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Technical Note: Natural Capital

Increase natural capital

DESCRIPTION:

Natural capital is the environmental resources (e.g. plants, animals, air, water, soils) that combine to yield a flow of benefits to people. When the Natural Capital Asset Index (NCAI) was launched in 2011, Scotland became the first country in the world to publish such a detailed attempt to monitor annual changes in its natural capital. It was reviewed by experts in 2014, and has since been revised. The NCAI is a work in progress and efforts will continue to refine its methodology and data.

SOURCE:

The NCAI monitors the quality and quantity of terrestrial habitats in Scotland, according to their potential to deliver ecosystem services now and into the future. It is a composite index, based (i.e. equal to 100) in the year 2000. The latest NCAI publication can be found here: http://www.snh.gov.uk/planning-and-development/economic-value/

An evaluation of the NCAI was conducted by experts from the James Hutton Institute (JHI) in 2014 which identified issues with some of the 100 indicators included in the index as well as the methodology used to calculate the NCAI. The full report of the evaluation, which includes a detailed section on the methodology that was used to calculate the index, can be found here: http://www.snh.org.uk/pdfs/publications/commissioned_reports/751.pdf.

SNH have since taken steps to revise the methodology used to calculate the NCAI. The European Nature Information System (EUNIS) land cover classification is now used, while previous versions of the index used the Broad Habitat classifications. The following Scottish habitats are included in the NCAI:

  • Coastal
  • Inland surface waters
  • Raised and blanket bogs
  • Grasslands
  • Heathland
  • Woodland and forest
  • Unvegetated or sparsely vegetated
  • Cultivated agricultural
  • Montane
  • Artificial habitats

The first stage of the NCAI’s revised methodology involves an evaluation of each habitat’s potential, if in good condition, to deliver the range of ecosystem services for Scotland. Each ecosystem service is also assessed to estimate its relative contribution to human well-being.

The second stage involves the use of a number of indicators to monitor change in the quality of our habitats (in terms of ability to deliver ecosystem services). An ‘ideal’ indicator is available since at least 2000, is updated regularly and is correlated with natural capital. However, in some instances data availability has been limited and imperfect proxies have been used.

http://www.snh.gov.uk/planning-and-development/economic-value/

DEFINITIONS:

Natural capital: the environmental resources (e.g. plants, animals, air, water, soils) that combine to yield a flow of benefits to people.

The 2015 NCAI includes an updated classification for ecosystem services1 and habitats2, which improves the validity of the NCAI and is standardised with other work in Scotland and Europe.

1 The Common International Classification of Ecosystem Services v4.3.

2 European Nature Information System (EUNIS). See SNH CR766 for more detail.

BASELINE AND PAST TRENDS:

The baseline year is 2006, as this is the last data point before the start of the first term of the current administration. The baseline figure is 101.4 index points.

Year

Natural Capital Asset Index (2000=100)

2000

100.0

2001

100.2

2002

100.5

2003

100.8

2004

101.0

2005

101.3

2006

101.4

2007

101.3

2008

101.1

2009

101.7

2010

100.1

2011

99.6

2012

99.3

2013

99.5

2014

100.0

2015

100.9

CRITERIA FOR RECENT CHANGE ARROW:

This evaluation is based on comparing the most recent index value to the index value from three years previous. Any difference within 2 percentage points suggests that the position is more likely to be maintaining than showing any change. An increase of 2 percentage points or more suggests the position is improving; whereas a decrease of 2 percentage points or more suggests the position is worsening.

For information on general methodological approach, please click here.

FUTURE ISSUES OR REVIEWS:

The NCAI will continue to be developed, with the next data collection update due in March 2018.

ASSOCIATED TARGET:

No associated target.