Financialisation of nature - yep, we’re as dubious as you..

Source: https://www.intrinsicexchange.com/solution

A new asset class called NAC (natural asset company) has been created. It allows for the formation of specialised corporations to hold the rights to the ecosystem services- like carbon sequestration or clean water- and preserve a rainforest or initiate regenerative farming practices. These NACs will then maintain, manage and grow the natural assets they commodify.

The two main goals here are to maximise the aspects of that natural asset and to profit from the natural processes of quantifying and monetising such a thing.

You can be forgiven for thinking the New York Stock Exchange (NYSE) is putting nature up for sale, putting ownership on natural processes.

A NAC is converted into financial capital by launching an IPO on a stock exchange (like the NYSE) which generates capital to manage the natural asset and fluctuations of its price signals value of it natural capital. Potential buyers of the natural asset the NAC represents could be institutional investors, private investors, individuals and instructions, multilateral development banks, etc etc.

Unfortunately, the end goal is- as always- financial gain…nature is undoubtedly turned into a commodity here. NACs open up a new feeding ground for Wall Street, the acquisition of more land through “natures economy” and the disguise of preserving and restoring the natural assets that are so vital to life on earth isn’t fooling us.

Source: Unlimited Hangout