The Fragile State of Nature in England: A Wake-Up Call
With England's ecosystems in decline, urgent measures are needed to protect and revive the natural capital that sustains the country's well-being.
Company News
Oct 23, 2024
Carolina Amu Trujillo
Two weeks ago, the “State of Natural Capital Report for England 2024” was released, providing a concerning picture of the state of England’s nature. Widespread degradation and decline across many of the country’s ecosystems attributed to multiple drivers such as land-use change, pollution, resource exploitation, climate change, and invasive species are some of the risks and causes, all thoroughly explained in the report. The findings highlight the urgent need for action to protect and restore the natural capital that underpins England’s economy and well-being.
The Crucial Role of Natural Capital
Natural capital refers to the stocks of natural assets, including water, air, soil, and all living things. These assets generate a wide range of services, called ecosystem services, that make human life possible. The report emphasises the interconnectedness of these benefits and the risks associated with their loss.
Figure 1 The economy and biosphere The economy is embedded in the biosphere and is not external to it—image from the State of Natural Capital Report for England 2024.
Natural capital plays an important ecological, social and economic role. According to the Convention of Biological Diversity (CBD), the ecosystem services provided by natural capital range from the obvious, such as food, water or plants used for fuel, building materials and medicines, to less visible ones, such as climate regulation, flood defence, and even cultural ecosystem services including inspiration taken from wildlife and the natural environment.
The Current State of Nature in England
England's natural capital state is alarming. Almost all ecosystem assets are currently at medium to high risk, making the country one of the most nature-depleted ones in the world. The report outlines several of the frightening consequences of this degradation, including:
- Climate change: Degraded peatlands release greenhouse gases, contributing to climate change. Damaged seabeds also disrupt carbon storage, exacerbating the impacts of climate change on coastal communities.
- Food insecurity: The decline of pollinators threatens crop yields and food production.
- Public health issues: Air pollution, a direct result of environmental degradation, compromises public health.
- Economic instability: The loss of natural capital, valued at £1.5 trillion in the UK alone, poses significant economic risks.
Neglecting natural capital has far-reaching impacts that must be recognised and valued to ensure decision-makers make more informed choices that balance economic development with environmental sustainability.
Why England Can't Afford to Ignore the Insights from This Report
The insights provided by the report matter because they:
Raise awareness about the issue's urgency: the report reveals a concerning decline in England’s natural environment. While climate change and biodiversity loss are frequently discussed in global contexts, the decline of domestic ecosystems and biodiversity in the country often goes unreported. The State of Natural Capital Report brings these critical issues to the forefront and emphasises the urgent need for action to protect and restore natural capital.
Underscore the economic value of nature: by estimating the economic value of natural capital in England, the report demonstrates the significant contribution of nature to the economy and the risks associated with its degradation. This relates to demonstrating that nature-based projects are more than an ecological option; they are also an economic one.
Highlight the importance of mobilising finance: The report highlights the importance of setting out actions and opportunities to restore ecosystems, reduce impacts, and put natural capital at the heart of decision-making. Yet, it’s clear that funding is insufficient. The Green Finance Institute reported that in England alone, there is at least a £21–53 billion shortfall in public and private sector funding needed to achieve all of the government's nature recovery targets over the next ten years (around the same amount as the Chancellor’s ‘black hole’). The UK government has set a goal that by 2027, £500 million of private investment must be allocated to nature recovery each year, rising to more than £1 billion annually by 2030.
Provide a roadmap for action: The report identifies three critical strategies for reducing risks to natural capital, offering a clear path forward for policymakers, businesses, and individuals.
Overall, the report serves as a wake-up call, emphasising the critical importance of protecting and restoring natural capital for the benefit of both the environment and the country’s economy.
Connecting the Dots: How the Report Informs Treeconomy's Mission
The "State of Natural Capital Report" aligns closely with Treeconomy's core mission of restoring natural capital in England and globally and reinforces the urgency of our work.
The balance between the economy and natural ecosystems is fragile and requires immediate, restorative action. The report provides a clear roadmap for that action. It identifies three main strategies for reducing risks to natural capital, strategies to which we are committed to contributing:
Restoring ecosystems: refers to the need for active effort to repair and revitalise damaged or degraded natural habitats. Ecosystem restoration can improve biodiversity, boost carbon sequestration and strengthen the overall health and resilience of the natural environment.
At Treeconomy, we are committed to supporting large-scale targeted nature restoration. We partner with and support project developers, offering project monitoring, brokerage and finance services to help them achieve this goal (see Treeconomy’s services for project developers). We have collaborated on different types of nature-based projects, including rewilding, afforestation and peatland, demonstrating that large-scale ecological restoration is possible but also economically viable (see our collaboration with Nattergal). Additionally, we showcase the potential of using data to clearly and accurately illustrate the benefits of nature-based projects (see our collaboration with Knepp).
Reducing the drivers of change: refers to addressing the root causes of environmental degradation. This includes mitigating climate change, reducing pollution, promoting sustainable land-use practices, and controlling invasive species. By tackling these drivers, natural capital can be protected, and new conditions for ecosystem recovery are created.
While Treeconomy might not directly address all drivers of change, our work contributes to mitigating climate change through the nature-based carbon removal projects we partner with. We indirectly support the sustainable use and protection of natural resources.
Making natural capital central to decision-making: refers to integrating the value of natural capital into all aspects of policy and economic decision-making. It requires recognising nature’s essential benefits, such as clean air and water, flood protection, and climate regulation, and factoring these benefits into cost-benefit analyses and investment decisions. By doing so, we can ensure that the value of nature is considered alongside economic and social factors, leading to more sustainable and equitable outcomes.
A key aspect of Treeconomy’s approach is integrating natural capital data into financial decision-making. By monitoring and quantifying the benefits of nature restoration and translating them for financial terms, we demonstrate not only the environmental viability of nature-based projects but also their economic value. This allows us to engage with policymakers, buyers and investors advocating for the importance of natural capital. In doing so, we help to shift the narrative and highlight the financial benefits of investing in nature, encouraging more nature-based projects to be built and supported.
Action is Now
The State of Natural Capital Report for England 2024 is a call for urgent action to protect and restore England’s ecosystems. By systematically explaining the risks and their causes, it assesses the state of ecosystems and what that means for the benefits from nature that the country relies on.
The report provides a comprehensive analysis linking the importance of protecting natural capital to its ability to support the environment, economy and society as a whole—because, yes, they are all connected. Acting now is a must; nature recovery is the name of the game.
