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In effect, the short-term focus of the free-market economy does not take into consideration the notion of perpetuity and that we must take care of our planet such that the profits of today derived from natural capital are not at the expense of the future. In generating their wealth, today’s enterprises take little to no account of the externalities associated with natural capital, with the result that they do not pay for the environmental and social degradations which they incur. And, by the same token, positive externalities, like the responsible stewardship of Indigenous peoples of their lands and which leads to environmental improvement, are not rewarded.
We have to leave this old narrative behind and embrace a new one. We can find a beautiful example of this brave new world in the book "A More Beautiful World Our Hearts Know is Possible," by the American writer Charles Eisenstein. In the book he explores the stories that have shaped our world and particularly the narrative of separation that underpins much of modern civilization. Eisenstein encourages us to shift towards a new Story of Interbeing, one that recognizes our deep interconnections with each other and the natural world. This new narrative opens pathways to empathy, understanding, and cooperation, leading us towards a more beautiful, just, and sustainable world.
Another sage-like person, Joanna Macy, who is now in her nineties, and is a renowned environmental activist, scholar, and author, centres her thinking on the interconnectedness of all life. She stresses the need for humans to take up their responsibility to protect the Earth. She has developed a framework for personal and social change, known as "The Work That Reconnects," which combines spiritual insights with systems theory and Buddhist principles. Of particular beauty about our role in these dangerous times is her telling an ancient Tibetan legend of the coming of the kingdom of Shambhala which is told to her by a shaman. The story goes like this:
"There comes a time when all life on Earth is in danger. Barbarian powers have arisen. Although they waste their wealth in preparations to annihilate each other, they have much in common: weapons of unfathomable devastation and technologies that lay waste the world. It is now, when the future of all beings hangs by the frailest of threads, that the kingdom of Shambhala emerges.
‘’You cannot go there, for it is not a place. It exists in the hearts and minds of the Shambhala warriors. But you cannot recognize a Shambhala warrior by sight, for there is no uniform or insignia, there are no banners. And there are no barricades from which to threaten the enemy, for the Shambhala warriors have no land of their own. Always they move on the terrain of the barbarians themselves.
"Now comes the time when great courage is required of the Shambhala warriors, moral and physical courage. For they must go into the very heart of the barbarian power and dismantle the weapons. To remove these weapons, in every sense of the word, they must go into the corridors of power where the decisions are made.
"The Shambhala warriors know they can do this because the weapons are manomaya, mind-made. This is very important to remember, Joanna. These weapons are made by the human mind. So they can be unmade by the human mind! The Shambhala warriors know that the dangers that threaten life on Earth do not come from evil deities or extraterrestrial powers. They arise from our own choices and relationships. So, now, the Shambhala warriors must go into training.
"The weapons are compassion and insight. Both are necessary. We need this first one," he said, lifting his right hand, "because it provides us with the fuel, it moves us out to act on behalf of other beings. But by itself compassion can burn us out. So we need the second as well, which is insight into the radical interdependence of all phenomena, connecting all things. It lets us see that the battle is not between good people and bad people, for the line between good and evil runs through every human heart. We realise that we are interconnected, as in a web, and that each act with pure motivation affects the entire web, bringing consequences we cannot measure or even see.
"But insight alone," he said, "can seem too cool to keep us going. So we need as well the heat of compassion, our openness to the world's pain. Both weapons or tools together are necessary to the Shambhala warrior."
Joanna explains that in these mythical times the answer lies in our courage to face the danger and subtle intelligence needed to see how all the crises we face are interconnected. She emphasises that we can make the jump in consciousness by embracing our emotional responses to global issues and thereby can shift from a self-centred perspective to an ecological worldview that recognizes our interconnectedness. She encourages us to view ourselves as part of the living Earth, providing a roadmap for our personal and collective transformation necessary to navigate the great global crises of our times.
Maybe the most radical of all is the author, Daniel Pinchbeck. In his book "2012: The Return of Quetzalcoatl", published in 2006, he draws upon shamanic experiences and ancient prophecies that humanity is on the precipice of a radical transformation in consciousness. The return of Quetzalcoatl, the feathered serpent deity of the ancient Mesoamericans, symbolises this shift – a shift away from our ego-driven, technocratic civilization towards a more spiritual, interconnected awareness. In his book of 2017, “How Soon is Now," Daniel delivers a provocative exploration of the ecological crisis as a rite of passage or initiation for humanity. He presents the current environmental emergency not just as a problem to be solved but as a necessary evolutionary push towards a fundamental shift in human consciousness, a metamorphosis. Drawing on extensive research into other cultures and economic systems, Pinchbeck outlines a comprehensive redesign of our current systems. He calls for a shift from a society rooted in competition and individualism to one based on cooperation and interconnection, with an underlying sense of urgency. Daniel offers a radical vision of a future that could avert ecological collapse. Throughout the book, Pinchbeck underscores the idea that the answers to our crisis lie not just in technology or policy changes, but also in a spiritual and psychological transformation, in which we recognize and embrace our integral role within the Earth's ecosystem.
This book, ‘’Cooling Climate Chaos’’, embraces and tries to integrate all these stories into a challenge to the new generation to take action NOW at the speed and scale needed to avert global collapse and combine this with redesigning their future and new structures to become guardians of the Earth. When the young rise up, elevate their creativity and realise their agency they can reinvent our role as a keystone species in the evolution of life on Earth. Because we are running out of time to avert the worst-case scenarios, the new generation will need to ’fly the plane while building it’. The much-needed transformation will involve cooperation on a scale magnitudes larger than anything our species has ever undertaken. The new operating system is not just based on a new story but also on the calibration of a new set of values. Never before in the life of our species, since our ancestors left the tropical forest edges of Africa, has our future been so endangered, hanging in the balance by our own ignorance and overzealous behaviour.
The new and yet ancient paradigm, of our being wholly dependent on the well-being of the natural world, necessitates an understanding of the biosphere as a vast interconnected web of life, which has come into being by means of its evolutionary and genetic connections to the past. In this world view all living organisms are intricately linked and mutually dependent. This perspective is grounded in a holistic and ecocentric understanding of the world, contrasting sharply with the human-centred and Cartesian rationalist worldview that has been prevalent in Western thought for centuries and which must now be radically modified.
Later, we will present an economic model to attribute values to nature as an aid to the transition, but first we must emphasise that the dignity, beauty and functionality of nature is an intrinsic value and, therefore, putting a proper price on its healthy functioning is a vital step in leading us from the imploding paradigm that nature is free to be exploited to the new one in which its value is properly realised as a stabilising force. In the new world that we must create, we will have to provide legal status and protection for the natural world, its rivers, forests, oceans, marshlands, grasslands and for the creatures which live within them. The bio-cultural diversity of the world is of critical importance for stabilising flows of energy and minerals within the biosphere which stretches from the Earth’s surface to the upper atmosphere. Hence, the interaction between species ensures that the atmosphere has just the right combination of gases for our own species to flourish. Fertile soils, with adequate watering, are also a consequence of the metabolic activities of a host of different organisms, from single-celled amoebae, to fungal mycorrhizae, earthworms and vegetation. We need the full panoply of such organisms for generating the material abundance on which we rely.
In the new, regenerated world our basic needs would be provided for by a thriving biosphere and a caring society. The challenge to regain such a world is immense, but doable. Yes, we humans have destroyed half of global living biomass and only when we have reversed that situation will the abundance, that was once the property of fertile soils and lands, have a chance of returning.
We believe that we Humans will come to know the advantages and benefits from embracing more down-to-Earth, sustainable lifestyles in a material, spiritual and cultural sense. The celebration of the gift of life will play a pivotal role in our new societies and the ‘’Do No Harm’’ principle will be at the heart of decision-making as we take into account the interconnectedness both in time and space of all life past, present and yet to be born. From this renaissance, based on a complete shift of perception of the meaning and role we have in the great journey of life on Earth, we will need to achieve a practical implementation of the metamorphosis. If enough of us embrace this new story with our hearts, minds and hands, we are on our way to create this new future of simple abundance and care as part of a living planet looking for new challenges into the cosmos and other yet unknown dimensions of the future.
The Earth belongs to itself and we humans belong to her. This is our only home and she, as a biosphere of all living organisms and those yet to come is in that sense alive. She, utilising the energy of the Sun, has given us life and, for that, is our common mother. We emerge from her and go back to her at the end of our lives. Let us keep the Earth in our hearts with all we do and declare her to be sacred.
The Earth needs careful, loving stewardship by generation after generation of her children to keep her in a great shape for the benefit of countless generations to come so that they can add their adventures, discoveries and stories to the collective story of life’s evolution. If we get through the current crisis, new avenues will open up and our restless species will no doubt make increasingly better attempts to discover the infinite universe. But first we need to get our own house in order, restore her lost vibrancy and educate newcomers about the abundance of the Earth and how it depends on our common behaviour.
In 2017, New Zealand passed groundbreaking legislation recognizing the Whanganui River, a river of great significance to the indigenous Māori people, as a legal person. It was the result of a long legal battle and reflects the Māori worldview that sees themselves as deeply connected to the land and waterways. The river can now defend itself and is represented through its guardians, who are appointed by the government and the Māori community. If the thought at first sounds strange, we need to remember that legal personhood has been established for institutions and companies for many centuries, so why not apply this for crucial features of our planet?
Therefore, let us set up the Earth as a legal person, and bestow upon her the rights and ownership of all those things that matter to her well-being and with that the well-being of current and future generations. This ownership is what we call the Global Commons, represented by a council of guardians appointed by the global community. These guardians act in the name of the Earth, are responsible for protecting its status and health and well-being and can represent her in legal matters.
We can bypass the cumbersome negotiations needed to get anything done in the United Nations and can form a digital decision-making body in the Digital Gaia where a quorum of people from around the world appoint these guardians.
It would be most logical to make the Earth as a whole the sovereign property of the Legal Earth and all ownership of land subordinate to the Legal Earth, setting clear rules of stewardship for all land, water and natural resources. This means that air, water, the soils, all species and so on belong to the Earth and can only be used and harvested responsibly, with care and respect for their well-being, leaving the ecosystems intact upon which their permanent well-being depends, which also ties in with the rights of future generations to a decent quality of life.
While not operating from the Living Earth perspective, the ‘’Safe and Just Earth Boundaries’’ article by Johan Rockstrom and others, sketches a good way to limit the use of the planet’s resources so that they are used sustainably. It states that our planet's health and human well-being are tightly connected. Currently, too few of us recognize this link and, for that reason, we need a framework to operate in so that we take the right decisions with respect to the long-term viability and habitability of the Earth.
The establishment of the legal personhood of the Earth’s attributes, such as that of the Whanganui River, need to happen everywhere. By such means, people everywhere should be able to declare their lands, rivers, watersheds, mountains, forests, seas as legal persons and form councils of stewards that guard the boundaries of human activity so that they do not degrade the area.
The counterpart of the Rights of the Earth is the establishment of the ecocide law, a movement started by Polly Higgins and Jojo Mehta and now taking shape.
Ecocide needs to become part of the Rome Statute of the International Criminal Court as the fifth international crime. The Rome Statute established four core international crimes: genocide, crimes against humanity, war crimes, and the crime of aggression. Ecocide is described as the unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and widespread or long-term damage to the environment being caused by those acts.
As we stand now, our house is on fire and we have limited time to turn things around before we are no longer capable of doing so. A first step must be the financing of planetary regeneration, which is both a moral imperative and a crucial strategic economic move in our combined efforts to save the future. Indeed, we need to develop innovative governance structures, a new financial system and financial instruments that can support such efforts, thereby creating an undeniable business-case for environmental restoration.
Just as the Marshall Plan was designed to rebuild economies after World War II, a similar financial strategy must be implemented globally to restore our damaged ecosystems. This, in turn, will help stabilise the climate, regenerate degraded land and support the emergence of a circular economy. For such an economy to come universally into being will require considerable attitudinal changes to make it happen. For instance, it redefines what property is and what are the boundaries within which individuals, communities and larger organisations can manoeuvre to enhance their self-interest, while being aligned to the interests of the local and global commons and the rights of nature.
The Earth is slowly being understood by modern humans as a place that requires careful stewardship, leaving its abundance intact and only taking what can be harvested while maintaining the processes that ensure sustainability, such as care for soils and maintaining its fertility. Contemporary societies, across the world, have become destructive and wasteful in the careless way they deal with the riches of our extraordinary planet. Such callous, materialistic treatment of planetary resources has not been the way of most Indigenous peoples. Although they comprise less than 5% of the world population, Indigenous peoples protect 80 per cent of the Earth’s biodiversity in the forests, deserts, grasslands, and marine environments in which they have lived for centuries. Moreover, the wealth of biodiversity to be found in Indigenous areas is actually at least as high as in protected areas like national parks and conservation units, therefore indicating that their hunting and foraging activities do not reduce biodiversity and may in some instances actually enhance it. Many Indigenous cultures see themselves as interconnected with nature, viewing forests, rivers, the land and the whole Earth as sacred, conscious and alive. They practise sustainability, respect the environment, and value and teach traditional ecological knowledge, such that they are ‘ecologists by culture’. They emphasise harmony with nature, storytelling, and communal values. In contrast, modern humans have built their economies on the notion that resources are there for the taking, with minimal concern for the devastation left behind in their extraction and use. In the early 17th century, Francis Bacon heralded the idea of science being used as a means to improve the state of mankind. Nature for him was chaotic and, like a harlot, needed to be brought to order if mankind were to progress and improve the quality of life, as it then was. Bacon’s view of Nature as unkempt and disordered is wholly at odds with that held traditionally by indigenous communities in the Amazon Basin who, in sharp contrast, consider the natural world to be inherently and dynamically ordered as compared to the chaos prevalent in human affairs. In effect, the idea that scientific and technological progress is taking us to some materialistic utopia has brought about a pathological disconnection from nature. In that respect, the current climate mess we are in is only a symptom of the much larger problem associated with the destruction of much of the web of life which, by means of feedbacks, both negative and positive, managed the Earth’s planetary physiology, with its breathing-in and -out of the gases which make up our atmosphere. In the 1970s, the historian Siegfried Giedion captured well the real spirit of progress. “The one-way street of logic has landed us to the slum of materialism,” he observed with bitter irony,
Humans have always attributed value to items, such as gold and precious stones. They were definitely chosen for their beauty, durability and scarcity, but in the end the real value is decided by an implicit social contract between people: something is valuable because it is deemed valuable, rather than having a necessary value because it is a fruit tree, food, drinking water or wine or a rare earth needed to make a computer chip work.
In this context, a new asset class is proposed: productive, biodiverse, climate-resilient landscapes that sustainably produce food and other products, such as clean water, beauty and relaxation. The concept here is to treat land not simply as a commodity to be exploited but as an asset whose long-term value depends on its overall health and productivity. This means that the financial value of such landscapes would be measured not just in terms of their immediate yield, but also in terms of their biodiversity, carbon sequestration potential, water retention capacity, soil health, and their contribution to the economies, health and well-being of local communities and last but not least, its beauty.
We need to recognise the importance of these biodiverse, climate-resilient landscapes to secure the future, while showing that investment in them generates sufficient returns not just in a monetary sense, through the production of foods, for instance, but also because they generate ecosystem services such as clean air and water and biodiversity. These payments for ecoservices, such as carbon credits on top of the other benefits, makes investment in land regeneration attractive for investment. But in order to do that, more information needs to be organised and quantified for investors to understand risks and returns. Larger investors such as sovereign funds or pension funds typically invest in diversified portfolios and regenerative projects should not be any different, ensuring that the risk is spread and the portfolio appealing to a wide array of investors.
A crucial aspect is the standardisation and quantification of the impact of these investments. We must develop new metrics that accurately gauge ecosystem health, biodiversity, carbon sequestration, water retention, soil health, and socioeconomic benefits. Clear and reliable data enhances investor confidence and adds credibility to the asset class. Simultaneously, work needs to be done on creating regulatory standards and on gaining market recognition.
An increasing number of companies and investors are putting in place environmental, social, and governance (ESG) criteria to assess their sustainability efforts and to quantify their responses to climate change. These corporations often align their missions with thematic areas that work well for their stakeholders, such as water, energy, biodiversity, carbon, or broader climate-focused targets, accelerated by new regulation such as that which the EU is rolling out with its corporate sustainability reporting directive (CSRD), the aim being to force 50,000 listed companies to make environmental, social and governance (ESG) disclosures in annual reports for 2024 onwards.
With the end of the last Ice Age, some tribes in the dryer areas of the Eurasian continent, discovered fertile lands and settled, tending to the earth and turning more and more to agriculture. It might well have been that their nomadic or semi-nomadic life was no longer viable, caused by the dwindling number of wild animals. Nomads are known to have already enriched their natural surroundings with edible plants they could go back to later, but it was especially the grass seeds that turned out to be abundant and reliable food sources and maybe more importantly, storable, leaving a surplus and more time free from the search for food. It also started the necessity to protect the food-storage granaries, which meant residing in one place, while fending off marauding nomads. The more stable food supply made foraging by all less and less necessary, while the surplus harvested allowed for a growing population. This settled life also introduced the division of labour and the emergence of property rights and more social hierarchy.
Once agriculture got underway, settlements became larger and the size of social groups surpassed the so called ‘’Dunbar number’’, with the consequence that governance became stratified and decision-making was carried out by an elite group, supposedly representing the community. The Dunbar number is described as the maximum number of people with whom someone can maintain stable social relationships, with everyone knowing each other directly. The number is quite often put at around 150 people. When communities surpass this number, more formal rules are established and institutions are created for decision-making, supposedly with the best interests of the population at heart. In a tribal group, the chief or the shaman quite often has this role, but as populations grow, those decisions may be made by someone who is not intimately acquainted with the persons whose interests are being determined. In effect, the institutions and those who form it gain power and with that power can come dictatorship and the hunger for more power. To prevent such accretion of power, laws, rules and constitutions need to be created, with a body of experts to oversee them and ensure that they are not contravened. Such is the modern society.
Surpassing the Dunbar number also introduced what is known as the Tragedy of the Commons, where individual action can collectively lead to resource depletion and environmental degradation, to the point at which we have now arrived, with our degraded, abused planet showing its stress by foisting on us extreme climate-related events, with all the ensuing tragedy. Resource-grabbing has been the name of the game for millennia and with it, the creation of empires and colonisation. The issue of each out for him- or herself plays a continuous role in the inability of governments to work together on regulatory mechanisms for preventing the further degradation of the Earth.
And here we get to maybe the most important hurdle of unlocking large scale global investment in the regeneration of ecosystems and the transition to regenerative food production and sustainable economic activities in general. It is the crucial but cumbersome work of setting up the right system of taxonomy to unlock the necessary large-scale investment. If done correctly, regenerating the planet everywhere could become the largest investment boon in the history of humanity, way greater than the energy transition and the decarbonization of the global economy. But the market to price, compare, exchange and invest in ecological benefits right now is chaotic and in part a wild west of all kinds and qualities of projects.
Why is taxonomy important to launch a global market to regenerate the planet? Taxonomy is a classification system used to categorise and organise elements of economic activity for the purposes of reporting, analysis and comparison, making their investment manageable including the possibilities for risk assessment and return on investment. The EU Sustainable Finance Taxonomy, for instance, classifies economic activities based on their environmental sustainability. This helps investors and companies make decisions aligned with climate goals. Transparency, standardisation, and consensus are critical for creating an investable market for regeneration. The first step towards this is agreeing upon a common language, shared definitions, and protocols for ecological benefits. This level of standardisation is crucial because it allows both project owners and purchasers to understand and agree upon the qualitative and quantitative data used to assert ecological benefit claims and paves the way for a huge globally interconnected platform for the investment in regeneration of the planet and the transition to regenerative food production, circular production of goods and so on.
Accelerating this wave of institutional investment unlocking trillions of dollars over the next decades requires the emergence of a transactional marketplace that places a tangible value on ecological benefits. This involves building a platform that verifies positive ecological and social impacts, which can dramatically boost corporate sustainability efforts.
One of the latest developments is that of the creation of an Ecological benefits Framework (EBF) that can help in aligning the taxonomy and valuation of ecoservices across the board. Such an accounting system recorded with blockchain technology can make the monitoring, reporting and verification transparent, comparable across markets and make automated price discovery on digital markets possible. This EBF can be designed to identify, track, and report a range of ecological benefit claims including but not limited to carbon. This would include benefits to air, water, soil, biodiversity, and equity, creating an exchange for market transactions.
Central to the implementation of this marketplace platform will be the widespread adoption of a machine-readable, universally standardised visual language. This language will effectively communicate the full spectrum of ecological services and benefits associated with each project. The EBF can underpin the creation of a marketplace where ecological benefits can be traded. This would give these benefits a tangible economic value, incentivizing companies to produce more of them. It could function similarly to existing carbon markets but would be broader in scope, including benefits to air, water, soil, and biodiversity. The EBF would be structured to reward companies that act as effective environmental stewards. This could take the form of financial incentives, tax breaks, or preferential access to resources or markets. Such rewards can encourage more companies to invest in regenerative practices, leading to a multiplier effect in the effort to regenerate the planet and have a positive effect on their market value.
Box: On mobile devices, purchasers—or in the case of public companies, shareholders—can now have a “baseball card” like dashboard, with the “front of the card” consisting of interactive story elements that offer a qualitative nuanced explanation of each benefit, with the “back of the card” offering a quantitative valuation of the specific ecological benefits associated with the project. BOX.
The global financial market is a vast network where buyers and sellers trade financial securities, commodities, and other fungible items at prices determined by supply and demand. It is split into several segments, including the stock market, bond market, commodities market and foreign-exchange market. The total market capitalization of all global stock and bond markets are over 200 trillion USD dollars, more than twice the global GDP. Regenerating the planet will need to make up a substantial portion of these markets in order to be effective in time.
Increasingly climate-related financial disclosures can aid investors in channelling resources towards more sustainable businesses. Implementing carbon pricing mechanisms can offer an economic incentive for companies to reduce their emissions. Technological innovations, particularly in financial technology, can create more efficient and accessible pathways to sustainability. But the real breakthrough still needs to happen with institutional investors who must come to realise that not only must they invest in regenerative projects to protect their total asset base but also realise it as a real opportunity to create financial return on investment combined with the long-term protection of the habitability of the planet as a whole.
It was Elinor Ostrom, the 2009 Nobel laureate in Economic Sciences, who showed that the Tragedy of the Commons can be avoided and is often avoided in the way traditional and Indigenous communities organise their limited resources together, such as equal shares of water in a village well, or how many tapir a community could hunt at any one time, or when certain fish could be caught in a river. Ostrom identified eight "design principles" of stable local common pool resource management, which she drew up after studying many traditional and Indigenous communities:
(1) Clearly defined boundaries. The identity of the group and the boundaries of the shared resource are clearly delineated.
(2) Proportional equivalence between benefits and costs. Members of the group must negotiate a system that rewards members for their contributions. High status or other disproportionate benefits must be earned. Unfair inequality poisons collective efforts.
(3) Collective-choice arrangements. Group members must be able to create at least some of their own rules and make their own decisions by consensus. People dislike being told what to do but will work hard for group goals that they have agreed upon.
(4) Monitoring. Managing a Commons is inherently vulnerable to free-riding and active exploitation. Unless such undermining strategies are detected by norm-abiding members of the group, the Tragedy of the Commons will occur.
(5) Graduated sanctions. Transgressions need not require heavy-handed punishment, at least initially. Often gossip or a gentle reminder is sufficient, but more severe forms of punishment must also be waiting in the wings for use when necessary.
(6) Conflict resolution mechanisms. It must be possible to resolve conflicts quickly and in ways that are perceived as fair by members of the group.
(7) Minimal recognition of rights to organise. Groups must have the authority to conduct their own affairs. Externally imposed rules are unlikely to be adapted to local circumstances and violate principle 3.
(8) For groups that are part of larger social systems, there must be appropriate coordination among relevant groups
It may seem that we have drifted a long way from exploring ways to redesign finance to regenerate the planetary biosphere. Nevertheless, this exploration on how we must organise ourselves in a way that we can move to a sustainable stewardship of the Earth and protect the sacred vitality of nature upon which our survival and well-being depends, is crucial to define how we design a financial system that preserves, protects, supports and improves the state of the lands we live on and the oceans on which we depend. The underlying principles and function of indigenous land management systems show that it is possible to steward the biological abundance of their lands, their soils, water, air, biodiversity, ecology and that this is done with sufficient equity, based on the fundamental principles of reciprocity and exchange. I take something from you and I give you back something you need from me. Indigenous dealings with the natural world are founded on the same principles. As the environmental biologist, Barry Commoner said many years ago, “there’s no such thing as a free lunch!”.
A new financial system that is able to promote economic prosperity and financial stability based on protecting the Earth’s abundance instead of plundering it, needs to take the above considerations and options into account to be effective. And we need to act now, as we are running out of time to avert the collapse of our consumer societies and civilizations from climate-related issues.
Ostrom’s principles are nicely digitised in the form of smart contracts that echo these Indigenous forms of organisation. Furthermore, the eight principles shape the design rules of smart contracts, which David Dao, in his 2018 paper, calls Ostrom Contracts. In particular, distributed governance is woven into the contract’s structure.
Source: David Dao, 2018 Decentralized Sustainability
But maybe the most revealing realisation is that, ‘’Smart contracts allow us to execute computer functions while digitally sending money at the same time. This is powerful as it means that we can implement and possibly install economic systems anywhere and everywhere, just like a computer program.’’
Bottom-up governance of the commons, must operate from certain general principles such that they are effective, equitable and for the protection of the biosphere. Fundamentally, those principles need to account for the long-term health and resilience of ecosystems and communities. Consideration must be given to the impact of decisions taken now and how they might impact in the future. A model for that comes from indigenous North American communities who looked to the consequences of their actions for seven generations to come, or some 200 years hence.
The above principles and considerations are meant to provide the context for designing bottom-up governance with the capacity to navigate the complexities of managing the local commons in a globally interconnected world.
The way we have degraded the Earth makes it extremely difficult to reverse the damage in the time and scale necessary. For recovery of degraded ecosystems, we need the integrated actions of literally billions of people, regenerating the Earth in millions of places by millions of organisations, communities, companies and institutions. The enormous power of modern computing makes this task feasible, by means of instant access to information through worldwide communication, and allows all to follow and develop suitable organisational structures, to design projects based on the experience of others and then to execute them. Meanwhile, the digital financing of all the anticipated community-based regenerative projects would not be possible without the latest developments in internet access, in the extraordinary scope of search engines and in the widespread communication generated through social media.
Long before the digital breakthroughs, people had already organised themselves in forms of cooperation that were not owned by a few people but instead had distributed ownership and decision-making. But the revolution around blockchain technology has made these forms of organisations much more agile and scalable and we should soon be able to apply them to almost all processes that we need to guide the transition from the exploitative economy to a sustainable and equitable one.
A Decentralised Autonomous Organization (DAO) simplifies decentralised ownership and decision-making through the use of blockchain technology and smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. DAOs operate on the principles of transparency, democracy, and open participation. Members of a DAO typically have voting rights proportional to the amount of the DAO's tokens they hold. They can propose and vote on decisions such as how to allocate resources, whether to undertake certain projects, and other matters of governance. Since these decisions are governed by smart contracts, they can be executed without the need for a centralised authority or intermediary, reducing the potential for corruption or bias. Anyone who owns tokens in a DAO is a part owner of that organisation. These tokens can often be bought, sold, or earned, enabling a fluid and open form of ownership. All rules in the DAO are transparent and accessible to everyone in the network. It's impossible to change the rules without the agreement of token holders, making the organisation fair and more resilient to amassing unnecessary wealth, control and power.
Because DAOs are based on blockchain, they can operate at any scale, from locally to globally as long as the internet is running, allowing people from around the world to participate, regardless of geographical location. This opens up opportunities for a diversity of voices to be heard. It also breaks the monopoly of large corporations or governments as the decentralised web, often referred to as Web 3.0, aims to make internet interactions more peer-to-peer and less dependent on central authorities. This includes the capacity of decentralised data storage and sharing. What still is needed is a decentralised ownership of the data transport over the backbones, internet service providers and the operation of data centres to make the power of the internet really autonomous and not controlled by powerful entities like large corporations or centralised governments.
The processes that make up life are a sheer infinite number of microscopic interactions between trillions of cells and other elements of a body. Yet their interaction, metabolism and neural connections together form a conscious body such as yours or mine. The global internet infrastructure and the human nervous system can both be viewed as extensive, intricate networks that relay and process information, with most decisions not made at the top level of the human conscious mind as it would be too complex to organise all these countless activities from a central control room. This is already mostly the case in the digital global networks which resemble the neural system of a body. It is good to use the model of the human body to further this model of development. Many processes in the human body happen autonomously, not directly commanded by the centralised consciousness. This is akin to servers in the internet processing data independently, without a central authority. The so-called peer-to-peer architecture that makes such independence possible will become a necessary condition for the world community to work together.
Decentralised Finance, more commonly referred to as DeFi, is a comprehensive term that encapsulates a variety of financial applications and instruments that are built upon blockchain technologies. This opens up a whole world of self-governed currencies and makes the regeneration of the future independent from traditional financial parties such as governments, insurance companies, banks, or brokers. Instead, such financial applications operate using smart contracts, which are self-executing contracts. These contracts have the terms of an agreement directly inscribed into their code, ensuring transparency and immutability. Undoubtedly, such innovative processes militate against the powers of existing institutions, which will not easily give away their monopolies. But more and more people inside those institutions understand that it will be impossible to avert collapse of complex modern societies and hence their own institutions if we do not radically alter the way we organise our economy with respect to nature and the planet, as well as with respect to the rights of other people and indeed species.
The total amount of investment in regeneration is in the trillions. Research by the G20 has shown that on average the regeneration of degraded land in the Global South to make it more productive with sustainable food production is about 5,000 USD per hectare and we would need to invest in regeneration of land and ecosystems at a scale of at least half a billion hectares in the next ten years (5 million square kilometres). If the world will pay for carbon sequestration at a rate of around 50 USD per ton and pay for additional services as well, these finances would be sufficient by themselves to pay for the transition.
The way this finance would be unlocked is very project specific and can be in many forms. To start with, Green Bonds are already issued by governments, municipalities, and corporations to finance regenerative projects, but the scale is not large enough yet. In this case, these bonds could specifically target the restoration and sustainable management of productive landscapes, with possible collateral carbon credits harvested over a period of 30 years. Carbon Credit mortgages could work on a similar basis with loan and interest paid back over time based on carbon sequestration within a project. Mutual funds could be set up to de-risk investment in individual projects. Environmental Impact Bonds could be issued like traditional bonds but with a twist. Investors would be paid back with interest if the environmental outcomes of the funded projects meet or exceed expectations.
Special funds to guide the transition in agriculture are required everywhere These would be funds that demand investment in sustainable and resilient farming practices such as to enhance biodiversity, the sequestering of carbon, the regeneration of small water cycles to water and cool the Earth and which boost food productivity. By that means, production could be diversified while, simultaneously, helping to develop other products from the bioeconomy.
The regeneration of the planet is an investment in our collective future, and as such, needs to be backed by the right financial tools. By developing financial instruments that promote and reward regenerative practices, we not only create a business case for environmental stewardship, but we also drive the innovation needed to build a more sustainable and resilient global economy. It is time for the financial world to align its strategies with the imperative of planetary health and wellbeing, for our sake and for future generations.
This proposed investable market for regeneration could become the largest investment opportunity in human history because it fundamentally transforms the existing model. Instead of an exploitative system that degrades the planet and threatens the viability of all species, it proposes an economy that is permanently sustainable, catering to the needs of all people while respecting the rights of other species and nature.
Currently, the global economy operates on principles that often prioritise short-term gain over long-term sustainability. This has resulted in unprecedented environmental degradation, climate change, and loss of biodiversity, putting the future of the planet at risk. By shifting the economic model to one that rewards regeneration and sustainability, we not only protect the planet but also create a vast array of investment opportunities.
The scale of the challenge – and thus the potential investment – is immense. It involves transitioning to renewable energy, implementing sustainable agricultural practices, restoring degraded ecosystems, managing water resources, restoring the health and productivity of the oceans, making sewage treatment worldwide circular and much more. The demand for capital to finance these transitions is massive, making this potentially the largest investment opportunity ever. The creation of an investable market for regeneration offers an opportunity to align our economic system with the long-term health and sustainability of our planet and above all avert the collapse of complex globally interconnected societies. It represents not only a potential good or even great return on investment, but also a chance to ensure a liveable future for all species, including our own. This transformation represents an investment opportunity of unprecedented scale, one that potentially is the largest in the history of humanity. But for that we need to get a new operating system of the global economy, based on the amazing technology of the internet and artificial intelligence, working very soon for this new sustainable economy to emerge everywhere.