Climate Risks, Sustainable Finance, and Climate Policy

Abstract

Given the historically excessive use of fossil fuel energy resources and the perils of moving beyond the earth’s carbon budget, we have explored the challenges in reaching a low carbon economy. In Chap. 7, we started with the dynamic modeling of a mixed energy sector, then in Chap. 8, we considered the market and competition dynamics of how renewable energy can become the dominant energy source while fossil fuel is gradually phased out. In Chap. 9, we elaborated on dynamic macro models and how they can become proper guidance for sustainable macro policies in the transition to better climate protection policy. In Chap. 10, we studied the delayed effects and obstacles to scaling up effective climate strategies. Next, we focus explicitly on a variety of sectoral as well as financial and macro policies that can support the transition. In the last decades, there were severe crises and oil market turbulences that impacted climate protection policies.