Green de-financialization

Toward a sustainable world economy

Bibliographic Data

ID4495231
AuthorsGertjan Wijburg (0000-0003-1285-847X, KU Leuven, corresponding author), Ronald Waldron (0000-0003-0351-0308, University College Dublin)
Year2025
Volume11
Issue3
Pages1-21
Publication date2025-07-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueFinance and Society (JOURNAL)
Journal identifiersISSN: 2059-5999 • E-ISSN: 2059-5999
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/fas.2025.10006
OpenAlexW4411975059
LanguageEN
Citations received1
References cited75

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

Business · Economic system · Economics · Economy · Financialization · Green Economy · Market economy · Political science · Sustainable development · Economic Theory and Policy · Housing, Finance, and Neoliberalism · Political Economy and Marxism

Tools

Open DOIOpen Access