Source · Select Committees · Environmental Audit Committee
Recommendation 62
62
Paragraph: 300
The UK should work with countries at COP15, COP26 and through the G7 to construct...
Conclusion
The UK should work with countries at COP15, COP26 and through the G7 to construct an internationally agreed way to integrate natural capital accounts into core national 124 Biodiversity in the UK: bloom or bust? accounts. This aligns with two of the Government’s COP26 presidency goals: finance and collaboration. The UK should also use its leverage within the IMF, to call for the incorporation of natural capital accounts in macroeconomic surveillance undertaken by IMF.
Paragraph Reference:
300
Government Response
Not Addressed
HM Government
Not Addressed
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. The UN guidance on ecosystem accounting was approved by the UN Statistical Commission in March 2021, establishing an international standard for the measurement of ecosystem assets and their services. The guidance includes important advice on the valuation of ecosystem services and the approach towards integrating the values into the national accounts framework, although because of some dissenting views the Commission decided that further work was needed before the specific sections on valuation could be regarded as an international standard. The publication of the guidance has been widely welcomed as a major step forward. Defra provided funding to the UN Statistical Division for the development of the guidance and was also a leading member of the Technical Committee which oversaw the development of the standard. We are still working with the UN Statistical Division to finalise the White Cover version and will be working further on the items on the research agenda.