Human economies are made possible through natural capital – stocks of land, fresh water, oceans, biodiversity and soils, among others. Farming isn’t possible without soil or water. Manufacturing isn’t possible without raw materials to convert into products. Service industries aren’t possible without reliable food.

This may seem like stating the obvious. But what’s obvious isn’t always acted upon. At last week’s high-profile Economic Reform Roundtable, natural capital was conspicuously absent. At the table were bankers, unionists, housing experts and business groups – but only one environmental advocate, former treasury secretary Ken Henry.

The government’s goals were to make the economy more productive and resilient and the budget more sustainable. The health of our natural capital underpins all of these.

This missed opportunity is symptomatic of a wider challenge. The very real risks we face if natural capital degrades are mostly ignored, virtually unmonitored and not part of mainstream economic discussions. Small wonder environment groups launched their own alternative roundtable to make the economic case for nature.

In the mid-20th century, economists and policymakers commonly assumed nature had no limits. By the end of the century, it was abundantly clear this wasn’t true. In the 21st century, this view is patently absurd. Nature has hard limits. Water can be used up. Fisheries can be fished out. Pollinators can die out. The environment and the economy are not separate – one enables the other.

Other countries have moved faster in recognising how fundamental natural capital is to a thriving economy. The United Kingdom’s 2021

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