Which financial instruments for Agenda 2030? - Enlightenment of Ecological Financial Theory

This article sheds light on the issue of financing the 2030 Agenda. First of all, we highlight the analytical inconsistency of market financing strategies based on neoclassical theory. We then put forward the elements of an alternative strategy based on the issuance of a new category of financial instruments: the ecological sovereign security (ESS). Then, we develop "Philia 1.1", a new 32-equation stock-flow coherent model (SFC) to analyze the effects of issuing TSE on macroeconomic dynamics and the ecological transition process. Simulations suggest that the issuance of TSEs could help to drive an expansionary macroeconomic dynamic beneficial to employees, while embedding the additional activity in new ecological and social criteria. TSE emissions could therefore play a driving role in the pursuit of Sustainable Development Goals (SDGs).