Banking on natural capital
Natural capital is gaining increasing traction as a theory and a practice influencing how land is managed in the UK and according to the ONS the asset value of the UK’s natural capital is estimated to be nearing £1 trillion.
The recently published Spotlight on Natural Capital from Savills focuses on some key areas where natural capital thinking is creating new income streams. It also looks ahead to emerging markets for ecosystem services.
One of the opportunities outlined is that, for farmers and land managers, the ecosystems services that the land can provide will present new opportunities as the payments for these services are made to the ‘manager’ of the natural capital that will provide the ecosystem.
We expect that as public money for public goods and the polluter pays principle become more established, so will the demand for ecosystem services and the development of an associated market with funding from government-backed and private sector negotiated agreements.
Payments are likely to be available for money for improved air, water, rich habitat biodiversity and soil quality, carbon sequestration, public access to the countryside, measures to reduce flooding and offsetting agreements to counter pollution.
For further information, or to see a copy of the full report, contact me on 01522 507 313 or email cskelton@savills.com.
Charles Skelton, food and farming consultant at Savills in the Midlands
