This is a thought-provoking session on transformational capital and new financial models for the Sustainable Development Goals (SDGs).
Participants in the Panel
- Dr. Chantal Naidoo (Founder and Executive Director at Rabia Transitions)
- Domonic Hofstetter (European Union Climate Innovation Initiative)
Key discussions
- Defining Sustainable Transition
Dr. Chantal Naidoo spoke on sustainable transition as the process of moving toward a more sustainable economy. She emphasized the critical characteristics of this process, including the clear direction it should have, aligning with the SDGs and climate response goals. Additionally, she highlighted the necessity for an accelerated timeframe to address urgent environmental concerns. Dr. Naidoo also highlighted the competition between the old fossil fuel world and the emerging clean energy world, stressing the financial sector's pivotal role in ensuring the dominance of clean energy. She advocated for the importance of fostering experimentation in this transformative journey.
- Rethinking Financial Models:
Domonic Hofstetter contributed his insights on financial models and their relationship with systemic effects. He emphasized that traditional financial paradigms, structures, and practices are often ill-suited for deploying capital in a way that generates systemic impacts. Mr. Hofstetter introduced the concept of transformational capital as a hypothesis for merging systems thinking with finance practices. He suggested that this concept needs further development and refinement, emphasizing the importance of real-world prototypes to test its elements, assess their effectiveness, and identify promises and limitations.
This session provided a deep dive into the details of transitioning to a more sustainable future, offering valuable perspectives on financial models, systemic change, and the path forward in pursuit of the SDGs. The conversation underscored the need for innovative financial solutions and the potential for transformational capital to be a driving force in achieving global sustainability goals.
