Minnesota’s Land Accounting and Valuation: The Environmental-Economic Accounting Approach

Accounting for Minnesota’s Natural Capital

In Minnesota, nature can draw down 26 million metric tons of carbon and provide more than $30 billion of ecosystem services. Large opportunities for nature-based solutions (NbS) exist from reforestation, improved forest management and tree planting to sequester carbon. Sustainably managing Minnesota’s forest and agricultural lands by employing the appropriate NbS can improve yields, water quality and carbon storage.

Land accounting is critical for sustainable development in Minnesota, where the need for effective management of natural resources is increasingly evident. As urbanization accelerates, agricultural practices intensify and biodiversity faces growing threats, understanding the value and dynamics of the state’s land resources is essential for long-term planning and policy development.

The UNSEEA provides a standardized framework for integrating environmental data into economic analysis. Using Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) and SEEA-guided standards to account for the state’s natural capital, this project allows for a more comprehensive understanding of how nature contributes to the Minnesota economy.

Outcomes

• Ran multiple InVEST models – including carbon storage and sequestration, sediment delivery ratio, nutrient delivery ratio, seasonal water yield and crop production
• Produced actionable insights on carbon storage, erosion risk, water yield and nutrient loss to inform conservation planning and policy discussions for local agencies, watershed groups and climate adaptation stakeholders