In order for sustainable finance to work, we need central planning.Systematic guidance will help public and private sector investors distinguish good from bad: economics
When the core issue of sustainability is that the free market cannot properly price long-term externalities, conscious governance options must be considered. “Central planning” is not the answer, but the name of the social contract that affects economic activities. The content of the contract, and how it was written to best meet the original intentions of the ruled, is a subject known as “political economy” in history. This is what must be studied, best practices identified, and models constructed, all of which are designed to provide information for the construction of best policies.