HomeEnvironment & EnergySustainabilityWhat is Natural Capital?
Environment & Energy·2 min·Updated Mar 13, 2026

What is Natural Capital?

Natural Capital

Quick Answer

Natural Capital refers to the world's stocks of natural assets, including geology, soil, air, water, and all living things. It provides essential services that support life and economic activities, such as clean air, water filtration, and pollination of crops.

Overview

Natural Capital encompasses the natural resources and ecosystems that provide value to humans and the environment. It works by supporting various processes that sustain life, such as the carbon cycle, water cycle, and nutrient cycling. For example, forests act as natural capital by absorbing carbon dioxide, providing oxygen, and serving as habitats for wildlife, all while contributing to the economy through timber and tourism. Understanding Natural Capital is crucial for sustainability, as it highlights the importance of preserving our natural resources for future generations. When we recognize the value of ecosystems, we can make better decisions about land use, conservation, and resource management. By maintaining healthy ecosystems, we ensure that they continue to provide essential services like clean water and air, which are vital for human health and well-being. Furthermore, integrating Natural Capital into economic planning can lead to more sustainable practices. Businesses and governments that account for natural resources in their operations can reduce environmental impacts and promote long-term sustainability. For instance, sustainable agriculture practices that protect soil health and biodiversity not only enhance food production but also safeguard the ecosystem services that support agriculture.


Frequently Asked Questions

Examples of Natural Capital include forests, rivers, oceans, and wetlands. These natural resources provide vital services such as clean water, air purification, and habitat for wildlife.
Natural Capital is essential for economic growth as it underpins many industries, such as agriculture, fishing, and tourism. Sustainable management of these resources ensures that they continue to support the economy without depleting them.
Preserving Natural Capital is important because it ensures the availability of essential services that support life and the economy. Without healthy ecosystems, we risk losing resources that are crucial for our survival and well-being.
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