Private markets & real assetsForesight Group LLP
Flood Resilience Starts Upstream: Natural Capital as Essential Infrastructure
United Kingdom
Our summary
Natural capital should be treated as essential climate-adaptation infrastructure that complements, rather than replaces, engineered flood defences.
- Forests, wetlands and healthy soils absorb rainfall, increase infiltration, store water and slow runoff, while development, intensive land use and landscape fragmentation weaken these functions.
- England already has around 6.3 million properties in areas at risk of flooding, and recent events in Hawaii, Nepal and Valencia illustrate the growing pressure from climate-related floods.
- Woodland creation is estimated to provide approximately £6.5 billion of flood-protection value across the UK, while new woodland could generate more than £400 million in annual flood-protection benefits alongside better water quality and lower sediment and nutrient runoff.
- Natural capital can deliver several services from the same asset, including carbon sequestration, biodiversity, soil and water protection, and climate adaptation.
- Forest Research’s proposed Woodland Water Code aims to quantify and verify woodland benefits for water quality, flood alleviation and water shading, potentially enabling their monetisation and attracting private investment.
Takeaway: Investors and policymakers should combine grey infrastructure with landscape-scale restoration, although the article presents natural capital primarily as a complementary resilience asset rather than a substitute for flood barriers, drainage networks or reservoirs.
Published by Foresight Group LLP. Summary by HF Best Ideas.