From Pledges to Practice: The Political Economy of Delayed Climate Finance and Its Consequences for the Global South

Abstract

The widening gap between climate finance pledges and actual disbursements, focusing on the political and economic forces that hinder delivery. While developed nations committed to mobilising $100 billion annually under the Paris Agreement, the target was met only after delay and largely through loans rather than grants, with adaptation finance falling far short of rising needs. Drawing on panel data from the OECD, UNFCCC and the Green Climate Fund, alongside case studies of the $100 billion pledge and post-COP29 negotiations on the New Collective Quantified Goal, the research finds that domestic fiscal pressures, fossil fuel lobbies, weak enforcement mechanisms and geopolitical rivalries shape funding patterns. Strategic delays, preference for mitigation over adaptation, and reliance on private capital deepen inequalities between the Global North and South. The paper argues that without stronger accountability and grant-based support, trust in global climate governance will continue to erode.