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Role of Intermediaries in Shaping Climate Finance in Developing Countries—Lessons from the Green Climate Fund

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  • Abrar Chaudhury

    (Saïd Business School, University of Oxford, Oxford OX1 1HP, UK)

Abstract

Social scientists are increasingly interested in the processes that give shape to global policy solutions. I investigate the issues of intermediation and the role of intermediaries in climate finance. I use the case of the Green Climate Fund (GCF), a new consortium for dedicated funding set up under the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries in responding to climate threats, to ask a fundamental question: What role do intermediaries (GCF-accredited and related entities) play in catalysing climate action through climate finance in these countries? This paper offers three propositions focused on the role of intermediaries in the GCF, and tests these using data from the GCF and the wider literature. The results show a growing dominance of international intermediaries in GCF project development and implementation, the low capacity of national intermediaries to conceive and scale projects, and the mismatch between planned and actual funding allocations. Collectively, these outcomes derail the GCF from its core objectives of promoting country ownership of projects, building capacity of local intermediaries, and equitable allocation of funding between mitigation and adaptation. I offer three learning models to help the GCF and intermediaries capitalise on the early lessons from GCF activities and to scale climate finance effectively in developing countries.

Suggested Citation

  • Abrar Chaudhury, 2020. "Role of Intermediaries in Shaping Climate Finance in Developing Countries—Lessons from the Green Climate Fund," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5507-:d:381817
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    Cited by:

    1. Joshua Long, 2021. "Crisis Capitalism and Climate Finance: The Framing, Monetizing, and Orchestration of Resilience-Amidst-Crisis," Politics and Governance, Cogitatio Press, vol. 9(2), pages 51-63.
    2. Borrás, Susana & Haakonsson, Stine & Taudal Poulsen, René & Pallesen, Trine & Hendriksen, Christian & Somavilla, Lucas & Kugelberg, Susanna & Larsen, Henrik & Gerli, Francesco, 2023. "The Transformative Capacity of Public Sector Organizations in Sustainability Transitions: A Conceptualization," Papers in Innovation Studies 2023/2, Lund University, CIRCLE - Centre for Innovation Research.
    3. Kristina Fidali & Ofusina Toamua & Hemah Aquillah & Sereima Lomaloma & Placida Riah Mauriasi & Steve Nasiu & Aliti Vunisea & Sangeeta Mangubhai, 2023. "Can civil society organizations and faith‐based organizations in Fiji, Samoa, and Solomon Islands access climate finance?," Development Policy Review, Overseas Development Institute, vol. 41(S2), December.
    4. Christoph Nedopil & Truzaar Dordi & Olaf Weber, 2021. "The Nature of Global Green Finance Standards—Evolution, Differences, and Three Models," Sustainability, MDPI, vol. 13(7), pages 1-23, March.

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