Catalysts of Change: An Empirical Exploration of Factors Shaping Climate Finance Flows
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Dr. Suyash Kamal Soni1
- 1EzzyThesis Services, New Delhi
Climate finance has emerged as a critical mechanism for addressing global climate change, yet the determinants of its flows
remain incompletely understood. This study examines the factors that influence the direction, volume, and effectiveness of
climate finance across different regions and economic contexts. Through quantitative analysis of climate finance data from
2010-2023, we identify key institutional, economic, and policy variables that catalyze or impede climate finance mobilization.
Our findings reveal that governance quality, enabling policy frameworks, and market maturity significantly impact climate
finance flows. The presence of carbon pricing mechanisms correlates with increased private sector participation, while
dedicated national climate funds enhance public finance effectiveness. Regional disparities persist, with least developed
countries facing disproportionate barriers despite their vulnerability. We propose a multi-factor framework for understanding
climate finance determinants to guide policymakers and investors in creating conditions conducive to scaled-up and more
equitable climate finance flows.
