Source · Select Committees · Environmental Audit Committee
Recommendation 61
61
Accepted
Paragraph: 299
Further work is needed on the natural capital accounting and assessment methodology, but this should...
Conclusion
Further work is needed on the natural capital accounting and assessment methodology, but this should not stop the Government and businesses using natural capital accounting now. Accounting for natural capital in some way, is better than ignoring it completely because the system is not yet perfect. As a world leader in the development of natural capital accounts, the UK has an important role to play in promoting this practice international.
Government response summary AI-generated
The government highlights its existing global leadership in natural capital approaches, referencing G7 agreements, UN guidance development (which it funded and contributed to), and ongoing work with the UN Statistical Division.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
299
Government Response
Accepted
HM Government · verbatim extract
Accepted
The UK is already demonstrating global leadership in driving forward natural capital approaches as a means to transition to a nature-positive economy and was pleased to use its recent role as G7 President to secure international agreements in this space. For instance, G7 Climate and Environment Ministers agreed an ambitious Communiqué which included commitments to work with businesses and other stakeholders in developing standardised natural capital accounting practices. They agreed to work collaboratively to build on the Dasgupta Review insights and to support efforts so that economic and financial decision-making properly takes account for the value of nature. They also welcomed the work being done by the UN Statistical Commission to continue updating the SEEA ecosystem accounting system. G7 Finance Ministers and Central Bank Governors also committed to embed climate change and biodiversity loss considerations into economic and financial decision- making, looking forward to the establishment of the Taskforce on Nature-related Financial Disclosures (TNFD), and welcoming the Dasgupta Review on the Economics of Biodiversity and the related OECD Policy Guide on Biodiversity in their Communique. G7 Leaders further endorsed these commitments in the 2030 Nature Compact. This document recognised that decisions must take into account the true value of goods and services we derive from nature, and tasked Finance and other relevant Ministries to identify ways to account for nature in economic and financial planning and decision- making. Leaders also called on Multilateral Development Banks (MDBs), International Finance Institutions and Development Finance Institutions to embed nature into their analysis, policy dialogue and operations. They further called on MDBs to sign a Joint Statement committing them to mainstream nature across their operations as appropriate. The UK looks forward to furthering these ambitious commitments through COPs 15 and 26, and other multilateral forums, including the IMF.
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