The Largest Migration of Capital in History (Short)
A Path to Biodiversity Restoration
The Convergence of Technology and Awareness
We are about to experience the most dramatic shift in technology, finance, and consciousness that our civilization has ever seen. (Here is the long read)
Imagine it’s 2004, and you’ve just opened your brand new Motorola RAZR V3, the first phone with a camera and 5.5 megabytes of memory. Remember the thrill of that moment. Little did you know that, at that same time, Steve Jobs was working on something far more revolutionary. He wasn’t just designing a phone; he was envisioning the convergence of multiple trends.
In 2007, Jobs unveiled the iPhone. It wasn’t just a phone; it was a microcomputer with a touch screen, elegant design, a suite of apps, 16 gigabytes of memory, and full access to the internet through a robust browser. Jobs saw the confluence of computing, telecommunication, internet connectivity along with touch screen technology and other emerging trends. He managed to harness these trends into a single device that transformed our daily lives.
Today, we are at a similar stage. We are on the cusp of a shift driven by four major trends, leading to a massive migration of capital towards biodiversity. This shift is poised to redefine our relationship with nature and finance. The trends we see today go beyond ecology; they include ecological stewardship, planetary geopolitics, and sustainable economics.
The Shift in Consciousness
The first trend is the growing realization that nature and biodiversity are essential for human civilization. Biodiversity is not just a nice-to-have; it’s crucial for reducing climate change, supporting the global economy, and sustaining life on Earth. We have come to understand that approximately 60% of global GDP is moderately dependent on nature.
Yet, we have lost 70% of terrestrial wild animal life and 50% of marine life in the last 50 years. This alarming loss has sparked a profound shift in consciousness.
What has guided us to understand the risks that our planet faces in losing resilience is the incredible work on Planetary Boundaries by Johan Rockström and the Stockholm Resilience Centre. They have meticulously mapped out how anthropogenic forces have pushed us beyond the safe operating space of the planet, with biodiversity being the threshold we have most egregiously surpassed. For a deeper understanding, I recommend watching the film about planetary boundaries on Netflix by David Attenborough. This documentary vividly illustrates the evolution of planetary boundaries and the urgent need for systemic change.
This shift of consciousness is taking us through several paradigms of understanding and evolution, moving away from our degenerative models, even going beyond sustainability, to a restorative and regenerative mindset, as illustrated by this graph by Bill Reed and The Regenesis Group of the five different paradigms of planetary and social consciousness.
Groundbreaking Geopolitical Laws and Frameworks
The second trend is the emergence of groundbreaking geopolitical laws and frameworks aimed at preserving biodiversity. In December 2022, the Montreal Agreement, also known as the 30 by 30 agreement, saw 196 countries commit to restoring 30% of the world’s nature by 2030. This is complemented by policies like the UK’s Biodiversity Net Gain, the European Union’s Nature Restoration Law, and other global initiatives that collectively form a robust framework for conservation efforts.
Technological Innovations
The third trend is technological. Jensen Huang’s, (The CEO of NVIDIA), vision of digital biology is becoming a reality. We now have sophisticated monitoring and measuring devices, satellite technology, the Internet of Things (IoT), artificial intelligence, blockchain capabilities, and complex algorithms. These advancements allow us to create Digital Twins of ecosystems, replicating nature’s underlying patterns and principles to better understand and preserve it. (see Digital Twin definition below)
Financial Trends
The fourth trend is in finance. We are witnessing the beginning of what could be the greatest migration of capital in history. An estimated $850 billion per year is expected to flow into restoring nature. This financial shift is empowered by the success of carbon credits, a market currently valued at nearly $1 trillion, and the rise of cryptocurrency platforms, with market caps approaching $3 trillion. These platforms provide the infrastructure and financial mechanisms needed to support large-scale investments in biodiversity.
The Key to Unlocking the Potential: MMVCAST
The key to this gigantic migration of capital — nearly $1 trillion per year — to honor the commitments of 196 nations to restore 30% of nature by 2030 lies in providing real-time verifiable metrics that can be certified and converted into living capital assets. This will channel the massive investments needed to restore nature.
Those who excel in developing verifiable and certifiable metrics will bridge the crucial gap between finance and nature conservation. The technology is already there. Once these securities — emerging as biodiversity credits, nature-based currencies, and stewardship tokens — are trustworthy, we will open the portals to this great migration.
We call this MMVCAST, which stands for Measuring, Monitoring, Verifying, Certifying, Assetizing, Securitizing, and Trading.
Understanding Digital Twins
A digital twin is a digital representation of a complex ecosystem where most, if not all, species are identified, including both flora and fauna. This model encompasses not only the canopy and ground levels but also the interdependencies and interactions among these species. For instance, it captures the relationships between flowers and pollinators, allowing us to understand the second and third-level effects of these interactions.
We can comprehend the relationships between plants and the microbiome, and how soil health contributes to the overall health of the flora and fauna. The digital twin maps out the positive and negative feedback loops within the ecosystem, visualizing it as a living, breathing entity.
This advanced digital model enables us to perceive and understand a living system in a way that was previously unimaginable.
Imagine being asked in school to create an Ant farm inside a glass cube. Picture yourself peering into this transparent world, witnessing the bustling, organized chaos of ant behavior. You see worker ants tirelessly scurrying along intricate tunnels, each one contributing to the collective well-being of the colony. They forage for food, tend to the queen, care for the larvae, and even engage in what E.O. Wilson, the renowned biologist who dedicated his life to studying ants, described as “ant agriculture,” where they cultivate fungi as a food source.
A digital twin is more than just a sophisticated model; it’s a manifestation of living capital.
As such, it can be assetized and converted into Nature Equity.
This nature equity forms the foundation upon which we can develop Nature Finance securities, which can channel the enormous investment efforts already underway.
These nature finance securities are poised to drive the flow of capital needed to restore and sustain our planet’s biodiversity, turning ambitious pledges into tangible, impactful action.
The Great Migration of Capital
We are on the brink of witnessing the greatest migration of capital in history, likely catalyzed by the emergence of Nature Finance.
This innovative framework seeks to integrate ecological health into financial systems by making nature and biodiversity visible and valuable. Nature Finance creates financial mechanisms such as biodiversity credits and nature-based currencies, aligning economic incentives with ecological restoration. This profound shift not only aims to bridge the $711 billion annual biodiversity financial gap but also redefines our relationship with the planet.
For a deeper understanding of how Nature Finance is transforming our future, explore this comprehensive White Paper Nature Finance.
Financial institutions and governments have made significant commitments in recent months, reflecting a global shift towards integrating ecological health into economic frameworks.
Here are links to papers from governmental and financial institutions, as well as foundations worldwide, detailing the urgency of biodiversity loss, the need for immediate action, and proposed solutions to restore our planet’s biodiversity.
UBS Our white paper on aligning technology and finance to address biodiversity challenges
Financing NatureBased Solutions for Adaptation at Scale
About the author:
Ernesto van Peborgh is the Founder of the Seva Institute.
SEVA Institute: SEVA Institute specializes in integrating cutting-edge technologies with ecological knowledge and Regenerative Design to create comprehensive solutions for biodiversity restoration. By leveraging advanced digital tools and ecological expertise, SEVA Institute aims to bridge the gap between Nature Finance and nature conservation.
The SEVA Institute is developing the technology for MMVCAST.
