Dieter Helm's lecture series on Natural Capital

2. QUESTIONS
Leaving a better environment for the next generation
Dealing with harm
Deciding what we can harm
Calculating harm
Identifying the gain
The locational problem and the 25 year plan

3. ENHANCING NATURAL CAPITAL
• The aggregate natural capital rule and renewables
• The compensation principle
• Thresholds and safe limits – why risk aversion requires a net gain
State of Natural Capital Second Report

4. DEALING WITH HARM
• The 300,000 houses per annum
• HS2, Heathrow and big infrastructure
• Local damage for local projects

5. DECIDING WHAT WE
CAN HARM
• Top down; the national ecosystem
assessments and the 25 year plan
• The mitigation in planning for
biodiversity
• Estimating the harm for different
options and locations on a systems
basis
• Taking account of renewable natural
capital, thresholds and safe limits
25 Year Environment Plan
1
A Green Future: Our 25 Year Plan to
Improve the Environment

6. CALCULATING HARM
• The CBA approach
• The systems approach
• The renewables approach and damage/ benefits in perpetuity

7. PERVERSE INCENTIVES
• Less to pay - the worse the asset
• Trashing land to minimise net gain payments to maximise capital
value of land to developers
• No incentive to improve Green Belt natural capital

8. WHO GETS THE MONEY AND MAKES
THE OFFSETTING GAINS?
• The local solution to local problems
• Catchment gains
• National projects and the national Nature Fund proposal
• Bonds or credible commitments

9. SUMMARY
• Net gain required if aggregate natural capital is to be protected and
enhanced
• How will it be done so that compensation or not is the choice
• Worry about perverse incentives
• Capture the money to service greatest environmental benefits

10. BOOKS
WWW.DIETERHELM.CO.UK