Opportunities, investments, and barriers: a critical review of the landscape of climate finance

Abstract

Despite the numerous transnational and multilateral focusing on and addressing the issue of climate crisis, to put simply, there has been historic ambiguity in how the climate crisis management would be financed. Even though the Global North is well-positioned to finance its climate ambitions, without adequate green financing mechanisms in place for emerging markets and low-income countries, the climate transition would be incomplete and incompatible with the goals and ambitions of existing climate declarations, protocols, and agreements. In this study, I will attempt to answer the pressing question: how may the international political and economic discourse around climate finance respond to the challenge of global equity given the existing gaps and what barriers it must overcome? To overcome the disparity in climate finance, robust transnational mechanisms that strengthen financial cooperation between global finance actors is needed, along with political willingness at all levels of governance to facilitate green investments, alongside creating incentives and managing risk. Given the serious consequences of climate inaction, this research on the landscape of climate finance, investments, and inclusion as we transition is much warranted. This study, written considering everyone, provides a particularly important reference for scholars, policy makers, corporate executives, negotiators, and others, on climate financing.