What is it?
Natural capital refers to the world’s stocks of physical and biological resources such as water, land, air, minerals, forests, and biodiversity. These resources provide humans with a wide range of services, often referred to as ecosystem services, which make human life possible.
How does it work?
Natural capital works by providing raw materials and services that drive economies and support life. For example, forests not only provide timber and other non-timber forest products but also services such as carbon sequestration, water filtration, and habitat for wildlife. The concept of natural capital emphasizes the economic value of nature and the need to manage it sustainably.
Real-World Impact
A real-world example of the impact of natural capital can be seen in the management of fish stocks. Overfishing can deplete a fishery’s natural capital, leading to the collapse of the fishery and loss of the ecosystem services it provides. However, sustainable management practices that maintain the fishery’s natural capital can ensure a continued supply of fish and related services for future generations.
How to Get Started
To begin engaging with the concept of natural capital, one can start by learning about ecosystems and the services they provide. This can involve studying biology, ecology, and environmental science, as well as economics and resource management. One can also get involved in initiatives aimed at conserving natural capital, such as reforestation projects or sustainable fishing campaigns.
Get the Empress Edge
Understanding and using the concept of natural capital provides several advantages. It can help decision-makers in various industries, including agriculture, forestry, and fisheries, to make more sustainable decisions that take into account the long-term health and productivity of ecosystems. This can lead to more resilient supply chains, improved risk management, and opportunities for innovation. Furthermore, it can inform policies that support sustainable development and the conservation of biodiversity.