What is natural capital

Natural capital assets, including everything from flowers to forests, rely on wild animals to thrive in several different ways:

Biodiversity and ecosystem services

• Pollination: Bees, butterflies, fruit-eating bats, and birds act as pollinators, supporting the reproduction of many plants.
• Seed dispersal: Birds, bears, primates, sea turtles, and many other animals also help disperse seeds, promoting plant regeneration and the spread of various plant species.
• Vegetation management: The foraging habits of apes, elephants, manatees, and sea urchins also help thin the vegetation, reducing competition for nutrients and ensuring that other wildlife receive adequate sunlight and nutrients.
• Pest control: Predatory species, including wolves, snakes, insect-eating bats, sharks, and dolphins, control the populations of various pests and potential pests within their habitat.
• Nutrient cycling: Animals contribute to nutrient cycling by breaking down organic matter through decomposition and enriching their environment with essential nutrients present in their waste products.

Economic and social value

• Ecotourism : Safaris, bird watching, and whale watching are examples of wildlife-centred tourism that can generate significant income for many countries and local communities.
• Biological resources: Biodiversity, including plants and animals, can provide many economic benefits. Some examples are natural pest control, herbal medicines, and food, such as from properly regulated fishing.
• Educational and scientific value: The scientific study of wild animals contributes to our understanding of biology, ecology, and evolution.

Ecological balance

• Population regulation: All wild animals occupy various trophic levels in ecosystems, from primary consumers to apex predators. Together, they help maintain the balance of ecosystems by regulating populations of other organisms.
• Habitat maintenance: The activities of certain species, such as African forest elephants, beavers, and coral reefs create and maintain habitats for other species.

It's important to understand just how integral wild animals are to their ecosystem. Although every component of an ecosystem is intricately linked, some species have a particularly large influence on the structure and function of their ecosystems. These are called keystone species.

African forest elephants, African savannah elephants, and Asian elephants are all keystone species in their respective ecosystems. Elephants keep their habitat healthy by uprooting trees, consuming large amounts of plant life, distributing seeds, and digging water holes. With so many other species dependent on their presence, their removal could lead to the ecosystem's collapse and the destruction of the natural capital that depends on it.

The same applies to all keystone species, which include rhinos, prairie dogs, wolves, sea otters, sea turtles, sharks, beavers, starfish, sea urchins, and bees, among many others. This shows how important it is to consider natural capital and the many species that maintain it as crucial components of a multifaceted single entity rather than separate ones.

How valuable is natural capital in financial terms?

Natural capital holds significant financial value, although it is often overlooked and undervalued in traditional economic frameworks. This may change in the future, however, as there are now calls for businesses and nations to start following a structured approach to the valuation of natural resources.

In terms of quantifying the value of natural capital, a research report on nature and the economy released by the World Bank in 2020 showed that US$44 trillion of economic value generation is either moderately or highly dependent on natural capital stocks and services. To put this figure into context, that was around half of the world's total GDP in 2022.

Failing to acknowledge and accurately assess the immense value of natural capital-and society's profound dependence on it-risks long-term environmental degradation, resource depletion, and economic setbacks. Recognising the financial importance of natural capital and supporting this recognition through investment is crucial for sustainable development and well-informed decision-making across public and private sectors.

What is IFAW doing to protect natural capital?

Public link

Please use the above public link if you want to share this noodl on another website.