Natural capital
Natural capital is the stock of renewable and non-renewable natural resources, such as plants, animals, air, water, soils, and minerals, that supports flows of benefits to people. The concept treats individual resources and functioning ecosystems as assets whose condition can influence livelihoods, health, production, resilience, and future options.
In simple terms
The capital analogy distinguishes underlying assets from the benefits that flow from them. A forest, aquifer, fish population, mineral deposit, or wetland can be examined as a natural asset; its extent and condition influence what it can provide over time. Natural capital accounting organizes physical and sometimes monetary information about these assets. Monetary valuation is not required, and a price estimate cannot fully represent ecological relationships, intrinsic value, rights, or irreversible loss.
Why it matters
Economic and operational decisions can consume or degrade natural assets without recording the change. A natural-capital perspective makes dependencies and deterioration more visible, supports comparison over time, and connects ecosystem condition with economic activity while showing how changes may alter ecosystem services. It should complement, not replace, ecological thresholds, distributional questions, and the rights and knowledge of affected communities.
Example
For example, a regional account may track the area and condition of wetlands as an ecosystem asset, then measure their contributions to flood regulation, water purification, and recreation. A decline in wetland condition can reduce future service flows even when current spending or production rises.
How it differs
Ecosystem services
Natural capital refers to stocks of natural resources and ecosystem assets; ecosystem services are the flows of contributions those assets provide to people.