Natural capital is managed sustainably by controlling resource use so that stocks remain available and continue producing natural income over the long term. This requires limiting extraction, protecting ecosystems, reducing demand and pollution, restoring degraded systems, and involving affected stakeholders.
Level: SL and HL core, Subtopic 7.1. Detailed management and intervention strategies, including environmental impact assessments, receive additional treatment at HL.
Natural capital is the stock of natural resources, such as forests, soils, fisheries and freshwater. Natural income is the flow of goods and ecosystem services supplied by that stock, such as timber, food, water purification and carbon storage.
Sustainable management keeps resource extraction within regeneration rates and prevents waste inputs from exceeding an ecosystem's capacity to absorb or transform them. It also protects biodiversity and storage size, which increase system resilience and reduce the risk of crossing a tipping point.
| Management approach | How it supports sustainability |
|---|---|
| Demand reduction | Efficiency, conservation and changing consumption reduce pressure on natural capital. |
| Regulation | Quotas, protected areas, seasonal restrictions and pollution limits control exploitation. |
| Economic measures | Taxes, subsidies and payments for ecosystem services alter incentives. |
| Restoration | Reforestation, soil regeneration and habitat restoration rebuild depleted stocks. |
| Monitoring and governance | Scientific data, citizen participation and enforcement allow strategies to be adjusted. |
Costa Rica's payments for ecosystem services programme provides a named example: landowners receive incentives to conserve or restore forests, supporting biodiversity, carbon storage and water regulation. However, management must also address environmental justice by considering who receives benefits, who bears costs and whether local or Indigenous communities participate in decisions.
A common misconception is that a renewable resource is automatically sustainable. It is sustainable only when its extraction, processing and consumption do not deplete the stock or cause unacceptable environmental and social impacts.
Exam technique: For an explain question, link each strategy to how it maintains natural capital or natural income. For evaluate, balance effectiveness against costs, enforcement problems and stakeholder conflicts, then reach a supported conclusion using a named example.
