Transforming Finance and the Regenerative Economy
Did You Know?
The global economy, which is driving humankind beyond the limits of the planetary boundaries, is itself driven by the theoretical construct and practice of global finance. A perpetually growing economy is at some point in conflict with a finite biosphere, and will impose profound implications for how we live our lives, and without a doubt for finance, as well. Just as we are in ecological overshoot, we are even more in financial overshoot.[i] Finance in general and specifically the flow of real investment capital is one of the critical leverage points to shift to a Regenerative Economy[ii] that serves humanity and stewards the integrity of earth’s ecosystems. If we fail, the world will face successive collapses of both ecosystems and the economies and financial system that depend on ecosystem health.
No one knows how this transformation will work out. However, as the challenges of climate change, loss of species, resource constraints and breakdown of social order become more severe, what now seems impossible will suddenly become inevitable. The Regenerative Economy is an emergent idea. It’s never been done. But it is the story that now is needed to save the world.
Full Policy Briefings
Watch this space… ASAP’s policy briefings on Transforming Finance and the Regenerative Economy coming soon, so join in the forum debate below now!
Principles of Sustainable Prosperity
- Using full-cost accounting measures to internalise externalities, value non-market assets and services, reform national accounting systems, and ensure that prices reflect actual social and environmental costs of production and distribution;
- Using resources dramatically more efficiently, buying time to redesign how business makes and delivers goods and services, using biomimicry, cradle to cradle and the circular economy to drive socially profitable innovation.
- Putting in place fiscal reforms that reward sustainable and wellbeing-enhancing actions and penalise unsustainable behaviours that diminish collective wellbeing, including ecological tax reforms with compensating mechanisms that avoid additional burdens on low-income groups;
- Implementing systems of cooperative investment in stewardship and payment for ecosystem services;
- Democratizing economic participation, including previously marginalized groups like indigenous communities, women, and youth.
- Increasing financial and fiscal prudence by reducing speculation, ensuring equitable access to and responsible use of credit, and requiring that financial instruments and practices contribute to the public good;
- Ensuring access to and sharing of the information required to move to a sustainable economy while protecting indigenous knowledge and necessary intellectual property;
- Measuring success with locally appropriate genuine progress indicators and increasing the resilience and diversity of communities and ecosystems.
Ever wondered what is the Business Case for Sustainability? Read on!
The world faces economic collapse and loss of ecological services. This is driven by a degenerative economy that values money and stuff over human well-being and ecosystem integrity. delay collapse – but only for a time.
Change WILL happen for two reasons. Ecosystems[i] and resource bases[ii] cannot support unsustainable economic practices.[iii] More importantly, companies and communities are realizing that behaving in ways that enhance human and natural capital is more profitable.[iv]
Simultaneously, a new economy is emerging at all levels from the global to the local. The UN Environment Program’s Green Economy initiative[i] recognizes that only a fundamental shift can ensure human survival and redress the ecological crises. National governments from Germany to Costa Rica to Scotland are shifting investment flows from carbon intensive technologies to renewable power. Leading companies are finding that adopting more sustainable practices enables them financially to outperform their less responsible competitors.[ii] And millions of civil society groups are organizing to implement economic democracy.[iii] Across the planet people recognize that conventional economies, although efficient at providing stuff are not delivering what they really want: prosperity, regenerative economics and well-being.
ASAP’s work on Sustainable Prosperity has highlighted the following focus areas.
Transforming Finance: ASAP full Policy Briefing coming soon, join in the forum conversation below now!
Entrepreneurship: ASAP full Policy Briefing coming soon, join in the forum conversation below now!
Built Infrastructure: ASAP full Policy Briefing coming soon, join in the forum conversation below now!
Policy Coherence: ASAP full Policy Briefing coming soon, join in the forum conversation below now!
Agriculture: ASAP full Policy Briefing coming soon, join in the forum conversation below now!
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