What does the term "Natural Capital" refer to?

Natural Capital refers to the world's stocks of natural assets, which include geology, soil, air, water, and all living things. It emphasizes the essential services and resources that nature provides, such as clean water, fertile soil for agriculture, and the carbon-sequestering abilities of forests. These natural resources contribute to human well-being and economic activities; thus, understanding their value is crucial for sustainable development and environmental management.

This concept is vital in environmental economics, where the sustainability of ecosystems and biodiversity is considered in making decisions about resource use and conservation. Recognizing the intrinsic value of these natural services helps inform policies and practices aimed at protecting the environment while ensuring that it can continue to support human life and economic activities.