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The finance sector has a long track record of engaging with sustainability issues, and policymakers and sector representatives agree that a transition to sustainability needs to be mirrored by rapidly expanding financing. Based on in-depth interviews with a broad range of actors in the Swedish finance sector, we show that despite a strong recognition of the challenges, the sector remains cautious towards risk. We explore what motivates the sector and how to govern a faster transition and find that informants strongly believe that the sector cannot move any faster without further government intervention. The preferred policy is the use of generic tools such as CO2 taxes, or for the government to step in and mitigate the risk. We conclude that a more ambitious narrative on how the private and public sector can collaborate to share risk is needed, as it is unlikely that the finance sector will lead the way.
Nykvist et al. (Thu,) studied this question.