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HELM TALKS: Natural Capital Lecture 7

Dieter Helm's lecture series on Natural Capital

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HELM TALKS: Natural Capital Lecture 7

  1. 1. 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
  2. 2. 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
  3. 3. DEALING WITH HARM • The 300,000 houses per annum • HS2, Heathrow and big infrastructure • Local damage for local projects
  4. 4. 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
  5. 5. CALCULATING HARM • The CBA approach • The systems approach • The renewables approach and damage/ benefits in perpetuity
  6. 6. 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
  7. 7. 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
  8. 8. 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