The report suggests that traditional economic models, which link growth to increasing wealth and job opportunities, are no longer valid in a world of finite resources. It argues that we must challenge these assumptions to create sustainable systems that promote human well-being that don’t rely on constant economic growth.

The age of irresponsibility

The report outlines how modern-day consumption is driven by two key trends: conspicuous consumerism and the desire for income growth. However, these trends have led to a depletion of natural resources and have created unequal distribution of wealth and economic power.

Redefining prosperity

The report suggests that unsustainable consumerism and GDP growth must be replaced by a focus on ecological efficiency and well-being. Such an approach would involve the development of products and services that promote long-term sustainability, rather than short-term growth.

The dilemma of growth

The report finds that the current economic crisis was triggered by unsustainable credit growth. Such growth led to a reliance on natural resources and overconsumption. As such, the report calls for a decoupling of economic growth from resource use to create sustainable and stable economic systems.

The myth of decoupling

The report challenges the notion of absolute decoupling, which states that resource consumption can be reduced whilst GDP growth continues. It cites evidence from various sources to show that such decoupling is more difficult to achieve than previously thought, and that reliance on economic growth must be substituted by resource efficiency.

Confronting structure

The report argues that the economic and political structures of industrialised economies need to change fundamentally if sustainable development is to be achieved. It suggests that current economic models are designed to promote growth and need to be replaced, in particular, by a shift towards circular economy models.

Keynesianism and the ‘green new deal’

The report suggests that a “green stimulus” package which is focused on environmental and economic sustainability, such as investment in ecological infrastructure and renewable energy technology, would promote economic growth in a sustainable manner.

Macro-economics for sustainability

The report highlights how existing economic models are ill-equipped to deal with the challenges of sustainable development, and calls for a comprehensive macro-economic framework to be developed, which accounts for resource efficiency and social-environmental well-being.

Flourishing within limits

The report explores how a sustainable economy would look, in which sustainable consumption, work and leisure would all contribute to human well-being. It discusses some examples of companies transitioning to sustainable economic practices.

Governance for prosperity

The report calls for a new form of governance that is able to prioritise sustainability, social well-being, and democratic accountability. It suggests that a sustainable society must be built around a new model of citizenship that fosters a sense of shared responsibility.

Steps towards a sustainable economy

Finally, the report presents 12 proposals for policy-makers to implement in making the transition to a sustainable economy:

• Developing macro-economic capability: Building a macroeconomic framework that does not depend on continuous growth.
• Investing in public assets and infrastructures: Prioritising investment in sustainable infrastructure and public services.
• Increasing financial and fiscal prudence: Ensuring financial stability through prudent fiscal policies.
• Reforming macro-economic accounting: Adopting new accounting methods that reflect ecological and social values.
• Sharing work and improving work-life balance: Promoting policies that distribute work more evenly and enhance quality of life.
• Tackling systemic inequality: Addressing economic inequalities through fairer distribution of wealth.
• Measuring capabilities and flourishing: Developing metrics that capture well-being and sustainability.
• Strengthening human and social capital: Investing in education, health, and social cohesion.
• Reversing the culture of consumerism: Encouraging less materialistic lifestyles and sustainable consumption patterns.
• Imposing resource and emissions caps: Setting clear limits on resource use and emissions.
• Implementing fiscal reform for sustainability: Using taxation and subsidies to promote sustainable practices.
• Promoting technology transfer and international ecosystem protection: Supporting global cooperation on sustainability and technology sharing.