What does natural capital refer to?

Natural capital refers to the stock of natural resources that provide essential goods and services for human survival and well-being. This includes elements such as water, air, soil, minerals, forests, and biodiversity, all of which are essential for maintaining ecosystems and supporting life. By recognizing natural capital, we understand the value of the environment in terms of both its resources and the ecosystem services it provides, such as clean air, water filtration, pollination of crops, and climate regulation.

The concept emphasizes the importance of sustainable management and conservation of these resources, as they are crucial for economic activities, supporting industries such as agriculture, forestry, and fisheries. The realization that these natural resources must be preserved and utilized responsibly underlines why this answer is the most accurate in defining natural capital in the context of economics and environmental science.