Tackling Governance and Financing for Sustainability Transitions

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This think piece addresses the fundamental transformations that need to take place in governance and financial systems to address contemporary environmental and social challenges. There is no single answer, and changing only one sector or organization will not resolve systemic problems.

 

Tackling Governance and Financing for Sustainability Transitions

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Addressing today’s global environmental and social crises calls for innovative and far-reaching solutions across the many systems that rely on natural resources. Substantial changes are especially needed in the areas of governance and finance. Public authorities must implement effective policies to guide the transition toward sustainability. Financial frameworks must be redesigned to redirect investment away from current unsustainable patterns of resource use and production.

This think piece by the International Resource Panel first examines the current functioning of financial entities and identifies necessary changes. It argues that the architecture of the financial sector diverts capital from initiatives that could advance the shift toward sustainability. The think piece outlines the workings of the financial ecosystem, highlights the significance of commodity markets, and reviews the changes that have taken place since the 2007/2008 worldwide financial crisis.

Second, the think piece examines the crucial function that national authorities must fulfill in implementing innovative, game-changing strategies that shape the management of resources. It offers a summary of ongoing issues and reviews leading contemporary ideas for driving change. Various methods for overseeing natural assets are addressed, along with the difficulties and possibilities they present.

By discussing socio-technical, socio-ecological, socio-economic and just transitions concepts, the think piece provides a sense of the scale of transformation needed and the steps ahead to achieve sustainability transitions.

Recommended citation: International Resource Panel (2025). Tackling Governance and Financing for Sustainability Transitions. Swilling, M., Weisz, H., Primmer, E., Bruyninckx, H., Lazarevic, D., Asquith, M., Giraud, G., Jacob, M., Napiontek, J., Ali, S., Antonio, P., Shun Fung Chiu, A., Hajer, M., Lifset, R., Obersteiner, M., Potočnik, J., Jensen, P., & Gue, I. A think piece of the International Resource Panel.

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