]] and crop [[pollination]] by insects, which in turn ensure the long-term viability of other natural resources. Since the continuous supply of services from the available natural capital assets is dependent upon a healthy, functioning environment, the structure and diversity of habitats and ecosystems are important components of natural capital.<ref>{{cite web|url=http://www.eoearth.org/article/Natural_capital|title=Search – The Encyclopedia of Earth|website=www.eoearth.org}}</ref> Methods, called 'natural capital asset checks', help decision-makers understand how changes in the current and future performance of natural capital assets will impact human well-being and the economy.<ref>{{cite web|title=UK NEAFO Work Package 1: Natural capital asset check – Annex 4: Case studies|url=http://uknea.unep-wcmc.org/LinkClick.aspx?fileticket=dNp%2bvIjmXi4%3d&tabid=82|website=uknea.unep-wcmc.org|publisher=UK National Ecosystem Assessment|access-date=31 December 2015|page=3}}</ref> Unpriced natural capital is what we refer to when businesses or individuals exploit or abuse nature without being held accountable, which can harm ecosystems and the environment. '''<ref name=":156">{{Cite web |title=What is natural capital? |url=https://www.eib.org/en/stories/nature-environment-pollution |access-date=2023-07-19 |website=European Investment Bank |language=en}}</ref>'''<ref>{{Cite web |title=What is natural capital and why companies need to take interest in it? |url=https://www.manutan.com/blog/en/news/what-is-natural-capital-and-why-companies-need-to-take-interest-in-it |access-date=2023-07-19 |website=Manutan |language=en}}</ref><ref>{{Cite web |title=Natural capital accounting |url=https://environment.ec.europa.eu/topics/nature-and-biodiversity/natural-capital-accounting_en |access-date=2023-07-19 |website=environment.ec.europa.eu |language=en}}</ref>

== History of the concept ==
{{Ecological economics|Concepts}}
The term 'natural capital' was first used in 1973 by [[E. F. Schumacher]] in his book ''[[Small Is Beautiful]]''<ref>{{Cite book|title=Small is Beautiful: A Study of Economics As If People Mattered|url=https://archive.org/details/smallisbeautiful1973schu|url-access=registration|last=Schumacher|first=E.F|year=1973|publisher=New York, Harper & Row|isbn=978-0-06-136122-7}}</ref> and was developed further by [[Herman Daly]], [[Robert Costanza]], and other founders of the science of Ecological Economics, as part of a comprehensive critique of the shortcomings of conventional economics.<ref>{{Cite journal|last1=COSTANZA|first1=ROBERT|last2=DALY|first2=HERMAN E.|date=March 1992|title=Natural Capital and Sustainable Development|journal=Conservation Biology|volume=6|issue=1|pages=37–46|doi=10.1046/j.1523-1739.1992.610037.x|bibcode=1992ConBi...6...37C |issn=0888-8892}}</ref><ref>{{Cite journal|last=Farber|first=Stephen|date=June 1999|title=An Introduction to Ecological Economics. Edited by Robert Costanza, John Cumberland, Herman Daly, Robert Goodland and Richard Norgaard, St. Lucie Press. 1997, pp. 288.|isbn=1-884015-72-7|url=https://archive.org/details/introductiontoec0000unse_q2b0|url-access=registration|journal=Ecological Economics|volume=29|issue=3|pages=488–490|doi=10.1016/s0921-8009(99)00029-4|issn=0921-8009}}</ref> Natural capital is a concept central to economic assessment [[ecosystem valuation|ecosystem services valuation]] which revolves around the idea, that non-human life produces goods and services that are essential to life. Thus, natural capital is essential to the sustainability of the economy.

In a traditional economic analysis of the factors of production, natural capital would usually be classified as "land" distinct from traditional "capital". The historical distinction between "land" and "capital" defined "land" as naturally occurring with a fixed supply, whereas "capital", as originally defined referred only to man-made goods. (e.g., [[Georgism]]<ref>[http://www.henrygeorge.org/pchp2.htm] – ''[[Progress and Poverty]]'' by [[Henry George]], Chapter 2.</ref><ref>{{cite web|url=http://www.henrygeorge.org/def2.htm|title=Economic Definitions|website=www.henrygeorge.org}}</ref>) It is, however, misleading to view "land" as if its productive capacity is fixed, because natural capital can be improved or degraded by the actions of man over time (see [[Environmental degradation]]). Moreover, natural capital yields benefits and goods, such as timber or food, which can be harvested by humans. These benefits are similar to those realized by owners of infrastructural capital which yields more goods, such as a factory that produces automobiles just as an apple tree produces apples.

Ecologists are teaming up with economists to measure and express values of the wealth of ecosystems as a way of finding solutions to the biodiversity crisis.<ref name="Edwards98">{{Cite journal|last1=Edwards|first1=P. J.|last2=Abivardi|first2=C.|year=1998|title=The value of biodiversity: Where ecology and economy blend|journal=Biological Conservation|volume=83|issue=2|pages=239–246|doi=10.1016/S0006-3207(97)00141-9|bibcode=1998BCons..83..239E }}</ref><ref name="Naidoo09">{{Cite journal|last1=Naidoo|first1=R.|last2=Malcolm|first2=T.|last3=Tomasek|first3=A.|year=2009|title=Economic benefits of standing forests in highland areas of Borneo: quantification and policy impacts|journal=Conservation Letters|volume=2|issue=1 |pages=35–44|doi=10.1111/j.1755-263x.2008.00041.x|doi-access=free|bibcode=2009ConL....2...36N }}</ref><ref name="Zhoua09">{{Cite journal|last1=Zhoua|first1=X.|last2=Al-Kaisib|first2=M.|author3-link=Matthew Helmers|last3=Helmers|first3=M. J.|year=2009|title=Cost effectiveness of conservation practices in controlling water erosion in Iowa|journal=Soil and Tillage Research|volume=106|issue=1|pages=71–8|doi=10.1016/j.still.2009.09.015}}</ref> Some researchers have attempted to place a dollar figure on ecosystem services such as the value that the Canadian boreal forest's contribution to global ecosystem services. If ecologically intact, the boreal forest has an estimated value of US$3.7 trillion. The boreal forest ecosystem is one of the planet's great atmospheric regulators and it stores more carbon than any other biome on the planet.<ref name="Jonsson09">{{Cite journal|last1=Jonsson|first1=M.|last2=Wardle|first2=D. A.|year=2009|title=Structural equation modelling reveals plant-community drivers of carbon storage in boreal forest ecosystems|journal=Biology Letters|volume=6|issue=1|pages=1–4|doi=10.1098/rsbl.2009.0613|pmc=2817262|pmid=19755530}}</ref> The annual value for ecological services of the Boreal Forest is estimated at US$93.2 billion, or 2.5 greater than the annual value of resource extraction.

The economic value of 17 ecosystem services for the entire biosphere (calculated in 1997) has an estimated average value of US$33 trillion per year.<ref name="Costanza97">{{Cite journal|author=Costanza, R.|display-authors=etal|year=1997|title=The value of the world's ecosystem services and natural capital.|url=http://www.uvm.edu/giee/publications/Nature_Paper.pdf|journal=Nature|volume=387|issue=6630|pages=253–260|doi=10.1038/387253a0|archive-url=https://web.archive.org/web/20091226124242/http://www.uvm.edu/giee/publications/Nature_Paper.pdf|archive-date=2009-12-26|bibcode=1997Natur.387..253C|s2cid=672256}}</ref>  These ecological economic values are not currently included in calculations of national income accounts, the GDP and they have no price attributes because they exist mostly outside of the global markets.<ref name="Ferguson06">{{Cite journal|last=Ferguson|first=K.|year=2006|title=The True Value of Forests|journal=Frontiers in Ecology and the Environment|volume=4|issue=9|page=456|doi=10.1890/1540-9295(2006)4[452:D]2.0.CO;2|jstor=3868812}}</ref><ref name="Anielski05">{{cite web|url=http://www.borealcanada.ca/pr_docs/Boreal_Wealth_Report_Nov_2005.pdf|title=Counting Canada's Natural Capital: Assessing the Real value of Canada's Boreal Ecosystems|last1=Anielski|first1=M.|last2=Wilson|first2=S.|year=2005|location=Can. Bor. Ini., Pembina Institute, Ottawa|archive-url=https://web.archive.org/web/20051207011844/http://www.borealcanada.ca/pr_docs/Boreal_Wealth_Report_Nov_2005.pdf|archive-date=2005-12-07}}</ref> The loss of natural capital continues to accelerate and goes undetected or ignored by mainstream monetary analysis.<ref name="Wakernagel97">{{Cite journal|last1=Wakernagel|first1=M.|last2=Rees|first2=W. E.|year=1997|title=Perceptual and structural barriers to investing in natural capital: Economics from an ecological footprint perspective.|journal=Ecological Economics|volume=20|issue=1|pages=3–24|doi=10.1016/S0921-8009(96)00077-8|bibcode=1997EcoEc..20....3W }}</ref>

Within the international community the basic principle is not controversial, although much uncertainty exists over how best to value different aspects of ecological health, natural capital and ecosystem services. [[Environmental full-cost accounting|Full-cost accounting]], triple bottom line, measuring well-being and other proposals for accounting reform often include suggestions to measure an "ecological deficit" or "natural deficit" alongside a social and financial deficit. It is difficult to measure such a deficit without some agreement on methods of valuation and auditing of at least the global forms of natural capital (e.g. value of air, water, soil).<ref>{{Cite web|url=http://www.fao.org/nr/sustainability/full-cost-accounting/en/|title=Sustainability Pathways: Full-cost accounting|website=www.fao.org|access-date=2020-03-10}}</ref>

All uses of the term currently differentiate natural from man-made or infrastructural capital in some way. Indicators adopted by United Nations Environment Programme's [[World Conservation Monitoring Centre]] and the [[Organisation for Economic Co-operation and Development]] (OECD) to measure natural biodiversity use the term in a slightly more specific way. According to the OECD, natural capital is "natural assets in their role of providing natural resource inputs and environmental services for economic production" and is "generally considered to comprise three principal categories: natural resources stocks, land, and ecosystems."

The concept of "natural capital" has also been used by the [[Biosphere 2]] project, and the [[Natural Capitalism]] economic model of [[Paul Hawken]], [[Amory Lovins]], and [[Hunter Lovins]]. Recently, it has begun to be used by politicians, notably Ralph Nader, Paul Martin Jr., and agencies of the UK government, including its [[Natural Capital Committee]] and the London Health Observatory.

In ''[[Natural Capitalism: Creating the Next Industrial Revolution]]''<ref>{{Cite book|last=Hawken|first=Paul |author2=Amory Lovins |author3=Hunter Lovins |title=Natural Capitalism: Creating the Next Industrial Revolution|url=https://archive.org/details/naturalcapitali000hawk|url-access=registration|year=1999|publisher=Little, Brown and Company |isbn=978-0-316-35316-8 }}</ref> the author claims that the "next industrial revolution" depends on the espousal of four central strategies: "the conservation of resources through more effective [[manufacturing]] processes, the reuse of materials as found in natural systems, a change in values from quantity to quality, and investing in natural capital, or restoring and sustaining [[natural resources]]."<ref name="nat">[http://www.socialfunds.com/news/print.cgi?sfArticleId=164 Book Review: Natural Capitalism] {{Webarchive|url=https://web.archive.org/web/20100103203021/http://socialfunds.com/news/print.cgi?sfArticleId=164 |date=2010-01-03 }} from [https://web.archive.org/web/20220303132112/https://socialroth2014funds.com/ Socialfunds.com]. Retrieved April 2009.</ref>

== Natural capital declaration ==
In June 2012 a 'natural capital declaration' (NCD) was launched at the [[United Nations Conference on Sustainable Development|Rio+20]] summit held in Brazil. An initiative of the global finance sector, it was signed by 40 [[Chief executive officer|CEOs]] to 'integrate natural capital considerations into loans, equity, fixed income and insurance products, as well as in accounting, disclosure and reporting frameworks.' They worked with supporting organisations to develop tools and metrics to integrate natural capital factors into existing business structures.<ref>{{cite web|title=Natural Capital Declaration|url=http://www.naturalcapitaldeclaration.org/the-declaration/|website=www.naturalcapitaldeclaration.org|access-date=5 January 2016|archive-url=https://web.archive.org/web/20151208072608/http://www.naturalcapitaldeclaration.org/the-declaration/|archive-date=8 December 2015}}</ref>

In summary, its four key aims are to:

*Increase understanding of business dependency on natural capital assets;
*Support development of tools to integrate natural capital considerations into the decision-making process of all financial products and services;
*Help build a global consensus on integrating natural capital into private sector accounting and decision-making;
*Encourage a consensus on [[integrated reporting]] to include natural capital as one of the key components of an organisation's success.

== Natural Capital Protocol ==
In July 2016, the Natural Capital Coalition<ref name="Natural Capital Protocol Launched"/> (now known as Capitals Coalition) released the Natural Capital Protocol.<ref>{{cite web |url=http://naturalcapitalcoalition.org/protocol/ |title=Protocol |website=Natural Capital Coalition |archive-url=https://web.archive.org/web/20160728141941/http://naturalcapitalcoalition.org/protocol/ |archive-date=28 July 2016 }}</ref> The Protocol provides a standardised framework for organisations to identify, measure and value their direct and indirect impacts and dependencies on natural capital. The Protocol harmonises existing tools and methodologies, and guides organisations towards the information they need to make strategic and operational decisions that include impacts and dependencies on natural capital.

The Protocol was developed in a unique collaboration between 38 organisations who signed voluntary, pre-competitive contracts. This collaboration was led by Mark Gough, who is now the CEO of the Capitals Coalition.<ref name="Natural Capital Protocol Launched">{{cite web|url=https://capitalscoalition.org/natural-capital-protocol-launched/|title=Natural Capital Protocol Launched|website=Natural Capital Coalition |date=13 July 2016 |access-date=15 June 2021|archive-date=20 June 2021|archive-url=https://web.archive.org/web/20210620074634/https://capitalscoalition.org/natural-capital-protocol-launched/}}</ref>

The Protocol is available on a creative commons license and is free for organisations to apply.

== Internationally agreed standard ==
Environmental-economic accounts provide the conceptual framework for integrated statistics on the environment and its relationship with the economy, including the impacts of the economy on the environment and the contribution of the environment to the economy. A coherent set of indicators and descriptive statistics can be derived from the accounts that inform a wide range of policies.

These include, but are not limited to:

* [[Green economy]]/[[green growth]]
* [[Natural resource management]]
* [[Sustainable development]]

The [[System of Integrated Environmental and Economic Accounting]] (SEEA) contains the internationally agreed standard concepts, definitions, classifications, accounting rules and tables for producing internationally comparable statistics on the environment and its relationship with the economy. The SEEA is a flexible system in the sense that its implementation can be adapted to countries' specific situations and priorities. Coordination of the implementation of the SEEA and ongoing work on new methodological developments is managed and supervised by the UN Committee of Experts on Environmental-Economic Accounting (UNCEEA). The final, official version of the SEEA Central Framework was published in February 2014.

In March 2021, the [[United Nations Statistical Commission]] adopted the SEEA Ecosystem Accounting (SEEA EA) standard at its 52nd session.<ref>[https://www.un.org/en/desa/un-adopts-landmark-framework-integrate-natural-capital-economic-reporting UN adopts landmark framework to integrate natural capital in economic reporting] un.org</ref> The SEEA EA is a statistical framework that provides a coherent accounting approach to the measurement of ecosystems. Ecosystem accounts enable the presentation of data and indicators of ecosystem extent, ecosystem condition, and ecosystem services in both physical and monetary terms in a spatially explicit way.<ref>[https://seea.un.org/ecosystem-accounting Ecosystem Accounting] seea.un.org</ref> Following its adoption, the Statistics Division of the [[United Nations Department of Economic and Social Affairs]] (UN DESA) in collaboration with the [[United Nations Environment Programme]] (UNEP) and the Basque Centre for Climate Change (BC3) released the ARIES for SEEA Explorer<ref>[https://seea.un.org/content/aries-for-seea ARIES for SEEA] un.org</ref> in April 2021, an [[artificial intelligence]]-powered tool based on the Artificial Intelligence for Environment and Sustainability (ARIES) platform for rapid, standardized and customizable [[natural capital accounting]].<ref>[https://www.un.org/en/desa/artificial-intelligence-saving-natural-world Artificial intelligence saving the natural world] un.org</ref> The ARIES for SEEA Explorer was made available on the UN Global Platform in order to accelerate SEEA's implementation worldwide.<ref>[https://www.unep.org/news-and-stories/press-release/un-launches-first-artificial-intelligence-tool-rapid-natural-capital UN launches the first artificial intelligence tool for rapid natural capital accounting] unep.org</ref>

== Private sector approaches ==
Some studies envisage a private sector natural capital 'ecosystem', including investors, assets and regulators.<ref>{{Cite web |date=2018 |title=Emergence of the natural capital and biodiversity asset class: mapping of the French stakeholders, November 2018. Finance for tomorrow by Paris Europlace |url=https://www2.deloitte.com/content/dam/Deloitte/fr/Documents/sustainability-services/deloitte_etude-emergence-natural-capital-2018.pdf |archive-url=https://web.archive.org/web/20241005211642/https://www2.deloitte.com/content/dam/Deloitte/fr/Documents/sustainability-services/deloitte_etude-emergence-natural-capital-2018.pdf |archive-date=2024-10-05 |website=Deloitte}}</ref>Classification of natural capital aids decisions makers and the ability of governments and businesses to monitor their natural capital assets. There are several proposed systems to classify natural capital into parts, such as land or timber, however many of them do not include all aspects of natural systems.<ref>{{Cite journal |last=Leach |first=Katie |last2=Grigg |first2=Annelisa |last3=O'Connor |first3=Brian |last4=Brown |first4=Claire |last5=Vause |first5=James |last6=Gheyssens |first6=Jonathan |last7=Weatherdon |first7=Lauren |last8=Halle |first8=Martin |last9=Burgess |first9=Neil D. |last10=Fletcher |first10=Ruth |last11=Bekker |first11=Sebastian |last12=King |first12=Steven |last13=Jones |first13=Matt |date=2019-04-01 |title=A common framework of natural capital assets for use in public and private sector decision making |url=https://linkinghub.elsevier.com/retrieve/pii/S221204161730815X |journal=Ecosystem Services |volume=36 |article-number=100899 |doi=10.1016/j.ecoser.2019.100899 |issn=2212-0416|doi-access=free }}</ref>

One approach has been the invention of [[Natural_Asset_Company|Natural Asset Companies]] a form of investment in natural capital.    

Several governments have implemented policies to incentivize the private sector to protect natural capital. The operations and practices of businesses have not dramatically altered.<ref>{{Cite journal |last=Guerry |first=Anne D. |last2=Polasky |first2=Stephen |last3=Lubchenco |first3=Jane |last4=Chaplin-Kramer |first4=Rebecca |last5=Daily |first5=Gretchen C. |last6=Griffin |first6=Robert |last7=Ruckelshaus |first7=Mary |last8=Bateman |first8=Ian J. |last9=Duraiappah |first9=Anantha |last10=Elmqvist |first10=Thomas |last11=Feldman |first11=Marcus W. |last12=Folke |first12=Carl |last13=Hoekstra |first13=Jon |last14=Kareiva |first14=Peter M. |last15=Keeler |first15=Bonnie L. |date=2015-06-16 |title=Natural capital and ecosystem services informing decisions: From promise to practice |url=https://www.pnas.org/doi/full/10.1073/pnas.1503751112 |journal=Proceedings of the National Academy of Sciences |volume=112 |issue=24 |pages=7348–7355 |doi=10.1073/pnas.1503751112 |pmc=4475956 |pmid=26082539}}</ref> 

== Criticism ==
Whilst measuring the components of natural capital in any region is a relatively straightforward process, both the task and the rationale of putting a monetary valuation on them, or on the value of the goods and services they freely give us, has proved more contentious.<ref>{{cite web|last1=Conniff|first1=Richard|title=What's Wrong with Putting a Price on Nature?|url=http://e360.yale.edu/feature/ecosystem_services_whats_wrong_with_putting_a_price_on_nature/2583/|website=e360.yale.edu|publisher=Yale University|access-date=5 January 2016|date=18 October 2012|archive-date=13 December 2016|archive-url=https://web.archive.org/web/20161213173210/http://e360.yale.edu/feature/ecosystem_services_whats_wrong_with_putting_a_price_on_nature/2583}}</ref>
Within the UK, ''[[The Guardian|Guardian]]'' columnist, [[George Monbiot]], has been critical of the work of the government's [[Natural Capital Committee]] and of other attempts to place any sort of monetary value on natural capital assets, or on the free [[ecosystem services]] they provide us with. In a speech referring to a report to government which suggested that better protection of the UK's freshwater ecosystems would yield an enhancement in aesthetic value of £700m, he derided attempts 'to compare things which cannot be directly compared'.<ref>{{cite news|last1=Monbiot|first1=George|title=Put a price on nature? We must stop this neoliberal road to ruin|url=https://www.theguardian.com/environment/georgemonbiot/2014/jul/24/price-nature-neoliberal-capital-road-ruin|access-date=5 January 2016|newspaper=The Guardian|date=24 July 2014}}</ref> He went on to say:
{{Blockquote|text=These figures, ladies and gentlemen, are marmalade. They are finely shredded, boiled to a pulp, heavily sweetened ... and still indigestible. In other words they are total gibberish.|author=G. Monbiot}}

This idea is echoed by Brown University professor [[Jeff Todd Titon|Jeff Todd Tinton]], who argues that predictions of economic value are unlikely to be accurate because of how complicated the environment is.<ref name=":0">{{Cite journal |last=Titon |first=Jeff Todd |date=2024-01-01 |title=Folklife, Heritage, and the Environment: A Critique of Natural Capital, Ecosystem Services, and Settler Ecology |journal=Journal of American Folklore |language=en |volume=137 |issue=543 |pages=61–84 |doi=10.5406/15351882.137.543.06 |issn=0021-8715}}</ref> Furthermore, he argues that the current understanding of environmental capital does not adequately address the importance the environment has on culture. Cultural values are not able to be labeled with a dollar amount, so there will be aspects of nature and the environment that natural capital does not take into account.<ref name=":0" />

Others have defended efforts to integrate the valuation of natural capital into local and national economic decision-making, arguing that it puts the environment on a more balanced footing when weighed against other commercial pressures, and that 'valuation' of those assets is not the same as [[monetisation]].<ref>{{cite news|last1=Paddison|first1=Laura|title=Is natural capital a 'neoliberal road to ruin'?- experts discuss|url=https://www.theguardian.com/sustainable-business/natural-capital-neoliberal-road-ruin-george-monbiot-experts-debate|access-date=5 January 2016|newspaper=The Guardian|date=1 August 2014}}</ref><ref>{{cite web|title=Natural Capital (Does putting a value on natural capital mean it will be 'sold off'?)|url=http://www.naturalcapitalcommittee.org/natural-capital.html|website=www.naturalcapitalcommittee.org|publisher=Natural Capital Committee|access-date=5 January 2016|archive-url=https://web.archive.org/web/20160113030316/http://www.naturalcapitalcommittee.org/natural-capital.html|archive-date=13 January 2016}}</ref>

{{center|{{gallery
|title=Global [[biogeochemical cycles]] critical for life
|width=180
|Image:Nitrogen Cycle.jpg|alt1=Diagram of the nitrogen cycle|[[Nitrogen cycle]]
|Image:Water cycle.png|alt2=Diagram of the water cycle|[[Water cycle]]
|Image:Carbon cycle-cute diagram.svg|alt3=Diagram of the carbon cycle|[[Carbon cycle]]
|Image:Oxygen Cycle.jpg|alt4=Diagram of the oxygen cycle|[[Oxygen cycle]]
|Image:phoscycle-EPA.jpg|alt5=Diagram of the phosphorus cycle|[[Phosphorus cycle]]}}}}

== See also ==
{{Portal|Environment|Ecology|Earth sciences}}
{{div col|colwidth=18em}}
*[[Bioeconomics (biophysical)]]
*[[Biocapacity]]
*[[Conservation biology]]
*[[Earth Economics]] (organization)
*[[Ecodynamics]]
*[[Ecological deficit]]
*[[Ecological economics]]
*[[Ecological footprint]]
*[[Ecology]]
*[[Econophysics]]
*[[Ecosystem services]]
*[[Energy accounting]]
*[[Environmental degradation]]
*[[Environmental economics]]
*[[Environmental protection]]
*[[Habitat conservation]]
*[[Natural capital accounting]]
*[[Natural Capital Committee]]
*[[Natural Capital Initiative]]
*[[Oil depletion]]
*[[Payment for ecosystem services]]
*[[Population dynamics]]
*[[Renewable resource]]
*[[Sustainability]]
*[[Sustainable development]]
*[[The Economics of Ecosystems and Biodiversity]]
*[[Thermoeconomics]]
*[[True cost accounting]]
*[[Value of Earth]]{{div col end}}

== References ==

=== Notes ===
{{Reflist|30em}}

=== Further reading ===
* Pearce, D. 1993. Blueprint 3: Measuring Sustainable Development. Earthscan. {{ISBN|1-85383-183-2}}
* Jansson, AnnMari; et al. (1994). Investing in Natural Capital : The Ecological Economics Approach to Sustainability. Washington, D.C.: Island Press, 504 pp.&nbsp;{{ISBN|1-55963-316-6}}.
* Daily, Gretchen C. (editor) (1997). Nature's Services: Societal Dependence on Natural Ecosystems. Washington, D.C.: Island Press, 392 pp.&nbsp;{{ISBN|1-55963-476-6}}.
* Prugh, Thomas; Robert Costanza et al. (1999). Natural capital and human economic survival. Solomons, Md.: International Society for Ecological Economics, 180 pp.&nbsp;{{ISBN|1-56670-398-0}}.
* [[Dieter Helm|Helm, Dieter]] (2015). Natural Capital – Valuing Our Planet. Yale University Press; 277 pp.&nbsp;{{ISBN|978-0-300-21098-9}}
* Costanza, Robert (Lead Author); Cutler J. Cleveland (Topic Editor). 2008. [http://www.eoearth.org/article/Natural_capital "Natural capital."] In: Encyclopedia of Earth. Eds. Cutler J. Cleveland (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment). First published in the Encyclopedia of Earth February 26, 2007; Last revised July 31, 2008; Retrieved September 5, 2008.
* Earth Economics Natural Capital Accounting Solutions Article [http://www.eartheconomics.org/FileLibrary/file/Reports/Earth%20Economics%20Solutions%20Article%20Nov%202011.pdf]
* Lacombe Morgane and Aronson James, 2009. [http://www.csf-desertification.eu/dossier/item/restoring-natural-capital-in-arid-and-semiarid-regions Restoring Natural Capital in Arid and Semiarid Regions Combining Ecosystem Health with Human Wellbeing] {{Webarchive|url=https://web.archive.org/web/20131002082817/http://www.csf-desertification.eu/dossier/item/restoring-natural-capital-in-arid-and-semiarid-regions |date=2013-10-02 }}. Les dossiers thématiques du CSFD. N° 7.
* [https://web.archive.org/web/20150426071137/http://unstats.un.org/unsd/envaccounting/White_cover.pdf United Nations - SEEA Central Framework]
* Bastien-Olvera, B.A., Conte, M.N., Dong, X. et al. Unequal climate impacts on global values of natural capital. Nature (2023). https://doi.org/10.1038/s41586-023-06769-z

== External links ==
{{Commons category|Natural capital}}
* [https://seea.un.org/ United Nations - System of Environmental-Economic Accounting (SEEA)]
*[https://naturalcapitalproject.stanford.edu/ Natural Capital Project.] A joint venture among The Woods Institute for the Environment at [[Stanford University]], The Nature Conservancy, [[World Wildlife Fund]].
* [http://www.eartheconomics.org Earth Economics]
* [https://web.archive.org/web/20210315180136/https://naturalcapitalforum.com/ Natural Capital Forum]
* [https://www.natur-ist-unser-kapital.de/ Case studies and examples to attribute economic values to ecosystems and their services (German website)]
* [http://teebweb.org The Economics of Ecosystems and Biodiversity (TEEB)]
* [https://web.archive.org/web/20160909034301/http://envisionation.co.uk/index.php/blogs/nick-breeze-blogs/151-partha-dasgupta-natural-capital Nick Breeze Interview with Economist Sir Partha Dasgupta, "What is Natural Capital?"]
* [https://web.archive.org/web/20081221150404/http://www.economics.noaa.gov/?goal=ecosystems NOAA Economics - US Economic Benefits of Natural Systems to Business and Society.]
* [https://web.archive.org/web/20130309065747/http://www.esvaluation.org/ Ecosystem Valuation Toolkit]
* [http://www.naturalcapitalcoalition.com Natural Capital Coalition]

{{Types of capital}}
{{Natural resources}}
{{Environmental social science}}

[[Category:Capital (economics)]]
[[Category:Natural resources]]
[[Category:Ecological economics]]
[[Category:Environmental social science concepts]]