White Paper for Designing Nature Finance

Nature Finance: An Exploration into Regenerative Possibilities

For over two decades, I have been a guardian of this sacred view, my refuge, my place on earth. Once, the lake shimmered with life, its waters teeming with fish, and the graceful black-necked swans glided in elegant arcs. Now, the waters lie still, eerily devoid of movement, and the swans, once frequent visitors, are mere memories. An unnatural warmth has settled, inviting an alien algae that strangles the lake’s heart. The birds no longer come to nest, and the Huillin, our gentle river otter, has slipped silently into extinction. The place I cherish is dying, its vibrant spirit fading into a melancholic stillness.

"We love what we know." – Antoine de Saint-Exupéry

Executive Summary: Nature Finance

Nature Finance is an innovative framework designed to make nature and biodiversity visible, helping humanity appreciate the invaluable services they provide. Unlike traditional economic models that often ignore the intrinsic value of natural ecosystems, Nature Finance seeks to assign value to nature's contributions in a way that recognizes their true worth without merely putting a price tag on them. This approach encourages the perception of nature and biodiversity as wealth, thereby fostering a deeper respect and a stronger commitment to their preservation.

The Concept of Value and Wealth

Nature Finance operates on the principle that what we value, we protect.

This is reflected in the words of the poet Antoine de Saint-Exupéry: "We love what we know." By making the benefits of nature and biodiversity more visible and understandable, Nature Finance aims to integrate these elements into the global economic system, which traditionally places value on everything measurable.

Biodiversity's Role in Sustaining Life

Definition of Biodiversity

Biodiversity, short for biological diversity, refers to the variety of living organisms in nature. It encompasses the different species of plants, animals, fungi, and microorganisms, the genetic differences within these species, and the ecosystems that provide habitats for them. Biodiversity is essential for ecosystem stability and resilience, as greater genetic diversity supports species persistence and a higher variety of species contributes to more robust ecosystems. Humans rely on biodiversity for ecosystem services, which are the multitude of direct and indirect benefits ecosystems provide to society, such as clean water, fertile soil, pollination of crops, and recreational spaces.

Humans are an integral part of biodiversity, which in turn is crucial for our survival. 60% of the world's GDP is moderately or highly dependent on Nature’s ecosystem services such as pollination, water purification, climate regulation, and soil fertility.

Since 1954, biodiversity loss has surged due to human activity, with an 83% decline in freshwater wildlife since 1970. The World Wildlife Fund reports a 69% drop in wildlife populations since 1970. More alarmingly, we have lost more than half of the world's marine life in the past 40 years. This stark reality underscores the urgent need for a new financial model that recognizes the symbiotic relationship between humans and nature.

This accelerated loss threatens ecosystem services, potentially reducing global GDP by $2.7 trillion by 2030. Additionally, up to 40% of the planet's land is degraded, impacting half the human population and risking $44 trillion of global GDP. If unaddressed, 95% of land could be degraded by 2050.

A New Model for Co-Evolution

Nature Finance strives to create a model where nature and humans co-evolve within a commons. This concept, inspired by the work of Nobel laureate Elinor Ostrom, defines commons as shared resources managed by a community according to rules and norms that ensure sustainability and equitable access. In this model, nature is seen not as a commodity to be exploited but as a common good to be nurtured and protected.

Implementation and Impact

The implementation of Nature Finance involves creating robust certification systems for measuring, monitoring, and verifying ecosystem services (MMV). By leveraging advanced technologies and community-driven approaches, Nature Finance can ensure the accurate valuation of nature's contributions. This framework supports local and global initiatives that promote biodiversity restoration, sustainable development, and community empowerment.

Examples of successful implementations include agroforestry practices at Instituto da Toca and Ernst Götsch in Brazil, as well as Guayaki’s sourcing of yerba mate in collaboration with Ache-Guarani indigenous communities in the Mata Atlántica forest. These initiatives demonstrate the power of integrating local knowledge and community involvement in biodiversity restoration projects.

Nature Finance represents a transformative approach to economic development, one that harmonizes human activities with the natural world. By recognizing and validating the vital role of biodiversity, this model paves the way for a sustainable future where both nature and humanity can thrive together.

Ostrom's Concept of Commons

In 2010, I had the remarkable opportunity to meet Elinor Ostrom in Tällberg, a year after she received the Nobel Prize in Economic Sciences. We found ourselves seated opposite each other during a four-hour train ride from Stockholm to Tällberg. We were both invited to participate in a forum at Tällberg, an event that brings together global thinkers and leaders to discuss and address the world’s most pressing challenges. This invitation allowed us to share our experiences and engage in meaningful dialogue about a sustainable future for our planet with her, gaining insights into her pioneering work on the governance of commons.

Ostrom's concept of commons was profound and transformative. She described commons as shared resources managed collectively by a community, with a focus on sustainability and equitable access. She emphasized the critical role of local governance in maintaining these resources, ensuring that the community involved in the stewardship of the commons has a direct say in how they are managed and preserved. This approach highlights the importance of collaborative management and the integration of local knowledge and practices in sustaining communal resources.

For further information on Elinor Ostrom's work see: Will the Commons disrupt the Market and State?

Why Nature Finance and Why Now?

We are witnessing a convergence of events that heralds a major disruption in how we approach nature and finance. The rapid evolution of both the carbon market and the cryptocurrency market, empowered by the complex and aspiring forces of finance, has set the stage for a rapid and potentially successful evolution of nature finance. If nature finance successfully creates trustworthy, verifiable, and certifiable living capital, the experiences of the carbon credit markets and the cryptocurrency market will undoubtedly have created the conditions for a successful shift of capital and resources to solve our current challenges.

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 brewing and convergence of these four indisputable trends are leading to an imminent disruption, where Nature Finance emerges as a groundbreaking, global, encompassing, systemic solution. For further reading, please check this article, The Largest Migration of Capital in History.

Nature Finance is emerging as a crucial response to the urgent call of our times — the alarming loss of biodiversity and the shrinking safe operational space for humanity. We have finally awakened to the imperative need to restore biodiversity, make amends, and reconcile with nature. This awakening is driven by an acute shift in consciousness, with an awareness of Planetary Boundaries and the advent of groundbreaking legislation.

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.

Guiding this understanding 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.

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 Bill Reed and The Regenesis Group in their graph 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 Kunming-Montreal Global Biodiversity Framework (GBF), part of the COP15 conference, saw 196 countries commit to restoring 30% of the world’s nature by 2030, known as the 30 by 30 agreement.

This framework sets two principal objectives:

to reverse global biodiversity loss by 2030 and to achieve a nature-positive world by 2050.

This commitment underscores the imperative need for Nature Finance, which aims to address these ambitious targets through innovative financial mechanisms that support biodiversity restoration and sustainable development. The urgency of these times calls for Nature Finance to not only respond to but also anticipate and drive the changes needed to secure a resilient and thriving planet for future generations.

These groundbreaking laws and the studies they have triggered underscore the urgent need for a massive migration of capital towards biodiversity restoration. According to the World Economic Forum, the global biodiversity financial gap is estimated to be $711 billion annually from now until 2030. This immense financial requirement highlights the necessity for innovative solutions like Nature Finance, which can mobilize and direct these funds effectively to ensure a sustainable and thriving future for our planet.

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 Pressure and Innovations

The fourth trend is financial pressure to restore biodiversity as an outcome of the laws and commitments triggered by Global Biodiversity Framework agreements, driving significant capital towards sustainable practices and ecological restoration efforts. An estimated $850 billion per year is expected to flow into restoring nature. As we will later cover in more detail, this financial shift will be 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 Urgent Need for Accurate Metrics

The GBF has established a framework that mandates a reporting process, highlighting the need and appetite for accurate data. Starting in 2024, governments must report on their implementation of biodiversity goals. Similarly, companies and corporations will need to measure their impact on biodiversity, necessitating trustworthy data aggregation, metrics, processes, models, and system analyses.

The UBS report “Bloom or Bust,” which highlights measurement as a critical enabler, the need to deploy nature tech solutions, and the enormous investment required to restore nature. This timely paper permits us to understand how precise nature-related data and financial investments can drive biodiversity restoration and sustainability efforts.

Turning the Tide: Aligning Finance with Nature’s Imperative

Nature finance aligns with the Global Biodiversity Framework’s imperative challenge to scale down environmentally harmful financial flows, which are currently estimated at nearly $7 trillion per year. This figure, likely underestimated as it only includes direct impacts, highlights the daunting scale of the problem. Private finance flows alone that negatively impact nature amount to $5 trillion, which is 140 times larger than private investments into nature-based solutions (NbS). These destructive financial practices severely undermine efforts to finance nature. Conversely, nature finance presents a massive opportunity to redirect both private and public finance flows towards biodiversity restoration, fostering sustainable economic models that support and enhance ecological health.

Finance: A Fundamental Definition

At its core, finance is the science and art of managing money. It encompasses the creation, management, and investment of money and other financial instruments. Traditional finance seeks to allocate resources efficiently to maximize returns and manage risks across various sectors of the economy. It operates on the principles of growth, profitability, and liquidity, driven by markets, institutions, and individuals who engage in borrowing, lending, investing, and trading activities. Finance is the lifeblood of our global economy, directing capital flows, funding innovation, and driving economic development.

A crucial aspect of finance is its ability to create a comprehensive system that integrates assetization, certification, verification, traceability, valuation, and the establishment of trading platforms.

1. Assetization: Converting products, services, or the future delivery of these into financial assets. This process establishes these as assets that hold value and can be traded.
2. Creation of Value: Determining the value of these products and services through market dynamics or authoritative determinations by governments and corporations.
3. Creation of Trading Platforms: Establishing and maintaining platforms where these financial instruments can be traded.
4. Tracking and Exchange Services: Developing systems to track the ownership, transfer, and value of these assets.
5. Verification and Certification: Implementing processes to verify and certify the authenticity and value of the underlying assets.
6. Traceability and Transactability: Ensuring that assets can be traced through their lifecycle and can be easily transacted.
7. Accounting and Valuation: Providing accurate accounting and valuation of these assets.

By incorporating these elements, finance not only facilitates the efficient allocation of resources but also supports the creation and maintenance of complex financial ecosystems.

But above all, Finance is fundamentally about creating trust within the economic system. At its core, the financial system facilitates trust among millions of strangers who may not know or inherently trust each other. Money, for instance, is a mechanism that enables instant trust, allowing for seamless transactions and interactions between parties. This creation and maintenance of trust are what make the financial system indispensable, as it underpins the entire structure of economic activities and interactions.

Derivations of Finance: Beyond the Traditional Scope

Finance, as a broad field, branches into several specialized areas, each serving distinct purposes and needs. Here are a few notable derivations:

1. Corporate Finance: Focuses on how corporations handle funding sources, capital structuring, and investment decisions. It aims to maximize shareholder value through long-term and short-term financial planning and various strategies.
2. Public Finance: Deals with the role of government in the economy. It encompasses tax collection, government expenditures, budgeting, and debt issuance policies to influence the economy.
3. Personal Finance: Involves individual financial planning, including budgeting, saving, investing, and retirement planning. It’s about managing personal financial resources to achieve individual goals and financial stability.
4. Behavioral Finance: Explores the psychological influences on investors and financial markets. It challenges the notion of rational decision-making, incorporating cognitive biases and emotional factors into financial analysis.
5. Transition Finance: Transition finance encompasses investments, financing, insurance, and related products supporting an orderly real-economy transition to sustainability objectives, such as reversing biodiversity loss and achieving Net Zero targets.
6. Regenerative Finance: A transformative approach proposed by thinkers like John Fullerton.

Regenerative Finance: A Definition by John Fullerton

Regenerative Economics, as conceptualized by John Fullerton and the Capital Institute, seeks to align economic practices with the inherent principles of living systems. This transformative approach is grounded in eight key principles that reflect the natural laws and patterns essential for systemic health, self-organization, self-renewal, and vitality. These principles serve as a theoretical foundation to guide the creation of economies that are not only sustainable but also regenerative. Here are the eight principles:

1. In Right Relationship: Humanity is part of an interconnected web of life, emphasizing reciprocal and mutualistic relationships, as seen in biology and wisdom traditions.

2. Views Wealth Holistically: True wealth includes social, cultural, spiritual, and natural capital, all essential for overall well-being beyond just financial wealth.

3. Innovative, Adaptive, Responsive: Emphasizes innovation and adaptability, supporting entrepreneurial dynamism aligned with systemic health over short-term gains.

4. Empowered Participation: Advocates for inclusivity, ensuring all stakeholders contribute to and benefit from the system’s health.

5. Honors Community and Place: Recognizes the unique histories, cultures, and geographies of communities, fostering resilient and healthy local systems.

6. Edge Effect Abundance: Highlights innovation and diversity flourishing at the system’s edges, leading to transformative outcomes.

7. Robust Circulatory Flow: A healthy economy requires the circulation of energy, materials, and information, akin to an organism’s metabolism.

8. Dynamic Balance: Balances efficiency, resilience, competition, collaboration, and analytical thinking with intuition to maintain systemic health.

These principles guide the development of regenerative economies, promoting sustainability, resilience, and the well-being of all life forms. Regenerative finance aims to create a system supporting Earth’s flourishing, rethinking success, resource value, and future investments amidst challenges like climate change and social inequality.

Regenerative Finance vs. Nature Finance: Defining the Differences

Regenerative Finance

As explained earlier, regenerative finance represents a transformative approach to financial practices, aligning them with ecological and social sustainability principles. It recognizes multiple forms of capital — social, natural, and human — beyond financial wealth. This holistic view promotes interconnected, resilient financial systems, equitable stakeholder value distribution, circular economies, and mission-driven outcomes for societal and ecological well-being.

Nature Finance: A Branch of Regenerative Finance

Nature finance is the branch of Regenerative Finance that, at this crucial juncture, specifically attends to the restoration and regeneration of biodiversity.

Nature Finance is about trust, just like the broader financial system. It builds a foundation of trust by creating transparent, verifiable mechanisms that ensure the value and integrity of nature’s contributions to our economy. In Nature Finance, trust is established through the meticulous measurement, monitoring, and verification of ecosystem services, ensuring that every biodiversity credit or nature-based currency represents real, tangible benefits. This trust allows individuals, corporations, and governments to confidently invest in and support the restoration and preservation of natural ecosystems, knowing that their contributions are making a meaningful impact. Ultimately, Nature Finance transforms the way we value and interact with our natural world, fostering a sustainable and regenerative relationship between humanity and nature.

Integrating Humans into Biodiversity

Reconciling the Story of Separation

Nature finance fundamentally understands that humans are an integral part of biodiversity. This perspective challenges and seeks to reconcile the long-standing story of separation between humans and nature. For too long, human activity has been viewed as separate from and often detrimental to the natural world. Nature finance addresses this misconception by promoting a mutualistic symbiotic relationship where humans actively contribute to and benefit from the health and vitality of ecosystems.

In this view, human communities are not merely external managers of natural resources but integral participants in the ecosystem. This approach recognizes that the best-managed ecosystems are those where humans and nature co-manage, fostering thriving, living systems. By emphasizing the interconnectedness of human well-being and ecological health, nature finance creates financial mechanisms that support sustainable co-management practices.

This reconciliation is critical for developing a sustainable future, as it aligns human economic activities with the principles of living systems, ensuring that both human societies and natural ecosystems can flourish together. Through this integrative approach, nature finance helps restore the balance and harmony between human activity and the natural world, creating a more resilient and thriving planet for all.

Nature Finance is the mutualistic symbiotic design process — or the design process for a mutualistic symbiotic relationship — between nature and humans.

This understanding is rooted in the recognition that the best-managed ecosystems are those where humans and nature co-manage the thriving living health of the ecosystem.

Nature finance understands the concept of “Commons” as defined by Elinor Ostrom and designs with the principles of regenerative design, as well as the eight principles for managing commons developed by Elinor Ostrom, and further developed by Michel Bauwens, and David Bollier. It emphasizes the importance of community-managed resources and the collective stewardship of natural assets.

Implementing Nature Finance:

The MMV- CAST Process

The implementation of nature finance can be effectively divided into two primary components: MMV (Measurement, Monitoring, and Verification) and CAST (Certification, Assetization, Securitization, and Trading).

Each component plays a crucial role in ensuring the success and sustainability of nature finance, but the MMV process is particularly critical as it forms the foundation upon which the entire system is built.

Measurement, Monitoring, and Verification (MMV)

In this dynamic field, measurement stands as a cornerstone. It's the critical enabler that guides our alignment of financial practices with ecological and social sustainability. Accurate measurement allows us to understand the real impact of financial decisions on ecosystems and communities, enabling long-term resilience and sustainability.

Measurement provides the necessary transparency and accountability, allowing us to adjust strategies based on reliable data.

Without precise data, we cannot effectively manage biodiversity loss or implement meaningful interventions.

This is especially crucial for meeting the Global Biodiversity Framework's (GBF) 2030 goals, as current systems lack trustworthy measures.

In short, measurement is not just a technical necessity but a foundational element that supports the broader mission of restoring and revitalizing our natural and social systems, essential for achieving the GBF's ambitious targets.

To comply with this Framework, the MMV process becomes the most important component of Nature Finance. This phase is essential for accurately assessing the health and interrelationships within ecosystems.

The focus here is not merely on the ecosystem services themselves but on the intricate interdependence among living entities, including plants, animals, pollinators, insects, microbiome, fungi, and microorganisms.

By understanding these complex relationships, we can evaluate the overall health of ecosystems from a systemic perspective, allowing us to identify and quantify the emergent properties that constitute ecosystem services.

- Measurement: Involves quantifying the interactions and relationships within an ecosystem, such as the mutual dependencies between flora and fauna, the role of pollinators, and the health of soil microbiomes. These measurements are crucial for understanding the holistic health of the ecosystem.
- Monitoring: Continuous tracking of these interactions and relationships in real time and over time to detect changes and ensure that ecosystems remain balanced and resilient. Advanced Monitoring and Sensoring Technologies empowered by The Internet of Things (IOT), and Artificial Inteligence are employed to monitor these dynamics.
- Verification: Independently assessing the accuracy and reliability of the measured data. This step ensures that the information used to certify ecosystem services is trustworthy and can be confidently applied in further stages.

Certification, Assetization, Securitization, and Trading (CAST)

The second component, CAST, involves financial mechanisms that finance is already adept at handling. This phase is about transforming verified ecosystem services into Living Capital Assets through Digital Twins, which are then assetized to be securitized into financial assets that can be traded in markets, creating economic value and facilitating investment in ecosystem restoration and management.

A digital twin is a dynamic, real-time digital model of a living ecosystem, capturing the complex interdependencies among species. Using Bayesian modeling and advanced technologies, it visualizes feedback loops, driving regeneration and sustainable outcomes while manifesting the interconnectedness of natural systems.

- Certification: Involves formally recognizing the measured ecosystem services as trustworthy and scalable. A global certification standard can be applied to ensure consistency and reliability across different regions.

- Assetization: This step converts these certified services into living capital assets. This assetization process is facilitated through the creation of digital twins. By developing digital twins of the ecosystem services, we can manifest the interdependence, integration, and health of biodiversity into a digital representation. These digital twins provide a detailed, scalable, and trustworthy certification of the ecosystem’s interrelationships and health.

- Securitization: Creating financial instruments, such as biodiversity credits, nature-based currencies, or land stewardship tokens, based on these living capital assets. These instruments are given an established value and can be issued in financial markets. The digital twins ensure that the ecosystem services are accurately represented and valued, making the securitization process reliable and efficient.

- Trading and Value Creation: Facilitating the trading of these financial instruments in markets and establishing their economic worth. Finance is inherently skilled at creating trading platforms and determining market values, as evidenced by the success of the carbon credit market and the cryptocurrency market.

The MMV Process

In the evolving landscape of Nature Finance, the Measurement, Monitoring, and Verification (MMV) process is the bedrock that focuses on the intricate interrelationships within ecosystems. By examining the interdependence between plants, animals, fungi, and microorganisms, MMV helps us grasp the overall health of ecosystems.

To protect and understand these ecosystems deeply, Nature Finance employs a suite of advanced technologies. Remote sensing via satellites and drones offers macro-level insights, while in situ tools like camera traps, bioacoustic sensors, and environmental DNA (eDNA) sampling delve into micro-details. These technologies collectively assess floral and avian diversity, soil microbial health, water quality, and more.

The MMV process is not just about gathering data but about creating digital twins — dynamic, real-time models of ecosystems. These digital twins emerge from the MMV process as critical enablers, transforming into living capital that can be assetized. This conversion provides a scalable and reliable way to represent the complex interdependencies within ecosystems.

The meticulous MMV process is fundamental for creating digital twins, which, once assetized, offer tangible and tradable representations of ecosystem health and services. This transition signifies a major leap in integrating advanced technology with Nature Finance, fostering a deeper understanding and sustainable management of our natural resources.

But the magic doesn’t stop at data collection. The information feeds into sophisticated verification models, developing robust metrics that measure not only ecological health but also human impacts. This comprehensive data is essential for creating sustainable financial models where biodiversity can be assetized into Biodiversity Credits or Nature-based Currencies.

Central to this effort are BioHubs — innovation centers acting as research facilities and community engagement hubs. These hubs are acupuncture points in a vast network, driving local biodiversity and community restoration efforts. They embody the principles of regenerative design, fostering a symbiotic relationship between humans and nature.

BioHubs serve multiple roles: they are nerve centers for data collection and analysis, educational platforms for local communities, and collaborative spaces where partnerships are forged. By mapping community relationships and identifying key stakeholders, BioHubs ensure that biodiversity restoration efforts are scientifically sound and socially inclusive.

In essence, by integrating advanced monitoring technologies with community-driven approaches, Nature Finance paves the way for a sustainable future where both nature and humanity thrive. It is an inspiring reminder that valuing what we see and understand helps us protect and cherish the world that sustains us.

The Importance of Certification in Nature Finance

Understanding that finance excels in the search for value, the success of Nature Finance hinges on reliable certification systems.

Trustworthy certification is foundational to ensure that the underlying measurement, monitoring, and verification (MMV) accurately assess the ecosystem services that biodiversity provides. This is why nature finance must rely on institutions and certification systems that have proven to be trustworthy.

LEED Certification:

LEED (Leadership in Energy and Environmental Design) is a global benchmark for green building practices developed by the U.S. Green Building Council. It provides a comprehensive framework for evaluating the environmental performance of buildings, assessing aspects such as energy efficiency, water usage, air quality, and material selection. LEED certification sets rigorous standards and a clear methodology for promoting sustainability and accountability.

This approach serves as a model for establishing trustworthy metrics in various sectors. Bill Reed co-founder of the LEED Green Building Rating System, has significantly contributed to this field, demonstrating that it is possible to create globally adopted metrics for assessing and verifying sustainability. The principles and methodologies of LEED can be adapted to nature finance, ensuring financial instruments tied to ecological projects are based on robust and credible certification systems.

The Concept of CAST: Certification, Assetization, Securitization, and Trading

Finance has historically wielded incredible power through the processes of certification, assetization, securitization, and trading (CAST). These processes have facilitated vast economic expansions, from the shares that funded the railroads to the Dutch Imperial Expansion. The creation and certification of financial assets enabled the mobilization of capital on a massive scale.

The CAST process — Certification, Assetization, Securitization, and Trading — is where finance excels. However, as highlighted by examples from history and current markets, the success of this process hinges on the reliability of certification systems.

Historical Framework

Railroads and Dutch Imperial Expansion:

- The issuance of shares to fund the development of railroads in the 19th century is a prime example of how assetization and trading spurred industrial growth. These shares provided the capital necessary for building extensive rail networks, which in turn drove economic development and integration of markets.

- The Dutch East India Company (VOC) is another historical example where assetization of shares facilitated large-scale colonial and trading enterprises. The VOC was the first company to issue stock, (1602) providing a model for modern equity markets.

Mike Milken’s Junk Bond Market:

- In the 1980s, Mike Milken revolutionized the bond market by popularizing junk bonds, which are high-yield, high-risk securities. This allowed companies with lower credit ratings to raise capital, fostering innovation and growth in various industries. Despite the controversy surrounding Milken, the junk bond market demonstrated the power of securitization and trading in financing economic activities.

Mortgage Securitization Market:

- The mortgage securitization market, particularly in the lead-up to the 2008 financial crisis, is a more contentious example. While the securitization of mortgages allowed for significant liquidity and investment opportunities, it also led to excessive risk-taking and ultimately, economic collapse. This illustrates the potential pitfalls when certification and risk assessment are not robust.

The Carbon and Cryptocurrency Markets

Voluntary Carbon Market:

The voluntary carbon market (VCM) has evolved significantly over the past few decades. Initially driven by corporate social responsibility and the need for companies to manage their carbon footprints, the market has grown to encompass a wide range of projects and methodologies. These include emission reduction projects, like renewable energy and forestry initiatives, and emission removal projects, which focus on extracting carbon dioxide from the atmosphere. With a value of $949 billion, the voluntary carbon market (VCM) remains a crucial tool for climate action. Efforts to improve market integrity and transparency, such as initiatives by the Integrity Council for the Voluntary Carbon Market (ICVCM), are ongoing to ensure robust standards and credibility.

Cryptocurrency Market:

The cryptocurrency market has seen explosive growth over the past decade, reaching a market valuation close to $3 trillion at its peak. This market is highly dynamic, with around $100 billion in daily trading volume. Cryptocurrencies like Bitcoin and Ethereum have not only transformed financial transactions but have also introduced new concepts such as decentralized finance (DeFi) and non-fungible tokens (NFTs). These innovations offer alternative investment opportunities and new ways of interacting with digital assets. However, the market’s volatility and regulatory challenges continue to be areas of concern.

Defining a Digital Twin

"We need to make nature visible and measurable in order to value it."

Imagine a world where we can see the invisible threads that weave together the fabric of life on Earth. A digital twin is this world brought to life—a digital representation of a complex ecosystem where every species, from the tiniest microbe to the tallest tree, is identified and mapped. This advanced model doesn't just depict individual elements but captures the intricate interdependencies and interactions among them.

In a digital twin, we aim to understand the systemic interrelationships of an underlying living ecosystem, identifying feedback loops and patterns that drive regeneration and sustainable outcomes. By focusing on dynamic balancing feedback loops and first, second, and third-order effects, we can uncover the emergent properties of these systems—properties that translate into valuable ecosystem services.

This digital twin enables us to map out the relationships between flowers and pollinators, plants and their microbiomes, and the overall health of the soil and flora. It visualizes positive and negative feedback loops within the ecosystem, portraying it as a living, breathing entity. By doing so, it offers us a way to perceive and understand living systems in a manner that was previously unimaginable.

More than just a static representation, the digital twin is a dynamic, real-time model powered by current technologies — digital media, algorithms, Bayesian modeling, digital biology, and artificial intelligence. It allows us to manifest into existence a new way of seeing life thrive, with metrics that our current systems can understand. This makes it possible to create living capital assets that illustrate the impact of biodiversity on human civilization.

Bayesian modeling is a statistical method that uses prior knowledge combined with new data to continuously update and refine predictions. It is particularly valuable for understanding dynamic systems, allowing for adaptive and accurate forecasting and decision-making.

For the first time, we have the possibility to understand and manifest emergence into a comprehensive digital system. As technology evolves and artificial intelligence advances, we are on the cusp of a new era of knowledge and wisdom. These digital twins can create unprecedented opportunities to gain insights into the complex, adaptive systems that govern life on Earth. By harnessing these tools, we can foster a deeper understanding of how to sustain and enhance the intricate web of life that supports our planet.

Additionally, a digital twin enables us to understand the concept of commons.

The Digital Twin is, in fact, a visual and digital manifestation of a commons, embodying the shared and co-managed nature of ecosystems. By reflecting the collective stewardship of natural resources, digital twins help us grasp the interconnectedness and communal responsibilities that define a true commons, thereby resolving the tragedy of the commons.

The tragedy of the commons is a situation where individuals, acting in their own self-interest, deplete shared resources, leading to long-term collective loss.

This understanding is crucial for fostering regenerative practices that benefit both human and ecological communities, ensuring that the health of our planet is maintained for future generations.

Emergence: The Indicator of Ecosystem Health

Emergence refers to the complex outcomes that arise from simple interactions within a system. In ecosystems, emergence manifests as biodiversity system services, resilience, the capacity to adapt to changes and a thriving flow of life.

These emergent properties that indicate the health and sanity of the ecosystem are driven by:

1. Diversity of Relationships: A healthy ecosystem is characterized by a rich tapestry of interactions among species. These interactions create a stable and resilient environment that can withstand disturbances.

2. Functional Synergies: The synergy between different species and ecological processes leads to greater productivity and stability. For example, pollinators enhance plant reproduction, which in turn supports herbivores and predators in a balanced web of life.

3. Adaptive Capacity: The ability of an ecosystem to adapt to environmental changes and stresses is a critical indicator of its health. Adaptive ecosystems can maintain their functionality and continue providing ecosystem services despite external pressures.

Designing the Digital Twin

Applying Regenerative Design

When designing a Digital Twin, we are designing a process, not a product. This is the first crucial difference in our approach.

We are designing this process as an infinite game, drawing inspiration from James P. Carse’s book Finite and Infinite Games. Unlike finite games, which are played for the purpose of winning, infinite games are played for the purpose of continuing the play. Our goal is to create a sustainable and regenerative system that can adapt and evolve indefinitely.

Regenerative Design focuses on implementing technologies and strategies that regenerate ecosystems rather than deplete them. This design method is about creating cyclical flows of resources, where the energy and materials used in their operation are continuously renewed. Regenerative design aims to integrate the flows and structures of both built and natural environments across multiple scales, ensuring that larger systems influence smaller ones and vice versa.

According to Bill Reed, co-founder of Regenesis, regenerative design is about creating frameworks that manage integrative, whole-system processes. Regenerative Design seeks to improve the overall quality of physical, social, and spiritual life in our living places, thereby benefiting the entire planet.

It isn’t about creating a product; it’s about fostering a process. The end goal isn’t just a finished project but building the capacity (understanding) and capability (implementation) within the system. This approach recognizes that humans, their developments, social structures, and cultural concerns are intrinsic parts of ecosystems.

Humans are BIodiversity

Nature Finance works on the premise that we are not separate from nature but deeply embedded within it, and our actions significantly influence the health and future of the Earth’s living systems. The sustainability of our endeavors hinges on whether we engage with ecosystems as partners or exploiters. By embracing our role as integral participants, we can ensure that our developments contribute to the regeneration and thriving of life on Earth.

Designing Regeneratively

In a world increasingly dominated by reductionist and technocratic approaches, regenerative design stands as a beacon of holistic thinking. It’s not about designing buildings, objects, or landscapes in isolation; rather, it’s about creating processes and shaping mindsets that can adapt and evolve with living ecosystems. Regenerative design recognizes that nature is an interconnected web where intervention points are not always clear, demanding an approach that embraces complexity and interiority.

Regenerative design is a meta-perspective that allows us to look within, between, and beyond traditional boundaries. The term “meta,” rich in meaning, encompasses ideas of after, within, between, and beyond, reflecting the multifaceted nature of living ecosystems. This oscillation between different perspectives is crucial for understanding and nurturing the wholeness of these systems.

The Concept of Meta and Wholeness in Regenerative Design

Regenerative design is not about creating static products but about fostering dynamic processes. It focuses on the interiority of systems, aiming to understand energy flows and systemic interdependencies. A technocratic mentality, which tends to treat systems as isolated, manageable entities, falls short in addressing the complexities of living systems theory and consciousness.

Instead, regenerative design takes a meta-perspective, allowing us to look within and beyond the immediate system. The term “meta” has multiple meanings: in Aristotle, it was used to mean “after,” but it also signifies “within,” “between,” and “beyond.” This quality of oscillation — moving between different states and perspectives — is essential for grasping the full scope of living ecosystems, which are inherently multifaceted.

Designing Processes, Not Products

Regenerative design is fundamentally about processes and mindsets. It goes beyond the creation of physical structures to encompass the development of capacities and the shaping of policies that guide sustainable practices. This approach recognizes that living ecosystems are complex and adaptive, requiring interventions that are flexible and responsive to change.

In practice, this means focusing on the flows of energy and resources within ecosystems, understanding how these flows contribute to the system’s overall health and vitality. By fostering an intimate understanding of these dynamics, regenerative design enables us to create environments that support and enhance the natural processes at work.

In summary, regenerative design is a comprehensive meta and wholeness approach that integrates the principles of Regenerative Design. It avoids reductionist and technocratic pitfalls, and focuses on designing processes that shape mindsets and capacities. This perspective is crucial for fostering regenerative, resilient ecosystems that can thrive in the face of changing conditions.

The Principles of Regenerative Design

The principles of regenerative design provide a holistic framework for creating sustainable and thriving ecosystems. Developed by Carol Sanford and influenced by thought leaders such as Bill Reed and Daniel Christian Wahl, these principles are rooted in the wisdom of the Iroquois Nation's seven first principles. They shift away from reductionistic and linear approaches to environmental strategies, promoting an integrated, systemic perspective. The framework encompasses seven principles that collectively address the interconnectedness and strategic intervention points within living systems, marking a significant stride in both understanding and implementation for true regeneration.

When the principles are applied to the design of digital twins, they create the potential and possibility for living capital to thrive. The seven principles collectively guide efforts to regenerate rather than merely sustain our natural environments, making a significant stride in both understanding and implementation of true regeneration.

The Seven Principles of Regenerative Design

1. Wholeness: Advocates for a comprehensive view, integrating ecological, social, cultural, and physical aspects. It emphasizes the interconnected nature of ecosystems, ensuring harmonious relationships between all elements and building resilience through diversity.

2. Developmental Approach: Focuses on continuous evolution and capacity building. It promotes adaptive strategies for ongoing evolution in dynamic systems and aims to enhance the capacity and capability of both human and ecological components.

3. Essence: Recognizes and honors the intrinsic qualities and unique character of a location. It ensures design solutions are reflective of the unique ‘essence’ and story of the place.

4. Potential: Identifies and nurtures the inherent potential within ecosystems. It creates environments for individuals and communities to express their potential and unlock latent opportunities.

5. Reciprocity: Establishes balanced relationships based on mutual benefit and cooperation. It encourages collaborative and supportive relationships among community members.

6. Nodal: Identifies and engages with critical junctures within the system where significant interactions occur. It recognizes that interventions at nodal points can influence the entire system.

7. Nestedness: Acknowledges the complex hierarchy of relationships within systems. It focuses on systemic changes, recognizing that interventions at any level can impact the entire nested hierarchy.

Together, these seven principles form a regenerative design framework that considers every aspect of a system, ensuring its sustainable, adaptable, and thriving nature. This approach fosters ecosystems that are not only functionally efficient but also deeply integrated with their surroundings, reflecting a harmonious balance between development and the natural world.

Principles of Nature Finance

The principles of nature finance are essential guidelines that shape its approach to integrating financial practices with ecological sustainability. These principles ensure that nature finance not only supports economic activities but also fosters the restoration and regeneration of ecosystems. Here are the key principles:

1. Restoration and Regeneration of Biodiversity: Nature finance focuses on restoring and regenerating ecosystems, ensuring the health and vitality of natural environments and the species that inhabit them, including humans. This approach is essential for maintaining ecological balance and supporting the diverse interactions within ecosystems.
2. Mutualistic Symbiotic Relationships: At its core, nature finance is about designing processes that foster mutualistic symbiotic relationships between humans and nature. It recognizes that human well-being and ecosystem health are interdependent, and that sustainable co-management practices lead to thriving ecosystems.
3. Commons-Based Management: Drawing on the work of Elinor Ostrom, nature finance emphasizes the importance of managing resources as commons. This involves collective decision-making, shared responsibilities, and equitable access to resources, ensuring that ecosystems are managed sustainably and inclusively.
4. Patterns and Principles of Regenerative Design: Nature finance incorporates the principles of regenerative design, which aim to create systems that are resilient, adaptive, and capable of self-renewal. These principles guide the development of financial mechanisms that support the ongoing health and regeneration of ecosystems.
5. Global Commitment to Restoration: Nature finance aligns with global restoration goals, such as the Kunming-Montreal Global Biodiversity Framework (GBF) established under the Paris Agreement for Nature in 2022, and the 30 by 30 agreement, which aims to protect 30% of the planet’s lands and oceans by 2030. These commitments underscore the urgency and importance of restoring natural habitats and ensuring their long-term sustainability, with the ultimate goal of reversing global biodiversity loss by 2030 and achieving a nature-positive world by 2050.

Creating a Commons: Elinor Ostrom’s Legacy

It is important to reiterate that in designing Nature Finance, we are creating a process, not just a product. This distinction emphasizes the dynamic and adaptive nature of our approach, focusing on sustainable systems rather than static outcomes.

This process manifests itself as a Digital Twin, which serves as a commons. However, it’s crucial to understand that a commons is not a static entity; it is a dynamic process. As David Bollier eloquently stated, a commons is not a noun; it is a verb—an action put into practice by commoners.

Every entity, species, within Nature, human, flora, or fauna, has a role to play in this multidimensional commons. Ostrom’s work demonstrated that commons are resources managed collectively by a community according to shared rules and norms. In this context, the digital twin acts as a living representation of an underlying ecosystemic commons, embodying the principles of collective management and sustainable use.

By designing a digital twin as a commons, we ensure that it is a participatory process where all stakeholders—humans, animal and vegetable species — of the ecosystem contribute to and benefit from the sustainable management of natural resources. This approach not only aligns with the principles of regenerative design but also fosters a deeper connection and responsibility towards the shared environment, promoting long-term ecological and social sustainability.

Multidimensional Commons

The First Commons: A Trust for Land and Ecosystem Services

The first commons is a Trust, where “The Land” under conservation is entrusted to produce ecosystem services. This trust is committed to restoring and regenerating the Land to its maximum healthiness. It aims to create resilience for the humans who inhabit it and to generate both local and global ecosystem services. Locally, it ensures the well-being and healthiness of its biodiversity, including humans.

(It’s important to highlight the pervasive feeling of separation in our society; we often forget that humans are biodiversity.)

This commons, The Land, is what we know, see, touch, and inhabit. It’s a tangible, physical space where the principles of regenerative design are applied to foster a vibrant and resilient ecosystem.

“Commons is not a noun, it’s a verb.”

In this space, we have commoners — people actively participating in the stewardship and regeneration of the land.

The Second Commons: The Digital Twin

The digital twin commons, as its name implies, is a digital counterpart to the first commons. In this digital commons is where the process of Nature Finance implements the MMV process, designing systems for measuring, monitoring, and verifying the interrelationships between the different components of the underlying living ecosystem.

While some readers might view the possibility of implementing this idea with skepticism, it’s essential to recognize that we are on an exponential curve of the Internet of Things (IoT), advanced metrics, Bayesian modeling, and measurement technologies.

As Jensen Wang, CEO of NVIDIA, highlighted, digital biology and the rapid advancement of artificial intelligence (AI) are crucial for this digital twin to understand and manage living systems from a living systems approach. Above all, the digital twin must grasp the principles of regenerative design and development to ensure the process thrives, aligned with the patterns and principles of living systems.

A crucial aspect of this is the Bayesian model, a statistical method that refines predictions with each new piece of evidence. This model uses prior knowledge and updates it with new data, making it particularly valuable in dynamic environments like ecosystems. As the model evolves, it continuously learns and adapts, improving its accuracy in identifying feedback loops, assessing ecosystem health, and measuring the impacts of various species and human interventions.

The integration of IoT and AI enables us to create a digital twin that is not just a static representation but a dynamic, evolving system that mirrors the complexity and interconnectivity of natural ecosystems. By employing complexity theory and systems thinking, this digital twin can capture the nuanced interdependencies within ecosystems, ensuring that the digital representation is as holistic and accurate as possible.

Designing from a living systems perspective means that the digital twin must embody the principles of regenerative design and development. This approach ensures that the digital twin is not merely a tool for monitoring and management but a commons—a participatory process managed collectively by all stakeholders. This includes humans, flora, fauna, and ecosystems, all contributing to and benefiting from sustainable management practices.

Trustworthy Measuring, Monitoring, Reporting and Verification (MMRV)

Interspecies resource allocation

In the digital twin, artificial intelligence represents the interests of all life forms, both human and non-human, creating a revolutionary concept known as ‘interspecies resource allocation. This approach ensures that the needs and contributions of various species are recognized and valued, fostering a more inclusive and sustainable ecosystem management strategy . Imagine AI evaluating the preferences and needs of various species within the digital twin ecosystem. This advanced model allows non-human entities — animals, trees, plants, and even insects — to participate in a digital economy that directly benefits biodiversity.

In Rwanda and India, the idea of “interspecies money” is taking shape. Here, AI acts as a financial steward for these life forms, allocating digital currency to address their needs. For example, if an animal’s habitat is threatened by agricultural expansion, AI could pay a local farmer to halt deforestation, thus preserving the ecosystem. Similarly, AI might fund local communities to gather critical data on species presence, ensuring informed conservation efforts.

This innovative approach creates a digital market for biodiversity-supporting actions, transforming how we view and manage natural resources. Although still in its infancy, the potential of interspecies resource allocation offers a glimpse into a future where technology bridges the gap between human economic activity and ecological sustainability, fostering a truly interconnected world.

In essence, the digital twin becomes a living, breathing entity that thrives in alignment with the patterns and principles of living systems. This ensures that nature finance, through the digital twin, can effectively support the restoration and sustainable management of natural resources, fostering a deeper connection and responsibility towards our shared environment.

The Digital Twin Experience of a Patagonian Forest

Imagine a school that has invested in a biodiversity credit, owning a hectare of Patagonian forest. This isn't just an abstract investment—it's a vivid, real-time window into the heart of one of the world's most pristine ecosystems. Thanks to the integration of blockchain and artificial intelligence, the ecosystem services of this hectare are brought to life on any device, transforming education and conservation into an interactive experience.

Through the power of artificial intelligence and media platforms like Midjourney, real-time MMV (Measurement, Monitoring, and Verification) data is converted into a dynamic digital representation of the flora and fauna. Students and stakeholders can observe and engage with this living system, witnessing the intricate balance of nature as it unfolds.

A Glimpse into the Digital Twin

Through the digital representation of this digital twin, students can navigate and dive into the images of the Patagonian forest. They can observe the Chucao singing among the mosses and lichens covering the trunks of Lenga and Coihue trees. A Magellanic Woodpecker rhythmically taps on a nearby tree while a Ringed kingfisher waits by the clear stream. In the high branches, a Bandurria, a black faced Ibis, spreads its wings, and a cachaña screeches above. Amidst the undergrowth, a red fox stealthily moves, invisible among the fungi sprouting after the rain. The interdependence of these species creates a myriad of vital interactions in this pristine ecosystem.

This digital twin, with all its complexity and beauty, is meticulously accounted for on a blockchain, ensuring transparency and traceability of the ecosystem services. It provides a holistic view of the interdependencies between species, the health of the soil, and the dynamic feedback loops within the ecosystem. This immersive experience not only educates but also fosters a deeper appreciation and understanding of biodiversity.

Scaling Restoration: Concrete Paths to Meeting the 30x30 Global Biodiversity Framework

Imagine harnessing the cutting-edge power of a Bayesian model — a sophisticated statistical method that refines predictions with each new piece of evidence — to understand and enhance the health of an ecosystem. This isn’t just theoretical. With artificial intelligence continuously learning and improving, we can pinpoint feedback loops, assess ecosystem health, and measure the impacts of species interactions and human interventions, both positive and negative.

Trustworthy Measuring, Monitoring, Reporting and Verification (MMRV)

A Bayesian model, in essence, uses prior knowledge and updates it with new data to make informed predictions. It’s particularly valuable in dynamic environments like ecosystems, where conditions are in constant flux. This continuous learning and adaptation process ensures a nuanced and evolving understanding of our natural world.

Now, picture a corporation that buys biodiversity credits for a thousand hectares of land near the Patagonian forest. This land, battered by years of wheat farming with fertilizers and pesticides, currently has biodiversity credits valued at just 5% of the healthiness of the thriving Patagonian ecosystem.

However, as proven in the Loess Plateau in China, Sebastião Salgado’s restoration of his grandfather’s farm in Brazil, and the Savory Institute’s projects, nature can rebound remarkably if given the chance. Bill Reed eloquently points out that it can take as little as 18 months for significant ecological recovery to begin.

This isn’t an isolated opportunity. Brazil has 80 million hectares of degraded land that could benefit from such restoration efforts. In Europe, roughly 25% of the land is degraded, and the U.S. has millions of acres in need of revitalization. Applying these restoration techniques on a global scale can bring these ecosystems back to life.

By leveraging a Bayesian digital twin model, the corporation can meticulously monitor and guide the restoration of its thousand hectares. Over time, this land could see its biodiversity credits rise from 5% to 100%. The digital twin would track species reintroduction and ecosystem vitality, optimizing the restoration process through continuous learning and real-time adjustments.

This vision offers hope and a concrete path towards meeting the 30 by 30 commitment and implementing the Global Biodiversity Framework (GBF). It showcases how advanced technologies and intelligent models can spearhead large-scale environmental restoration, ensuring a sustainable and biodiverse future. This isn’t just about conservation — it’s about fundamentally rethinking and revitalizing our relationship with the natural world, using the best tools and knowledge at our disposal to restore our planet’s health and diversity.

The Unstoppable Rise of Nature Finance: A Global Awakening

Nature Finance is no longer a mere concept — it is a rapidly emerging reality, driven by a global awakening to the urgent need for ecological stewardship and sustainable development. This decentralized movement is gaining unstoppable momentum, marked by innovative projects and collaborations across the globe. The world is at a tipping point, and Nature Finance represents a powerful response to the crises facing our planet. With initiatives like BIOFIN, the World Economic Forum Biodiversity Credits, the Land Banking Group, the Crowther Lab, the EU Nature Restoration Law, UBS Biodiversity Finance, The BioFi project, and the UN State of Finance Approach and many others leading the charge, the potential for positive change is immense. The journey towards a sustainable future where nature and humanity thrive together has begun, and there is no turning back. This is the dawn of a new era of financial and ecological harmony.

Conclusion: Towards a Regenerative Future

Nature Finance represents a transformative approach to integrating financial practices with ecological sustainability. By leveraging advanced technologies, embracing the principles of regenerative design, and fostering a deep connection with the natural world, we can create financial systems that not only support economic growth but also regenerate and sustain the ecosystems upon which all life depends.

The journey towards a regenerative future requires us to shift our mindset from one of exploitation and consumption to one of stewardship and renewal. It calls for innovative financial mechanisms, robust certification systems, and a commitment to global restoration goals. Most importantly, it demands that we recognize our interconnectedness with the natural world and act accordingly.

By valuing and protecting biodiversity, we can ensure that future generations inherit a planet that is not only livable but thriving. Nature Finance is our roadmap to this future, guiding us towards a harmonious relationship with the Earth and all its inhabitants.

About Me

As I sit down to write this, I am acutely aware of the journey that has led me to this point — a journey spanning more than 20 years in the finance world and another 20 years dedicated to sustainability.

My name is Ernesto Van Peborgh, and I carry with me a tapestry of experiences that are seemingly worlds apart yet profoundly interconnected.

My path began as an Agricultural Engineer and later in the hallowed halls of Harvard, where I earned my MBA, and soon led me to the bustling streets of Wall Street. For over two decades, I navigated the complex waters of private equity, serving as a Managing Director of Private Equity Funds and steward of investments for discerning clients at institutions such as AIG, Goldman Sachs, Bank Boston, and First Boston. Alongside my work in finance, I held tenure as a professor of Capital Markets and Financial Engineering at both the Master Degrees of Universidad de Belgrano and the Universidad Católica Argentina (UCA).

Yet, the call to contribute to our planet’s healing led me on a new journey — one that plunged me into the digital realm, where I spent fifteen years innovating and cultivating successful startups. My company, a B Corp, was recognized twice, in 2017 and 2018, as one of the top 10 Global changemakers. This shift wasn’t merely a change in career trajectory; it was a profound transformation in how I view our relationship with the world and our capacity to effect meaningful change.

For the past decade, I have immersed myself in the principles of regenerative design, working alongside thought leaders like Bill Reed and John Fullerton. I have studied, researched, and written extensively on systems thinking, theory, and design, and on regenerative design systems. Since meeting Elinor Ostrom in 2010, I have specialized in commons design, spending a decade designing digital commons for companies like Telefónica, Grupo Pão de Açúcar, Natura Cosméticos, Tenaris, and several others.

From my experiences on Wall Street, I draw upon a profound comprehension of our current financial system. My career has taught me the importance of merging analytical rigor with visionary innovation to create systems that sustain both economy and ecology.

It is with this blend of experience and insight that I present this paper — a culmination of a life’s work at the intersection of finance and sustainable innovation. This is not just another idea; it’s a manifesto aimed at fostering a world where economy and ecology thrive as one. I offer it as a first draft and invite those with passion and purpose to co-construct or bring constructive criticism. Together, we can co-create a future that honors and regenerates our planet.

In this crucial moment for our planet, let us embark on this journey of co-evolution between humans and nature, transforming our extractive systems into regenerative ones. Join me in this endeavor, as we seek to understand and apply the principles that living systems use to thrive and reach sustainability.

With humility and certainty,
Ernesto Van Peborgh

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