For an economy to “grow green”, investments must be made in natural capital. Natural capital provides both “direct” ecosystem services such as the provision of food and raw materials, and “indirect” ecosystem services such as carbon sequestration, watershed protection, aquifer recharge and biodiversity habitat provision. Ecosystem services support human economies and societies. They are usually irreplaceable, or can only be substituted for at great cost. The savings achieved by protecting natural capital can provide convincing economic, in addition to the well-known environmental arguments, for sound environmental management. Incentives for sustainable management of ecosystems through payments for ecosystem services (PES) can boost action on sound ecosystem management.
In green economies, natural capital is incorporated into measurement of societal progress and equity, and recognized and managed as a fundamental pillar of economic and human well-being.
In 2013, following the UNEP Governing Council Decision and with the support of the government of China, UNEP began work to share the South’s various experiences and national-level initiatives for transitioning to sustainable and socially inclusive economies.
"Ecosystem services" has become a catch-phrase for the complex connections between the natural environment and human well-being. This paper considers the impact of changes in the supply of ecosystem services, and programs to increase their supply, on near-term growth of gross domestic product.