The Entrepreneurial State Must Lead on Climate Change

In recent weeks, several members of the Glasgow Financial Alliance on Net Zero (GFANZ) – a group of 450 financial institutions – have quit over concerns about the cost of delivering on their climate commitments.

In dropping out, they have given the lie to the notion that private financial institutions can lead the transition to a carbon-neutral economy. What the transition really needs is more ambitious states that will go beyond market-fixing to become market shapers .