Natural Capital in Ethiopia, Indonesia, and Trinidad and Tobago

The document examines natural capital trends in Ethiopia, Indonesia, and Trinidad and Tobago from 1995 to 2020, finding a general decline or stagnation in per capita market natural capital following the 2008 financial crisis. It highlights extreme dependencies, such as Ethiopia's reliance on agricultural land and Trinidad and Tobago's vulnerability due to the collapse of fossil fuel asset values. Non-market natural capital, including forest area and land per capita, is declining across all three nations, exacerbated by population growth and climate change. The authors advocate for moving beyond GDP toward comprehensive wealth measures and recommend green development policies, increased financial mobilization for nature-based solutions, and improved environmental statistical capacity.

• All three studied countries experienced either stagnation or decline in per capita market natural capital stocks after the 2008 global financial crisis, indicating that natural capital is not being well managed.
• Trinidad and Tobago suffered a near-complete loss of market natural capital value, losing 98% of its 1995 value by 2020. This was driven by the depletion of energy reserves, declining production, and falling global oil prices and demand after 2008.
• Market natural capital is highly concentrated in specific assets: agricultural land accounts for approximately 93% of market natural capital in Ethiopia as of 2020, while Indonesia's is led by fossil fuel and mineral assets at 44% and agricultural land at 38%.
• Non-market natural capital is declining in all three countries. Between 1995 and 2020, per capita total land area decreased by 50% in Ethiopia, 28% in Indonesia, and 8% in Trinidad and Tobago. Per capita forest area declined by 42% in Ethiopia, 38% in Indonesia, and 12% in Trinidad and Tobago.
• Climate change is negatively impacting the three countries, with average annual temperature departures from the 1981–2010 normal increasing by 0.2°C in Ethiopia, 0.3°C in Indonesia, and 0.4°C in Trinidad and Tobago.
• GDP growth often masks the depletion of natural wealth. For example, Indonesia's average real per capita GDP grew by 4.3% from 1995 to 2020, while its market natural capital grew only 1.8% annually and declined after 2008.
• Existing climate policies in Indonesia and Ethiopia are largely ineffective; of 150 climate policies implemented in Indonesia since 1995, only 17 were identified as having high potential to reduce greenhouse emissions, and only six out of 24 in Ethiopia were identified as high impact.

APA

Smith, R., Zoundi, Z., & Bizikova, L. (2024). Natural Capital in Ethiopia, Indonesia, and Trinidad and Tobago. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-05/natural-capital-trends-policy-implications.pdf

Chicago

Smith, Robert, Zakaria Zoundi, and Livia Bizikova. Natural Capital in Ethiopia, Indonesia, and Trinidad and Tobago. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-05/natural-capital-trends-policy-implications.pdf.

Wikipedia

{{cite report |last1=Smith |first1=Robert |last2=Zoundi |first2=Zakaria |last3=Bizikova |first3=Livia |title=Natural Capital in Ethiopia, Indonesia, and Trinidad and Tobago |publisher=International Institute for Sustainable Development |date=April 2024 |url=https://www.iisd.org/system/files/2024-05/natural-capital-trends-policy-implications.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{smith2024natural, author = {Smith, Robert and Zoundi, Zakaria and Bizikova, Livia}, title = {{Natural Capital in Ethiopia, Indonesia, and Trinidad and Tobago}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = apr, url = {https://www.iisd.org/system/files/2024-05/natural-capital-trends-policy-implications.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }