Advancing Natural Capital Assessment and Accounting in European Mountain Regions : literature review and implications for sustainability

Abstract

Natural capital refers to the stock of natural assets (such as water and biodiversity) that yield a flow

of ecosystem services, which underpin benefits to human well-being. However, many of them are

undervalued or excluded from traditional economic systems. Assessing and accounting for natural

capital and ecosystem services is therefore fundamental for integrating ecological, economic, and

social dimensions into sustainable management and decision-making.

In the case of mountain natural capital, valuation is further complicated by the unique, complex

dynamics of mountain regions, as well as by the limited availability of high-quality data. For these

reasons, mountain natural capital is under-researched, despite its critical role in providing essential

services to people and its increasing vulnerability to climate change and land-use change, among

other drivers.

Natural capital accounting provides structured information on the flow and value of natural assets

and the services they generate, shaped by the extent and condition of ecosystems. However, there

are various approaches to this framework that can be applied at different scales (e.g., national,

subnational, and corporate accounts), meaning the methodology remains unstandardised.

In this context, we present a review of the state-of-the-art and future directions in natural capital

assessment, accounting, and research, particularly in mountain regions, which also consider the

effects of global change drivers. This study is based on bibliographic research and consultations with

international experts.

By providing this information, we offer a broader perspective for supporting environmental

decision-making, both within and beyond mountain regions, along with recommendations for

practitioners to improve the implementation of natural capital assessment and accounting across

different contexts. This is especially relevant in sustainability projects that seek to maintain the

functionality of mountain social-ecological systems in an integrated manner and ultimately enhance

their resilience and adaptive capacity in order to address current challenges and vulnerabilities

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