Challenge Lab is an arena which provides space for students from different Masters programmes and cultural backgrounds to address complex challenges in transitioning our society into a more sustainable one. The students are guided by a sustainability-driven backcasting process which contains value exercises, dialogues, system thinking, design and entrepreneurship. The main processes in Challenge Lab is a course, “Leadership for sustainability transitions”, during early autumn, and a master thesis lab during the spring; both in which the students work with real world problems connected to sustainability transitions in West Sweden. One main idea behind Challenge Lab is the unique capacity students poses in being a neutral actor, a capacity which allow them to bring stakeholders from different organizations within academia, industry, public sector and civil society together. The students then facilitate in building trust and create openness among the stakeholders, important elements through which they can lead sustainability-driven innovation processes. Challenge Lab makes it possible for students to explore sustainability challenges from multiple perspectives and based on that ask questions regarding how they might close the gap between a desirable, sustainable future and the unsustainable system of today. Challenge Lab is located at Chalmers University of Technology in Sweden.