September 05, 2019
Hannah Riley

Natural capital is fundamental to an economy. Yeah right.

IPCC’s Climate Change and Land report found that land is a critical resource, stating that “land provides the principle basis for human livelihoods and well-being.”

The Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing the science related to climate change. The IPCC was created to provide policymakers with regular scientific assessments on climate change, its implications and potential future risks, as well as to put forward adaption and mitigation options. In August, the IPCC released Climate Change and Land, an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems (the “report”). The report found that land is a critical resource, stating that “land provides the principle basis for human livelihoods and well-being.”1

With a tight timeframe to prevent a climate change catastrophe one would think that this statement was so intuitive that it wasn’t worth mentioning. But, alas it’s not, and sadly it was worth mentioning because with the recent media around the Amazon fires it is clear that there is no universal acceptance that land is a critical resource.

With recent media around the Amazon fires it is clear that there is no universal acceptance that land is a critical resource.

New Zealand has rightly recognised that our natural resources are a key aspect of our economy; Treasury’s Living Standards Framework includes natural capital as one of the Four Capitals that is critical to a strong economy. Natural capital is defined as “all aspects of the natural environment that support life and human activity. Includes land, soil, water, plants and animals, minerals and energy resources.”2 New Zealand is one of the pioneers of correctly identifying natural capital as pivotal in an economy, many countries are yet to acknowledge natural resources in their economic models. 

New Zealand is one of the pioneers of correctly identifying natural capital as pivotal in an economy, many countries are yet to acknowledge natural resources in their economic models.

Global warming is, as the name suggests, a global issue that will (and already does) have devastating impacts around the globe. So, as much as it great that New Zealand considers the environment when looking at the economy, this will not prevent the shattering impacts of global warming hitting our shores. We need consensus from all countries that we are serious about saving our planet. We all need to recognise that the economy will only be as strong as our environment is and that depleting our resources will deplete our economy. Inclusion of natural capital in our economic model is only the first step however. More importantly our natural resources need to be valued by people, businesses and countries. Our natural resources need to be considered by people, businesses and countries in every decision.  We need to value our natural resources and build a universal kaupapa that supports our natural resources for future inter-generational use. 

We need to value our natural resources and build a universal kaupapa that supports our natural resources for future inter-generational use.

The IPCC was established in 1988, 31 years ago, and progress has been really slow. But we still have time; albeit limited time. The report stated that “the level of risk posed by climate change depends both on the level of warming and on how population, consumption, production, technological development, and land management patterns evolve.”3 There has been huge efforts by many in this space, but we need to address this issue as a united globe, and we need to do it urgently as “delaying climate mitigation and adaption responses across sectors would lead to increasingly negative impacts on land and reduce the prospect of sustainable development.”4 Not only would implementing solutions prevent a climate change catastrophe, “near-term action to address climate change adaption and mitigation, desertification, land degradation and food security can bring social, ecological, economic and development co-benefits.”5