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:
- 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.
- 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.
- 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.
FAQ's
Natural capital (NC) refers to the natural resources — like plants, animals, air, water, soil, and minerals, that provide valuable benefits to people. These benefits, often called ecosystem services, include things like clean water, fertile soil, and biodiversity.
Natural capital accounting (NCA) is a method for measuring and reporting on natural resources—their size, quality, and the benefits they provide. This framework combines economic and environmental data to track changes in ecosystems and understand their impact on people’s well-being and the economy.
Natural capital production landscape (NCPL) refers to a large area (e.g. regional scale) that integrates primary production (such as farming, forestry, and fisheries) with the sustainable management of nature.
Natural Asset Companies (NACs) are companies that are based on natural capital and use natural capital accounting to define and describe their works/achievements. (For a more detailed definition, please click here).
Combining natural capital with agricultural practices can result in diversified returns and reduced risks, representing a new kind of equity.
Collaboration is key to achieving the best outcomes.
Natural Capital Production Landscapes depend on buy in and support from communities, growers, and investors. Investors want regional/catchment scale, project based, tangible outcomes which requires collaboration across communities.
For a case study on a community-led project involving natural capital, check out the Hay Strategy Paper.
Our research highlights the potential of Natural Asset Companies (NACs) to create a viable investment framework in production landscapes by integrating natural capital into agricultural systems. Natural Capital Production Landscapes need to appeal to communities, growers, and investors. This can be achieved by appropriate regulatory and incentive mechanisms to facilitate, develop, and upscale Natural Asset Companies.
News
UWA to host educational workshops on natural capital production landscape opportunities
UWA are hosting educational workshops to share insights on natural capital production landscape opportunities. These sessions will delve into the potential of a Natural Asset Company equity structure to drive significant changes in Western Australia. Mark your calendars the following dates:
Upcoming workshops
- Online, 5 December, ASHEEP & BEEF (Register)
Past workshops
- Gascoyne Junction, 11 September, Southern Rangelands Pastoral Alliance field day.
- Albany, 11 and 12 September, Stirlings to Coast Farmers field day.
- Northam, 18 September, Wheatbelt NRM.
- Online, 24 September, NRM Regions Australia – Carbon and E-markets Community of Practice.
- Manjimup, 26 September, Southern Forests Food Council.
- ECU Rylington Park, Boyup Brook, 23 October, South-West NRM.
- Online, 21 November, Facey Group (Watch recording)
October 2024
Hub Regional Node hosts workshop to help producers prepare for drought
On 23 October, South-West NRM, a regional Node of the SW WA Hub, hosted a ‘Preparing for Drought’ workshop at Rylington Park in Boyup Brook. The event brought together experts and organisations dedicated to building drought resilience.
The program included a drought and desalination case study by DPIRD’s Richard George, and a presentation on natural capital in agriculture by Tom Picton-Warlow from the Barriers and opportunities for agricultural natural capital as an asset class project team.
“It was great to hear from Tom on the emerging opportunities for farmers through natural capital investment,” said Hub Project Manager KJ Pritchard. “This approach can help build drought resilience, reduce business variability, and offer diversified revenue streams and equity.”
This natural capital project is one of six transformational initiatives launched this year by the SW WA Hub with funding from the Future Drought Fund. The University of Western Australia leads the project in partnership with ECU, Mobile Global, and Yaraguia Enterprises.
Tina Astbury and Franco Renteria from Facey Group facilitated a session on confinement feeding and deferred grazing, while Michael Wright from Rhodes Pastoral shared strategies for enhancing on-farm drought resilience through sound water management. Additionally, Dr Mary Hanson from ECU discussed how big data can support farmers by providing insights on biosecurity risks, nutrition, and other factors critical in a changing climate.
Additional resources
- Media release: Helping growers see natural capital as an asset class – University of Western Australia
Collaborators
Project team
Contact
Thomas Picton-Warlow
Managing Director, MobileGlobal Pty Ltd
tom@picton-warlow.com
0407 559 818
Lucy Tomassini
Project Manager, South-West WA Drought Resilience Adoption and Innovation Hub
lucy.tomassini@gga.org.au