Six SDG Transformations

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Six Transformations to Achieve the

Sustainable Development Goals (SDGs)


Working draft. This version: 17 March 2019

This document is based on and has been adapted from The World in 2050 (TWI2050, 2018). Lead
authors are Jeffrey D. Sachs, Guido Schmidt-Traub, Mariana Mazzucato, Dirk Messner, Nebojsa
Nakicenovic, Johan Rockström. Earlier drafts have benefitted from extensive comments by
members of the SDSN Leadership Council. Dorothea Strüber has provided excellent research
assistance.

On 25 September 2015, the world’s governments adopted the 2030 Agenda including 17 Sustainable
Development Goals (SDGs) (United Nations, 2015). A few weeks later, on 12 December 2015, the
Paris Agreement on Climate Change (UNFCCC, 2015) established an upper limit for human-induced
global warming to “well below 2-degree C” with “efforts to limit the temperature increase to 1.5-
degree C.” Together the 17 SDGs and the Paris Agreement created an agreed framework for national
action and global cooperation on sustainable development. The universally agreed goals apply to all
nations and to all people within those nations. In the oft-repeated language of the 2030 Agenda, no
one (and no nation or region) should be left behind.

Sustainable development entails a grand transformation to a prosperous, fair, and environmentally


sustainable global society, sometimes expressed as the five Ps of Prosperity, People, Planet, Peace,
and Partnership. The 2030 Agenda recognizes that sustainable development is not only an end in
itself but is an instrument for promoting peace as well: “There can be no sustainable development
without peace and no peace without sustainable development” (United Nations, 2015). And
sustainable development cannot be achieved without enhanced partnership between countries and
between governments, civil society, and business.

No country has fully combined prosperity with fairness and environmental sustainability, though the
countries of northern Europe are closest to achieving sustainable development. Moreover, no
country is yet fully on track to achieving sustainable development, even if the necessary
technologies and tools exist. Indeed, many countries are moving in the wrong direction on key areas
(J.D. Sachs et al., 2018). The world has become rich (an average income of $18,000 per person
measured at international prices) but it remains highly unfair. This lack of social inclusion is
manifested in various forms of continued inequality of income, wealth, power, and status. The
environmental unsustainability is felt in three major crises: human-induced climate change;
unsustainable resource use combined with the massive destruction of biodiversity and natural
habitats; and the pollution of air, water, ocean and land that claims millions of lives per year.

A critical question is how countries can organize the implementation of the 2030 Agenda and the
Paris Agreement. Since the goals are interdependent, countries cannot pursue 17 discrete strategies
– one for each goal. On the other hand, an everything-depends-on-everything approach also does
not work. Countries need to strike a balance between system integration – to address the synergies
and trade-offs among interventions – and the depth and focus needed to ensure effective
organization, targeted problem-solving, clear communication, and the mobilization of stakeholders.
The five Ps provide a normative framework for an integrated understanding of sustainable
development, but they are not an operational agenda.

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Achieving the SDGs will require deep, integrated, and non-linear system transformations over a
short period of time and across all sectors in society. These transformations must combine
sophisticated scientific and engineering analyses with managing social change in ways that respect
social customs and history. For example, counties need to transition toward healthy and sustainable
food systems (Goals 3 and 12); eradicate poverty, hunger, and malnourishment (Goals 1 and 2),
while securing terrestrial ecosystem functioning (Goal 15) and curbing anthropogenic greenhouse
gas emissions (Goal 13) without undermining global fisheries and healthy oceans (Goal 14).

In this document we propose to organize the simultaneous implementation of the SDGs and the
Paris Agreement in Six SDG Transformations that work at local, national, regional, and global scales.
The framework builds on work done by The World in 2050 Initiative (TWI2050, 2018).

This report is organized in four sections. First, we introduce the Six SDG Transformations. Section II
describes the governance of the Transformations, which comprises five means of implementation:
economic policies and the role of business, political governance, diplomacy for peace and
international partnership, social activism to change norms and behaviors, and missions for directed
technological change. Section III takes a deeper look at the Six SDG Transformations. We conclude by
considering the practicalities of their implementation.

I. Six SDG Transformations


A transformation, in our usage, is a major deliberate change in the organization of societal, political,
and economic activities that transforms resource use, institutions, technologies, and social relations
to achieve ambitious long-term objectives. We focus on deliberate societal transformations, as
opposed to transformations triggered by unexpected crises. Globalization, industrialization,
urbanization, decolonization, and the universality of human rights may all be regarded as
transformations of the past two centuries. Each has entailed deep changes in politics, economics,
technology, business, social relations, norms, values, and culture. Some transformations can be
powered by market forces, but they all require a deliberate set of public policies and societal
changes.

The purpose of the SDGs and the Paris Agreement is to guide and accelerate long-term directed
change toward sustainable development which must be underpinned by good governance, and
international cooperation – often called a fourth component of sustainable development (SDSN,
2013). The transformations must be deliberately and consciously embraced around the world by all
stakeholders: citizens, businesses, scientists and engineers, and government officials.

The pace and scale of change are central. As just one example, the IPCC has shown that global
emissions of greenhouse gases must be cut by half between 2019 and 2030, which requires average
reductions of 6-7 % per year (Masson-Delmotte et al., 2018). Moreover, justice as well as practicality
demand that the transformation to sustainable development should take place all over the world,
not just in a few favored regions or leading-edge countries.

We propose six SDG Transformations (Figure 1), which we discuss in detail in Section III. They strike a
balance between depth and focus on the one hand and breadth and system integration on the
other. To this end, each Transformation addresses a set of interrelated challenges. They all require a
complex combination of five Means of Implementation: (i) economic policies, (ii) political
governance, (iii) diplomacy, (iv) social activism, and (v) missions for technological change. We
identify two principles that must underpin every Transformation and means of implementation:
leave no one behind (Box 2) and development within a stable Earth system, which implies the

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decoupling of human progress from environmental degradation (Box 3), of which decarbonisation is
perhaps the most important touching on several SDG transformations (Rockström et al., 2017).

We argue that together the Six Transformations are necessary for achieving the SDGs and the
objectives of the Paris Agreement. On the other hand, dropping any of the Six Transformations (e.g.
failing to invest in education while investing in the other Transformations) would make it very
unlikely to achieve the SDGs. The SDGs, in short, are not an à la carte menu. They are a complete
meal, with the vital nutrients distributed through six “courses” or transformations.

Figure 1 | Six SDG Transformations. Each Transformation describes a major change in the
organization of societal, political, and economic activities that transforms resource use, institutions,
technologies, and social relations in order to achieve key SDG outcomes. Source: authors, based on
TWI2050 (2018).

The term “nexus” is sometimes used to describe systems approaches, such as the food-water-energy
nexus, particularly with regard to the use of natural resources, and it has been applied to the SDGs
(TWI2050, 2018; Bleischwitz et al., 2018). We use the term Transformations, as it extends beyond
the focus on natural resources to investigate need for changes in policies, institutions, behaviour,
and social norms to achieve the SDGs by 2030 and implement the Paris Agreement. We note also
that each Transformation contributes to several SDGs, and each SDG requires several
Transformations to be realized. Our assessment indicates that the Six Transformations suggested
here are necessary, while perhaps not always sufficient, for achieving all SDGs.

As illustrated in Figure 2, every Transformation contributes towards each of the first 16 SDGs with
SDG 17 on partnership and the means of implementation enabling all Transformations. By achieving
all Six SDG Transformations, societies can in fact achieve the first 15 SDGs and the vast majority of
associated SDG Targets. SDGs 16 and 17 describe tools of national and international governance that
are enabled by the Six Transformations and in turn drive them, as discussed in the next section.

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Figure 2 | How each Transformation contributes to the SDGs. Schematic illustration of the many-to-
many relationship between the Six SDG Transformations and the SDGs. SDG 17 (Global Partnership)
is an enabling condition for implementing the Six Transformations, so it is not included in this graph.
Source: authors.

The Transformations are broad and complex. We use the term “pillar” to describe the major sub-
components of each Transformation. The pillars described in Box 1 should be pursued in parallel as
part of an integrated strategy. Take the example of Transformation 3 “Energy, Decarbonization, and
Sustainable Industry”. Unless countries maximize energy efficiency, switch towards zero-carbon
power generation, and electrify point sources of emissions or switch to other clean fuels, they
cannot decarbonize their energy systems. Similarly, countries cannot pursue Transformation 4
without making food production systems far more efficient and less environmentally destructive,
promoting biodiversity conservation and restoration, and ensuring healthy diets.

Our aim in this tentative enumeration of pillars for each Transformation is to support stakeholders in
the development of more specific road-mapping. We recognize that the proposed list is provisional,
and that different countries will surely adopt varying actions. We believe, however, that the pillars
are a good check-list that every country should consider as it develops its strategies to achieve the
SDGs and implement the Paris Agreement.

While the Six SDG Transformations and the pillars apply to all countries alike, they need to be
adapted to the local historic and political context, the structure of countries’ economies, as well as
geography and natural resource endowments. The Transformations, as described here, do not – of
course – cover all challenges that countries around the world may face. We therefore encourage
countries to adapt and expand the Transformations to suit their special needs. For example, a small
island developing state may focus Transformation 4 entirely on the coastal and marine economy.

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Box 1. The pillars underpinning the Six SDG Transformations

The SDGs most directly affected by each pillar are listed in square brackets.

1. Education, Gender, and Inequality


1.1. Education (Early Childhood Development to secondary completion) [1, 4, 5, 8, 9, 10, 16]
1.2. School-to-jobs transition [1, 4, 8, 10]
1.3. Gender equality and social inclusion [5, 10]
1.4. R&D and innovation [8, 9, 10]
1.5. Labour standards [8, 10, 16]

2. Health, Wellbeing, and Demography


2.1. Universal health coverage [ 1, 3, 5]
2.2. Social determinants of health and wellbeing [2, 3]
2.3. Environmental health [3, 11, 12, 14, 15]

3. Energy Decarbonization and Sustainable Industry


3.1. Zero-carbon electricity [7, 8, 9, 11, 13, 14, 15]
3.2. Energy efficiency [7, 11, 13]
3.3. Electrification and low-carbon fuels [7, 11, 13]
3.4. Circular economy and managing industrial pollutants [11, 12, 13, 14, 15]

4. Sustainable Food, Land, Water, and Oceans


4.1. Efficient and resilient agricultural systems and fisheries that support livelihoods [1, 2, 6,
8, 12, 14, 15]
4.2. Protection of terrestrial and marine biodiversity, including forests [2, 6, 13, 14, 15]
4.3. Healthy diets, nutrition, and reduced food waste [2, 3, 12]
4.4. Trade and supply chains consistent with sustainable development [2, 8, 13, 14, 15]
4.5. Integrated land-use planning and water management [2, 6, 7, 8, 9, 11, 13, 14, 15]

5. Sustainable Cities and Communities


5.1. Sustainable infrastructure and networks [6, 7, 8, 9, 10, 11, 12, 13, 14, 15]
5.2. More compact settlements [1, 3, 4, 8, 10, 11]
5.3. Urban resilience [10, 11, 13]
5.4. Participatory and inclusive urban planning [11]
5.5. Mobility and smart, sustainable transport infrastructure [8, 9, 13]

6. Digital Revolution for Sustainable Development


6.1. Universal broadband and IT infrastructure [8, 9]
6.2. Online Services [1, 3, 4]
6.3. Digital inclusion, skills, privacy protection, and universal identity [8, 16]
6.4. E-governance [16]
6.5. Mobilizing digital technologies to achieve all SDGs [1-17]

The concept of transformations also works well for the business community. As one example, the
World Business Council for Sustainable Development (WBCSD) has identified five major “programs
of work” for achieving the SDGs. They align well with the Six SDG Transformations proposed in this
document (Error! Reference source not found.), which can help drive greater coherence in public
and private actions to achieve the SDGs. Similarly, the World Benchmarking Alliance is embracing the
concept of SDG Transformations.

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Table 1| Comparison of WBCSD’s five major work areas with the Six SDG Transformations
WBCSD Economic Systems Six SDG Transformations
People 1. Education, Gender, and Inequality
2. Health, Wellbeing, and Demography
Climate & Energy 3. Energy Decarbonization, and Sustainable
Circular Economy Industry
Food, Land and Water 4. Sustainable Food, Land, Water, and Oceans
Cities and Mobility 5. Sustainable Cities and Communities
Redefining Value (Implicit in SDSN transformations)
(Implicit in WBCSD systems) 6. Digital Revolution for Sustainable
Development

II. Governance for the Six Transformations


The pursuit of sustainable development requires peace as well as sound and transformative
governance (WBGU 2011), by which we mean organized actions at the societal scale. We identify
five key means of implementation: economic policies to mobilize resources and business; diplomacy
and international cooperation for peace and finance; political governance to align laws, regulations,
standards, and operating procedures; social activism to change norms and behaviors, and missions
for directed investment and technological change.

Every SDG Transformation requires all five means of implementation, yet public discussions tend to
over-simplify the governance challenges posed by sustainable development and to focus on the
short term. Public discussions often overemphasize economic policies to the neglect of political and
social instruments. They also focus excessively on short-term policy instruments (such as monetary
and fiscal policy) and on single instruments (such as a carbon price) without considering the longer-
term transformations and governance challenges needed to achieve the SDGs. They tend to overlook
the necessary technology missions entirely. In many countries tools to tackle inequalities (Box 2) and
to decouple human well-being from environmental resource use (Box 3) are not discussed widely.

1. Economic Policies and the Role of Business


Business generates a large share of world gross product and accounts for the vast majority of
employment. It drives many of the organizational and technological changes that will enable the
implementation of the Six SDG Transformations. It will mobilize a large share of the investments
needed to achieve the SDGs, but it is also a major driver of the environmental destruction and rising
inequalities that undermine sustainable development. So, businesses need to mobilize for the SDGs,
and countries need to pursue smart economic policies that raise the additional resources and align
the private interests of businesses with the social objective of achieving all SDGs.

Economic policies for the SDG Transformations fall into four broad categories. The first category
concerns resource mobilization. Many of the Transformations involve public and private
investments, for example in infrastructure (SDGs 6, 7, 9, and 11) and R&D (SDG 9). Others involve
public financing of services, for example in healthcare (SDG 3) and education (SDG 4). Still others
require income transfers to vulnerable groups, such as the alleviation of poverty (SDG 1) and the
reduction of inequality (SDG 10). In all these cases, the respective Transformations will require
budgetary outlays that must be financed by an adequate level of current and future tax revenues.
The fiscal framework is therefore certainly the single most important set of economic instruments to

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achieve the SDGs (Gaspar et al., 2019; Jeffrey D. Sachs et al., 2018). Most countries – developed and
developing – will need to increase public outlays for the goals.

Corrective pricing is a second powerful and pervasive tool. When private costs and social costs
diverge, as in the case of CO2 emissions, a corrective price (in the case of CO2, a carbon tax or a
tradable CO2 emissions permit) can bring private incentives in line with social objectives. Such
corrective pricing, most typically through taxes, charges, and tradable permits, is pervasive, and can
apply to a wide range of externalities, such as greenhouse gas emissions, the overuse or underuse of
ecosystem services, and socially undesirable products subject to abuse with external costs (such as
tobacco and alcohol) (Edenhofer et al., 2015).

Direct regulation and mandates are a third powerful instrument of government, used far more
frequently than most economists recognize. Zoning and land/ocean-use planning, protected
reserves, bans on hazardous products, building codes, technology standards, safety requirements,
labor codes, local content policies, information disclosure requirements (for example on patents and
financial instruments), performance requirements, emissions limits (on vehicles or production
processes), energy efficiency requirements, and the like, are all examples of regulations useful for
promoting the SDG Transformations. A recent case of environmental regulation is the move by
several countries to restrict or ban the sale of non-electric light-duty vehicles after a certain date in
the near future. Company law, liability law, the bankruptcy code, and similar legal frameworks
complement direct regulation and mandates.

Long-term finance, particular development financing, is a fourth major area of economic policy.
Development financing is a form of project financing in which an official funding agency (such as a
multilateral or national development bank) works with government entities to plan and execute a
complex investment project. The project typically requires a set of policy measures (budget,
regulation, pricing) and policy processes (such as public consultations, environmental audits,
legislative actions, and community participation) alongside the mobilization of financial instruments.
The funding may involve private sector funding (bonds, bank loans, venture capital, etc.) alongside
public funding, and the implementation of the project may involve both private companies and
public agencies. The major characteristic of development financing is long-termism and complexity:
the need to combine funding, public oversight, and policy measures with the investment outlays.

2. Political Governance for Institutional Alignment


A key method for achieving the Six SDG Transformations is through public institutions and political
processes that ensure participatory decision making, promote transparency and accountability, curb
corruption, respect human rights and dignity, and combat crime. The single most important of these
public institutions is government-led integrated planning with public deliberation. Every government
needs a whole-of-government process to plan for the SDGs taking into account the complex
synergies and trade-offs across the goals and ensuring key stakeholder participation. Typically, this
work is undertaken by the planning agency (such as BAPPENAS in Indonesia and the NDRC in China),
the economy ministry, or an inter-agency task force chaired by a senior cabinet official (such as
Whitehall in the UK). Such integrated planning can help define credible pathways for sustainable
transformation, ensure effective and transparent public procurement that supports the
Transformations towards sustainable development, effective public human resource management,
and functions for public integrity to curb corruption. Still, such integrated approaches are generally
lacking, including in some of the most advanced economies (Lundin and Schwaag Seger, 2017).

A second major public institution are public-private partnerships, in which government agencies
(often serving as funders) collaborate with private business (often serving as implementers) to
mobilize resources for public goods that would otherwise be underprovided by the market.

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Third, when policy challenges are long term, complex, politically charged, and with a long-time
horizon beyond that of the politicians, it may be useful to establish an independent agency or
commission to oversee the relevant long-term policy implementation. Decarbonization policy is a
case in point. The decisions on the siting of long-distance transmission lines and renewable energy
sites (e.g. for wind, solar, and hydro power) are often fraught with lobbying pressures. Decision
making might then usefully be removed from the fray of day-to-day politics. Just as modern central
banks were given their policy independence, subject to democratic oversight but not direct political
intervention, a decarbonization agency might be tasked with establishing timelines, protocols,
bidding, and funding streams to bring about long-term systems change, subject to general
democratic scrutiny by elected officials.

A fourth political institution is the democratic oversight of science and technology. The oversight of
science is crucial not only to prevent scientific mishaps and abuses, but to ensure the public’s
confidence in scientific conclusions. When that confidence is lost, the costs can be very high. The
anti-scientific campaigns against vaccination, for example, are leaving large numbers of children
needlessly exposed to diseases because parents lack the confidence to immunize their children in
the face of claims that vaccinations pose untoward health risks. To maintain public confidence in AI,
genomics, biodiversity conservation, energy transformation, healthy diets, and so on, there will have
to be a high public confidence in, and understanding of, expert opinions. Special consultative and
oversight bodies can be crucial in explaining science to the public and feeding public doubts back to
the scientific and engineering communities.

Fifth, we should note the critical role of official SDG data that are produced by credible public
agencies to track progress or lack thereof in achieving the SDGs. Governments undertake censuses,
publish budgets, produce surveys, and publish official data. All of this is invaluable in creating
systems of public accountability so that governments are kept to their word. Of course, the data
must win the public’s confidence; and cases of political meddling in official data can leave long-term
scars and mistrust that can deeply undermine governance and block economic progress. Every
government should maintain and publish a credible and high-quality set of SDG indicators to track
SDG progress, support policy management, and keep governments accountable to their
commitments.

3. Diplomacy and International Cooperation for Peace, Finance, and Partnerships


Another means of implementation for the SDG Transformations comprises the tools of international
diplomacy and law to promote peace, human rights, and the benefits of cross-border cooperation.
They depend on the legitimacy of and participation in regional and global institutions to set norms,
resolve conflicts, and promote collaboration. To this end, SDG 16 calls for strengthening the
participation of developing countries in institutions of global governance.

The first and most essential foundation of sustainable development is peace, which requires
international cooperation to resolve disputes peacefully through international norms and
institutions, support peace keeping, and curb international crime and meddling in other countries’
affairs (Weiss and Thakur, 2010). Many fragile countries require international support to maintain
peace, curb the trade in illicit weapons, and promote development. A central challenge for humanity
is to control and manage the threat posed by nuclear, biological, and chemical weapons of mass
destruction through international cooperation and non-proliferation.

Second, achieving the SDGs in the low-income developing countries will require substantial, and
greatly increased, official development assistance and other forms of development financing, in
order to close SDG financing gaps that are beyond the means of the budgets of the low-income

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countries. Third, international collaboration is needed to combat crime, curb sexual violence and
end human trafficking, which has become a major driver of modern forms of slavery. Similarly,
countries need to strengthen and uphold international norms to protect human rights and to curb
violence against women and children. A fourth priority for diplomacy is a fair, rules-based
international trade system that supports economic development in rich and poor countries alike. It
promotes export-led development, which has driven unprecedented poverty reduction over the last
several decades, particularly in much of Asia. Finally, most of the environmental SDGs require a
significant measure of international cooperation. Preserving biodiversity, freshwater, and oceans, as
well as curbing climate change, all require cooperation at a trans-national scale, e.g. through
treaties, technical working groups, regional and international development banks, and UN agencies,
that can secure the needed but fragile cross-boundary cooperation.

4. Social Activism to Change Norms and Behaviors


Economic policies, political instruments, and diplomacy are the tools of government. Yet, large-scale
societal transformations also depend on societal values, norms, public acceptance, and societal
change (Messner, 2015). Often, large scale social change is won first in the hearts and minds of the
people, and only afterward accepted in legislation and economic policies, such as redirecting
investments. This is the case with the mass movements against slavery, led by William Wilberforce,
against colonialism led by Mohandas Gandhi, against apartheid led by Nelson Mandela, for civil
rights led by Martin Luther King Jr., and for women’s rights, reproductive rights, and sexual rights,
led by countless women. In these cases, the battle for transformations was first a battle for hearts
and minds, and only later for implementing legislation and redirecting investments.

Equally, the movement for sustainable development is also a battle for hearts and minds. Humanity
must be convinced to champion intergenerational equity along the three principles of sustainable
development. Moral opinions must prevail against the determined opposition of vested interests.
Public values must change, and social change has its own mechanisms for promoting broad changes
in public attitudes and in behavior.

The starting point is public awareness and education about the need for transformation.
Environmental activists since Rachel Carsons in the 1960s, the Club of Rome in the 1970s, and Dr.
James Hansen since the 1980s, have been educating the broad public about the risks of human-
induced environmental degradation. Similar campaigns have been underway for decades to end
poverty and hunger, promote gender equality, and ensure equal access to health, education, and
other basic needs. Indeed, one can say that the Universal Declaration of Human Rights (1948) is a
moral charter of civil society that already 70 years ago expresses many of the foundational principles
of sustainable development, especially regarding social inclusion.

A second step is to establish social norms and goals, such as the Sustainable Development Goals
(SDGs) or their predecessors the Millennium Development Goals (MDGs), both a watershed in
establishing a globally shared, outcome-driven agenda. A third step are behavior change campaigns
that draw on insights into how businesses, communities, individuals, and government actors change
ways to think and act. Behavioral insights from different disciplines including psychology, sociology,
and behavioral economics can help devise effective behavior change approaches to support the
Transformations. Examples include programs to reduce the incidence of sexually transmitted
diseases, road safety campaigns to reduce traffic accident deaths, and campaigns to increase water
and other resource use efficiency.

A fourth step in a social movement is grassroots activism and community participation, such as the
fossil-fuel divestment movement, calling on asset managers of pension funds, insurance funds, and
university and foundation endowments, to divest of holding in fossil-fuel companies is a prime

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example of mass social action that is both symbolic and substantive. Trillions of dollars under
management have by now committed to invest according to environmental, social, and governance
(ESG) objectives, including divestment from various fossil-fuel-based energy companies. Similar kinds
of grassroots activism are witnessed in consumer boycotts and the preferential purchases of goods
and services from companies that abide by ESG objectives. Fair Trade coffee is an important
example. Consumers pay more for Fair Trade coffee with a portion of the proceeds returned to
farmer cooperatives that abide by agreed principles of good governance. Shareholder activism is yet
another example of effective grassroots campaigning. In U.S. company law, shareholders meeting
certain minimum ownership criteria can launch resolutions that go for a vote by all shareholders.
Activist shareholders of ExxonMobil, for example, launched a resolution requiring the company to
report on how climate change regulations could affect the company’s assets and future profitability.
The resolution was adopted over the objections of management.

A fifth component of mass social transformation is to expound the moral teachings of the world’s
major religions in the context of sustainable development, such as Pope Francis’ encyclical Laudato
Si which inspired individuals around the world to fight for climate justice and help for the poor.
Ecumenical Patriarch Bartholomew of the Eastern Orthodox Church has made remarkable efforts for
more than a quarter century for ecological justice. Other major religions are similarly joining the
global movement for sustainable development and climate justice.

5. Missions for Directed Technological Change


We use the term “Mission” for a large-scale effort at directed technological changes (Mazzucato,
2018a) that are needed to implement the Six SDG Transformations. While the SDGs provide an
inspirational framework for the key challenges, missions are more concrete, targeted, and require
multiple actors to solve them. We take heart from the successes of other efforts at mission-driven
technological changes during the past century such as the U.S. moonshot; the sequencing of the
human genome; the development of the Internet; and the promotion of renewable energy.

Missions involve an interlocking set of problem solving that combine top-down visions with bottom-
up experimentation across many sectors (Mazzucato, 2018b). As an example, the mission to the
moon required innovation across many different high-tech sectors (e.g. aerospace, computing) and
low-tech sectors (e.g. textiles, nutrition). While the mission itself was top-down in vision, it
generated bottom-up experimentation around solving hundreds of ‘homework problems’, involving
different types of partnerships, which galvanized the ensuing success. The lesson is to focus on the
framing of problems which multiple sectors, actors, and disciplines can solve together. Even
industrial strategy at the national level can become more mission-oriented – with clean growth
strategies, for example, bringing together sectors as diverse as mobility, renewable energy, and
steel. Horizontal policies – around skills, education, and infrastructure – are key to allowing such
actors to work together efficiently and dynamically.

In implementing each Transformation, countries need to consider how to accelerate innovation,


technology development, and deployment through mission-oriented public policies, which mobilize
resources and knowledge in the direction of the desired technological objectives and overarching
societal goals. This includes making strategic decisions on how to allow general purpose technologies
(e.g. Internet-based applications, battery storage for intermittent renewable energy) to create
opportunities and spillover effects across sectors. Similarly, for each mission, attention must be
placed on long-term finance for innovation systems; regulations and common standards to promote
innovation and investment; the use of government procurement to scale up new technologies; and a
tax system that rewards long-termism and investments towards targeted technological changes,
while always nurturing bottom-up experimentation. The more ambitious and inspirational missions
are, the stronger their ability to crowd in different forms of private finance.

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III. A Deeper Look at the Six SDG Transformations


Here we will lay out the Six SDG Transformations and their constituent pillars (Box 1). As discussed
above, two central principles across all Transformations are the importance of leaving no one behind
(Box 2) and the need for an Earth system approach to sustainable development, where sustainable
consumption and production combine greater resource use efficiency with circularity (Box 3).

1. Education, Gender, and Inequality


Education is central to building human capital, promoting the voluntary transition to low fertility,
and to overcoming gender and other inequalities, resulting in the need for integrated strategies to
achieve universal secondary school completion by 2030 and to tackle inequalities (Lutz et al., 2008;
Bengtsson et al., 2018). Success in achieving this Transformation will firstly require a deep expansion
of education systems, starting with increased investments in early childhood development and pre-
school education to reduce inequalities in opportunity among children. In parallel, countries need to
ensure quality primary and secondary school completion for all, which inter alia will require
enhanced teacher training and curriculum development, and continuous evaluation of learning
outcomes, as offered by the OECD’s PISA program (OECD, 2018). In many countries, education
strategies must overcome major inequalities between boys and girls or other groups of society.
Education strategies must also focus more squarely on delivering quality education, which may
require major changes to teacher training and teaching methods.

Second and closely related, countries need to improve the transition from school to work through
expanded apprenticeship programs or vocational training, which do not exist or are underdeveloped
in most countries but have been shown to increase lifetime earnings and reduce inequalities
(Bengtsson et al., 2018). Yet, currently successful vocational training programs are deeply rooted in
their countries’ history and culture and cannot be easily transferred. National governments will need
to invest in tailored programs that are adapted to their education systems and labor markets.

A third pillar of this Transformation is promoting gender equality (SDG 5) and social inclusion (SDG
10), which are mediated in substantial parts through the education and healthcare system, but also
require measures to end discrimination in the workplace as well as other anti-discrimination policies
and standards. A fourth pillar for reducing inequalities (SDG 10) consists of expanding social safety
nets, introducing anti-discrimination measures, improving labor standards, and ending all forms of
modern slavery, trafficking, and child labor. The International Labor Organization (ILO, 2014) has
developed detailed standards that every country and employers should meet. Of particular
importance should be efforts to end all forms of modern slavery, trafficking, and child labor, which
continue to be prevalent in poor and rich countries alike.

Finally, to promote economic growth (SDG 8) and innovation (SDG 9), countries should consider
investments and other measures to boost R&D and to promote and accelerate the adoption of new
technologies. Examples for proven measures include innovation-friendly tertiary education to train
the next generation of innovators and to undertake long-term research; national science funding
mechanisms and science advisory bodies, such as national academies of sciences; innovation hubs to
rapidly exchange information between academic, private and societal knowledge systems; and the
promotion of entrepreneurship through public-private financing mechanisms, incubators, and
similar support mechanisms (Mazzucato, 2018a).

Cross-country evidence shows that low levels of overall income inequality as called for by SDG 10 are
achieved through a combination of the measures just mentioned: universal access to quality
education and other public services, active labour market policies, gender equality, social protection,
and innovation-based economies with institutions to share the benefits of innovation. The Nordic

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model of social democracy is rightly cited for achieving especially low Gini coefficient. It is based on a
high level of taxation as a share of GDP, which in turn funds a high level of social spending that is
equitably delivered (IMF, 2017).

Box 2. The Leave-No-One-Behind Principle

The preamble of the 2030 Agenda pledges that no one will be left behind in implementing the
SDGs. This principle of equity and fairness aims to overcome inequalities and discrimination by
gender, race, social status, or other qualifiers. It must underpin the design, implementation, and
monitoring of all Six SDG Transformations. For example, health and well-being are undermined
by rampant inequalities in many countries, so health strategies must focus on the most
vulnerable. Similar considerations apply in education. Recent protests against the social costs of
strategies to decarbonize energy systems in France, Germany, and other countries underscore
that the energy transformation can only succeed if it is underpinned by the principle to leave no
one behind. Similarly, poor smallholder farmers, herders, and artisanal fishermen tend to be
among the worst affected by climate change, so their plight must be a central component of
strategies towards resilient land-use and food systems. Strategies to transform cities and human
communities require participatory urban planning to identify and address the needs of the
poorest. As described under Transformation 6, the digital revolution holds tremendous promise
to better meet the needs of the extreme poor, for example through community health workers
or access to work enabled with smartphones, but if poorly managed it threatens jobs and may
exacerbate inequalities. Finally, climate policies require a “just and in-time” transformation to
address the needs of (1) people who fear losses as a result of the indispensable, rapid
decarbonization; (2) those who suffer from climate-related loss and damages; and (3) future
generations whose life-support systems are threatened by climate change.

2. Health, Wellbeing, and Demography


The SDGs shift the focus towards universal health coverage (SDG 3) as well as the social and
environmental determinants of health and well-being (WHO et al., 2018). They frame health as a
basic need and a human right. A central pillar of the second Transformation is universal health
coverage (UHC), which contribute directly to SDG 5 (gender equality) and SDG 1 (no poverty). UHC
requires a core publicly financed health system that integrates prevention, therapeutic, and
palliative services; integrated information systems; real-time epidemic, and disease surveillance and
control. Health systems must offer interventions for maternal, newborn, and child health; effective
prevention and treatment of infectious diseases; and integrate non-communicable disease control,
including mental health and basic surgery.

Despite increasing awareness and uptake of contraceptive methods, the global number of unwanted
pregnancies remains high. Improved sexual education, investments in sexual and reproductive
health, and gender equality, can help countries address these challenges via their health systems,
accelerating the transition towards lower fertility rates. Such transitions are urgently needed in high-
fertility countries to promote the demographic transition. Through a fall in the dependency ration,
this transition provides an important one-off impetus for human capital accumulation and economic
growth (Lutz et al., 2008).

Another pillar of this Transformation focuses on the social determinants of health, including policies
and metrics on wellbeing and quality of life (Global Happiness Council, 2018). Finally, countries need
to improve environmental health outcomes and other health interventions outside the health
sector. This may include changing social norms and behaviors to promote healthy lifestyles and
diets; applying economic and regulatory tools to curb the pollution of air and water; or road safety
campaigns to lower traffic deaths.

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3. Energy Decarbonization and Sustainable Industry


The climate science is clear. To achieve the objective of the Paris Agreement on Climate Change, the
world must combine universal access to electricity and clean cooking fuels (IEA, 2017) (SDG 7) with
phasing out greenhouse gas emissions by the middle of the century (Masson-Delmotte et al., 2018)
(SDG 13). To have at least a two-thirds probability (a “likely” outcome) of remaining below 2°C above
pre-industrial levels requires that the cumulative net emissions of CO2 in the 21st century should be
no more than 600 Gt (Gigatons) of CO2 (SDG 13). Transformation 4 considers the emissions due to
land-use and land-use change.

Decarbonizing the energy system requires integrated approaches across power generation,
transmission, buildings, transport, and industry, grouped into three major pillars for action. First,
countries need to ensure universal access to zero-carbon electricity and other clean fuels. This will
require a shift from fossil fuels (coal, oil, and gas) to zero-carbon sources, including wind, solar,
hydro, geothermal, ocean, and others. Some countries will also expand nuclear power. Smart-grid
management and long-distance transport of power can help manage intermittency, reduce
electricity storage needs, and increase the efficiency of power grids (Davis et al., 2018). In some
cases, biofuels can contribute towards low-carbon power generation, but their use needs to be
consistent with food security, biodiversity conservation, and other SDGs (see SDG Transformation 4).

Second, countries need to improve energy efficiency in final energy use. This includes transport (e.g.,
lighter and more efficient vehicles, car sharing, autonomous vehicles), buildings (heating and
cooling, thermal insulation), industrial energy use, and household appliances. The third pillar
describes the electrification of current uses of fossil fuels outside of power generation, such as the
internal combustion engine (through electric or hydrogen vehicles), boiler and heaters in buildings
(through heat pumps), and various industrial processes, such as steel and cement production. In
some cases, biomass can also provide clean thermal energy, and power-to-gas or power-to-liquid
technologies can provide energy storage and clean high-density fuels for aviation.

The fourth pillar of this Transformation focuses on the circular economy (Box 2) and managing
industrial pollutants of air, water, and land (SDG 12) (Ekins et al., 2016). Key industrial pollutants
include methane, nitrous oxides, sulphur dioxide, as well as organic and other inorganic pollutants
and plastics. Water and waste management, life-cycle approaches, and other tools of circular
economy can increase resource efficiency and lower pollution. The circular economy also provides a
framework for 21st century industrialization strategies in sub-Saharan Africa and elsewhere (Ekins et
al., 2016).

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Box 3: The Principle of Circularity and Decoupling within a Stable Earth System

We are now in a new geological epoch, the Anthropocene, as humanity's pressures on the Earth
system have risen exponentially over the past 50 years. Today’s patterns of consumption and
production are unsustainable, so in order to achieve the SDGs, countries must decouple human
well-being from environmental degradation, including through circular economic development.
Circularity and decoupling within a stable Earth system are a second principle that underlies all
Six SDG Transformations. The most important decoupling is decarbonization, the reduction of net
greenhouse gas emissions to zero by the middle of the century, but countries must also materials
material system sustainable and dissociate the net release of nitrogen, phosphorous, chemicals,
particulates, and other pollutants from human wellbeing to stay within planetary boundaries.
Similarly, the use of freshwater, land, and non-renewable resources must be decoupled from
social and economic progress. A key strategy for decoupling is circularity, i.e. the reuse and
recycling of resources, across the Six Transformations. For example, life-cycle approaches to
electric vehicles and other key energy technologies are critical for reducing the resource intensity
of Transformation 3 to decarbonize energy and make industry sustainable. In agriculture and
food systems (Transformation 4), circularity is becoming a critical analytical and operational
concept, particularly for livestock management as well as food loss and waste. Similarly, cities
and urban areas (Transformation 5) need to adopt principles of circularity in design and
management of resource flows. The internet of things and other drivers of the digital revolution
(Transformation 6) are important enablers of circularity and decoupling.

4. Sustainable Food, Land, Water, Oceans


The fourth Transformation is in land use, oceans, and food systems. Current patterns of land use,
mainly related to food production, are unsustainable three ways (Schmidt-Traub and Obersteiner,
2018). First, today’s food system does not produce healthy diets, leading to persistent hunger, wide-
spread malnutrition, and a growing obesity pandemic (Willett et al., 2019). Second, they are major
drivers of environmental change, accounting for about a quarter of greenhouse gas emissions (SDG
13), over 90 percent of scarcity-weighted water use (SDG 6), most losses of biodiversity and
overexploitation of fisheries (SDGs 14 and 15), eutrophication through nutrient overload, and
pollution of water and air (Springmann et al., 2018). Third, the food system is highly vulnerable to
the environmental changes now underway, namely the increasing severity of droughts, floods,
disease, and land degradation caused, in part, by climate change (Masson-Delmotte et al., 2018).

The implications are clear. The world will need a major transformation of food systems and land-use
to mitigate human-caused environmental degradation, build resilience into food production, protect
life supporting environmental commons, and achieve better health outcomes. Conflict is another
major driver of food insecurity around the world – ending and preventing conflicts must be a priority
for the international community that lies outside the immediate scope of this SDG Transformation.

The first pillar of this transformation focuses on efficient and resilient agricultural systems and
fisheries that support livelihoods (WRI, 2018). Major increases are needed in yields and resource use
efficiency in terms of nutrients, water, greenhouse gas emissions, chemicals, and the reduction of
post-harvest losses (Box 3). In turn, this will require bespoke strategies for major cropping systems
(e.g. maize, wheat, rice, soy), livestock, aquaculture, fisheries, forestry, and biofuel production. In
parallel, agricultural practices must become more compatible with protecting biodiversity through
intercropping, agroforestry, creating sufficient biosphere reserves, more careful use of chemicals,
and other measures. Improved management practices are needed for coastal and high sea fisheries
to curb overfishing and maintain yields. Greater efficiency also requires investments in storage
infrastructure and other means to reduce post-harvest food losses.

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The second pillar covers the conservation and restoration of forests, soils, peat lands, wetlands,
savannahs, coastal marine areas, and other ecosystems that are under severe pressure from land
use, habitat destruction, pollution, and climate change. Fence-and-fine approaches alone do not
work, so conservation measures must be designed and implemented in cooperation with local
communities. The same applies to large-scale restoration programs and measures to increase soil
fertility and capture more carbon in the biosphere.

Third, countries need to promote healthy diets and nutrition, and reduce food waste (Willett et al.,
2019). Food insecurity and hunger need to be curbed through complementary safety nets and
targeted interventions. Consumer demand must shift towards healthier diets. In particular, this
requires a shift away from highly processed food and red meat, which contribute to poor health and
in the case of meat requires vastly more water and land to produce the same nutritional value.
Additionally, new technologies to make plant protein resemble meat or to grow meat from cultured
cells in a laboratory can reduce the environmental footprint of the food system. Agricultural
research should be directed toward nutritious crops, such as legumes and vegetables, and away
from grains, which are produced in abundance. Another important priority is to reduce food waste,
which currently accounts for up to one third of food produced at the farm. New approaches to
converting food waste into eatable proteins, such as “insect burgers”, provide another promising
avenue to lessen pressure on food production.

Fourth, countries and companies need to ensure their international supply chains are sustainable
with regards to resource use and pollution. Importing countries need to consider the environmental
impact of their imports in exporting countries and curb the trade in endangered species.
International investments in agricultural land must be carefully managed to ensure long-term
sustainability and acceptability to the local population.

Lastly, countries need to pursue strategic approaches to managing the competing claims on land (for
food production, urban development, industry and mining, ecosystem management, carbon
sequestration, biodiversity conservation) or ocean (for transport, food production, energy
harvesting, mining and tourism). Such integrated planning approaches draw on integrated
geospatial analyses of water, land, and ocean use to mobilize all the whole-of-government and to
engage relevant stakeholders.

5. Sustainable Cities and Communities


Cities today are home to around 55 percent of humanity and 70 percent of global output. By 2050,
these shares will increase to approximately 70 and 85 percent, respectively (Jiang and O’Neill, 2017).
Cities are also particularly vulnerable to climate change (Rosenzweig et al., 2018). Consequently,
what happens in cities will determine the wellbeing of most of humanity and the prospects for
sustainable development. Unfortunately, most cities are very far from meeting the triple objective of
being economically productive, socially inclusive, and environmentally sustainable as called for in
SDG 11 and the other goals. In addition to transforming cities, governments must also make towns
and villages sustainable. Access to basic infrastructure services must become universal in rural as
well as urban areas.

As a first priority, cities need to develop sustainable urban infrastructure and smart networks. This
includes an efficient transport system; universal access to reliable and low-cost electricity, safe
water and sewerage; recycling and other sustainable waste management (Box 3); high-speed and
low-cost broadband connectivity to support businesses and public service delivery. Infrastructure
and networks should be deployed according to participatory and inclusive urban planning that takes
account of expected population growth. Safe, open, green spaces, infrastructure for cycling and

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walking, and more compact settlements increase resource efficiency and quality of life. In smaller
communities, countries need to ensure universal access to basic infrastructure services.

The combination of sustainable infrastructure, more compact settlements, and smart urban
networks can combat the hazardous environmental conditions afflicting hundreds of millions of
urban dwellers in large cities. Many cities are chronically burdened by high air pollution, such as
particulate matter, resulting from vehicle emissions, industry, space heating, and the burning of crop
residues. Similar, surface and groundwater are often heavily polluted with sewerage and toxic
pollutants.

Cities also need to invest in improved infrastructure to enhance resilience against extreme weather
events and sea level rise, which have already become a major challenge in many cities causing heat
waves, droughts, flooding, or increased transmission of vector-borne diseases. This will require
participatory and inclusive urban planning to mobilize and engage stakeholders in the decisions that
will shape their cities for decades to come and to address difficult trade-offs, such as resettlements
(Rosenzweig et al., 2018; UN Habitat, 2016). The combination of sustainable infrastructure, more
compact settlements, and smart urban networks can also combat pollution of air, water, and soils
(IEA, 2016). Finally, countries need to invest in smart, sustainable, and climate-resilient national
transport infrastructure to connect cities and communities.

6. Digital Revolution for Sustainable Development


Artificial Intelligence (AI) and other digital technologies – sometimes referred to as the Fourth
Industrial Revolution – are disrupting nearly every sector of the economy, from agriculture (precision
agriculture), mining (autonomous vehicles), manufacturing (robotics), retail (e-commerce), finance
(e-payments, AI trading strategies), media (social networks), health (AI diagnostics, telemedicine),
education (online learning), public administration (e-governance, e-voting), and science and
technology. Digital technologies can raise productivity, lower production costs, reduce emissions,
expand access, dematerialize production, improve matching in markets, enable the use of big data,
and make public services more readily available (TWI2050, 2018). They can also improve resource-
use efficiencies, support the circular economy (Box 3), enable zero-carbon energy systems, help
monitor and protect ecosystems, and assume other critical roles in support of the SDGs (WBGU
2019).

Yet there are also clear dangers and downsides to the digital revolution that countries must identify
and tackle. Perhaps the most feared is the loss of jobs, particularly for lower-skilled workers
(Manyika et al., 2017), and the shift of income distribution from labour to capital (Frey and Osborne,
2013). While new jobs might replace old ones, the new jobs may come with lower real earnings and
working conditions. Another danger for national economies is the erosion of countries’ tax base
through base erosion, profit shifting, and a concentration of industries, which further undermines
the tax base in countries that are less competitive (OECD, 2014). Other perceived threats from the
digital revolution include the theft of digital identities, invasion of privacy by governments or
businesses, discrimination based on data on health or other personal attributes, monopoly positions
due to control of big data, cyber warfare, hacking of election data, or the manipulation of social
media.

For these reasons, the sixth SDG Transformation calls for a comprehensive set of regulatory
standards, physical infrastructure, and digital systems, to capture the benefits of the digital
revolution for the SDGs while avoiding the many potential downsides. Key priorities include:
universal access to high-quality, low-cost mobile broadband; digitization and connectivity of
government facilities, healthcare, and education; online finance and payments to facilitate trade and
business services; universal public online identify for official purposes combined with regulatory

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security for online identity and privacy; income redistribution to address income inequalities arising
from digital scale up; tax and regulatory systems to avoid monopolization of Internet services and
big data; online data governance and interoperability provisions; and democratic oversight of
cutting-edge technologies. As part of the transformation, countries need to consider how to manage
deep societal changes triggered by and needed for the digital revolution. We need to understand
how artificial intelligence may affect societal decision making, including democracy, and how
technical systems can best assist humans in their decisions.

IV. Outlook
The SDGs map out complex and ambitious goals that can only be achieved through profound
changes realized in developed and developing countries alike. The Six SDG Transformations provide
a systematic framework to operationalize the SDGs. If shared across governments, business, and civil
society, such a framework can help mobilize stakeholders around targeted problem solving and
implementation. We are therefore very encouraged that international business organizations like
the World Business Council on Sustainable Development (WBCSD, 2019) and the World
Benchmarking Alliance already embrace the concept of SDG transformations.

The Six SDG Transformations can be operationalized through three essential steps. First,
governments, with support from science, engineering, and public policy disciplines, need to
determine quantitative targets for each Transformation to be achieved by 2030. Transformations of
energy systems, land-use, or cities take place across long time frames. Therefore, additional targets
will be needed through to 2050 and beyond, such as the full decarbonization of energy systems by
mid-century or universal health care by 2030. Long-term strategies must be backed by firm
commitments by governments through appropriate legislation.

Second, countries should develop pathways that describe with high technical rigor and clear
technological and financial assumptions how each of the Transformations can be achieved. As
demonstrated by the experience of the health sector, well-designed pathways are methods for
complex problem solving that synthesize our understanding of how multi-dimensional goals and
targets can be achieved, highlight knowledge gaps, focus on systems and technologies, and enable
engagements with stakeholders. This latter point is crucial, as illustrated by the successful
experience of California in operationalising the energy transition. The State asked leading engineers
to develop technology pathways for deep decarbonisation, which were then discussed with energy
utilities, the finance sector, trade unions, and other stakeholders who each provided new insights
and applied their standards for feasibility and acceptability. In the process, the initial pathways were
substantially revised resulting in major improvements as well as greater acceptance.
The Deep Decarbonization Pathways Project (SDSN and IDDRI, 2015) has demonstrated the use of
national energy decarbonization pathways for policy design across G20 economies, complementing
regional and global pathways as pioneered be the Global Energy Assessment (GEA, 2012). Recently,
the Food, Agriculture, Biodiversity, Land, and Energy (FABLE) Pathways Consortium, which operates
as part of the Food and Land-Use Coalition (FOLU), has developed a global network of country teams
that prepare long-term pathways towards sustainable land-use and food systems (Schmidt-Traub
and Obersteiner, 2018). Such networks can help build capacity, exchange lessons across countries,
and ensure that the national pathways are consistent and collectively in line with global targets for
sustainable development. They also help foster international trust and collaboration and have
become a formal tool for international diplomacy under Article 4.19 of the Paris Agreement on
Climate Change.

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Lastly, by establishing long-term targets and defining pathways for achieving them, countries can
develop implementation strategies for each SDG Transformation that draw on the five means of
implementation described in this paper: economic policies, political governance, diplomacy, social
activism, and missions for technological change. Corresponding goals, back-castings, and strategies
need to be defined and implemented by cities.

The SDGs and the Paris Agreement provide a highly ambitious action agenda that no country is
currently is fully on track to achieve. With Earth’s biophysical systems under growing pressures, and
with politics and social systems facing enormous challenges, there is no time to lose.
The Six SDG Transformations can help to create the frameworks, plans, and investments needed to
enable rapid and coherent action of governments, civil society, and business. They provide a long-
term strategy to identify and overcome knowledge gaps in science, technology, finance, behavior,
and diplomacy, among other areas, shifting the SDGs into an achievable distance.

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