Nature’s Minsky Moment, NatureFinTech and the world’s next asset class
Systematic under-valuation of natural capital is creating growing macro-financial risks and raises the prospect of a “Nature’s Minsky Moment,” in which ecosystem degradation triggers abrupt asset repricing, a dynamic now increasingly recognised by central banks and supervisors as relevant to financial stability and capital adequacy. This article reviews existing nature-finance instruments and shows why carbon-centric and project-based approaches remain insufficient to close the global nature funding gap. It advances a framework that treats nature as critical infrastructure and examines how recent advances in NatureFinTech enable continuous, high-resolution measurement of ecosystem condition. Building on these capabilities, the paper introduces Nature Equity as an outcome-based asset class linked to verified ecosystem integrity. While early applications demonstrate promise, challenges remain in regulation, valuation, and market maturity.
Authors
- Martin Stuchtey (ORCID: https://orcid.org/0000-0002-2255-8975)
- Benedict Witte
Institutions
- Universität Innsbruck (AT)
Publication Details
- Journal
- Technology Review for Carbon Neutrality
- Published
- 2025-12-01
- DOI
- https://doi.org/10.26599/trcn.2025.9550018
- Primary Topic
- Innovation, Sustainability, Human-Machine Systems
- Type
- article
- Field-Weighted Citation Impact
- 0.00