Sustainability transition needs sustainable finance
DOI:
https://doi.org/10.12775/CJFA.2016.011Keywords
sustainability transition, sustainable finance, climate finance, green financeAbstract
Transition is a term used to describe conversion (evolution) from the existing model of economy and finance towards one based on increased social and environmental responsibility. The purpose of this study is to emphasise the role of sustainable finance in the sustainability transition process. The main thesis can be expressed as follows: the role of finance is changing from the dominant view rooted in neoclassical economic theory (to maximize profits, and shareholder wealth) towards one supporting sustainable development, green economy, low carbon economy also adaptation and mitigation of climate change. The article uses the multilevel perspective created by F.W. Geels effective in the analysis of the sustainability transition. Results of analysis: There is evidence that the old regime of finance destabilizes. Finances are slowly responding to new demand in sustainable economy to align with it.
References
Centre for Responsible Business. (2016). Centre for Responsible Business, http://responsiblebusiness. haas.berkeley.edu/programs/sustainablefinance.html (accessed: 02.10.2016).
CERES. (2015). The Role of the Electric Sector in Achieving the Clean Trillion: Mapping The Gap, http://www.ceres.org/issues/clean-trillion (accessed: 02.10.2016).
Dziawgo, L. (2014). Greening financial market. Copernican Journal of Finance & Accounting, 3(2). http://dx.doi.org/10.12775/CJFA.2014.014.
Farla, J., Markard J., Raven R., & Coenen, L. (2012). Sustainability transitions in the making: A closer look at actors, strategies and resources. Technol. Forecast. Soc. Change, 79(6). http://dx.doi.org/10.1016/j.techfore.2012.02.001.
Geels, F. (2011). The multi-level perspective on sustainability transitions: Responses to sev-en criticisms. Environmental Innovation and Societal Transitions(1). http:// dx.doi.org/10.1016/j.eist.2011.02.002.
Geels, F. (2013). The impact of the financial–economic crisis on sustainability transitions: Financial investment governance and public discourse. Environmental Innovation and Societal Transitions no 6, 67-95. http://dx.doi.org/10.1016/j. eist.2012.11.004.
Green Climate Found . (2016). Green Climate Found: imate.fund/-/unfccc-paris-agreementon- climate-change?inheritRedirect=true&redirect=%2Fhome (accessed: 02.10.2016).
Green Climate Fund. (2015b). Investment Opportunities for the Green Climate Fund. Elements Issue 02 | November 2015,(2).
Guez, H., & Zaouati, P. (2015). Positive Finance. A Toolkit for Responsible Transformation, London: Greenleaf Publishing.
Loorbach, D., & Lijnis Huffenreuter, R. (2013). Exploring the economic crisis from a transition management perspective. Environmental Innovation and Societal Transitions no 6, 35-46. http://dx.doi.org/10.1016/j.eist.2013.01.003.
McIntosh, M. (2013). The Necessary Transition. The Journey towards the Sustainable Enterprise Economy. London: Greenleaf Publishing.
Magnuszewski, P., Sodomkova, K., Slob, A., Muro, M., Sendzimir, J., & Pahl-Wost, C. (2010). Report on conceptual framework for science-policy barriers and bridges. Retrieved 05 15, 2013, from Policy and science inteactions, http://www.psiconnect. eu/ (accessed: 15.05.2016).
New Energy Finance. (2016). New Energy Finance, http://about.bnef.com/ (accessed: 02.10.2016).
OECD. (2011). Towards Green Growth. OECD.
Røpke, I. (2013). Sustainability transitions in the perspective of ecological macroeconomics. The 10th Biennial Conference of the European Society for Ecological Economics. Lille, France: European Society for Ecological Economics.
Stewart, R., Kingsbury, B., & Rudyk, B. (2009). Climate Finance: Regulatory and Funding Strategies for Climate Change and Global Development, New York: NYU Press.
Townsend, M. (2016). The Quiet Revolution: Towards a Sustainable Economy. London: Greenleaf Publishing .
UNEP. (2015). Aligning the financial system with Sustainable Development. The Coming Financial Climate, The Inquiry`s 4th Progress Report. UNEP.
UNEP. (2015b). Aligning the financial system with Sustainable Development. The Coming Financial Climate, The Inquiry`s 4th Progress Report, United Nations Environment Programme, UNEP, http://www.unep.org (accessed: 02.10.2016).
UNEP. (2015c). The Financial System We Need, Inquiry: Design of a Sustainable Financial System. Geneva.
UNEPFI. (2015). State of Green Finance in the UAE UAE Green Agenda 2015-2030 ,The first national survey on contributions of financial institutions to Green Economy, UNEP, http://www.unepfi.org/ (accessed: 02.10.2016).
Downloads
Published
How to Cite
Issue
Section
Stats
Number of views and downloads: 4215
Number of citations: 0