luonnonpääoman

Luonnonpääoman, a Finnish term, translates to natural capital. It refers to the world's stock of natural assets, which includes geology, air, water, and all living organisms. These assets provide essential ecosystem services that support human life and economic activity. Examples of natural capital include forests, which provide timber and regulate climate, and oceans, which supply fish and absorb carbon dioxide.

The concept of natural capital highlights the idea that natural resources are not merely free inputs but represent a valuable asset that can be depleted or enhanced. Managing natural capital sustainably is crucial for long-term economic prosperity and environmental well-being. Degradation of natural capital, such as deforestation or pollution, can lead to reduced ecosystem services and significant economic and social costs.

Economists and environmentalists increasingly emphasize the importance of accounting for natural capital in economic decision-making. This involves valuing ecosystem services and integrating these values into national accounts and business strategies. By recognizing natural capital as a fundamental component of wealth, societies can make more informed choices about resource use and conservation, aiming for a balance between economic development and environmental sustainability. The principle encourages a shift from viewing nature solely as a source of raw materials to understanding its intrinsic value and the vital role it plays in sustaining life.