Call to Action: Integrating Natural Capital Accounting into Development Planning

Introduction to Natural Capital Accounting

BRIDGETOWN, Barbados, CMC – The Barbados-based Caribbean Development Bank (CDB) is calling for the stronger integration of natural capital accounting into development planning and policy to advance sustainable growth and resilience in the region.

CDB’s Acting Vice President for Finance and Corporate Services, Ian Durant, told a workshop on Ecosystem Accounting being hosted by the bank that the loss of natural assets, including among others forests, coral reefs and wetlands, is a slow-onset but existential threat to the Caribbean’s people, economies, and cultural heritage.

The Impact of Natural Capital Loss

“More than 70 percent of our population lives on the coast, and the ocean accounts for nearly 20 percent of our GDP (gross domestic product),” he told participants attending the workshop, which ends later on Tuesday.

“Yet, in the past four decades, we have lost up to 80 percent of our coral reefs. This is not just an environmental issue, it’s a matter of food security, economic opportunity, and national resilience,” Durant added.

Workshop on Ecosystem Accounting

The workshop, held in partnership with the Barbados government, the Blue Marine Foundation, and Economics for the Environment Consultancy, focuses on building national capacity in natural capital accounting to support marine spatial planning and sustainable resource management, particularly in Barbados.

The Need for Systemic Approaches

Durant said that while the impacts of climate change often dominate global discussions, the loss of natural capital, including vital ecosystems such as mangroves, reefs, and beaches, is a silent yet severe threat, particularly for Small Island Developing States (SIDS).

He called for systemic approaches to quantify, monitor, and incorporate environmental data into policy planning through globally recognized frameworks, such as the UN System of Environmental-Economic Accounting (SEEA).

Building National Statistical Systems

“It is not a matter of whether we should safeguard our natural capital, but how we will do so. That’s how it starts with building national statistical systems that can accurately measure and reflect the true value of our natural resources,” Durant said.

He acknowledged the ongoing challenges faced by Caribbean countries, including under-resourced statistical agencies, insufficient financing for data systems, and fragmented data governance.

Collaboration and Investment

In response, the CDB said it is working with its member countries to address structural gaps, enhance administrative data, and strengthen regional partnerships.

However, Durant said governments, development partners, and civil society must collaborate to invest in natural capital accounting.

He said now is the time to modernise national statistics systems, finance data-driven environmental governance, and mainstream ecosystem valuation into planning frameworks.

Conclusion

The integration of natural capital accounting into development planning and policy is crucial for the sustainable growth and resilience of the Caribbean region. It requires a collaborative effort from governments, development partners, and civil society to invest in natural capital accounting and build national statistical systems that can accurately measure and reflect the true value of natural resources.

Frequently Asked Questions

Q: What is natural capital accounting?

A: Natural capital accounting is a framework for measuring and managing the natural resources of a country or region, including forests, coral reefs, and wetlands.

Q: Why is natural capital accounting important for the Caribbean region?

A: Natural capital accounting is important for the Caribbean region because it helps to identify and manage the natural resources that are critical to the region’s economic and environmental sustainability.

Q: What are the challenges faced by Caribbean countries in implementing natural capital accounting?

A: Caribbean countries face challenges such as under-resourced statistical agencies, insufficient financing for data systems, and fragmented data governance in implementing natural capital accounting.