Assessing Credit River Watershed's Natural Capital
The natural capital of the Credit River Watershed near Toronto, Ontario
provides millions of dollars in ecological goods and services to residents of
the watershed each and every year.
This is revealed in a new study on
the region's natural capital by Mike Kennedy of the Pembina Institute
and Jeff Wilson of the Credit Valley Conservation Authority.
"Something not factored into modern economics are all of the services that nature provides us for free, just by its mere existence, things like clean water, waste processing, climate regulation, pollination and a host of other services that are essential to human survival."
Perhaps surprisingly, wetlands provide the highest economic values in services to the residents of the Credit Valley, contributing millions in natural waste treatment, climate regulation and water supply services. The implication: remove the wetlands, lose the services.
Natural Credit: Full Report | Fact Sheet | Media Release
Pembina’s Work on Natural Capital
Natural capital is quite simply the sum of all of the resources and free services provided by nature. The benefits of healthy, functioning ecosystems are often unaccounted for in traditional economics, but they are absolutely crucial to our future.
Bees pollinating crops, trees capturing carbon dioxide and producing oxygen, and natural resources that fuel the modern economic system are all part of the “stock” of natural capital of the world.
Humanity’s ability to exploit the earth is no longer the limiting factor for the future. It’s no longer the fishing boats, but the fish that we need for the future!
The Pembina Institute works with governments, industry and non-profit organizations to evaluate the importance of natural capital and estimate the value of natural capital in their jurisdictions.
With this information, governments can more accurately account for the value of ecological goods and services thereby making decisions that will help ensure the most effective and efficient use of the natural capital in their region - today and into the future.
What is Natural Capitalism?
Listen to Paul Hawken, the author of Natural Capitalism, interviewed by Pembina's David Dodge in this 14 minute interview.
Counting Canada's Natural Capital
Assessing the Real Value of Canada's Boreal Ecosystems
This Pembina study prepared for the Canadian Boreal Initiative study found the economic value of the non-market services provided by the boreal region is worth $93.2 billion per year. This includes water storage and purification, climate regulation, and carbon storage. This compares to the market value of $37.8 billion for all resource extraction activities. The study found the value of carbon stored in the boreal forest is worth $3.7 trillion. This and more information in the report could prove invaluable in making future management decisions in the boreal region. Download the report.
Natural Capital – Why is it important?
The world economy has expanded seven times since the 1950’s. Resource consumption and use now exceeds planets ability to support it. The Global Footprint Network estimates that in 2007 humans used 30% more resources in one year than nature can regenerate.
The future well-being of humans is directly tied to the integrity of ecosystems. To ensure that our investment, consumption and policy decisions are effective at ensuring sufficient protection of our natural capital, we need to have a full account of the natural capital of a region.
Natural capital accounting is focused on estimating the total stock and flow of natural goods and services afforded to society by the natural functioning of ecosystems. This work can begin to inform government decision making, corporate investment strategies and consumer behaviour as they relate to the use of natural resources and land. By estimating the impact of alternative investment, consumption and policy decisions on the value of natural capital, we can improve our decision making to help ensure sustainability becomes a reality.
Pembina works with a number of other organizations that are concerned with these issues. We invite you to check out other organizations that are doing this work:
- Katoomba Group
- Credit Valley Conservation
- Environment Canada
- National Roundtable on the Environment and the Economy
- Ducks Unlimited
