As we enter an era of energy transition and the effects of climate change become more dramatic, our need for new forms of economic thinking is becoming increasingly urgent. The existing economic theories and models are clearly ill-equipped to address the intertwined challenges of a massive energy shift and climate change because they are all linked to the era of material abundance and cheap energy resources. The existing economic system has failed and if it continues it will lead to inestimable catastrophic consequences. But what would the policy framework of the much-needed new economics on energy, climate and environment look alike?

C.J. Polychroniou: Dr. Järvensivu, how did your research unit end up producing the background paper for the U.N. Global Sustainable Development Report?

Paavo Järvensivu: BIOS is an independent, multidisciplinary research unit, launched…