Earth Capital Nexus (ECN) initiative
Catalysing finance and policy for a resilient, nature-positive and prosperous future
Earth Capital Nexus (ECN) is a global research initiative hosted by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science (LSE). Our core goal is to radically scale quality and accessible finance for sustainable development and secure a resilient, nature-positive and prosperous future for all, through providing high-quality analytics, evidence, knowledge and innovation.
Context and rationale
Growth, stability and economic development depend on a resilient environment. Yet today, the natural capital upon which our economies depend is being eroded at an unprecedented rate – this includes water, the stable climate, carbon sinks, forests and fertile land – and the growing risks of disasters are undermining lives, livelihoods, prosperity and security.
Despite decades of commitments, climate, nature and SDG finance flows are still vastly inadequate, particularly in emerging economies, when compared with the scale of the need. Current economic frameworks do not account for the critical role of natural capital and resilience in growth and shared prosperity. As a result, trillions of dollars of investment continue to flow every year into activities that undermine long-term resilience and security, while we lack the systems and markets to catalyse nature-positive, resilient investments.
Our premise is that to resolve these crises and mobilise sustainable investment at scale, local project-level fixes alone will be insufficient; a fundamental shift is needed in policy frameworks globally and in how natural capital and resilience are valued within markets and core economic and financial decisions of international businesses, governments and international financial institutions.
Objectives
ECN’s works to advance progress in five areas:
- Data and analytics: High quality physical climate and nature data, analytics, scenarios and toolkits are accessible to inform economic and financial decision making
- Business, finance and investment: Value chains, trade and investment flows are sustainable and resilient, and help catalyse local progress on SDGs.
- Policy and regulation: Nature and resilience are embedded within national policy and financial regulation, such that finance and patterns of economic development are aligned with sustainability, resilience and development goals.
- International financial system: Global financial and economic architecture, norms and standards embed nature, resilience and shared prosperity and power appropriate provision of critical global public goods, such as healthy ecosystems.
- People: Decision makers at all levels have the capability to manage risks and seek opportunities from a resilient, nature-positive future.
Our approach
ECN operates across scales—international, national, and sectoral. Our strategy combines rigorous research, technical toolkits, and high-level engagement with financial institutions, policymakers, and communities. Our core USP of technical expertise to support, inform and catalyse implementation; providing analytics, evidence, training, outreach and convening to mobilise action and work with partners globally and locally to catalyse resilient growth. The ECN is led by Professor Nicola Ranger and works in partnership with universities, financial institutions, governments, Central Banks and wider partners globally.
Projects
- Developing evidence, analytics and solutions to radically scale finance and action for resilience, nature and SDGs through the Resilient Planet Finance Lab
- Greening finance for nature through the UKRI Integrating Finance and Biodiversity
- Catalysing innovation through Leveraging Earth Observation for Nature Finance
- Managing macro-fiscal risks and mobilising finance for nature through EU Horizon Nature-3B.
Contact information
For more information, please contact n.ranger@lse.ac.uk