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Climate Finance Utilization in Africa and Asia: Economic Outcomes and Policy Effectiveness

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Authors : Sakshi Vyas, Jacob Machaka, Lefu Elias Matsikitlane, Anuoluwapo Enitan Popoola

Citation :

Sakshi Vyas, Jacob Machaka, Lefu Elias Matsikitlane& Anuoluwapo Enitan Popoola. (2026). Climate Finance Utilization in Africa and Asia: Economic Outcomes and Policy Effectiveness. Institute For Policy Research and Governance, 1(12). https://doi.org/10.5281/zenodo.21362540

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Abstract :

The use of climate finance has become one of the most significant means of combating climate change at the international level, but its conversion into tangible impacts has been extremely uneven in the Global South. The aim of this paper is to examine how the three largest emerging economies, South Africa, Nigeria, and India, implement climate finance and whether the national policy framework is effective in translating finance into tangible impacts. The fivelens approach used for the examination includes policy coherence, implementation, evidence of impact, economic impact, and structural obstacles. The question to be examined is whether the funds work. Based on the results from the analysis, it becomes evident that while all three countries have indeed taken real efforts to align themselves with global conventions like the Paris Agreement and the UNFCCC, there are implementation gaps when it comes to ground realities. There have been positive developments on the part of South Africa and its REIPPPP and on the part of India and its NAPCC. However, both initiatives still face serious issues related to fragmented governance and lack of financing resources. Nigeria, even though its policy framework has become quite ambitious, suffers from poor institutional coordination, high administrative costs and persistent under-financing of adaptation activities. It is evident that the key determining factor here is not finance but quality of institutions and coherent implementation practices.

Keywords: Climate Finance, Policy Coherence, Implementation Effectiveness, Emerging Economies, Global South, Institutional Governance, Energy Transition

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