Transforming Capitalism into a Viable Society Through Ecological Transition

This article examines economic policy issues related to the ecological transition over the last few decades. The urgency of ecological/energy transition may offer a real opportunity to transform capitalism into a more viable society. However, the way financial markets usually operate is a major obstacle to achieving this goal. The article proposes two approaches to financing the renewable energy transition: pre-project and post-project financing. It then assesses three national cases, France, Germany, and China, in light of growing global needs and environmental issues. We focus on the delicate balance among investor interests, technological feasibility, and societal needs, considering economic, environmental, and political dimensions. The findings point to the need for a holistic institutional and regulatory framework that mobilizes appropriate public investment and private financial tools to encourage creative models that support a coherent transition to a sustainable society. We examine policy guidelines for public decision-makers, investors, and other stakeholders to promote an enabling financial environment that could support ecological and economic transition on a global scale. Thus, contributing to the current debate on sustainable finance by providing insights into how to overcome barriers to financing renewable energy projects and by highlighting the importance of collaborative national efforts for an environmentally sustainable society.