What do we mean by Regenerative Economy?

News overview

With contributions from the Postcode Loterij and the VriendenLoterij, DOEN funds pioneers working in the three themes of Regenerative Economy, Social Solidarity and the Power of Imagination. But what do we mean by Regenerative Economy? You can read it in an interview with Maarten Derksen, Regenerative Economy Programme Manager at the DOEN Foundation.

What do you mean by Regenerative Economy, one of the themes in which DOEN funds pioneers?

By this we mean an economy that focuses on restoring natural systems and creating a sustainable model for the future, using natural materials and energy sources. And an economy that combines agricultural food production with nature restoration (regenerative agriculture) in order to restore the earth and improve people's environment (water, air and soil). In other words, an economy that adds value and has a positive impact on people and planet.

We don't adhere to a strict definition of the regenerative economy, but rather encourage the maximum use of principles that are part of a sustainable regenerative future. These principles are shown in the figure below.

What kind of initiatives does DOEN support in this theme?

DOEN supports entrepreneurs who work with new business models on landscape restoration and regenerative agriculture, such as Grounded, which is restoring the landscape by growing honeybus tea , or The Good Spice, which is making the spice sector more sustainable. But we also support projects aimed at reducing and replacing raw materials with natural materials, such as NEFFA , which has developed an innovative method of producing mycelium (mushrooms) to make the textiles sector more sustainable. And citizen collectives that are putting a regenerative economy into practice, such as Land van Ons in the Netherlands, where citizens collectively purchase agricultural land to restore the soil and the landscape

Why did DOEN choose the theme of regenerative economy?

Previously, we worked with more strictly defined programmes for the circular economy, sustainable food systems and sustainable energy. We then realised that merging the programmes would lead to a more holistic approach, ultimately having more impact at system level. This is because system change goes beyond developing a sustainable product or the availability of sustainable energy. To achieve system change, you must look at all the players together and how they interact with each other. Regenerative economy focuses on initiatives that have an impact on the entire system and actively and positively contribute to people and planet.

Climate change, loss of biodiversity and polarisation, not to mention crises such as COVID-19 and the ongoing war in Ukraine, have only increased the need for system change. With the regenerative economy theme, we have also expanded our ambitions. We are raising the bar for ourselves, but in doing so we also hope to challenge and inspire the industry, entrepreneurs and other funders.

By the way, the concept of regenerative economy is not new; it was already in use 10 years ago. At the time, DOEN was funding pioneers in the new economy who were considering the question of what new systems should look like. Examples are Cradle to Cradle, Regenerative Capitalism by John Fullerton, and Theory-U by Otto Scharmer. The regenerative economy is also based on the age-old wisdom of our ancestors and indigenous tribes, and also builds on developments within the various sustainability transitions.

This more holistic approach does not mean the end of DOEN's role in the circular economy or achieving a sustainable and inclusive food system (our previous programmes), but that we are looking more at a systemic approach to initiatives that touches on multiple themes and at applying as many principles of regenerative economy as possible. And within the transitions we'll continue to monitor developments and look for the real pioneers, as DOEN has always done.

Do you get many applicants for the theme of Regenerative Economy?

The number of applications is fairly constant. Partly, this represents a natural shift. We did not come up with the regenerative economy theme ourselves; it's based on the types of applications we've received in recent years and we follow innovations in the sector. What we are seeing in many new applications is that they are combining parts of previous programmes such as food, agriculture, raw materials and biodiversity, and, in some cases, also citizen collectives.

In Africa, for example, we've seen that most of the questions about access to energy are related to the agricultural system, such as irrigation, ploughing and solar-powered milling. We often see a combination of agriculture and landscape restoration such as the case of Grounded, who harvest honeybush tea in the wild and restore the landscape at the same time.

We have seen a development towards a combination of agriculture and energy for some time now, but now we are also asking ourselves what this contributes to restoring agricultural land? And here we are continuously striving for 'better' and 'restoration', instead of 'not as bad' or 'prevention'. Within the organisation, collaborating on one theme helps us exchange information faster and more easily.

What trends have you seen?

The theme of regenerative economy is catching on. Partners identify with it, co-funders feel inspired, and the term and underlying principles are increasingly used. Perhaps not everyone is familiar with the term yet, but if we explain it they will understand. A positive impact on people and planet is immediately obvious. And for applicants, it has become easier to know what does or does not fit

What has surprised you?

We've actually been very positively surprised at how well this theme ties in with the development of food and agricultural systems, especially in East Africa. And at how many parties have already become active in a very short time. The terms agroecology (producing, processing and consuming food in a way that is truly sustainable), regenerative agriculture, and regenerative economy are different, but the basic principles are the same. In East Africa, important principles of a regenerative economy such as 'indigenous knowledge', taking future generations into account and community thinking/involvement are already much more part of the system.

At the same time, we have not been surprised to see that the counterforces have only grown in strength, in particular lobbying by the larger business community and its interest groups. You can also see this in the Netherlands: the regenerative economy is on the rise, but at the same time there is more counterforce. Parties and companies that are afraid of losing something are resisting and striking back. That's why we also support organisations that focus on influencing legislation and regulations, such as Groenboerenplan, True Price or Mission Reuse in the Netherlands. And we also think it's important to support citizen collectives: at the end of the day, it's all about people's living environment, about where they live, work and are socially active. The living environment needs to be organised differently. Citizen collectives know exactly what is needed and are becoming an increasingly stronger undercurrent.

In East Africa, for example, we support the Alliance for Food Sovereignty in Africa (AFSA). This umbrella network is working towards a local, sustainable food system in Africa that is accessible, local/regional and socially inclusive, and not dependent on imports of fertilisers and chemical pesticides

How do you view the future?

The idea that system change is necessary is not a new one. But we really need to make the change now. And that also means that we have to adjust our current lifestyle and perhaps give up a few things. The circular economy is high on the agendas of governments and businesses, but not much is actually happening yet. The percentage of our economy that you might call circular has even declined in recent years.

But if we look at the progress of transitions compared to 10 years ago, we can see progress. Several models of regenerative agriculture have now been implemented in the Netherlands (Herenboeren Nederland, Land van Ons and Lenteland) and in Africa (Horizon Business Venture, Rootical) In the Netherlands, a national government programme has been launched (ReGeNL) that aims to help 1,000 farmers in the transition by 2030. This shows that we are entering the next phase of the transition, which is scaling up, and we are getting closer and closer to the tipping point.