Maximising natural assets

Well-managed natural capital has the potential to deliver numerous environmental benefi ts in a profi table way for members, Harry Greenfi eld advises,and this is increasingly important in 2022

s climate change and the

Aenvironment continue to climb the political agenda, now is the time for landowners to start considering how they maximise their natural assets.

Natural capital applies economic thinking to use of natural resources and environment. It is about measuring a business’s impact on the environment, and the benefi ts the environment provides to society and the economy. With this knowledge, land managers can be rewarded fi nancially for the stewardship or improvement of their stock of natural capital.

To help members gain a better grasp of how natural capital is relevant to them, the CLA has compiled resources to shed light on the topic, including webinars discussing the development of environmental markets and their potential for members, a guide – An Introduction to Natural Capital – and a series of guidance notes.

Harry believes that natural capital will be at the forefront of government thinking in 2022. “We know that the future Environmental Land Management (ELM) schemes will defi nitely be in uenced by natural capital thinking,” he says. “The basic premise of ELM schemes is that farmers and landowners who manage their land to deliver for climate change, water improvements and nature, for example, will get paid for doing that.”

There are clear, and increasingly measurable, benefi ts to well-managed natural capital, such as clean air, higher water quality and climate change mitigation. This has generated interest from the private sector, with businesses starting to invest in these outcomes.

“We know that many businesses are interested in green issues and are making pledges to get to net zero,” Harry says. “It’s important for these businesses to look at the way our members manage their land, and how this work could support their own environmental ambitions.

“That is why the CLA is involved in work by the City of London and others to put together a framework – standards, broker accreditation, registries and so on – that will enable new markets for carbon, biodiversity and other aspects of the environment to develop. This work is fi nding ways to channel green investment into the rural economy and ensuring it’s right for farmers and land managers.”

Although much of the detail of the new government schemes is still to be announced, Harry believes CLA members should be planning for the future.

“We know that the Basic Payment Scheme (BPS) is going, so our members should be thinking about the profi tability of their business without BPS. Considering the opportunities from new environmental schemes and markets – whether carbon, biodiversity net gain or ELM schemes – is one way forward. “It’s important for our members to be thinking about their businesses from an environmental perspective – considering what they are already doing that delivers for the green agenda, and then looking at how they could enhance their work in this area going forward,” Harry concludes.

The CLA is creating the UK’s fi rst natural capital directory to help members navigate this new and important world. It will be published on our website and will allow companies to promote their brand and the natural capital-related services they can provide to members.