Articles | Volume 16, issue 1
https://doi.org/10.5194/esd-16-333-2025
https://doi.org/10.5194/esd-16-333-2025
Research article
 | 
26 Feb 2025
Research article |  | 26 Feb 2025

Driving sustainability transitions through financial tipping points

Nadia Ameli, Hugues Chenet, Max Falkenberg, Sumit Kothari, Jamie Rickman, and Francesco Lamperti

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Cited articles

Ameli, N., Drummond, P., Bisaro, A., Grubb, M., and Chenet, H.: Climate finance and disclosure for institutional investors: why transparency is not enough, Climatic Change, 160, 565–589, https://doi.org/10.1007/s10584-019-02542-2, 2020. 
Ameli, N., Dessens, O., Winning, M., Cronin, J., Chenet, H., Drummond, P., Calzadilla, A., Anandarajah, G., and Grubb, M.: Higher cost of finance exacerbates a climate investment trap in developing economies, Nat. Commun., 12, 4046, https://doi.org/10.1038/s41467-021-24305-3, 2021a. 
Ameli, N., Kothari, S., and Grubb, M.: Misplaced expectations from climate disclosure initiatives, Nat. Clim. Change, 11, 917–924, https://doi.org/10.1038/s41558-021-01174-8, 2021b. 
Ameli, N., Chenet, H., Falkenberg, M., Kothari, S., Rickman, J., and Lamperti, F.: Driving sustainability transitions through financial tipping points, EGUsphere [preprint], https://doi.org/10.5194/egusphere-2023-1750, 2023b. 
Ansar, A., Caldecott, B., and Tilbury, J.: Stranded assets and the fossil fuel divestment campaign: what does divestment mean for the valuation of fossil fuel assets? Stranded Assets Programme Report, https://www.smithschool.ox.ac.uk/sites/default/files/2022-03/SAP-divestment-report-final.pdf (last access: June 2022), 2013. 
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Short summary
Transitioning to a net-zero economy necessitates significant changes in the financial system. By promoting collective behaviour, aligning expectations, using public finance, reducing capital costs, and encouraging low-carbon investments, the financial system can play a crucial role in re-orienting economies onto a net-zero course. These mechanisms underscore the potential for positive tipping points in sustainable finance and stress the importance of policy interventions to capitalize on them.

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