The AQUAE Labs Ecosystem Conservation Index (ALCI) is a comprehensive field-based assessment and monitoring framework designed to evaluate the biomass, biodiversity, and ecological functionality of terrestrial habitat areas. It provides standardized methodologies to classify habitat types, measure vegetative structure and seral stage, and quantify primary ecosystem services and species diversity.

It was clear to our team of scientists at AQUAE Labs that with the right design, ALCI could in fact capture a meaningful share of the global “hidden” value of nature, by transforming ecological productivity into tradable, financial assets. The economic theory underpinning the value of ecosystem services is well established by Costanza and other internationally accepted economists. The authors estimated that the world’s ecosystem services  i.e. natural-capital services like gas regulation, water purification, waste treatment, nutrient cycling, and climate regulation provides ecosystem services measured and valued at 170 trillion/ turnover per year to the global commons. ALCI capitalizes on these valuations using algorithmic smart - contracts that unlock the value potential to global investors. 

Belipola is governed using ALCI contract type 2 : which rewards improvements in conservation value over time.

The new year begins with renewed commitment to seasonal ecosystem monitoring at the Belipola Arboretum. As part of our 5-year ALCI conservation contract, our field teams are back on-site to implement wet season MRV (Monitoring, Recording, and Validation) protocols across biomass, biodiversity, and soil health.

ALCI January MRV season focuses on the North-West monsoon season Biodiversity Surveys in order to track migrant birds  and breeding populations of frogs in still water systems found within Belipola Arboretum, the world’s first Analog Forest. 

Meet the Brown-breasted Flycatcher (Muscicapa muttui) — a Seasonal Migrant of Sri Lanka’s Montane Rainforests

Within Sri Lanka, the Brown-breasted Flycatcher is most often observed in mid- to upper-montane forest edges, shaded clearings, and mature forest interiors, frequently overlapping with Seral Stage 4 forest representations at elevations around 1,000–1,500 m asl. In these settings, it forages quietly from low perches, sallying out to capture flying insects—making it an important seasonal regulator of forest arthropod populations.

Its presence in such habitats is episodic rather than permanent,requiring the health and continuity of forest structure  be maintained for their return . The species relies on intact canopy layers, rich understorey complexity, and low chemical disturbance to sustain the insect prey it depends on during its migratory stopovers. As such, the flycatcher functions as a biological indicator of seasonal habitat quality, mirroring the same ecological pressures faced by resident species like the Golden Shrub-Frog.

Although not currently classified as threatened, the Brown-breasted Flycatcher is indirectly affected by habitat degradation, pesticide drift, and fertilizer runoff in anthropogenic landscapes adjacent to forest reserves. These pressures reduce insect abundance and compromise its suitability for migratory refuge habitats.

Seen together, the Critically Endangered, range-restricted Golden Shrub-Frog and the wide-ranging yet habitat-sensitive Brown-breasted Flycatcher tell a shared story : one of resident fragility and migratory dependence, both bound to the integrity of Sri Lanka’s remaining mature montane rainforests

AQUAE Labs Ecosystems Conservation Index (ALCI) enters its first insured issuance phase.

In the coming weeks, USD 4 million worth of ALCI credits will be made available to the market. These are insured ecosystem credits, underwritten through Lloyd’s syndicate partners, marking a significant milestone in the evolution of high-integrity, asset-backed nature finance.

This issuance represents more than a credit release. It signals the transition of ecosystem restoration from voluntary contribution to bankable, risk managed environmental infrastructure where biodiversity, biomass, oxygen generation and primary ecosystem services are treated as measurable and insurable assets.

Each ALCI credit is grounded in verified ecosystems, supported by rigorous MRV frameworks, and designed to deliver long term ecological performance aligned with community livelihoods and planetary resilience. As demand accelerates for credible nature-based solutions beyond carbon, this insured ALCI issuance sets a new benchmark for trust, transparency and scale in biodiversity and ecosystem markets.

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