Green de-financialization: Toward a sustainable world economy?
Proponents of climate and energy transition contend that productive investment in green and sustainable infrastructures can reduce global carbon emissions while at the same time unlock potential for a great surge of development. However, under the current regime of financialized capitalism, politica...
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Cambridge University Press
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| Series: | Finance and Society |
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| Online Access: | https://www.cambridge.org/core/product/identifier/S205959992510006X/type/journal_article |
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| author | Gertjan Wijburg Richard Waldron |
| author_facet | Gertjan Wijburg Richard Waldron |
| author_sort | Gertjan Wijburg |
| collection | DOAJ |
| description | Proponents of climate and energy transition contend that productive investment in green and sustainable infrastructures can reduce global carbon emissions while at the same time unlock potential for a great surge of development. However, under the current regime of financialized capitalism, political economists and financial geographers also question whether transitioning into such a green and decarbonized world economy is actually feasible. With global profits accruing primarily through financial channels and transactions, mission-oriented investment in the real economy is lagging. Besides, global imbalances between Northern and Southern countries and continued reliance on resource use and commodity production further challenge a global and inclusive climate transition. This article addresses these challenges and presents three key avenues of green de-financialization, involving strategies to (i) re-embed finance within sustainable modes of production, (ii) reform regimes of financial governance, and (iii) restrain finance’s role in existing modes of production and consumption. Central to the analysis is that the state needs to provide regulatory frameworks and incentives to make such a change happen. However, with vested financial and corporate interests contesting the shift to global sustainability, it remains to be seen to what degree it can coordinate such a transition at the global level. |
| format | Article |
| id | doaj-art-3ace842de8d64f56b9db9eb7c74a893e |
| institution | DOAJ |
| issn | 2059-5999 |
| language | English |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Finance and Society |
| spelling | doaj-art-3ace842de8d64f56b9db9eb7c74a893e2025-08-20T03:15:34ZengCambridge University PressFinance and Society2059-599912110.1017/fas.2025.10006Green de-financialization: Toward a sustainable world economy?Gertjan Wijburg0https://orcid.org/0000-0003-1285-847XRichard Waldron1https://orcid.org/0000-0003-0351-0308Division of Geography and Tourism, KU Leuven, Leuven, BelgiumSchool of Architecture, Planning and Environmental Policy, University College Dublin, Dublin, IrelandProponents of climate and energy transition contend that productive investment in green and sustainable infrastructures can reduce global carbon emissions while at the same time unlock potential for a great surge of development. However, under the current regime of financialized capitalism, political economists and financial geographers also question whether transitioning into such a green and decarbonized world economy is actually feasible. With global profits accruing primarily through financial channels and transactions, mission-oriented investment in the real economy is lagging. Besides, global imbalances between Northern and Southern countries and continued reliance on resource use and commodity production further challenge a global and inclusive climate transition. This article addresses these challenges and presents three key avenues of green de-financialization, involving strategies to (i) re-embed finance within sustainable modes of production, (ii) reform regimes of financial governance, and (iii) restrain finance’s role in existing modes of production and consumption. Central to the analysis is that the state needs to provide regulatory frameworks and incentives to make such a change happen. However, with vested financial and corporate interests contesting the shift to global sustainability, it remains to be seen to what degree it can coordinate such a transition at the global level.https://www.cambridge.org/core/product/identifier/S205959992510006X/type/journal_articleDecarbonizationde-riskingdegrowthfinancializationgreen growthsustainable finance |
| spellingShingle | Gertjan Wijburg Richard Waldron Green de-financialization: Toward a sustainable world economy? Finance and Society Decarbonization de-risking degrowth financialization green growth sustainable finance |
| title | Green de-financialization: Toward a sustainable world economy? |
| title_full | Green de-financialization: Toward a sustainable world economy? |
| title_fullStr | Green de-financialization: Toward a sustainable world economy? |
| title_full_unstemmed | Green de-financialization: Toward a sustainable world economy? |
| title_short | Green de-financialization: Toward a sustainable world economy? |
| title_sort | green de financialization toward a sustainable world economy |
| topic | Decarbonization de-risking degrowth financialization green growth sustainable finance |
| url | https://www.cambridge.org/core/product/identifier/S205959992510006X/type/journal_article |
| work_keys_str_mv | AT gertjanwijburg greendefinancializationtowardasustainableworldeconomy AT richardwaldron greendefinancializationtowardasustainableworldeconomy |