Natural Capital products and services include a wide range of forest products, e.g. wood, carbon sequestration and biodiversity. Increasing amount of regulation-based means, such as subsidies etc., has been proposed to ensure sufficient supply of Natural Capital (e.g. https://www.hs.fi/kotimaa/art-2000009239285.html).
The purpose of such proposals is well-meaning, but they systematically fail to recognize the potential of markets. We have a well-functioning market for wood but there is need to develop markets for other forest products as well. For example, qualification of conservations areas and set-aside plots in the context of forest certification for carbon credits would probably quickly increase the supply of such conservation areas for the benefit of climate and biodiversity.
For an acute view, please see:
https://www.finsilva.fi/artikkelit/metsatalous/luontoarvoja-markkinoiden-avulla-vai-regulaatiolla/
For earlier discussion:
https://www.hs.fi/mielipide/art-2000008996477.html
https://www.maaseuduntulevaisuus.fi/metsa/9a3572fd-c56c-40df-937a-b8d5aabbb003
