In this short 'Insight' - part of our fourth series of Climate Innovation Insights - the authors argue that short-termism in the financial system undermines effective climate action, putting our ability to prevent catastrophic climate change at risk. Systems interventions for long-termism should combine technology, arts, culture and financial markets in a portfolio of experiments.
Short-term thinking in investment cycles and in ideas of economic value are acting to prevent the 1.5 °C transition we need.
Transformation of major systems in the real economy – agriculture, transport, energy, manufacturing, built environment, etc. – will require myriad interventions and innovations in the financial system. This deep demonstration aims to work with some of the most powerful ‘challenge owners’ in this space – from the school children who need us to adopt long-term thinking to pension funds to the OECD – to embed new concepts of value, monetisation and externalities in the financial system, and to address the underlying behaviours and mindsets – including short-termism – that govern our choices and decisions
Explore. . . Find out more about the people and places involved in Long-termism. Keep visiting this page for new content from EIT Climate-KIC and from the many partners involved in this demonstration.