Source: Asia Development Bank
Quantifying the value of natural capital and ecosystem services is essential for governments to make more informed decisions that account for how ecosystem health contributes to economic growth, improve fiscal management, and support communities that depend on natural resources. These metrics also create opportunities to attract investments that jointly support fiscal sustainability, sustainable development, and long-term economic resilience by underscoring the economic benefits of nature.
Understanding the value of natural capital aids in assessing the economic viability of investments and enhancing ecosystem management. In the Cook Islands, the valuation of the benefits provided by the Muri Lagoon can guide investment decisions for proposed wastewater treatment plants. In the People’s Republic of China, efforts to estimate the value of the ecosystem services of the South Dongting Lake’s wetlands, a critical resource that supports tourism and livelihoods of millions, helped prioritize key interventions. Moreover, pilot ecosystem service accounts are being developed in many Asia Pacific countries such the Philippines, Armenia, and Sri Lanka to enhance watershed management planning.