Navigating the Climate Change: A Framework for Renewable Energy Investments under Uncertainty

In this paper, we analyze the multidimensional characteristics of climate change in a dynamic decision-making framework, considering the concepts of uncertainty and irreversibility. It provides a lens on the many aspects of climate change and ways that policy and other strategies can drive change. It examines where climate models came from and the controversies surrounding their accuracy. It also argues that some key lessons have emerged from international agreements around climate change. To this end, the objective is to provide actionable solutions for greenhouse gas emissions reduction, building climate resilience, and establishing sustainable futures for vulnerable communities. The paper highlights the importance of investments in renewable energy to mitigate climate risks and increase resiliency across the globe. The framework addresses cost variability, adoption probabilities, and discount rates to provide practical recommendations and policy frameworks for decision-makers and financiers to facilitate the transition to renewable energy strategies. Thereby contributing to sustainable development and enhanced climate resilience.