It’s Time For A Solutions Economy

This year, the theme of Climate Week New York is ‘It’s Time’. Rightly, we’ll spend the week focussed on it being time for immediate and real action.

But is it time for some bigger thinking, too?

For far too long, our economic system has assumed that profit is the sole priority, too often at the expense of people and the planet. Too much of the global economy rewards short-term thinking, prioritizes consumption over conservation, and externalizes environmental costs, leaving the true price of our actions to be paid by future generations. But as the climate crisis intensifies, it has become abundantly clear that this model is not only unsustainable but also perilous. It is time for a new approach—an economy that thrives on solutions rather than problems, an economy that works for us and the planet. It’s time for a Solutions Economy.

What is a Solutions Economy? We need markets where the engine of growth is powered by solving the greatest challenges of our time, rather than perpetuating them. In a Solutions Economy, the value is created not by extracting resources or exploiting vulnerabilities but by innovating and implementing solutions that enhance our collective well-being and safeguard our planet.

This isn’t just a lofty ideal; it’s an urgent necessity. As we confront the realities of climate change, the principles of a Solutions Economy must guide our every action, investment, and policy decision. Let’s break down what this looks like in practice.

Principle 1: Value for the Long Term

In a Solutions Economy, value is measured over decades, not quarters. We must move away from the short-termism that dominates our current economic system and instead prioritize investments that deliver long-term benefits. This means rethinking how we assess risk and reward, ensuring that projects with long-term positive impacts—such as renewable energy infrastructure, sustainable agriculture, and ecosystem restoration—are valued appropriately.

Companies that invest in bold new carbon solutions or develop circular economy models should be recognized and rewarded, not just for their potential profits, but for the enduring value they create by mitigating climate risks and conserving resources for future generations.

Principle 2: Profit through Purpose

In a Solutions Economy, businesses succeed by addressing the world’s biggest problems—be it reducing carbon emissions, providing clean water, or creating sustainable products. This is not just about corporate social responsibility; it’s about embedding solutions into the very core of business strategy.

Consider the booming renewable energy sector. Companies that have embraced clean energy are not only reducing their carbon footprint but also tapping into a rapidly growing market. The same applies to companies that prioritize fair trade, sustainable supply chains, and zero-waste manufacturing. In the Solutions Economy, purpose-driven businesses lead the way.

Principle 3: Innovation for Impact

Innovation is the lifeblood of the Solutions Economy, but it’s innovation with a clear direction—toward climate solutions. We need to channel our brightest minds and boldest ideas into solving the climate crisis, not exacerbating it. This means investing in research and development that prioritizes clean technologies, sustainable practices, and resilience-building solutions.

We need to see this kind of innovation across all sectors—agriculture, construction, finance—everywhere.

Principle 4: Equity and Inclusivity

A Solutions Economy must be equitable and inclusive. The benefits of climate solutions should be shared by all, not just the privileged few. This means ensuring that vulnerable communities, often those hardest hit by climate change, have access to the opportunities and resources needed to thrive in a sustainable future.

Investments in green infrastructure should prioritize communities that have been historically marginalized or disproportionately impacted by environmental degradation. Moreover, the transition to a green economy must include retraining and education programs to ensure that workers in declining industries have pathways to new, sustainable careers.

Principle 5: Accountability and Transparency

Finally, a Solutions Economy is one that holds itself accountable. Transparency is key—whether it’s in how companies report their carbon emissions, how governments track progress on climate goals, or how investors assess the sustainability of their portfolios. We need clear, consistent metrics and robust reporting mechanisms to ensure that the solutions we implement are effective and that they are making the intended impact.

The Solutions Economy is not a distant dream—it’s a vision we can start building today. The principles are clear: value for the long term, profit through purpose, innovation for impact, equity and inclusivity, and accountability and transparency. These principles must guide our decisions, shape our markets, and inform our policies as we transition to a sustainable future.

The time for a Solutions Economy is now. We cannot afford to wait. The climate crisis demands nothing less than a fundamental transformation of our economic system—one that turns the greatest challenge of our time into the greatest opportunity for progress. I hope that we can build the basis for that grand challenge here in Solutions House.