I believe they are wrong. An important driver of the current crisis capitalism is facing is a lack of political leadership, both in Europe and in the US. The failure to take decisive action leads to uncertainty among consumers, businesses and (institutional) investors. This lack of predictability is not good but bad for the sustainability agenda.

 

The transition towards a green and efficient economy requires long-term vision and commitment. A functioning government with politicians that make clear choices for the long-term can facilitate the much-needed reforms. Unfortunately, we are living in a time in which politicians seem to be incapable of tackling basic economic challenges. This creates the risk that long-term sustainability ambition is falling off the table. ’Where did climate change go?’, was the title of a recent article in the NY Times, stating that the US has become agnostic on the subject. The article is less negative about Europe, but to me it’s not clear why.

 

And even if sustainability can be maintained on the political agenda, this wouldn’t mean it automatically seduces investors and businesses to invest accordingly. We are long on political rhetoric, but short on robust political sustainability support. Governments must build a level of trust that will provide investors and businesses with sufficient confidence that their long-term investments are not threatened by wavering politicians. Fixing the economy is a crucial step for accelerating the transition towards a green and efficient future. No one who promotes sustainability, should celebrate the hard times capitalism is facing.