Reaffirming the value of natural capital
Bern, 20.04.2013 - Natural capital is a relevant factor in economic decision-making and plays a decisive role in, for example, the development of tourist destinations or natural flood protection. At the World Bank Spring Meeting on 18-21 April in Washington DC, Federal Councillor Johann N. Schneider-Ammann signed two agreements in support of natural capital accounting in developing countries, each to the value of USD 2.5 million.
For many years, and especially in developing countries, too little attention has been given to natural resources (water, forests, air, minerals, etc.). Vast stretches of forest are still being cleared in many countries without thorough consideration of the possible impact in terms of soil erosion, water levels or climate change. It is important, however, to take natural capital into account so as to ensure sustainable development and improved living conditions.
Therefore, within the framework of economic cooperation and development, SECO is sup-porting two complementary initiatives of the World Bank and the International Finance Corpo-ration (IFC) over a three-year period. The focus is on recognising the value of natural re-sources and taking this into account in both public-sector and private-sector decisions.
The World Bank project helps governments in developing countries to analyse and better as-sess the impact of economic-policy measures on their country's natural capital. This should create the framework conditions and economic incentives for private businesses to also in-clude the sustainability of natural resources in their management decisions. Through a sec-ond, complementary project, the IFC, the World Bank's private sector lending arm, will help companies in key economic sectors of Vietnam and Colombia to devise methods to evaluate the natural capital of relevance to them and to use these resources in an efficient and sus-tainable manner.
The merit of this approach lies in its support for a country's public and private sectors at the same time and in close cooperation.
Address for enquiries
State Secretariat for Economic Affairs SECO
Holzikofenweg 36
CH-3003 Bern
Tel. +41 58 462 56 56
medien@seco.admin.ch
Publisher
State Secretariat for Economic Affairs
http://www.seco.admin.ch
