Natural capital

Definition

Natural capital refers to the world's stocks of natural assets, including geology, soil, air, water, and all living things. It underpins ecosystem services that provide essential benefits to humanity, such as clean water, fertile soil, and biodiversity. Understanding natural capital is crucial for addressing environmental sustainability challenges, as it highlights the economic value of nature and the need for responsible resource management.

5 Must Know Facts For Your Next Test

1. Natural capital is essential for sustaining life on Earth, providing resources and services that are vital for human survival and well-being.
2. The degradation of natural capital can lead to significant economic losses, as ecosystems are unable to perform their functions effectively.
3. Investing in natural capital can enhance resilience against climate change by improving ecosystem health and providing buffer zones against natural disasters.
4. Policies aimed at protecting natural capital often include strategies for conservation, restoration, and sustainable use of resources.
5. Quantifying natural capital helps businesses and governments understand the economic value of ecosystems, leading to more informed decision-making regarding environmental policies.

Review Questions

• How does natural capital contribute to ecosystem services and why is this relationship important for environmental sustainability?
  • Natural capital provides the essential resources and processes that support ecosystem services. For instance, forests (a form of natural capital) regulate climate, purify air and water, and provide habitats for countless species. This relationship is crucial for environmental sustainability because it highlights how the health of ecosystems directly impacts human well-being and the economy. Protecting natural capital ensures that these services continue to function effectively.
• Discuss the potential consequences of depleting natural capital on future generations and global economies.
  • Depleting natural capital can lead to severe consequences for future generations, including loss of biodiversity, degraded ecosystems, and diminished resources like clean water and arable land. Economically, this depletion can result in increased costs for industries reliant on natural resources, leading to food insecurity and economic instability. As ecosystems collapse or become less productive, the foundational support they provide for global economies is compromised.
• Evaluate the role of sustainable development practices in preserving natural capital while promoting economic growth.
  • Sustainable development practices aim to balance economic growth with the preservation of natural capital by promoting responsible resource use and minimizing environmental impact. This involves integrating ecological considerations into economic planning and decision-making processes. By adopting sustainable practices like renewable energy usage, conservation efforts, and sustainable agriculture, we can protect natural assets while fostering economic development. Evaluating these practices reveals their potential to create a resilient economy that values both growth and environmental health.

Related terms

ecosystem services: The benefits that humans receive from natural ecosystems, including provisioning, regulating, cultural, and supporting services.

biodiversity: The variety of life in a particular habitat or ecosystem, which contributes to the resilience and functionality of that system.

sustainable development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing balance between economic growth and environmental protection.