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Sustainable Business Model Innovation: Using Polycentric and Creative Climate Change Governance
Abstract
Establishing a sustainable energy future can justifiably be considered the next frontier in global sustainable development under the agenda laid out in the Sustainable Development Goals (SDGs). The newly adopted Paris Agreement which seeks to hold global average temperature increase to “well below 2°C” above pre-industrial levels inserts additional urgency into this agenda. To realize the commitments outlined in the agreement, implementation of innovative sustainable business models capable of producing strong mitigation and adaptation outcomes is required ‘on the ground' and needs to be available for subsequent diffusion across different countries, contexts and domains. This chapter explores the value of polycentric climate change governance through an investigation of sustainable business model innovation. An example of a sustainable business model, called the Sustainable Energy Utility (SEU), is evaluated and an assessment of United Nations-based programming to aid future diffusion of such business models is conducted.
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