Aligning investment, consumption and policy decisions to the climate targets is crucial to decarbonize the economy and promote a sustainable and climate-resilient society.
However, so far, policy and investment decisions have been yo-yoing. Challenges to implement stable and coherent polices include the lack of proper understanding of risks, costs and benefits associated to different policy and investment decisions along transition pathways.
On the other hand, the deeply interconnected and financialized nature of the economic system also contributes to amplifying such risks. Thus, addressing such challenges requires to depart from sector-based knowledge and embrace complexity.