Political Economy of International Climate Finance-Navigating Decisions in PPCR and SREP

April 2015, Neha Rai, Sunil Acharya, Ramesh Bhushal, Raju Chettri, Md Shamshudoha, Misgana Elias Kallore, Nanki Kaur, Sumanta Neupane, Lidya Tesfaye

The working paper explores how countries can enhance their ‘climate finance readiness’ by understanding their internal political economy. Studies in three countries reveal how actors’ various ideas and incentives influence their decisions on climate finance projects. Understanding how these factors interact — understanding the political economy — can help policymakers manage expectations and stakeholder risks early on, prioritise equitable climate finance investments, and fashion a consensus from divergent ideas.