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The assessment of the socio-economic and financial impacts of climate change represents a main source of uncertainty for policy makers and investors. However, traditional climate economics and financial risk models are not properly equipped to consider the characteristics of climate risks and the opportunities from climate-alignment, being constrained by equilibrium conditions and linearity of impacts, as well as by representative agents and intertemporal optimization. Given the closing window of opportunity to achieve the 2 °C target, there is an urgent need for a new wave of models able to embrace uncertainty and complexity deriving not only from climate impacts on socio-economic systems, but also from their reaction. In this regard, approaches rooted on evolutionary economics and complexity science could provide complementary insights to traditional climate economics models. This special issue contributes to fill in this knowledge gap by collecting nine papers applying evolutionary and complex systems approaches, and agent-based and network models to climate change economics, presented at the Special Session of the Research Area "Environment-Economics Interactions" of the European Association of Evolutionary Political Economy (EAEPE)'s conference 2016. By introducing conceptual and methodological innovations in climate economics and finance, the nine articles analyse the conditions for effective climate policies and financial instruments to align countries to the global climate targets, compared to the costs of inaction. This information is crucial to support decision-makers in the analysis of climate-finance policies and instruments to foster the transition to a sustainable and inclusive low-carbon economy. [ABSTRACT FROM AUTHOR]

This paper provides a detailed review of the basis and prospects for United Kingdom (UK) proposals for the most ambitious mainstream social, economic, and environmental policy program of the 21st century: the Green New Deal (GND), providing critical reflection for its implementation at a local or regional level. Through a review of academic, policy and book publications we examine the key proposed features of a UK GND, identifying five core elements: financial reforms; green infrastructure investment; financing the GND; ownership structures; and economic, social and climate justice. We subsequently review these policy areas through the lens of multi-level governance (MLG) to understand what scales of policy action are required for these aims to be achieved. We find that, whilst core elements of a UK GND, such as reforms to the financial system, and expansionary fiscal and monetary policy require policy change at national and supra-national level, the majority of GND investments require implementation at the local level. We suggest that, in the context of contemporary UK MLG, there are challenges for fully funding and delivering a GND without a national programme, while highlighting emerging options for coordinating and implementing a GND by local government actors, in the absence of national support. [ABSTRACT FROM AUTHOR]