Economic Capital
Economic capital is currently concentrated in the hands of a few. A large percentage of it is tied up in assets that will have little value in A Conservation Economy.
Economic Capital should be invested in sectors and activities consistent with a Conservation Economy. This will require it to be rooted more locally, in Local Economies and Bioregional Economies, and spread much more equitably in Household Economies.
Green Businesses are the economic engines of A Conservation Economy. They make use of Renewable Energy, Sustainable Materials Cycles, and Resource Efficiency. They provide Community Benefit and are stewarded with Long-Term Profitability in mind.
Currently, Green Businesses suffer from a lack of True Cost Pricing and Product Labeling systems, is creating strong new market niches and premium prices. As social and environmental taxes are gradually instituted, Green Businesses will be in position take positions of market leadership.
Financial institutions that understand the benefits of A Conservation Economy will play a vital role in shifting Economic Capital from sunset industries to 21st century restorative industries, including wind power, hydrogen fuel cells, Ecosystem Services, Green Building, Sustainable Agriculture, Sustainable Forestry, and holistic healthcare. Commercial and investment banks, venture capital funds, loan funds, and other financial institutions that make loans based on Social Capital and Natural Capital as well as economic performance will ultimately finance the Just Transition to A Conservation Economy.
Economic Capital should be understood primarily as a tool to meet Fundamental Needs while maintaining the health of ecosystems. When Economic Capital is broadly distributed and locally accountable, it can serve this function well. Therefore, in A Conservation Economy, patterns of ownership, financial institutions, and policies all favor broadly shared wealth rather than narrow accumulation, and Local Assets rather than transnational flows of capital.
Find ways to finance the just transition of economic capital from sunset industries to the sectors of a conservation economy. root capital in place and make it much more broadly distributed.