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.

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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
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article

Nature’s Minsky Moment, NatureFinTech and the world’s next asset class

Martin Stuchtey, Benedict Witte
Technology Review for Carbon Neutrality
Innovation, Sustainability, Human-Machine Systems
article

Nature’s Minsky Moment, NatureFinTech and the world’s next asset class

Martin Stuchtey, Benedict Witte
article en

Abstract

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.

Technology Review for Carbon Neutrality
Universität Innsbruck (AT)
Industry, innovation and infrastructure
Openalex Percentile: Top 22%
Innovation, Sustainability, Human-Machine Systems
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