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Making Climate Justice Work: Finance, Governance, and Institutions for Inclusive Action

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  • Kalpana Khanal

Abstract

This article critically examines the governance of international climate finance through a climate justice lens. It focuses on how structural inequalities and institutional constraints are biased towards vulnerable and Least Developed Countries (LDCs). The article draws on heterodox economics literature, including the original institutional economics (OIE), Post Keynesian Institutionalism (PKI), and the climate justice framework, and makes an argument that global climate finance mechanisms tend to perpetuate the historic inequalities based on centralized governance, donor agenda, and market-oriented allocation models. By synthesizing some evidence, the article demonstrates how procedural, distributive, and recognition injustices stand in the way of equitable climate action. It concludes with policy and governance recommendations for embedding climate justice in finance systems and strengthening the participation and agency of vulnerable communities.

Suggested Citation

  • Kalpana Khanal, 2026. "Making Climate Justice Work: Finance, Governance, and Institutions for Inclusive Action," Journal of Economic Issues, Taylor & Francis Journals, vol. 60(2), pages 570-576, April.
    • Handle: RePEc:mes:jeciss:v:60:y:2026:i:2:p:570-576
    DOI: 10.1080/00213624.2026.2657238
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