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Building a Nature-Based Economy

Technologies such as DACs, graphene production, and engineered molecules are being developed to sequester CO2 from the air. However, biological sequestration is also, if not more vital to combating this climate crisis. Adjusting our economy to prioritize natural capital is the first step to promoting these environment-preserving systems.


In the 2022 UN World Oceans Day, speakers emphasized that radical change is crucial to “make peace with the ocean.” This idea connects to the general climate crisis. While small actions are important to developing sustainable lifestyles, we desperately need countries and corporations to prioritize climate change in their current and future agendas. The economy, along with policy and technology, is significant to furthering global warming prevention efforts.


Current Economic Paradigm

“Radical change” must begin by addressing how we view nature, specifically in terms of economic growth. Society has come to believe that nature offers limitless resources. Nature is extracted to support economic growth, and economic growth enhances pollution. This decline in biodiversity increases natural capital risk, and the economy’s growth increases climate change risk. Unsustainable economic growth promotes the twin risks enforced in Stockholm 50 and COP26: climate change and natural capital.


New Nature-Based Economic Paradigm

However, by introducing a new economic paradigm, we can rebuild the private sector’s relationship with nature. When we view nature as our home – when we think of it as macro-critical – the economy will lead to conservation and restoration, ultimately fostering sustainable economic growth. Thus, by financially recognizing the value of nature, governments, corporations, individuals can begin to invest in its prosperity.



UN Statistical Commission: System of Environmental Economic Accounting

In 2012, the UN Statistical Commission adopted the System of Environmental Economic Accounting, (SEEA). Adopting the concepts, definitions, and classifications of the System of National Accounts, SEEA is working on the integration of economic, environmental, and social data. SEEA builds an adjustable system that can be applied to countries and their unique political frameworks. Their thematic areas of focus include agriculture, forestry, and fisheries; air emissions accounts; energy; environmental activity accounts; ecosystem accounts; land accounts; material flow accounts; and water. We can use these measurements to enhance our management.


This comprehensive system supports nature-based economies. We can initiate more informed policies that understand which groups of people benefit from nature’s services. Moreover, we can enhance international relations, working to ensure that countries mutually benefit from natural capital. As Elliot Harris, the Chief Economist of the United Nations, eloquently explains, “Everything we do, costs. But we need to think of it not only as a cost but far more as an investment. Nobody would complain if we invest in a school or a hospital. They would think of it as an investment in health, in our society, in our future. It is exactly the same with investing in a healthy nature. That investment is always going to be a fraction of the real cost that we would have to pay if we allow our climate to get out of control, and if we allow biodiversity loss to continue unstopped.”


Environmental Economics, Applied: The Ocean

Ralph Chami, the Assistant Director of The International Monetary Fund, believes the open ocean is the “orphan among all natural capital.” It comprises 71% of earth’s surface area, with an average depth of 3800 meters. Between 1890 and today, it has grabbed over 500 gigatons of CO2. Here are some of his statistics:




One whale ecosystem is worth $3 million. Whales sequester carbon on their body and help capture carbon by fertilizing phytoplankton – which capture 37 billion tons of CO2 per year. When they die, whales sink to the bottom of the ocean, so all of the CO2 they have sequestered is captured for eternity.



Seagrass is worth $2 trillion dollars in just sequestration, and you would add $2 trillion more in flood control, and trillions more if you were to value how it enhances fish in the ocean.



The stock of carbon (which means the carbon that is sitting in the sea bed) in the ocean is $30 trillion, capturing on a flow basis of $13 trillion.


When we prioritize environmental conservation, including ocean management, we can preserve nature while simultaneously implementing effective carbon capture systems.


Win-Win-Win Model

This brings us to Chami’s win-win-win model. It begins with sellers of carbon services, specifically the government and local communities. Governments’ revenues improve their financial situations, while local communities receive meaningful employment and sustainable income. Buyers of carbon services reduce their carbon footprint, and enhance their environmental, social, and governance score. Finally, nature is restored and conserved.


Putting the Pieces Together

We need strong policies to recognize nature legally. Then, nature can be valued economically. Finally, we can invest in science – in natural carbon sequestration. Together, we can restore nature and advance climate action. And our advocacy is the first step.


Building Nature-Based Economies at Covalence Global

Youths hold the future of our economy – whether it becomes sustainable or continues to degrade our environment. This is one of the many reasons why youth environmental awareness is so important to Covalence. We have built a youth network spanning 5 continents, and we are working on climate-related events and projects. One of our projects, in partnership with Daneil Enock Manoba, is an environmental education program. We hope this program can reach students across the world, making our future leaders aware of natural capital and its impact on climate change. Some of the most innovative ideas come from young minds who care deeply about the world around them. In the future, we hope everyone can have the same care for the world that our youths have. Advocacy brings us one step closer to integrating nature not only into our economic systems, but also our general societal beliefs. Nature is our home, and we must stand by it, just as it has stood by us.


Take Action

Advocate for nature’s value, and encourage others to consider its importance in our economy. The next time you make an investment, prioritize natural capital. Do not invest solely for an instant outcome, but for a healthy, blue, and green future for all.


Learn, share, and build on the climate action movement by joining Covalence Global:

Write an Op-Ed for Our Journal - https://forms.gle/5dyb97g9mSdeQu668


Take action at the Ocean Conservancy: https://oceanconservancy.org/action-center/


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