What Is Natural Capital?
Natural Capital is the world’s stock of natural assets which include air, water, forests, minerals and other natural resources. It is from this Natural Capital that humans derive a wide range of services, often called ecosystem services, which make human life possible.
Wealth of the Earth
“All material wealth must have its ORIGINS in the NATURAL WEALTH of the EARTH. We add value to the earth’s natural sources through our labour, and this combination of resources and industry is the SOURCE of all our material wealth of—EVERYTHING WE HAVE.”
Natural Capital’s Value
Natural Capital has been grossly undervalued by the marketplace for many years because it’s based on a global extractive economic model whereby the extraction costs of natural resources primarily define price and not the replacement costs. This leads to externalities in the form of price subsidies that are borne by future generations. This has, in turn, led to unsustainable over-consumption and the near collapse of the world’s primary life giving ecosystems—our forests & oceans.
By paying only for the extraction costs of our natural resources and not their full replacement costs, we are stealing from our children’s futures to subsidize the cost of the goods we consume today. And for the first time in modern history, we have condemned the next generation to a lower standard of living than our own.