As Wall Street Assigns a Dollar Value to Nature, Indigenous Economics Charts Different Path

Putting a dollar amount on a single species, let alone entire ecosystems, is a controversial idea, but creating a tradable asset class based on that monetary value is even more problematic, experts say.

In 2023, the New York Stock Exchange (NYSE) applied to the U.S. Securities and Exchange Commission (SEC) to establish a list of Natural Asset Companies (NACs) that would hold the rights to ecosystem services, which they valued at $5,000 trillion, essentially creating a new nature-based asset class. The SEC withdrew the application earlier this year following intense opposition from 25 Republican attorneys general.

On this episode of the Mongabay Newscast, Indigenous economist Rebecca Adamson argues this financialization of nature comes with perverse incentives and fails to recognize the intrinsic value contained in biodiversity and all the benefits it provides for humans. Instead, she suggests basing economies on principles contained in Indigenous economics.