Assess the true value of Australia's natural assets

This country's extraordinary natural assets are highly valued by Australians and visitors for their beauty, contribution to the health of society and positive impact on quality of life.

They also have a rich social, cultural and spiritual significance.

However, fewer people appreciate that the value of natural assets extends beyond these intrinsic features to directly benefit economic activity.

Rich soils are central to the agriculture sector, canopy cover helps with heat management, and natural assets such as sand dunes and beaches act as natural buffer zones, supporting resilience. These are just a few examples.

The significant economic value of Australia's natural assets is best demonstrated by the Great Barrier Reef. It contributed an estimated $6.4 billion to the national economy in 2015-16 and employed 64,000 people.99

The Great Barrier Reef is worth even more because it is an Australian economic, social and iconic asset. A 2017 report by Deloitte Access Economics estimated its value to this country at $56 billion.100

While individual valuation studies like this can be useful, integrated and standardised approaches that understand the relationship between the economy and the environment will inform more balanced decision-making.

The Australian Bureau of Statistics (ABS) is compiling various environmental-economic accounts annually to help quantify the contribution the natural environment makes to the Australian economy.101 The Australian Government and state and territory governments have agreed a strategy and action plan to build on the efforts of the ABS.102 This aims to integrate environmental and economic information into decision-making by developing a nationally consistent approach to environmental-economic accounting.

Beyond this, the Australian Government and state and territory governments should develop an inclusive and consistent approach to capturing and measuring the real value of Australia's significant natural assets, including natural Aboriginal and Torres Strait Islander locations that have outstanding heritage value to the nation.

The approach should incorporate social, economic, environmental and governance components.

This would allow different investment options to be evaluated in response to infrastructure challenges, including their contribution to quality of life, and consider nature-based interventions and solutions.

Governments could then prioritise options and identify the best overall outcome for their investment, helping to secure the future of Australia's natural assets.