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Is Culture The Missing Catalyst In Nature Finance?

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  Published in Business and Finance on Monday, September 1st 2025 at 7:30 GMT by Forbes
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Culture: The Missing Piece of Nature Finance, Says New Forbes Analysis

By Felicia Jackson – September 1, 2025

In an era where billions of dollars are flowing into climate‑related projects, a new Forbes piece argues that the one ingredient missing from most nature‑finance frameworks is culture. The article, titled “Is Culture the Missing Catalyst in Nature Finance?”, delves into how the stories, values, and practices of human societies can unlock fresh capital, strengthen ecological stewardship, and create more resilient markets.

What is “Nature Finance”?

The term refers to the pool of public and private money dedicated to protecting, restoring, and sustainably managing ecosystems that provide essential services—carbon sequestration, water purification, soil fertility, and more. From green bonds and nature‑linked loans to payments for ecosystem services (PES) schemes, the field has grown rapidly, but experts say it still falls short of the trillions needed to reverse global environmental degradation.

The Cultural Gap

Jackson’s analysis points out that, despite its rapid growth, nature finance has largely been driven by economic incentives and scientific metrics. Metrics such as “carbon tonnes sequestered” or “habitat hectares restored” dominate the reporting. Yet, these numbers fail to capture the cultural value many communities attach to natural landscapes: the sacred mountains of the Andes, the sacred wetlands of the Niger River, or the ancestral forests of Papua New Guinea.

The article argues that by overlooking culture, nature‑finance initiatives miss out on:

1. Enhanced Local Buy‑in – When projects resonate with local identities, communities are more likely to protect and manage the lands.
2. Diversified Funding Sources – Cultural heritage can attract funding from tourism, philanthropy, and even cultural bonds.
3. Long‑Term Sustainability – Cultural narratives foster stewardship that outlasts short‑term financial goals.

Case Study: The Yasuní Biosphere Reserve

A highlight in the article is the Yasuní Biosphere Reserve in Ecuador. The region is one of the world’s most biologically diverse hotspots, yet it faces deforestation from illegal logging and oil extraction. In 2024, Ecuador launched a “Cultural Ecosystem Service” program, pairing financial incentives with the preservation of the local Shuar people's cultural practices.

Jackson explains that the program created a $12 million trust fund, backed by international investors who saw the dual promise of carbon credits and cultural tourism. The Shuar community, in turn, set up community‑run ecotourism ventures that showcased their traditional weaving and medicinal knowledge, ensuring that the economic benefits remained local. This partnership, the Forbes article notes, increased Yasuní’s conservation coverage by 15% in a single year and served as a model for integrating culture into finance.

Indigenous Knowledge as a Financial Asset

The piece also covers how indigenous stewardship can be translated into financial instruments. By codifying traditional ecological knowledge (TEK) into legal frameworks, indigenous groups can claim property rights and secure investment for conservation. For instance, in the Philippines, the Lumad community leveraged their forest rights to secure a “Biodiversity Bond,” a new instrument that paid investors based on forest health metrics. The bond attracted significant interest from impact investors looking for socially responsible returns.

Challenges and Criticisms

Jackson does not shy away from the obstacles. Critics argue that commodifying culture risks cultural appropriation and can lead to the “greenwashing” of projects that superficially adopt cultural labels without genuine benefit to local peoples. Moreover, measuring cultural services remains a methodological headache: unlike carbon, which can be quantified in CO₂‑eq units, cultural significance is context‑specific and often intangible.

Another concern highlighted in the article is the risk of “elite capture.” Powerful NGOs or foreign investors might dominate cultural financing schemes, sidelining the very communities they intend to help. The Forbes piece urges rigorous participatory governance and transparent reporting to mitigate these risks.

Policy Recommendations

Jackson proposes a multi‑pronged approach to embed culture into nature finance:

1. Integrate Cultural Metrics into ESG Standards – Existing ESG frameworks should include cultural impact criteria, encouraging corporations to account for how their supply chains affect local cultures.
2. Create Cultural Bonds – Similar to green bonds, cultural bonds could raise capital specifically earmarked for projects that preserve cultural heritage and deliver ecosystem services.
3. Legal Recognition of TEK – Governments should codify indigenous knowledge systems, giving communities legal standing to negotiate contracts with financiers.
4. Cross‑Sector Collaboration – Finance, culture, and science must collaborate, for instance, by setting up multidisciplinary advisory panels that evaluate projects on both ecological and cultural criteria.
5. Capacity Building – Provide training for indigenous communities in financial literacy, contract negotiation, and market participation.

Looking Forward

The article ends on an optimistic note, citing early successes in integrating culture with nature finance across Latin America, Africa, and Southeast Asia. Jackson asserts that, if scaled thoughtfully, cultural finance could unlock an additional $150 billion per year for conservation, according to estimates by the World Economic Forum. In a world where environmental crises are tightening their grip, the marriage of culture and finance might well be the missing catalyst that turns green money into lasting ecological and social impact.

Felicia Jackson is a research journalist covering climate policy, sustainable finance, and indigenous rights. This article summarizes key points from the Forbes piece “Is culture the missing catalyst in nature finance?” and expands on related case studies and policy discussions.