Relating Financial Systems to Sustainability Transitions: Challenges, Demands and Dimensions

54 Pages Posted: 28 Aug 2019

See all articles by Chantal P Naidoo

Chantal P Naidoo

University of Sussex - Science Policy Research Unit (SPRU)

Date Written: August 2019

Abstract

The Paris Climate Agreement, SDGs and Addis Ababa Action Agenda call for the financial system's approach to sustainability and climate breakdown to be "consistent and integrated". So far, sustainability transitions (ST) research fails to engage with such calls, offering limited analyses and conceptualisation of financial systems and transition processes. In this paper, a scoping review of finance and ST research shows a polarised context, ranging from nascent orthodox to critical analysis with limited cross-engagement. The paper applies a novel approach towards bridging the polarity; by interpreting the characteristics of the sustainability transition process from the perspective of the demands, it places on the financial system. Five initial demands emerge - directional changes, temporal dynamics, co-existent systems impact, contested social context and contextual experimentation. Finally, the paper offers initial dimensions for scholars to engage in for informing the response of financial systems to the demands of sustainability transitions.

Keywords: Sustainability transitions, Financial systems, Climate breakdown, Characteristics of sustainability transitions, Demands of sustainability transitions

Suggested Citation

Naidoo, Chantal P, Relating Financial Systems to Sustainability Transitions: Challenges, Demands and Dimensions (August 2019). SWPS 18, August 2019, Available at SSRN: https://ssrn.com/abstract=3443551 or http://dx.doi.org/10.2139/ssrn.3443551

Chantal P Naidoo (Contact Author)

University of Sussex - Science Policy Research Unit (SPRU) ( email )

Brighton, BN1 9SL
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
3
Abstract Views
325
PlumX Metrics