ICaN Valuation Tool
Introduction
Our local green and blue spaces, our parks, recreation grounds, commons, woodlands and forests, rivers, ponds, lakes, and waterways, all make a major contribution to addressing climate change and supporting healthier and happier lives. They cool and clean the air, capture carbon, slow down and absorb storm water run-off, and provide a home for wildlife. These benefits are called ecosystem services and the process of recognising their economic value is referred to as Natural Capital Accounting (NCA).
Natural Capital Accounting
Over the past 30 years, NCA has become an internationally recognised framework. In the UK, the National Ecosystem Assessment (UKNEA) was introduced in 2011 to help halt the decline of natural capital with working groups set up to develop natural capital accounts. The UK Government now considers NCA a key tool for measuring economic progress.
As climate challenges intensify, the sustainability of ecosystem services depends on preserving biodiversity. This requires maintaining and enhancing the habitats that biodiversity depends upon through actions like tree planting, woodland management, river restoration, and supporting pollinators.
Ecosystem Services
ICaN’s green space improvement projects aim to boost biodiversity and ecosystem service delivery. Using NCA principles, the ICaN Valuation Tool calculates the economic value of green spaces by assessing seven categories:
- Climate Regulation
- Flood Regulation
- Air Pollution Removal
- Biodiversity
- Recreation
- Physical Health
- Mental Health
Methodology
At the start of each project, a baseline valuation of the existing habitats the site provides is created. Proposed improvements—such as adding new habitat types or enhancing existing ones—are then assessed for their impact on ecosystem services and community value.
Example Scenario: An improvement plan includes the planting of 30 large blossom trees, along a busy shared footpath and cycleway. The new trees regulate the temperature throughout the seasons, capture carbon, clean the air, encourage cycling, walking, and healthy lifestyles, and reduce car dependency. The increased tree canopy cover slows stormwater runoff, protecting properties by reducing flooding, and protecting rivers by easing pressure on Combined Sewer Outflows. The blossom is a food source for pollinators helping food production and the habitat the trees provide further supports biodiversity. The new trees make the space more beautiful and nature rich encouraging more visits and better meeting the heath, wellbeing and recreational needs of the surrounding community.
The simple scenario described above, demonstrates how an improvement to one habitat type can create substantial uplift in the value of different ecosystem services provided by a space. Since ICaN projects are designed to last at least 15 years, the annual uplift in ecosystem service value is profiled over this time period to calculate long-term economic return on investment.
The ICaN Natural Capital Valuation Tool, developed with Eunomia Research & Consulting, uses DEFRA-approved datasets and Eunomia’s extensive expertise in applying NCA across diverse environments.