Natural Capital (From Hereford Times)

Natural Capital

4:24pm Wednesday 24th January 2007

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The EU published a report last week detailing the possible consequences that climate change will have on the continent of Europe. One thing of note in the report is the description of the environment as ‘ecosystem services’. This idea has been around for a long time in the environmental movement, by the name of ‘natural capital’...

In our society we measure ‘Gross Domestic Product’ (GDP) and use this as a barometer for success. GDP measures the production and consumption of goods and services. The more we produce and consume, the higher our GDP, and consequently the bigger the impact on our natural capital.

As our economic wealth grows, so our waste and greenhouse gas emissions rise with it, but it is well documented, and quite obvious, that the degradation of ‘natural capital’ reduces people’s quality of life.

The kingdom of Bhutan in the Himalayas is the only country in the world which measures ‘Gross National Happiness’. This is because, according to the Bhutanese, ‘economic calculations ignore the value of fresh water and green forests’ This approach questions the value of unbridled economic progress, and is a serious attempt to measure the well being of its people.

Could it be, then, that a balance is needed between consumerism and its consequences, and that a different type of measurement would be more fitting? We already have all kinds of indicators and measurements for ‘sustainable’ development, but my sense is that GDP still takes precedence.

The EU report confirms that droughts and flooding, reduced soil fertility and forest fires are already on the increase in Europe. It suggests that member states need to reduce their emissions of Carbon Dioxide, the principal greenhouse gas responsible for global warming, to 30% below 1990 levels by 2020.

I have yet to hear any one holding high political office espouse the merits of ‘consuming less’ as part of the solution for achieving this. Looking at the evidence, perhaps perpetual economic growth is not all that its cracked up to be – because without any eco-system services or natural capital to support us, we will have nothing, and then our Gross National Happiness will be zero.