why
The intrinsic value of nature is priceless and unquantifiable—to humans and non-humans alike.
Yet treating nature's benefits as "price-less" is precisely what drives the climate-biodiversity-social crisis. When ecosystems have no price, they have no defense against activities that do.
We use instrumental value (prices, markets, finance) as a protective mechanism for intrinsic value. The instruments serve nature; nature is never reduced to the instruments.
"BASIN is not financializing nature, we are naturalizing finance."
what
core principles
Embrace complexity
Complex is not complicated. Biodiversity, climate, water, economics, law, health, wealth, and wellbeing are all interconnected. We don't simplify what is inherently complex; we make it navigable.
Stocks & flows
Ecological economics operates on stocks (what accumulates) and flows (what circulates). This mirrors nature's basins that store and circulate life-sustaining water. Ensurance protects and stewards both.
Issue on value, price on cost
Nature's annual ecosystem service value (flows) vastly exceeds the market price of underlying land (stocks). The ratio between them is the natural cap rate. Ensurance instruments are issued based on this total value but priced based on real asset cost—letting the market close the gap over time. This spread is the economic engine of the protocol.
Bundling over stacking
Stacking splits a place into parts (carbon, water, biodiversity). Bundling values the whole. We favor bundling—one instrument, no overlap, holistic valuation.
value types
| Type | Definition | Role in Ensurance |
|---|---|---|
| Intrinsic | Value in itself, independent of use | What we protect |
| Instrumental | Value as means to an end | How we protect it |
| Relational | Value emerging from relationships | Why it matters |
These are not separate. Instrumental mechanisms serve intrinsic value. Relational value is the connective tissue.
the value gap
A gap lies between nature's intrinsic value and its perceived instrumental value:
"How can you buy or sell the sky, the warmth of the land? The idea is strange to us." — Chief Seattle, 1854
"Buy land, they're not making it anymore." — Mark Twain
Ensurance bridges this relational value gap—not by reducing nature to money, but by using money to defend nature.
blended finance
Closing the value gap requires two types of capital working in one system:
| Capital Type | What They Fund | Why They Participate |
|---|---|---|
| Flow investors | VALUE — annual ecosystem services | Risk reduction, dependency management, resilience |
| Stock investors | COST — capital secured by real assets | Yield from premium stream, real asset as collateral |
Neither type alone can close the gap. Flow investors create demand (premiums) but don't own the land. Stock investors provide capital but need premium streams for yield. The real asset secures their investment while the ecosystems within get protected. Ensurance connects them through a shared structure.
See ensurance for the full mechanism.
how
the higher & better use
Real estate valuation prioritizes "highest and best use"—maximizing financial returns. This leads to land use changes that destroy ecosystems.
Ensurance establishes the higher and better use—accounting for benefits nature provides and valuing natural capital in monetary terms. This creates a compelling alternative for how property should be utilized.
translation principles
We bridge multiple worlds:
| From | To | The Work |
|---|---|---|
| Intrinsic value | Instrumental mechanisms | Protection without reduction |
| Ecological wisdom | Financial instruments | Ancient patterns in modern form |
| Our terminology | Industry language | Meeting people where they are |
| Human systems | All ways of being | Respect beyond understanding |
foundational references
Our approach draws from established thinking:
- Aldo Leopold — The land ethic ("A Sand County Almanac")
- Elinor Ostrom — Commons governance ("Governing the Commons")
- Robert Costanza — Ecosystem services valuation, common asset trusts
- Sir Partha Dasgupta — Economics of biodiversity
- Robin Wall Kimmerer — Indigenous knowledge, gift economy ("Braiding Sweetgrass")
Detailed frameworks (TNFD, SEEA, IPBES, ESVD) are documented in the Basin Field Manual appendix.
related
- natural-capital — Stocks, flows, and valuation methodology
- natural-assets — How natural capital becomes investable
- ensurance — The blended-finance mechanism
- proceeds — How relational value flows through the system
- duna — The organizational structure