The Sound of Economics Nature as equity
Feb 11, 2026
Heather Grabbe, Bruegel researcher on environment and policy, and Estelle Cantillon, economist and nature-based finance specialist, discuss turning nature into tradable financial instruments. They cover nature credits versus shares, durability and governance challenges. They explore who would buy nature finance, the role of governments, and how markets might reflect ecosystem value.
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Treat Nature As Equity
- Nature projects should be treated as capital (equity) not one-off transactions.
- Shares with retained reserves reduce impermanence risk better than single-use credits.
High Friction Limits Nature Credit Scale
- Current voluntary credit markets face high transaction costs and measurement problems like leakage.
- About 40% of payments today go to intermediaries, limiting scale.
Mobilize Pension Funds With Mandates
- Use long-term institutional investors, like pension funds, to create steady demand.
- Mandate Paris-alignment for funds to unlock demand for nature shares as a portfolio option.
