Bioregional Finance (BioFi)

As awareness and understanding of the polycrisis grow, and regulatory pressure increases, actors from across the financial sector are beginning to direct financial capital towards supporting biocultural regeneration. While on the surface this might seem promising, there is significant risk that if these resources flow through the existing financial architecture, they could lead to further commodification, privatisation, financialisation, and centralisation of natural assets and wealth. Therefore, closing the \”nature finance gap\” alone is not sufficient. Where those resources are spent, how financing is structured, and who gets to make those decisions is as important as the quantum of capital. In particular, how those resources support the transformation of systems, relationships, and worldviews will determine whether they are successful in addressing the ecological crisis and polycrisis that we collectively face.

Building a Bioregional Financing Facility for the Cascadia Bioregion

Bioregional Financing Facilities are a new idea proposed by economist Samantha Power and her work with the BioFi project. Regenerate Cascadia is committed to growing a Bioregional Financing Facility 

Bioregional Financing Facilities (BFFs) are a new layer in the global financial architecture that can drive the decentralisation of financial resource governance, the design of project portfolios for systemic change, and the transition to a regenerative economy at the bioregional scale. They have the potential to become the connective tissue between financial resources and on-the-ground regenerators by enabling strategic, integrated capital raised from a variety of sources to flow to aggregated portfolios of systemically coordinated and supported regenerative projects on the ground.

Bioregional finance is an approach to financing that aligns with the principles of bioregionalism, emphasizing local ecosystems, cultures, and economies. It seeks to create financial systems that support the health and resilience of specific bioregions—distinct ecological and cultural areas—rather than being driven solely by global markets or profit-maximizing motives. The goal is to develop a sustainable, regenerative economy that benefits both the environment and the communities within a bioregion.

BioFi is short for Bioregional Finance, and refers to financial systems, tools, and practices that align with and support bioregionalism’s focus on local, sustainable, and regenerative economies. It’s a growing concept in the intersection of ecological sustainability and finance, emphasizing investment in projects and businesses that regenerate natural ecosystems and support local communities within specific bioregions.

Key principles of bioregional finance include:

1. Local Investment: Encourages investment in local businesses, infrastructure, and projects that contribute to the well-being of the bioregion. This can include renewable energy, sustainable agriculture, or small-scale manufacturing.
2. Decentralization: Moves away from centralized financial institutions and instead promotes community-driven decision-making and local control of resources. Cooperative models, community banks, and local credit unions are common in bioregional finance.
3. Community-Driven: BioFi focuses on financing projects that are democratically governed and driven by the needs and values of the local communities, rather than top-down, profit-maximizing ventures.
4. Regenerative Economics: Focuses on practices that regenerate natural systems rather than exploit them or that are extractive. This includes supporting businesses and projects that restore ecosystems, reduce carbon footprints, and contribute to environmental sustainability.
5. Cultural and Ecological Values: Financial decisions are guided by the unique cultural and ecological characteristics of the bioregion. This includes respecting indigenous knowledge, biodiversity, and traditional land-use practices.
6. Social Equity: Aims to ensure that financial resources are distributed in ways that promote social equity, reduce inequality, and empower marginalized communities within the bioregion.
7. Circular Economy: Promotes a local circular economy where resources are reused, recycled, and kept within the community, reducing reliance on external supply chains.

Bioregional Funding Ecosystems

A bioregional funding ecosystem refers to a network of financial tools, actors, and institutions that collaboratively support projects, businesses, and initiatives within a specific bioregion. The goal of such a system is to align funding sources with the ecological, social, and economic needs of a bioregion, helping it regenerate and thrive while promoting long-term sustainability and resilience. This ecosystem brings together various forms of capital—philanthropy, private investment, public funds, and community financing—into a coherent system that works to support local and regional initiatives.

Key Components of a Bioregional Funding Ecosystem:

1. Diverse Funding Sources:
   • Philanthropy: Grants and donations from foundations, NGOs, or wealthy individuals aimed at supporting regenerative projects in a specific bioregion.
   • Public Funds: Government grants, subsidies, and incentives targeting local infrastructure, environmental restoration, or social development projects.
   • Private Investment: Impact investors, venture capitalists, or local investors providing equity or loans to businesses that contribute to the sustainability of the bioregion.
   • Community Financing: Crowd-sourced funding, local currencies, community bonds, and cooperative models where the local population can invest in or fund initiatives they value.
2. Supportive Financial Institutions:
   • Bioregional Financing Facilities (BFFs): As described earlier, these entities focus on channeling finance to projects with long-term positive impacts on the bioregion’s ecology and community.
   • Community Banks and Credit Unions: Locally governed financial institutions that prioritize lending to local businesses and projects aligned with bioregional values.
   • Green or Impact Bonds: Bonds issued to raise capital for environmental projects, such as reforestation or renewable energy, designed specifically for regional initiatives.
3. Circular Economy: The ecosystem supports projects that create a circular economy within the bioregion, ensuring that resources are reused and kept in circulation rather than discarded. This might include recycling programs, local food systems, or shared economy models like tool libraries or local cooperatives.
4. Ecosystem Services Valuation: Payment for ecosystem services (PES) and biodiversity credits can be monetized within a bioregional funding ecosystem. Investors or governments can pay landowners or businesses to preserve ecosystems, sequester carbon, or enhance biodiversity, creating financial incentives for environmental stewardship.
5. Local Economic Development: By emphasizing local businesses, renewable energy projects, sustainable agriculture, and other community-centered ventures, the funding ecosystem enhances local economic development. This keeps wealth within the bioregion and reduces reliance on external capital or resources.
6. Blended Finance: Blended finance combines public, philanthropic, and private capital to maximize the impact of projects in the bioregion. Public and philanthropic funds may absorb more risk, enabling private investors to finance more experimental or high-impact projects without excessive risk.
7. Governance and Stakeholder Engagement: Local communities, indigenous groups, environmental organizations, and regional authorities often participate in the governance of the funding ecosystem, ensuring that the flow of resources aligns with the bioregion’s values and priorities. Governance can be structured democratically, giving residents and stakeholders decision-making power.
8. Investment in Natural and Social Capital: The funding ecosystem prioritizes investment in natural capital (forests, rivers, biodiversity) and social capital (community cohesion, health, education). This long-term view focuses on building resilience rather than maximizing short-term financial returns.

Benefits of a Bioregional Funding Ecosystem:

• Resilience: By investing in local ecosystems and economies, bioregions become more resilient to external shocks like climate change, economic crises, or global supply chain disruptions.
• Ecological Health: Funds are directed toward projects that restore and maintain ecological integrity, ensuring long-term environmental sustainability.
• Economic Diversity: The focus on local economies and community-driven initiatives diversifies regional economies, reducing dependence on extractive industries or volatile global markets.
• Social Equity: The ecosystem ensures that financial resources are distributed equitably, providing opportunities for marginalized groups to participate in and benefit from the regional economy.

A bioregional funding ecosystem is about weaving together multiple financial sources and mechanisms to support regenerative, place-based development that benefits both people and the planet. It allows a region to thrive through local control and sustainable stewardship of resources, fostering a deep connection between human communities and the ecosystems they depend on.

Bioregional Financing Facilities

A Bioregional Financing Facility (BFF) is a financial mechanism designed to provide funding for projects that support the regeneration and sustainability of specific bioregions. The concept aims to funnel resources into initiatives that enhance the environmental, economic, and social well-being of a defined bioregional area—whether that involves sustainable agriculture, renewable energy, ecosystem restoration, or community-led development projects. BFFs are typically aligned with the principles of bioregionalism, focusing on local resilience and ecological health.

Key Characteristics of a Bioregional Financing Facility (BFF):

1. Place-Based Focus: A BFF is rooted in the specific ecological, cultural, and economic needs of a bioregion, financing projects that are directly beneficial to the local environment and community. This can include reforestation, habitat restoration, sustainable fisheries, and localized energy systems.
2. Blended Finance: A BFF may use a variety of funding sources, combining grants, loans, and equity investments to support projects. It often blends public and private capital, philanthropy, and even community investment to create a diversified financial pool.
3. Community and Stakeholder Participation: The financing decisions are typically made in collaboration with local stakeholders, including communities, indigenous groups, and regional organizations. This ensures that the financial flows are aligned with the needs and priorities of the people living within the bioregion.
4. Regenerative Economics: BFFs are designed to finance projects that regenerate natural systems rather than extract from them. This might include agriculture that improves soil health, renewable energy projects that reduce carbon emissions, or water management systems that restore watersheds.
5. Long-Term Resilience: The goal is not just short-term financial returns but the long-term resilience and self-sufficiency of the bioregion. Investments are aimed at creating sustainable local economies that are resilient to external shocks, such as climate change or economic crises.
6. Innovative Financial Structures: BFFs may incorporate innovative financial models like impact investing, community bonds, and green bonds. Some might also use payment for ecosystem services (PES) or carbon offset programs to incentivize projects that provide measurable environmental benefits.
7. Local Control and Governance: Local or regional organizations often govern a BFF, ensuring that control of financial resources stays within the bioregion. This governance model contrasts with traditional financing models, where decisions are often made by external actors or centralized institutions.
8. Circular Economy Focus: BFFs aim to support a local circular economy by investing in projects that retain wealth within the bioregion, reduce waste, and promote the reuse and recycling of resources.

Advantages of a BFF and Funding Ecosystem

Bioregional frameworks, along with the creation of a Bioregional Financing Facility (BFF) and a broader bioregional funding ecosystem, have the potential to break down the financial, legal, and colonial barriers that exist in conventional cross-border funding systems. These structures can foster more equitable, regenerative funding models that prioritize local communities, Indigenous leadership, and regenerative projects in ways that challenge the Nonprofit Industrial Complex (NPIC) and its colonial legacies. Below are ways in which these frameworks can drive systemic change:

1. Localized and Community-Centric Decision-Making

• Bioregional frameworks prioritize decision-making at the local and regional level, allowing funding decisions to be made by those who are most directly impacted by environmental, social, and economic challenges. By grounding funding in a specific bioregion—like the Salish Sea—local stakeholders, including Indigenous communities, gain more control over how funds are allocated and managed.
  • Equitable governance structures: A Bioregional Financing Facility (BFF) could include participatory governance that ensures local communities, especially Indigenous groups, have a direct role in decision-making. This breaks away from the top-down, centralized approaches of traditional philanthropy and government funding, which often exclude or marginalize local voices.
  • Reclaiming Indigenous sovereignty: A bioregional framework allows for the recognition of Indigenous sovereignty and the incorporation of traditional ecological knowledge (TEK) in governance and funding decisions. Indigenous communities in the Salish Sea, for instance, could lead environmental restoration and stewardship projects based on their cultural practices and priorities, without needing to conform to external funder-imposed outcomes.

2. Cross-Border Collaboration with Shared Ecological and Cultural Goals

• Bioregional frameworks transcend political boundaries, focusing instead on shared ecological and cultural systems. In the context of the Salish Sea, a bioregional approach centers the natural landscape, water systems, and Indigenous cultural heritage rather than the U.S.-Canada border, which has historically divided these communities.
  • Cross-border legal innovations: A bioregional funding ecosystem could develop legal mechanisms that allow for smoother financial flows across borders, reducing the administrative and legal barriers currently faced by nonprofits and Indigenous groups. For example, a BFF could facilitate the creation of cross-border funding agreements that recognize the unique legal status of Indigenous nations and promote shared environmental governance across British Columbia and Washington State.
  • Unified tax-exempt or charitable status: By working with both U.S. and Canadian legal systems, a BFF could create a unified framework for tax-exempt or charitable status, allowing donors in both countries to contribute seamlessly to cross-border initiatives without being hindered by national regulations. This would encourage more equitable investment in bioregional projects, especially those led by Indigenous communities or smaller grassroots organizations.

3. Flow Funding and Trust-Based Philanthropy

• Flow funding and trust-based philanthropy are key components of bioregional funding ecosystems. These approaches shift away from traditional, hierarchical grantmaking models that come with strict reporting requirements and short-term funding cycles.
  • Unrestricted and long-term funding: Flow funding emphasizes flexibility and autonomy for recipients, allowing communities to use funds as they see fit for long-term, systemic change. In a bioregional context, this could mean providing multi-year, unrestricted funding to local Indigenous-led initiatives for environmental restoration, cultural preservation, and regenerative agriculture, empowering them to make decisions based on local needs and conditions.
  • Trust-based relationships: Instead of imposing external metrics and accountability frameworks, trust-based philanthropy fosters deep relationships between funders and communities. A bioregional funding ecosystem would prioritize listening to and trusting local knowledge, with funders serving as allies rather than gatekeepers. This breaks away from the extractive practices of the NPIC, which often place undue burdens on grant recipients, and instead supports the self-determination of local actors.

4. Shared Stewardship and Regenerative Economic Models

• Shared stewardship is a core tenet of bioregionalism, emphasizing collaborative and sustainable management of natural resources. A bioregional financing facility could channel capital into regenerative economic models, which prioritize the long-term health of ecosystems and communities rather than short-term profit.
  • Regenerative agriculture, fisheries, and forestry: In the Salish Sea region, a BFF could fund regenerative agriculture projects, Indigenous-led fisheries management, and sustainable forestry practices. These projects would not only restore ecosystems but also create economic opportunities for local communities, particularly Indigenous populations, whose traditional knowledge can guide regenerative practices.
  • Circular economy and local currencies: A bioregional funding ecosystem might also promote circular economies and local currencies that keep wealth circulating within the region. This reduces reliance on external financial systems that often extract wealth from communities, reinforcing colonial economic dynamics. Local currencies and community investment models can empower marginalized groups to reclaim control over their economies and foster greater economic resilience.

5. Breaking Down Colonial Legal and Financial Barriers

• Reimagining borders: A bioregional framework can challenge the legal and political barriers imposed by colonial borders between the U.S. and Canada. By prioritizing the shared ecosystems of the Salish Sea, a BFF could advocate for cross-border legal reforms that recognize the unique status of Indigenous nations and allow for the free movement of people and capital across borders for environmental and cultural projects.
  • Treaty-based governance: A bioregional funding ecosystem could also encourage a treaty-based approach, where Indigenous nations engage in governance agreements that transcend colonial borders. Such a system would center Indigenous sovereignty and create funding pathways that recognize Indigenous stewardship as a foundational part of ecosystem health and sustainability.
  • Decolonizing legal frameworks: By working with Indigenous legal traditions and governance structures, a bioregional financing facility can decolonize the legal and financial frameworks that currently hinder Indigenous participation in cross-border funding ecosystems. This includes recognizing the right of Indigenous nations to manage their own lands, waters, and economies according to their own laws and customs.

6. Inclusive and Accessible Funding Models

• A bioregional funding ecosystem can design financial instruments that are accessible to small organizations, Indigenous communities, and marginalized groups who are often excluded from traditional funding streams.
  • Equity-based funding: A BFF could offer equity-based or low-interest loans to community-led projects, creating opportunities for local businesses and cooperatives to access capital without the restrictive conditions often imposed by banks or large funders. This model could particularly benefit Indigenous entrepreneurs and community-owned businesses that focus on regenerative practices.
  • Micro-grants and community crowdfunding: A bioregional financing facility could also support micro-grants and community-driven crowdfunding models that allow smaller, grassroots projects to access seed funding. This would democratize access to capital and encourage the development of innovative, place-based solutions that may not fit within the conventional grantmaking framework.

7. Disrupting the Nonprofit Industrial Complex (NPIC)

• The Nonprofit Industrial Complex often reinforces colonial and capitalist structures by concentrating power within large institutions that prioritize hierarchical control, short-term outcomes, and bureaucratic accountability. A bioregional funding ecosystem can challenge this by:
  • Decentralizing power: A BFF would decentralize funding decisions, putting power into the hands of local communities and Indigenous nations. This shifts away from the top-down approach of the NPIC, where large foundations and governments control the flow of capital, and instead empowers place-based actors to define their own priorities.
  • Challenging colonial metrics: The NPIC often measures success based on metrics that align with Western capitalist values, such as growth, efficiency, and scale. A bioregional financing facility could adopt alternative metrics that reflect the health of ecosystems, cultural resilience, and community well-being, thus supporting regenerative, rather than extractive, economic practices.

8. Indigenous-Led Initiatives for Healing and Restoration

• Indigenous communities in the Salish Sea and other bioregions have long histories of land and water stewardship. A bioregional financing facility can directly support Indigenous-led projects that restore ecosystems, heal cultural connections, and promote sustainable economies.
  • Cultural and ecological restoration: Funding could be directed towards projects that restore traditional knowledge and cultural practices, such as traditional fisheries, medicinal plant harvesting, or land management practices. These efforts not only regenerate ecosystems but also heal the social and cultural fabric disrupted by colonization.
  • Capacity-building: A BFF could also invest in capacity-building programs that equip Indigenous communities with the tools and resources to manage their own economic development, legal governance, and environmental restoration efforts. This would help overcome the colonial legacy of economic dependency and promote self-determination.

A bioregional framework, coupled with a Bioregional Financing Facility (BFF) and a bioregional funding ecosystem, offers a powerful alternative to the conventional, colonial-driven funding systems. By centering local communities, Indigenous leadership, and regenerative practices, these structures can break down the legal, financial, and bureaucratic barriers that have historically reinforced inequity and environmental degradation. Through trust-based philanthropy, cross-border collaboration, and inclusive funding models, bioregional frameworks can create a more equitable, regenerative future for both ecosystems and the communities that depend on them. This approach disrupts the Nonprofit Industrial Complex by shifting power to those who are most intimately connected with the land and water, and by prioritizing the long-term health and resilience of both people and place

Important Steps to Keep in Mind for Growing a BFF

Defining bioregional frameworks and establishing shared layers of stewardship are foundational to creating a Bioregional Financing Facility (BFF) and fostering a robust bioregional funding ecosystem. These elements ensure that financial resources are used responsibly, projects align with the ecological and social realities of the bioregion, and that local communities are empowered as stewards of their own future. These concepts provide the foundation for guiding how resources are allocated, how projects are prioritized, and how communities and ecosystems are nurtured over the long term. Their importance stems from the need for place-based, context-driven governance and sustainable resource management.  Ultimately, they help create a regenerative, resilient, and equitable economy that is deeply connected to both people and place.

Below are the reasons why these elements are essential:

1. Alignment with Local Ecological and Cultural Realities

• Bioregional Frameworks: These frameworks define the geographical, ecological, and cultural boundaries of the bioregion, which is essential for understanding how natural systems and human communities interact. They account for factors such as watersheds, biodiversity, land use, and cultural heritage.
• Importance: By clearly defining the scope and characteristics of the bioregion, a BFF can allocate resources more effectively, ensuring that projects are suited to local conditions and address region-specific challenges, such as water scarcity, deforestation, or food security.

2. Guiding Investment Decisions and Project Prioritization

• Shared Layers of Stewardship: Stewardship involves the shared responsibility of various stakeholders—community members, indigenous groups, local governments, businesses, and NGOs—for managing and regenerating natural and cultural resources.
• Importance: When different stakeholders agree on shared layers of stewardship, they can collectively decide which projects are most beneficial to the long-term health of the bioregion. This ensures that funding is directed toward initiatives that balance ecological restoration, economic development, and social well-being, rather than short-term, profit-driven projects.

3. Sustainable Resource Management

• Bioregional Frameworks: These frameworks ensure that natural resources (forests, water, soil, biodiversity) are managed according to local ecological limits, avoiding overexploitation and degradation.
• Importance: BFFs and bioregional funding ecosystems can use these frameworks to set criteria for funding projects that enhance the regeneration of natural resources. For example, funding might prioritize projects that restore degraded land, conserve biodiversity, or support climate resilience. Without clear frameworks, funding might inadvertently contribute to ecological damage.

4. Building Local Resilience and Self-Sufficiency

• Shared Stewardship: Stewardship enables communities to take active roles in the governance and management of local ecosystems and economies, fostering resilience by reducing reliance on external resources and decision-makers.
• Importance: When communities are empowered to govern and steward their own resources, the region becomes more resilient to external shocks, such as climate change or economic downturns. This shared responsibility also ensures that local knowledge, especially indigenous knowledge, is respected and integrated into decision-making processes.

5. Enhancing Social Cohesion and Equity

• Shared Stewardship: Creating a culture of stewardship brings together diverse stakeholders who may otherwise have competing interests—indigenous communities, local governments, farmers, and investors. It builds a common understanding of the region’s ecological and social values.
• Importance: A BFF grounded in shared stewardship ensures that funding is distributed equitably across different sectors of society. It prevents marginalized communities from being excluded and allows them to participate in, and benefit from, regenerative projects. This strengthens social cohesion, as everyone has a stake in the success of the bioregion.

6. Facilitating Multi-Stakeholder Collaboration

• Bioregional Frameworks and Shared Stewardship: These frameworks serve as a common language and set of guidelines that help diverse stakeholders—community organizations, businesses, governments, and NGOs—work together.
• Importance: In a bioregional funding ecosystem, collaboration is key to successfully scaling up projects and sharing resources. A clearly defined framework and stewardship model help prevent conflicts and ensure that different actors are aligned in their efforts to regenerate the bioregion. They also facilitate the pooling of resources from various funding sources (philanthropy, private capital, public investment), as all parties are working within a unified vision.

7. Ensuring Long-Term Regeneration and Monitoring

• Bioregional Frameworks: They provide measurable criteria for the ecological, social, and economic success of projects within a bioregion. This includes indicators for biodiversity, water quality, carbon sequestration, and community well-being.
• Shared Stewardship: This ensures ongoing monitoring and management, as local stewards take responsibility for tracking the long-term impacts of funded projects.
• Importance: These frameworks and stewardship layers allow a BFF to implement adaptive management practices. As conditions in the bioregion change—whether due to climate impacts or shifting community needs—projects can be adjusted to ensure continuous regeneration. A long-term commitment to monitoring ensures that the bioregion remains healthy and resilient for future generations.

8. Creating Accountability and Transparency

• Shared Stewardship: Stewardship involves not only decision-making but also accountability for how resources are used. Clear roles and responsibilities among stakeholders foster transparency.
• Importance: Transparency ensures that resources from the BFF are used responsibly, with clear reporting mechanisms on how funds are spent and what outcomes are achieved. This builds trust within the community and with external investors, encouraging further investment and participation in the bioregional funding ecosystem.

9. Fostering Regenerative Economic Models

• Bioregional Frameworks: These frameworks help shift the focus from extractive economic models to regenerative ones, where natural systems are restored and enhanced rather than depleted.
• Importance: In a bioregional funding ecosystem, the BFF can prioritize projects that create a circular economy—where resources are reused, recycled, and regenerated within the bioregion. Defining bioregional boundaries helps to create closed-loop systems that reduce waste, lower emissions, and generate sustainable livelihoods for local people.

10. Preserving Biocultural Diversity

• Bioregional Frameworks: These frameworks recognize that bioregions are not just ecological zones but also cultural landscapes shaped by human history and indigenous knowledge.
• Importance: A BFF grounded in bioregionalism preserves and enhances biocultural diversity by funding projects that protect traditional practices, languages, and knowledge systems alongside ecological restoration. This strengthens the region’s cultural identity and enhances the resilience of its communities by ensuring that local cultures are part of the regeneration process.