Investing in natural capital Flashcards
Define human capital.
The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
Define natural capital.
The world’s / a country’s stocks of natural assets which include geology, soil, air, water and all living things.
Name 3 sectors that revolve around natural capital.
- Agriculture
- Forestry
- Fisheries
Name the 3 main challenges to the agricultural sector when transitioning to IGE.
- Growing global population puts pressure on ecosystems / farmers to increase output
- CC and extreme weather threaten food security
- Current methods are major GHG emitters
There is a decreasing global trend for the demand of organic food / drink.
True or false?
False: there is an increasing demand globally for organic produce
Why is there a growing demand for organic produce?
Due to a growing middle class, especially in emerging markets
Why is the growing demand for organic produce good for LDCs?
Farmers can enter the market and seize price premiums on exports of certified produce
What will climate-smart agriculture help us to do?
Mitigate the environmental externalities (e.g. GHG emissions) while providing income for farmers and nutritious food for consumers
What 4 things do we need to do to have climate-smart agriculture?
- Expand the evidence base so policymakers know the current / projected impacts of CC
- Improve policy through mutli-sectoral approach
- Support / empower local institutions (capacity building)
- Targeted finance
What are the 3 key policy instruments to help green the agricultural sector?
- Regulation
- Economic incentives
- Capacity building
Give 2 examples of regulation in the agricultural sector.
Securing land tenure
Developing standards for organic products
Give an example of regulation in the agricultural sector and its effect.
The East African Organic Products Standard
Has allowed organisations to support small-scale organic producers access new markets
Give 2 examples of economic incentive in the agricultural sector.
Elimination of harmful subsidies
Taxes on pesticides / herbicides
Give an example of economic incentive in the agricultural sector.
Vietnam, 2010
Passed its first law on environmental tax. Introduced taxes on gasoline, coal, plastic bags, pesticides and other products.
A capacity building initiative was established for farmers in sub-Saharan Africa.
What happened?
Farmers were trained on new storage methods.
Once trained, they could opt into buying an air-tight silo (heavily subsidised).
They were willing participants, not beneficiaries.
A capacity building initiative was established for farmers in sub-Saharan Africa.
Why was this introduced?
Farmers in sub-Saharan Africa lose up to 40% of their crop through damp, insects and moulds.
Aflatoxin mould is a leading cause of cancer.
A capacity building initiative was established for farmers in sub-Saharan Africa.
What were the 4 effects?
- Families were healthier (not eating infected grain)
- Gave a reliable source of income (could store food to sell throughout the year)
- Made them more money (could store until price went up and then sell)
- Extra income allowed them to diversify their product
How effective were the silos in preventing crop loss in sub-Saharan Africa?
Before the silos, farmers lost 40% of their crop.
This was reduced to 2% with the silos.
Food waste is an enormous problem. At which stages of its lifecycle is food wasted?
All of them:
Agriculture, processing, retail and households
At which stage of its lifecycle is most food wasted?
At households
What are the competing land uses that affect forestry?
Agriculture and urban expansion
There is little incentive to private companies / policymakers to protect forests.
Give 2 reasons why.
- Ecosystem services are not valued by markets
- The adverse effects of clearing are not factored in
Basically, all that is thought of are the profits, not what is lost.