State of Natural Capital Report for England 2024 - risks to nature and why it matters

Natural capital is also an economic concept. It considers nature as a stock of assets, which we have to invest in. Ecosystem assets need to be in a healthy state to support the benefits society relies on.

The economy and society are intimately dependent on the health of the natural environment. Indeed, the Dasgupta Review demonstrated how the economy is embedded in nature and how critical the links are with nature and our ongoing wealth and prosperity.  This relies on nature being in good working order. 

Healthy functioning ecosystems are more resilient and adaptive to change and are more productive, providing us with a wide range of benefits that we rely on. These benefits include clean air and water, health and wellbeing and helping us adapt to climate change amongst many others. These all in turn contribute to society and the economy.

Given the importance of nature, why is it still declining? One critical reason is that it is often missing in decision making even if its relevant. Nature is therefore invisible, unaccounted for and we all suffer the consequences. 

For years now we have taken more from nature than it can supply sustainably. We are in effect running down our assets and we are beginning to see some serious consequences of that, through the impacts of climate change for example.