Natural Capital Committee

Natural Capital Committee
Name	Natural Capital Committee
Formation	2012
Dissolution	2018
Type	Advisory body
Headquarters	London
Region served	United Kingdom
Parent organization	Department for Environment, Food and Rural Affairs

Natural Capital Committee The Natural Capital Committee advised Department for Environment, Food and Rural Affairs and the UK government on integrating natural capital into national decision-making. It linked environmental assessment frameworks with fiscal mechanisms, ecosystem services accounting and strategic planning across departments such as HM Treasury, Cabinet Office and Ministry of Defence. The Committee drew on expertise from academia, business and conservation NGOs including University of Cambridge, University of Oxford, RSPB, and WWF-UK.

History and Establishment

The Committee was announced in the 2010s following recommendations in the 2010 Conservative–Liberal Democrat coalition agreement and outcomes from Natural Environment White Paper 2011. Ministers in Department for Environment, Food and Rural Affairs and officials from HM Treasury convened expert advisory groups influenced by international initiatives such as The Economics of Ecosystems and Biodiversity and the Millennium Ecosystem Assessment. Its formal creation in 2012 reflected policy shifts after reports from Stern Review proponents, engagement with think tanks like Green Alliance and legal frameworks including provisions within the Environment Act discussions. Early membership included academics from Imperial College London, advisers from DEFRA and representatives linked to Natural England.

Mandate and Functions

The Committee had a statutory remit to advise on the measurement, valuation and maintenance of natural assets to support long-term wealth, aligning with priorities set by HM Treasury fiscal rules and guidance from the UK Parliament. Functions included producing multi-year reports to inform Office for National Statistics environmental accounting, developing metrics compatible with System of National Accounts principles, and recommending targets tied to statutes under discussion in the House of Commons. It provided cross-sector guidance relevant to agencies such as Environment Agency, Forestry Commission and regulators like Ofwat and Ofgem on integrating natural capital into investment appraisal and planning decisions.

Membership and Governance

The Committee comprised independent experts appointed by ministers, drawing members from institutions including University College London, University of Edinburgh, Durham University, Royal Society fellows, and leaders from The Wildlife Trusts and Conservation International. Chairs and members reported to ministers in DEFRA and engaged with parliamentarians on select committee inquiries such as the Environmental Audit Committee. Governance arrangements referenced models used by Committee on Climate Change and mirrored appointment practice for bodies under the Public Bodies Act 2011. Secretariat support was provided by civil servants seconded from DEFRA and analysts from Natural England.

Key Reports and Recommendations

Major outputs included multi-annual reports recommending a 25-year Natural Capital Plan, guidance on natural capital accounting aligned with United Nations Environment Programme standards, and sectoral advice for agriculture influenced by reports from Committee on Climate Change agriculture modelling. Reports advocated integrating natural capital into Business, Energy and Industrial Strategy planning, incentivising outcomes through payments similar to schemes in Common Agricultural Policy reform, and adopting metrics compatible with Green Finance Initiative principles. The Committee called for inclusion of natural capital in public sector balance sheets, echoing accounting approaches promoted by International Monetary Fund and World Bank dialogues.

Impact on Policy and Practice

Recommendations shaped policy instruments across ministries, influencing the 25 Year Environment Plan, national accounting experiments led by Office for National Statistics and pilots by Natural England and Environment Agency. The Committee’s advocacy contributed to market-facing mechanisms promoted by London Stock Exchange green listing discussions and informed corporate disclosure dialogues involving Financial Conduct Authority and institutional investors such as Aviva Investors. Local authorities including Greater London Authority and county councils cited Committee frameworks in green infrastructure planning and ecosystem services trials with bodies like Canal & River Trust.

Criticisms and Controversies

Critics from organisations such as Friends of the Earth and some academics at University of Sussex argued the Committee’s economic framing risked commodifying nature, echoing debates from People and Planet campaigns and commentary in outlets like The Guardian. Environmental lawyers referenced tensions with statutory protections under laws debated in the House of Lords and questioned reliance on monetary valuation methods endorsed by World Bank projects. Industry groups including National Farmers' Union raised concerns about land management implications, while parliamentary debates on austerity and public appointments scrutinised links to Treasury priorities and independence compared to bodies like Committee on Climate Change.

Legacy and Succession

Although the Committee ceased formal meetings in the late 2010s, its frameworks influenced successor arrangements in DEFRA and institutional uptake by Office for National Statistics and Natural England. Elements of its agenda persisted in the 25 Year Environment Plan, in statutory instruments considered by the House of Commons Environment, Food and Rural Affairs Committee, and in emerging markets for green finance discussed at forums such as Green Finance Institute. Its legacy persists in academic curricula at University of Cambridge, policy units within Cabinet Office and in conservation practice across NGOs including RSPB and The Wildlife Trusts.

Category:United Kingdom environmental organisations