reports from barcelona- whilst editing emotional intel on EU knowledgeboard.com at start of 2000s I was privileged to visit barcelona then knowl3edge city of the year - friends there have been constant inspiration since no surprise that iit is becoming one of the great community building dao labs - some typical reports
Our Founder James Farrellrecently exploredthis exciting intersection at ETH Barcelona, introducing key features of the emerging regenerative finance movement, voluntary carbon markets and how they can come together to drive innovation.
Here we dive into:
What is regenerative finance (ReFi)? 🌴
Issues with the voluntary carbon market (VCM) 💫
Web3 for regenerative carbon markets 🔑
Toucan's vision 🦚
1. What is ReFi? 🌴
Climate change is recognised as the most pressing global challenge of our time. The emergence of this crisis cannot be attributed to any one group or individual, arising instead from multiple systemic failures over time.
A key failure is the operation of our financial system.
This system currently works by seeking to drive everlasting economic growth, while contributing little value to the environmental and social resources needed to maintain the system. This results in a host of negative externalities, as these resources are freely exploited to drive economic growth. This includes the release of greenhouse gas emissions into the atmosphere, destruction of habitats and displacement of local economies.
Conversely, ReFi systems seek to redirect some of the financial value generated back into maintaining and regenerating the environmental and social resources upon which the system relies. This transforms the financial system from solely extracting economic value to being in service to growing, protecting and regenerating the value of a system.
“Regenerative finance refers to business practices that restore and build rather than exploit and destroy” - John Fullerton CT
Since its founding in 2010, Capital Institute and its collaborative network have been on a journey in search of a path that leads beyond today’s unsustainable economic system and the finance-dominated ideology that drives it toward an economy that operates in service to human communities without undermining the health of our biosphere and all life that depends on it.
Along the way, we discovered a new way of thinking about economics—an approach aligned with the latest understanding of how the universe and its living systems actually work. We call this approach Regenerative Economics, defined as the application of nature’s laws and patterns of systemic health, self-organization, and self-renewal to the vitality of socio-economic systems.
The seeds of emergence of Regenerative Economies in response to the escalating and interconnected social, economic, and ecological crises that jeopardize all we hold dear is a most hopeful development. Yet the promise of such emergence at scale demands we ask a single, vital question:
What would Finance look like if it were to operate genuinely in service of healthy human communities, and without undermining the long-term health of the planet in the process?
Drawing upon an insider’s understanding of the world of high finance from Capital Institute Founder and President John Fullerton, as well as the principles and patterns of sustainability found throughout living systems in the real world, Finance for a Regenerative World provides a frank assessment of our flawed finance ideology, and a bold, principles-based framework for the future of Finance.
The transition toward a regenerative world is a collective effort that is already underway. To promote collaborative review and comment on this paper (and the ideas it introduces) Finance for a Regenerative World is being released in four acts:
Context and Implications of the Regenerative Paradigm for Finance