Natural capital accounting status and trends in China

Summary Integrating natural capital into economic development and environmental management has become globally embraced. As a highly biodiverse country, China has begun incorporating natural capital into mainstream decision-making to support environmental sustainability. This article reviews the development of natural capital accounting in China, synthesizes local practices, and identifies key challenges and future research priorities. The findings show that over 90 percent of provinces have implemented gross ecosystem product accounting under national guidelines, spanning provincial, municipal, and county levels. The practice is evolving from focusing on accounting alone toward emphasizing application, particularly in linking accounting results with ecosystem product value realization. However, challenges remain in comparability, data accessibility and timeliness, accounting capacity, and application scope. Establishing a unified national accounting platform and strengthening incentive mechanisms are essential. This study offers valuable insights into environmental management to guide natural capital accounting and mainstreaming in other regions.