IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v174y2025ics1389934125000590.html

Does international climate finance contribute to the adoption of zero deforestation policies? Insights from Brazil and Indonesia

Author

Listed:
  • von Lüpke, Heiner
  • Mármarosi, Bence
  • Aebischer, Charlotte
  • Trushin, Egor
  • Bolaños, Martha
  • Webb, Thomas
  • Nascimento, Eros
  • Suroso, Djoko
  • Breviglieri, Gustavo

Abstract

International climate finance (ICF) is a critical mechanism for reducing deforestation and supporting global climate cooperation, yet its effectiveness is often questioned on account of scale and implementation challenges. This paper addresses the question whether ICF, implemented through Official Development Assistance (ODA), is catalysing policy adoption in the land use, land use change, and forestry (LULUCF) sectors of Brazil and Indonesia and henceforth contributes to global climate cooperation. We deploy a novel analytical framework, which assesses the role of ICF in transnational policy processes, and analyse how international and domestic factors influence its effectiveness in supporting LULUCF policy adoption. We find that ICF actors are caught in a dilemma between stated objectives of policy reform and ambitious transformational change while at the same time have their legitimacy questioned as participants in domestic policy processes. Ultimately, political access to decision making spheres on policy adoption for climate and land use are denied to them. In Brazil, competing coalitions debate the implementation of the national forest law, while in Indonesia, ICF is confined to technocratic policy spheres, leaving critical decisions to the political economy sphere. Our findings suggest that for ICF to be effective in catalysing policy adoption and global cooperation, it must address legitimacy concerns through political dialogue and shift from ODA approaches towards equitable cooperation, which involves donors' policy efforts as well. To be politically attractive, better alignment of ICF with national development objectives is also crucial, which could take the form of just transition for climate and land use.

Suggested Citation

  • von Lüpke, Heiner & Mármarosi, Bence & Aebischer, Charlotte & Trushin, Egor & Bolaños, Martha & Webb, Thomas & Nascimento, Eros & Suroso, Djoko & Breviglieri, Gustavo, 2025. "Does international climate finance contribute to the adoption of zero deforestation policies? Insights from Brazil and Indonesia," Forest Policy and Economics, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:forpol:v:174:y:2025:i:c:s1389934125000590
    DOI: 10.1016/j.forpol.2025.103480
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934125000590
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2025.103480?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Kreinin, Halliki, 2020. "Typologies of "Just Transitions": Towards Social-Ecological Transformation," Ecological Economic Papers 35, WU Vienna University of Economics and Business.
    2. Kaisa Korhonen-Kurki & Maria Brockhaus & Jenniver Sehring & Monica Di Gregorio & Samuel Assembe-Mvondo & Andrea Babon & Melaku Bekele & Vanessa Benn & Maria Fernanda Gebara & Hermann W. Kambire & Feli, 2019. "What drives policy change for REDD+? A qualitative comparative analysis of the interplay between institutional and policy arena factors," Climate Policy, Taylor & Francis Journals, vol. 19(3), pages 315-328, March.
    3. Heiner von Lüpke & Charlotte Aebischer & Martha Bolaños, 2023. "International Partnerships for a Just Energy Transition: Findings from South Africa," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 13(5), pages 43-49.
    4. Kreinin, Halliki, 2020. "Typologies of "Just Transitions": Towards Social-Ecological Transformation," Ecological Economic Papers 35, WU Vienna University of Economics and Business.
    5. Rahman, Md Saifur & Giessen, Lukas, 2017. "Formal and Informal Interests of Donors to Allocate Aid: Spending Patterns of USAID, GIZ, and EU Forest Development Policy in Bangladesh," World Development, Elsevier, vol. 94(C), pages 250-267.
    6. W. P. Pauw & P. Castro & J. Pickering & S. Bhasin, 2020. "Conditional nationally determined contributions in the Paris Agreement: foothold for equity or Achilles heel?," Climate Policy, Taylor & Francis Journals, vol. 20(4), pages 468-484, April.
    7. Damodaran, A., 2010. "Encircling the Seamless: India, Climate Change, and the Global Commons," OUP Catalogue, Oxford University Press, number 9780198066750.
    8. Antonio G.M. La Viña and Alaya de Leon, 2014. "Two Global Challenges, One Solution: International Cooperation to Combat Climate Change and Tropical Deforestation - Working Paper 388," Working Papers 388, Center for Global Development.
    9. Ian Mitchell & Euan Ritchie & Atousa Tahmesbei, 2021. "Is Climate Finance Towards $100 Billion “New and Additional”?," Policy Papers 205, Center for Global Development.
    10. Thomas Hale, 2020. "Catalytic Cooperation," Global Environmental Politics, MIT Press, vol. 20(4), pages 73-98, Autumn.
    11. William Nordhaus, 2015. "Climate Clubs: Overcoming Free-Riding in International Climate Policy," American Economic Review, American Economic Association, vol. 105(4), pages 1339-1370, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arts, Bas & Brockhaus, Maria & Giessen, Lukas & McDermott, Constance L., 2024. "The performance of global forest governance: Three contrasting perspectives," Forest Policy and Economics, Elsevier, vol. 161(C).
    2. Heiner Luepke & Karsten Neuhoff & Catherine Marchewitz, 2024. "Bridges over troubled waters: Climate clubs, alliances, and partnerships as safeguards for effective international cooperation?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 24(2), pages 289-308, September.
    3. Julia Eder & Laura Porak, 2025. "Die EU zwischen strategischer Autonomie und Unterordnung unter die USA," ICAE Working Papers 165, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    4. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    5. Moeliono, Moira & Brockhaus, Maria & Gallemore, Caleb & Dwisatrio, Bimo & Maharani, Cynthia D. & Muharrom, Efrian & Pham, Thuy Thu, 2020. "REDD+ in Indonesia: A new mode of governance or just another project?," Forest Policy and Economics, Elsevier, vol. 121(C).
    6. Christian Schoder & Remzi Baris Tercioglu, 2024. "A climate-fiscal policy mix to achieve Türkiye’s net-zero ambition under feasibility constraints," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 21(2), pages 331-359, April.
    7. Casari, Marco & Tavoni, Alessandro, 2024. "Climate clubs in the laboratory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).
    8. Casey, Gregory & Galor, Oded, 2017. "Is faster economic growth compatible with reductions in carbon emissions? The role of diminished population growth," MPRA Paper 76164, University Library of Munich, Germany.
    9. Hongbo Duan & Gupeng Zhang & Shouyang Wang & Ying Fan, 2018. "Balancing China’s climate damage risk against emission control costs," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(3), pages 387-403, March.
    10. Aaron Kamm & Simon Siegenthaler, 2024. "Commitment timing in coalitional bargaining," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 130-154, March.
    11. Emanuel Kohlscheen & Richhild Moessner & Előd Takáts, 2021. "Growth, coal and carbon emissions: economic overheating and climate change," BIS Working Papers 937, Bank for International Settlements.
    12. Martin Zapf & Hermann Pengg & Christian Weindl, 2019. "How to Comply with the Paris Agreement Temperature Goal: Global Carbon Pricing According to Carbon Budgets," Energies, MDPI, vol. 12(15), pages 1-20, August.
    13. Jaime DE MELO, 2016. "Moving on Towards a Workable Climate Regime," Working Papers P171, FERDI.
    14. Anne van Aaken & Janis Antonovics & Scott Barrett, 2016. "Collective Action to Avoid Catastrophe: When Countries Succeed, When They Fail, and Why," Global Policy, London School of Economics and Political Science, vol. 7, pages 45-55, May.
    15. Al Khourdajie, Alaa & Finus, Michael, 2020. "Measures to enhance the effectiveness of international climate agreements: The case of border carbon adjustments," European Economic Review, Elsevier, vol. 124(C).
    16. Todd Sandler, 2024. "Tiebout jurisdictions and clubs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(3), pages 857-872, October.
    17. Christoph Böhringer & Knut Einar Rosendahl & Halvor Storrøsten, 2021. "Smart hedging against carbon leakage [An overview of the GTAP 9 data base]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(107), pages 439-484.
    18. Langenmayr Dominika & Mittermaier Ferdinand, 2021. "Nachhaltiges Wirtschaften, nachhaltig finanziert: Herausforderungen für die Politik in den 2020er Jahren," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 22(3), pages 176-190, September.
    19. Philipp Hauber & Stormy-Annika Mildner & Galina Kolev & Jürgen Matthes & Sonja Peterson & Reimund Schwarze & Christiane Lemke & Martin, Thunert & Laura von Daniels & Josef Braml & Johannes Varwick & D, 2021. "Die USA unter Joe Biden: Kehrtwende oder "America first light"?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(01), pages 03-37, January.
    20. Md Saifur Rahman & Md Faisal Abedin Khan & Lukas Giessen, 2024. "Analysing policy changes for achieving sustainable development goals: Insights from forest, environment and climate change action plan in Bangladesh," Natural Resources Forum, Blackwell Publishing, vol. 48(2), pages 508-524, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:174:y:2025:i:c:s1389934125000590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.