The Political Economy of Green Transitions: Financing Climate Action in the Global South

This study examines the political economy of financing green transitions in the Global South, analyzing structural barriers, geopolitical constraints, and market-driven limitations that hinder equitable climate finance flows. The main research objectives focus on assessing how political and economic structures shape green financing accessibility, and identifying policy solutions to enhance climate investment effectiveness. Adopting a mixed-methods approach, the study combines dependency theory, world-systems theory, and green political economy frameworks with comparative case studies from Brazil, Kenya, India, and Indonesia. Data was gathered through policy analysis, expert interviews, and financial flow assessments. Key findings reveal persistent North-South disparities, with only 14% of multilateral climate funds reaching Least Developed Countries (LDCs). Market mechanisms prioritize profitable mitigation projects over adaptation, while debt-climate traps force vulnerable nations to divert resources from resilience-building. Case studies highlight contradictions, such as Kenya’s pioneering green bonds failing to address rural energy poverty, and India’s clean energy fund coexisting with coal expansion. The research contributes to climate justice debates by exposing how existing finance architectures reproduce inequality. It proposes six evidence-based recommendations, including democratizing climate governance and mandating 30% private finance allocation to adaptation. The study concludes that systemic reforms not incremental changes are needed to align financial flows with just transition principles.