Breaking down the concept of Regenerative Finance, exploring its current state, potential, and how to create a bridge from current economies to Regenerative Finance.
Welcome to Regenerative Finance! You’ve found yourself at a unique intersection of many complex trends that has the potential to reshape the very foundation of our economy. In this article, I attempt to synthesize the background of Regenerative Finance, share examples of it in real life, and the potential for it as a space of investment and creation. It’s an exciting emerging space, but needs to be grounded in and work with our current reality to emerge as a new economic paradigm.
The Foundation: Regenerative Economics
The Capital Institute coined the term Regenerative Economics through the introduction of 8 core Principles:
In Right Relationship: All of humans and nature are interconnected. Our economies must operate at the scale of the biosphere that it’s embedded within. Harm to one community ripples out to the communities and life around it.
Views Wealth Holistically: All capital in existence resolves to natural, social, cultural, experiential capital. If one form of wealth is neglected, all other forms of wealth suffer.
Innovative, Adaptive, Responsive: Our economy, society, and infrastructure must be built to adapt to changing political/environmental, etc conditions.
Empowered Participation: Each member of a system is empowered to contribute their unique talents to themselves and the whole.
Honors Community and Place: The unique social and cultural elements of each place are honored and preserved.
Edge Effect Abundance: Connections and collaborations at the edges of ecosystems, traditions, and disciplines combine to create better, more robust structures.
Robust Circulatory Flow: Materials, money, information, services, and other forms of value flow freely with little to no waste. Things are effectively recirculated into the system instead of being discarded.