Seeds that could make finance work for nature, not against it

Money makes the world go round, at least the economic world. So far, the way we finance our economic activities has been a main contributor to nature loss. To change this, we need to shift where and how funding gets allocated.

This new focus on “finance for nature” has been the point of interest of a new study led by Centre researcher Bianca Voicu with Centre colleagues Megan Meacham and Garry Peterson.

In the study, the researchers identified 30 promising finance initiatives – or seeds of nature-positive futures, as they call them. The idea of ‘seeds’ goes back to the Seeds of Good Anthropocenes project, an initiative that solicits, explores, and develops a suite of alternative, plausible “Good Anthropocenes” – positive visions of futures that are socially and ecologically desirable, just, and sustainable.

In the new study, the researchers then analysed these seeds to gather information regarding their general scope, key stakeholders, geographical focus, overarching financial mechanism, and indicators of their potential to become a transformational force.

“Diverse financial instruments exist to support nature stewardship,” explains Centre researcher Bianca Voicu, lead author of the study.

“We found novel mechanisms for financing nature conservation, restoration and the sustainable use of natural resources.”

The researchers also dissecting how nature is valued in the different initiatives, be it for the sake of societal benefits, as an integral part of human culture, or as something valuable in itself.

Surprisingly to the researchers, the seeds present a diverse set of value perspectives, even though the predominant focus lies on instrumental values.

Focus on market-driven solutions

Most of the seeds in the study proposed solutions that work within the current market structures, e.g. by presenting new products to allocate financial capital to nature in a more effective matter.

The mechanisms behind the seeds vary, from long-term grant financing mechanisms, to implementing alternative organisational structures, such as not-for-profit and cooperative businesses, which better scrutinise the ecological and social impact of investments, or investments in indigenous-owned business models which are aligned with local nature stewardship principles.

“There’s a real need for alternative narratives and more experimentation when it comes to non-market-based mechanisms, different structures for ownership and governance, and not the least incorporating perspectives that see nature’s value for nature’s sake or intertwined with culture,” says Bianca Voicu.