2 April 2024. Michael Guerin, AgForce CEO
Australia is leading the way internationally with its embrace of the opportunities from a thorough understanding of our Natural Capital assets.
The latest survey from the respected ‘Investor Group on Climate Change’ (representing 63 superannuation funds and asset managers) shows this - with investor sentiment for Australia significantly improving since 2021.
The research found that investors in Australia see climate solution opportunities in areas such as biodiversity and Natural Capital in ways they don’t appreciate overseas. Natural Capital assets are primarily looked after by food and fibre producers and therein lies the opportunity for us.
So, whilst elsewhere it appears likely the EU’s nature restoration laws are on the verge of collapse as eight member states withdraw support for the legislation - the opportunity for Australian producers grows.
The EU’s stance provides a poignant example of why voluntary co-design and collaboration ultimately works better than regulation – but that is another story for another day.
The opportunities for Australia around Natural Capital are vast – with the value of those assets mostly residing on properties across Australia. If we ‘lean in’ and work hard with governments of all levels and other interest groups we can avoid the EU fiasco.
The challenge of course is keeping that value on property - so we can enjoy the economic, social and environmental benefits that this brings to us individually, as a community and to landscapes. Make no mistake, there are those who seek to move the worth of Natural Capital assets off farm.
Australia’s proposed ‘Nature Repair Bill’ (I hate the title) scares me, as whilst we are still to see the detail, it appears it will seek to regulate and remove natural capital value from individual landholders.
Of course I would promote AgCarE to do it, but whatever tool you use - a good first step in protecting the value of Natural Capital on your farm is to come to a full and verifiable assessment of what you have.
With that baseline understanding of the true value of your Natural Capital assets and its component parts - you can then plan to use and develop that for its true value.
This is a once in a generation opportunity – and I’m urging Australian producers not to miss it.