The NSW Liberal and Nationals Government will develop its own set of natural capital accounts and integrate them into the State's balance sheet, allowing the value of natural capital to be tracked over time.
Minister for Environment James Griffin said the re-elected Government will calculate the value of nature in the State to better protect the environment, unlock new opportunities for investment and economic growth, and ensure a natural capital surplus is delivered each year.
"The evidence is clear: for a strong economy, we need a healthy environment, and by calculating the value of our natural assets, we'll be able to better protect them for future generations, ensuring decisions take their value into account," Mr Griffin said.
"Natural capital is a way of thinking about nature in much the same way as traditional capital – if we invest in nature, it creates value, and if we degrade it, we limit its value.
"Calculating the value of nature in NSW sends a signal that, like other major economies such as the United Kingdom, we're recognising and investing in natural capital for the benefit of our environment and economy, and opening up new economic opportunities right across the State.
"Establishing our natural capital accounts will provide the private landholders who own and manage about 70 per cent of the land in NSW with tools and information to benefit from new investment opportunities and address emerging risks – a partnership for productivity and conservation."
This builds upon actions the NSW Liberal and Nationals Government is already delivering to boost natural capital, including through restoration programs and conservation agreements between private landholders and the Biodiversity Conservation Trust, and the $206 million Nature Positive Farming program.
Natural capital is a global movement, and by establishing new investment opportunities, NSW will lead the way in building greater economic and climate resilience, and support new and emerging industries while improving the environment.
Calculating the value of natural capital in NSW will be an Australian first and will help to:
· Support conservation, restoration and active management of the State's landscapes
· Deliver new income streams for landholders as new sustainable investment models emerge
· Reward good environmental stewardship through market-based financial incentives
· Ensure long-term sustainable land use, by improving economic and investment decision-making.
The NSW Liberal and Nationals Government has already established some natural capital accounts for targeted use, such as the valuation of the national park estate, finding it provides about $18 billion worth of value to the NSW economy each year.
This $7 million commitment expands the accounts to all natural assets in NSW, and will be delivered in a partnership with leading organisations in natural capital accounting.
More than 50 per cent of global GDP is dependent on nature, and Australia ranks fifth of 140 countries that are likely to experience the highest economic losses if environmental challenges are not addressed.
