Barriers and opportunities for agricultural natural capital as an asset class

Project lead: The University of Western Australia (UWA)

Project overview

This project will prepare Western Australia for the paradigm shift in natural resource management in agricultural systems by understanding the potential of “Natural Capital” production landscapes as an asset class.

Insights gained from this project will help industry to make informed decisions around Natural Capital. This will be achieved through the project’s education component, which will aim to summarise and disseminate key information available at the time of engagement. Greater information accessibility will allow stakeholders, including grower groups, communities, Aboriginal organisations, and investors, to participate in emerging opportunities leveraging ecosystem services within regional production landscapes.

The project will engage with key stakeholders to establish a baseline understanding of attitudes towards productive natural capital and nature as an asset. This will include the identification of knowledge gaps, perceptions of risk, perceptions towards nature repair, and probability of integrating natural capital into their farming businesses and collaboration as a group. This will indicate the potential of a Natural Asset equity structure within a production landscape.

By better understanding the complexities of Natural Capital production landscapes as a productive asset class, Western Australia can become a blueprint for productive futures for agricultural communities. This will include fostering sustainable practices, empowering stakeholders, and contributing to a resilient, inclusive model.

Expected outcomes

The project team expects to achieve the following outcomes:

1. Desktop reviews and primary data collection will identify the current state of knowledge, perceived benefits and barriers among farmers and other stakeholders regarding the use of Natural Capital production landscapes and natural asset companies to conserve environmental values, build resilience and potentially capitalise on the nature that they support through their enterprises.
2. Two project reports will be produced:
   • Natural Capital – Education. This report will summarise the current state of knowledge globally, in Australia and in WA regarding Natural Capital as an asset class. It will provide an overview of current and future policy instruments and market interest that are relevant for WA stakeholders.
   • Natural Capital – Future Policy, Markets, and Impact. This report will document what stakeholders consider to be the probability of integrating natural capital into their farming businesses and collaboration as a group, knowledge gaps, perceptions of risk and perceptions towards nature repair.
3. Findings from the project and reports will help policy-makers understand the expectations among stakeholders, which will inform the definition of more effective, user-focused strategies.

This project is supported by the South-West WA Drought Resilience Adoption and Innovation Hub, through funding from the Australian Government’s Future Drought Fund.