from Part II - Extensions
Published online by Cambridge University Press: 10 March 2025
Finance is an enabling asset that facilitates investments in capital assets, including natural assets, and plays a role in influencing both sides of the Impact Equation (Chapters 1 and 13 discussed the distinction between capital goods and enabling assets in more depth, respectively). In other words, finance plays a role in determining both the stock of natural capital and the extent of human demands on the biosphere.
On the supply side of the Impact Equation (Chapter 4), finance enables investment in conservation and restoration of ecosystems and their biodiversity (Chapters 18 and 19). This investment enhances our stock of natural capital and their regenerative rate (i.e. S and G(S)).
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