Source · Select Committees · Environmental Audit Committee
Recommendation 4
4
Accepted
Provide assessment of natural capital's incorporation into policy decisions and risk mitigation measures.
Recommendation
We recommend that in its response to this report the Government provide an assessment of the extent to which a natural capital approach is currently incorporated into decisions on policy, how risks to current levels of natural capital are taken into account, and what measures are in place to mitigate those risks. (Recommendation, Paragraph 36)
Government Response Summary
The government provides an assessment by detailing how the natural capital approach is incorporated through the Green Book Supplementary Guidance, Environmental Principles Policy Guidance, and the Environmental Improvement Plan, which includes mechanisms for assessing progress and ensuring environmental considerations in policy decisions. It highlights the ongoing revision of the EIP to further emphasize natural capital protection.
Government Response
Accepted
HM Government
Accepted
The Enabling a Natural Capital Approach Green Book Supplementary Guidance and the Environmental Principles Policy Guidance aim to upskill policymakers across government, enabling them to take natural capital into account in their broader decision-making. In England, the Environmental Improvement Plan (EIP) annual progress reports and outcome indicator framework provide an assessment of progress on the Government’s environment targets and objectives. An evaluation of the environmental principles policy statement is ongoing. Best practice in the HMT Green Book and Better Regulations Framework highlights that the consideration of environmental impacts should be given equal weighting alongside other social costs and benefits in the appraisal of policy for decision making. This is supported by supplementary guidance: Enabling a Natural Capital Approach (ENCA). In addition, with limited exceptions, ministers must have due regard to the environmental principles policy statement where their polices may have an environment effect (as defined by ENCA screening questions). The principles recognise the limitations of taking decisions based purely upon policy appraisal (which focus on marginal impacts) without considering strategic goals. They work to ensure that policy makers across government recognise the opportunities to support both their own outcome goals and nature outcomes in tandem and at least do not frustrate and hinder government policies which are implemented to directly improve our natural capital assets and reduce the pressures upon them. In England the policies to directly protect and improve our natural capital assets are set out in the EIP, which is currently being revised. In the Interim statement on the EIP rapid review (published in January 2025) we committed to “Highlight how protecting and enhancing our natural capital is not just for its own sake.” The revised EIP will help achieve this.