A Formula for the Regenerative Landscape Economy

Climate change, biodiversity loss and degraded soils are no longer distant environmental concerns: they are economic realities. From devastating wildfires to prolonged droughts and declining agricultural productivity, degraded landscapes are increasing risks for communities, businesses and governments alike. In his paper A Formula for the Regenerative Landscape Economy, Willem Ferwerda from Commonland argues that the solution lies not in isolated conservation projects, but in rethinking how we restore entire landscapes as the foundation of resilient economies.

Around the world, thousands of initiatives are already working to restore forests, improve water systems, promote regenerative agriculture and protect biodiversity. While these efforts are valuable, they often operate independently, limiting their overall impact. Ferwerda's central question is simple but profound: how can we unite diverse stakeholders around a shared vision that restores ecosystems while creating lasting economic and social value?

To address this question, Commonland developed the 4 Returns Framework for Holistic Landscape Restoration, a practical translation of the Ecosystem Approach adopted under the Convention on Biological Diversity. Rather than viewing environmental degradation solely as an ecological problem, the framework recognises that degraded landscapes generate four interconnected losses: a loss of hope and purpose, declining social cohesion and employment, a loss of biodiversity, and shrinking economic opportunity. Restoration, therefore, should aim to reverse each of these losses through four corresponding returns: Return of Inspiration, Social Return, Natural Return and Financial Return (4R).

What makes this approach distinctive is its emphasis on long-term, landscape-scale collaboration. Successful regeneration begins with stakeholders—including farmers, businesses, governments, entrepreneurs, investors, conservationists and local communities—co-creating a shared vision for the next 20 years or more. Spatial planning and landscape zoning then help identify where conservation, agriculture, infrastructure and investment can work together to maximise both ecological, social, and economic outcomes.

Ferwerda also challenges one of business's most familiar metrics: Return on Investment (ROI). He suggests adding two simple words "per hectare", to fundamentally change how we think about value creation. Instead of maximising profits from individual projects that leads to degradation per hectare, the objective becomes maximising multiple forms of return across entire landscapes. He captures this shift in a simple formula for Regeneration:

Regeneration = Max. 4Rs / ≥100,000 ha / decades

The formula highlights three essential ingredients often overlooked in sustainability discussions: purpose, scale and time. Regeneration cannot be achieved through short-term projects or fragmented investments. It requires restoring large, interconnected landscapes over decades, allowing ecological systems, communities and local economies to recover together, and restore hope.

Financing this transition is equally important. Ferwerda argues that landscape restoration depends on two complementary forms of blended finance. Project finance supports tangible investments such as regenerative agriculture, carbon projects, ecological corridors and green infrastructure. Equally critical, however, is process finance, long-term funding for stakeholder engagement, governance, planning and partnership building. Although these enabling activities are less visible than physical projects, they create the conditions that reduce investment risk and allow restoration efforts to scale successfully.

Ultimately, Ferwerda presents regeneration not simply as an environmental agenda, but as a new economic model. By adopting a shared language that links ecological health, social wellbeing and financial performance, societies can transform degraded landscapes into engines of resilience and prosperity. Achieving the ambitions of the United Nations Decade on Ecosystem Restoration will depend not only on restoring nature, but on redesigning the systems, partnerships and financial mechanisms that make restoration possible at landscape scale.

Interested in exploring these ideas further? Willem Ferwerda's article is part of The Value of Land – From Degradation to Opportunity, where you can discover more perspectives on regenerative landscape economies and land restoration. Read the full book here.