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Investing in Natural Capital Creating the Right Environment for Economic Investment

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Investing in Natural Capital Creating the Right Environment for Economic Investment HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 2 Investing in Natural Capital Creating the right environment for economic investment June 2017 HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 3 2 Picture: Flying Knot Industry and nature in harmony in one of Europe’s great estuaries HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 4 3 Contents Executive Summary .......................................................................................... 4 1 Introducing natural capital ............................................................... 6 2 The economic value of the Humber’s natural capital .................... 7 Theme 1 - Flood risk management: Protecting life and .................. 9 property through investment in natural capital Theme 2 - Ports and Shipping: The role of Spurn National .......... 10 Nature Reserve in protecting the shipping lanes of the Humber Theme 3 - Health and wellbeing: The value of the natural ........... 11 environment to human health Theme 4 - Property values: The critical role of the natural ...........11 environment in supporting property asset values Theme 5 - Nature Tourism: Building the nature tourism ...............12 economy Theme 6 - Towards a low carbon future: Carbon storage in ........13 the Humber estuary 3 A natural capital vision for the Humber ........................................ 14 4 Achieving industry and nature in harmony .................................. 17 4.1 Investing in natural capital alongside economic ................... 17 development 4.2 Investing in natural capital alongside flood risk .................... 18 management 4.3 Investing in natural capital alongside developing the ........... 20 tourist economy 4.4 Investing in natural capital alongside access and ................. 22 soft transport 5 About Humber Nature Partnership ................................................ 23 Port of Hull cover image courtesy of ABP/Karl Andre Photograpy HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 5 4 Executive Summary The waters of the Humber Estuary Capital investment and great opportunities for exercise and create a dynamic landscape. Its maintenance costs make the recreation. A first class attraction lies in a constantly prospect of an impregnable flood environment will help to attract changing appearance and mood barrier for the whole estuary and hold on to first class due to the tide, changing coastal uneconomic. Working with the entrepreneurs, improve property weather and human activity. The environment can alleviate some of values and attract a healthy and hinterlands of the estuary have a these costs. For example by taking willing work force. rich cultural heritage and a sense advantage of the coastal habitats of remoteness and peace close to which reduce wave energy allowing The internationally important major urban areas that have grown smaller, cheaper defences. We have habitats and the hundreds of around the Estuary. Wildlife of to tackle climate change and thousands of birds and other wild international importance, nature working with the environment will creatures that depend on them are reserves, country parks and major help us to achieve this at least cost. an economic asset in their own visitor attractions are significant right. Nature tourism is one of the destinations and sites of particular The Humber ports, together some fastest growing sectors in the UK. interest for visitors. The estuary is of the most important trading Locally, it is worth about £9 million a unifying presence: a special infrastructure in the UK were not a year, benefitting some of the resource for access and enjoyment located here by luck. They are hardest to reach sections of our and has a significant potential taking advantage of the unique communities, but this income could value to the area, to the wellbeing topographical environment of the readily be doubled with the right and health of the people who live estuary. The estuary’s shape offers investment. in and around the estuary, for calm waters and safe haven. Spurn recreation and critically as the peninsula protects the estuary This document illustrates why bedrock of the local economy from the worst of the North Sea investment in natural capital is a based on its ports, industry, storms. It ensures the deep water critical part of any attempt to agriculture and settlements. channel, so vital to the ports, is improve the prosperity and quality maintained only by moderate of life of the Humber’s communities The flat lands of much of the dredging. We shouldn’t take these and also to meet the challenges of estuary hinterland are perfect for assets for granted. climate change. It sets out a series development, however, as with of themes where natural capital many other low lying areas of the Whilst jobs and prosperity are a currently supports the Humber’s country, they are prone to flooding. priority, a happy, healthy work economy and highlights Events such as those of the 5th force is also a huge investment opportunities where natural capital December 2013 have shown that draw. Access to green space, to can be enhanced to ensure the we simply can’t afford to build our fresh air and to wild places is future economic potential of the way out of the predicament. proven to lift the spirits and offer Humber. ? HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 6 5 In order to secure this future potential Humber Nature Partnership calls on strategists, planners and decisions makers with the ability to deliver change around the Humber to work together to: 1 Create a single inclusive, all-encompassing vision for the Humber which addresses the needs for • Sustainable economic growth • Social well-being and community cohesion • Well-managed natural capital 2 Rebuild the image of the Humber as a 21st century landscape, where fully integrated, multi- purpose planning provides the best environmental settings and the right skills and services to attract high quality investment. 3 Invest directly in natural capital projects to maximise the value of these overlooked resources to the economic prosperity of the region and for the benefit of all. Curlew HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 7 1. Introducing Natural Capital Natural capital is defined by the Government’s Natural Natural capital underpins our economy in exactly the 6 Capital Committee1 as: same way that financial and human capital is required to enable economic activity. Increasingly, economists “Those elements of nature which either are beginning to understand the value of natural directly provide benefits or underpin capital in sustaining prosperous economies, while also understanding the risks of degrading natural capital. human wellbeing." For example, Mark Carney, Governor of the Bank of England2, noted that the insurance costs for extreme The term natural capital therefore embraces the more weather events had already increased five-fold since immediately obvious assets associated with land the 1980s and these are now factored into insurance (such as woodlands, fields and urban parks), the premiums. In 2011 the Government committed to water environment (for example, rivers, lakes, working with Office for National Statistics to groundwater and seas) and the atmosphere (for incorporate natural capital into the UK Environmental example, clean air and an equable climate). However, Accounts by 2020 so that the benefits of nature would natural capital also includes the myriad processes be better recognised3. which underpin and generate the services which the natural environment provides (for example, the water cycle, soil fertility processes and atmospheric gas exchange). Therefore, natural capital comprises, quite literally, a wealth of component parts; parts whose sum underpins not only all economic activity but life on earth itself. If properly measured and managed, the living aspects of natural capital, at least, can continue to provide these (ecosystem) services and benefits indefinitely. Whilst some of the benefits can be measured and are clear to see (for example, timber has a market price), others are difficult to quantify and are often invisible in our day to day lives. This often results in natural capital not being properly accounted for in decisions about what to produce and consume; the risk being that we fail to manage it sustainably. In many cases, we are only just beginning to gain the level of understanding necessary to measure the enormous economic value of our natural capital. Natural Capital Committee (2013) The State of Natural Capital. HM Government. 1 www.bankofengland.co.uk/publications/Pages/speeches/2015/844.aspx 2 The Natural Choice: securing the value of nature. HM Government White Paper (2011) 3 HNP proof 2.qxp_Layout 1 25/05/2017 14:37 Page 8 2. The economic value of the Humber’s natural capital 7 The Humber is an extraordinary region – one that is Humber Strategic Economic Plan still teeming with wildlife yet also has the potential to “The Humber has a rich ecosystem. Green and blue power the economy of the Northern Powerhouse. That infrastructure should be promoted to support wider the region is exceptionally vulnerable to flooding economic development objectives. This includes the serves to emphasise the importance of sustaining the role of green and blue infrastructure in providing natural flood defence function of the natural system. tourism assets, enhancing land and property values Natural capital sustains primary production as well as and supporting job creation and health and well- fundamentally important parts of the economy such being.
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