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They should advocate for reforms that encourage longer farm regenerative finance tenancies, enabling long-term regenerative investments. On the other hand, the existence of large estates and institutionally held portfolios presents opportunities. Major landholders have the power to implement regenerative practices at scale and contribute to ecosystem restoration.
CSRD Challenges for Businesses and How to Overcome Them
We’re not going to shift everybody to a consciousness of interbeing and understanding, in two years time. We need to have language that addresses that whole spectrum…and help people move on the spiral. And I immediately kind of applied mudita and celebrated what you’d achieved. And in that initial white paper, you were moving your way towards these principles that you’ve established for regenerative https://www.xcritical.com/ economics. And it was quite eye-opening and honestly, a bit depressing to realize how stuck the foundation model is in reductionist problem solving.
Bridging the Regenerative Agriculture Financing Gap
And it’s pretty hard to change someone’s belief system once it’s wired in. And all of the conversations we’re having about shifting the economy and shifting finance always then fall back into that reductionist logic. And you wonder why we’re just making incremental change and not transformational change.
An Introduction to Regenerative Finance
While ReFi relies on digital tools and the Internet, it is already creating positive physical and tangible outcomes for people worldwide. Everyone can leverage ReFi’s digital infrastructure to coordinate and pool resources across borders, design products that serve key needs for local communities, or build services that accelerate climate action. It builds on the principles of its predecessor, and interweaves them with theories and approaches from regenerative economics. ReFi expands on some DeFi principles and replaces others to realize the idea of a regenerative and inclusive economic system. Many traits of ReFi are derived from DeFi, for example, that people have control over their funds, and that applications, services, and transactions are transparent and openly accessible.
After the Kyoto Protocol of 1997 and the Paris Agreement of 2015, international accords were laid out for CO2 emission goals. To achieve these goals, governments regulate the emissions of companies using incentives in the form of limits and fines. Chief sustainability officers are helping to demonstrate why creating value from sustainability is an imperative for their organizations. Discover how EY insights and services are helping to reframe the future of your industry.
Data and analytics also help CDFIs make informed investment decisions and measure their investments’ impact. CDFIs play a vital role in advancing a more sustainable financial system, democratizing access to finance, and promoting positive social and environmental impact. By providing capital and financial services to underserved communities, CDFIs are supporting the shift towards a more sustainable future. The goals of ReFi are noble as it aims to create a regenerative and sustainable economy. It seeks to bring benefits to all without causing any serious damage to the environment.
I’m truly searching for truth in what’s the ultimate crisis and challenge of humanity at this moment in time. I mean, not that that was the first time when it was said, people have been saying it for much longer than that. But now, you have the founder of the World Economic Forum, as early as 2012, ’13, saying capitalism is broken and needs redesigning. And it’s not a taboo topic anymore to say something is fundamentally needing a shift, but then of course you get the camps again, of some people saying we can redesign capitalism, or rescue the world capital, if we apply it in a more nuanced way. For example, innovation and adaptation is probably at the heart of the capitalist system. And that is not enough on its own, but it’s pretty easy to flush the baby out with the bath water if we’re not careful.
And economics, if it claims to be a science, is also a science of quantities.” And only like the old adage that you hear ad nauseum, only what gets measured gets managed. As a friend of mine says — I think it comes from Buddhism — there are all sort of fingers pointing at the moon. My eight principles are my fingers pointing at the moon, but we can’t confuse the fingers with the moon. And so what we’re really trying to do is reduce, using reductionist method, to as few as possible, the patterns, principles, qualities, whatever word we want to choose, that allow us to see things through this regenerative lens. Qualities doesn’t challenge people… It doesn’t have this meaning of I’m declaring what truth is. So I think the most important thing about my eight principles are really not my eight principles, but the idea of principles.
With Life Programming provides opportunities for people and organizations to build capacity in the With Life approach. Our workshops, courses, and learning tools are helping all sectors globally to shift their mindsets and operations to align with the patterns of living systems. RSF recently launched the Racial JusticeCollaborative— a philanthropic fund that provides diverse forms of capital to US-based socialenterprises with BIPOC owners and leaders.
Regenerative finance (ReFi) is a term used to describe blockchain projects that are developed such that the resources used over time are regenerated. All the principles of regenerative agriculture – limiting soil disturbance with no-till or reduced till, keeping the ground covered all year round, rotating crops, reducing biological and chemical inputs, and integrating livestock – nourish biodiversity. Modern agriculture has done a remarkable job of feeding the 7.9 billion world population. Yet with the global population projected to reach 9.7 billion in 2050, agriculture faces increasing challenges from degraded land, unprecedented weather extremes, new pests and blights migrating from other parts of the world and diminishing water resources. Imagine if that entire bioregion, it was converted to regenerative agriculture. That would mean that the Great Plains, which are this massive carbon sink, but have been converted to a carbon source, it would be reverted to a carbon sink.
- There are examples of oil and gas infrastructure being reused or retrofitted to create a new business opportunity, such as the Malaysian oil platform that has been converted into a resort and scuba diving tourist destination (New York Post2016).
- It’s not enough that we simply protect nature, we need a path that puts nature, climate and people in synergy.
- Crucially, the emphasis should always be on reducing negative impacts, with credits used as a last resort.
- As entrepreneurs, governments, economists and concerned citizenry come together, it is expected that the adoption of ReFi will growth and its principles will guide economic policies in the future.
- Despite differing ethical viewpoints, meat remains an important source of nutrition for many people.
- Regenerative agriculture is an approach to farming that goes beyond sustainability, aiming to actively improve the health of the ecosystem.
- Most current verification is carried out manually as an expert review process, but ML presents a promising area for the automation and scaling of these processes.
Report authors highlighted that an un-named insurer (“the biggest insurer in a large emerging market”) has already outlined plans to add climate and ESG risk-adjusted premiums for farmers, having already done a similar thing for the construction industry. Globally, formal agricultural credit is USD $1.1 trillion, and aggregate capital flowing to agriculture has experienced double digit growth in the past decade. Proxy voting and shareholder activismUse proxy voting to influence corporate behaviour towards greater transparency and adoption of regenerative practices. Investors can draw inspiration from COFCO International’s $1.6 billion sustainability-linked loan tied to soy supply traceability or green bonds such as BPCE’s €750 million issuance tied to sustainable agriculture.
Have you seen, in my book, I do Akido with your eight principles, and I honor them, but I turn them all into questions. We can also tell people where they find the white paper, so they can look at the principals in more detail. Each of these eight principles, I can spend an hour talking about each one, because they all operate at many, many different levels. But you ask the man on the street, or the informed man on the street, or woman on the street, about the Green Revolution and most people would say, “Yeah, that saved billions of people from starving to death.” And there’s some truth to that, right?
Even investment strategies aimed at achievingpositive net impact tend to focus on a narrow set of targets, and they oftenneglect to consider how outcomes are created and who benefits. Most banking andlending practices still ignore social and environmental impacts. One that seeks not just to minimise harm, but actively contribute to the health of our ecosystems and society with innovative financial mechanisms being a core driving force. Blockchains enable new decentralized ownership and governance approaches, and thus the creation of an information commons, by distributing data ownership over a network of nodes that each hold a copy of the whole data ledger (Franke et al., 2020).
And that relationship of the owner of capital and the enterprise is fundamental to a capitalist system that’s going to be functional. And so, for example, if you have buildings owned by people who don’t care about fixing the roof, you’re going to have leaky buildings and bad housing. For me, that circulation also has a level of this the fractal pattern of cascading circulation, like what circulates at what scale. And that’s one of the conversations that I find the circular economy people aren’t paying enough attention to, despite the fact that their elders, which are really the industrial ecologists, paid a lot of attention to that. If you read the early books on industrial ecology, they say the biggest punch, bang for your buck, so to speak, if you want to use the old language, is by re-regionalizing the cycles.
Being able to purchase carbon offset credits allows organisations that have traditionally high emissions to act immediately to reduce them via offsetting, rather than waiting for a gradual change in their operations which could take years. The Voluntary Carbon Market (VCM) is where organisations purchase carbon offset credits voluntarily to help reduce their environmental impact. The open nature of DAOs and the position of members as key stakeholders based on their token holdings means that investment opportunities are not a closed shop, and everyone can feel like they’re doing their bit for causes that they care deeply about. The traditional financial markets have long been modelled on the extraction of value and exploitation of people – empowerment for the few whilst relying on the labour of many. Resources and wealth are funnelled towards a tiny number of places and individuals.
In the view of these complex system thinkers, promoting the health of the underlying human network is vastly more important than increasing the volume of economic output (GDP growth) per se. Large and small organizations both play important roles, and the goal is to maintain balance and integration. The universal patterns and principles the cosmos uses to build stable, healthy, and sustainable systems throughout the real world can and must be used as a model for economic-system design. ReFi has a wide range of applications in various sectors, including Regenerative Agriculture, renewable energy, and sustainable infrastructure. In Regenerative Agriculture, ReFi provides financial support for farmers to adopt regenerative practices prioritizing soil health, biodiversity, and ecosystem services.