Climate Governance and Finance

Widespread and rapid changes in the atmosphere, ocean, cryosphere, and biosphere have occurred resulting in adverse impacts and related losses and damages to nature and people (IPCC, 2023). Far-reaching, and unprecedented transitions in energy, infrastructure, and industrial systems are urgently required. In principle, we have the technological and financial means to considerably transform these systems; and entrepreneurship, behavioral change, and social movements are also opening windows of opportunity – yet many hurdles impede actual transformation of the political economy. 

Our goal is to identify mechanisms and policy designs that can advance the transition towards a sustainable economy and development. Looking at micro-level data on firms we analyze the pivotal factors that lead to the development of (green) industries. We also analyze financial flows and conditions in and between countries that enable emission reductions, increase resilience and and ultimately lead to an economic transformation.