What does "natural capital" refer to?

Natural capital refers to the world's stocks of natural assets, which encompass a variety of elements including geology, soil, air, water, and all living organisms. This concept recognizes that nature provides essential resources and services that are vital for human survival and economic activity. It emphasizes the importance of ecosystems and biodiversity in maintaining ecological balances and supporting life.

Understanding natural capital is crucial for sustainable development, as it highlights how resources can be used both for economic gain and for preserving the environment. By valuing natural capital, policymakers and individuals are encouraged to consider the long-term benefits of sustainability rather than focusing solely on short-term profits.

The other choices narrow the perspective on natural capital incorrectly. While financial value may play a role in discussions about resources, it does not encompass the full scope of what natural capital represents. Similarly, limiting the definition to renewable resources ignores the critical role that non-renewable resources and broader ecosystems play in our planet's health and our economies. Additionally, focusing solely on the impact of human activity misses the essence of natural capital as a vital asset that contributes to human welfare, rather than just its degradation.