Natural Capital: our reflections on WEET’s conference on natural capital in England, 15 July 2025

On 15 July 2025, the Westminster Energy, Environment & Transport Forum (WEET) hosted a conference discussing the topic of natural capital in England, providing a timely overview of the evolving legal and policy landscapes in this area. The event emphasised both the progress made to date and the challenges that lie ahead in embedding natural capital into decision-making frameworks.

This article summarises the seven key concepts discussed in the seminar by the speakers, who included policymakers, academics, land managers, and legal practitioners (notably, Cathryn Tracey, Partner in our Planning and Compulsory Purchase team). 

 What is Natural Capital?

Natural capital refers to the stock of natural resources and ecosystems (such as forests, oceans, rivers, soil, and biodiversity) that provide us with essential goods and services (such as clean air, climate regulation, recreational spaces, and flood protection). Understanding natural capital involves recognising that these resources and ecosystems are assets that support the economy, much like physical or financial capital. 

 Concept 1: Natural Capital as an Integrated System

It was suggested that natural capital should be understood as an integrated, symbiotic human/natural system, whereby human economic activities (notably, production and consumption) both depend upon and impact natural resources. This challenges the traditional economic model that treats nature as external to the economy. 

 Concept 2: Land Use Framework and Policy Coherence

Land is a critical resource for delivering major policy targets, and therefore a 'land lens' for nature restoration policies could be more effective than England's current 'sectoral lens', which silos policies. As land is a finite resource under pressure from competing demands (such as housing, energy, food, and nature), a coherent land use framework was suggested which could be place-based and multi-functional to integrate policies across sectors and avoid conflicting objectives. 

 Concept 3: Farmer-Centric Sustainability

Farmers' support can be key to optimising natural capital, and that, to engage farmers, policymakers and land managers, profitability, practical guidance, and simplification of the process were important considerations. A “measure, improve, reward” model was proposed, to link environmental outcomes with financial incentives.

Concept 4: Natural Capital as Critical Infrastructure

It was discussed that natural capital is a form of critical infrastructure essential for economic resilience (akin to traditional infrastructure such as roads and power grids). Natural capital is not yet formally recognised as part of the UK’s critical infrastructure, therefore a Strategic Nature Network and dedicated investment fund was proposed to support nature recovery.

Concept 5: Biodiversity Net Gain (BNG) and Planning Reform

The impact of the Planning and Infrastructure Bill (the “Bill”) on BNG was discussed. The Bill proposes Environmental Delivery Plans and a Nature Restoration Levy to streamline development. However, it was noted that this could impact existing BNG markets, reduce environmental protections, and place significant responsibilities on Natural England.

 Concept 6: Technology and Data for Natural Capital Monitoring

It was noted how satellite data and AI can support land use monitoring, pollution tracking, and natural capital restoration planning. It was discussed that technology can have a significant role in cross-disciplinary collaboration, particularly as accessible, actionable insights are important for stakeholders.

Concept 7: Local Government Implementation Challenges

The practical challenges that local authorities face in implementing BNG and habitat banking were noted. Operationally, only 41% of district councils have in-house ecologists, and local authorities can face the dual pressures of enabling development and delivering nature recovery. It was acknowledged that successful implementation of the BNG regime requires investment in staff, training, and monitoring tools.

The challenges for ensuring natural capital is embedded in decision-making while not preventing development are many but it is clear that the importance of natural capital is on the agenda and here to stay

This article was written by Charlotte Cocker (Trainee Solicitor) and Cathryn Tracey (Partner).  If you have any queries on natural capital or BNG specifically, please contact Cathryn ([email protected] )