IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i14p5507-d381817.html
   My bibliography  Save this article

Role of Intermediaries in Shaping Climate Finance in Developing Countries—Lessons from the Green Climate Fund

Author

Listed:
  • Abrar Chaudhury

    (Saïd Business School, University of Oxford, Oxford OX1 1HP, UK)

Abstract

Social scientists are increasingly interested in the processes that give shape to global policy solutions. I investigate the issues of intermediation and the role of intermediaries in climate finance. I use the case of the Green Climate Fund (GCF), a new consortium for dedicated funding set up under the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries in responding to climate threats, to ask a fundamental question: What role do intermediaries (GCF-accredited and related entities) play in catalysing climate action through climate finance in these countries? This paper offers three propositions focused on the role of intermediaries in the GCF, and tests these using data from the GCF and the wider literature. The results show a growing dominance of international intermediaries in GCF project development and implementation, the low capacity of national intermediaries to conceive and scale projects, and the mismatch between planned and actual funding allocations. Collectively, these outcomes derail the GCF from its core objectives of promoting country ownership of projects, building capacity of local intermediaries, and equitable allocation of funding between mitigation and adaptation. I offer three learning models to help the GCF and intermediaries capitalise on the early lessons from GCF activities and to scale climate finance effectively in developing countries.

Suggested Citation

  • Abrar Chaudhury, 2020. "Role of Intermediaries in Shaping Climate Finance in Developing Countries—Lessons from the Green Climate Fund," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5507-:d:381817
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/14/5507/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/14/5507/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Samuel Fankhauser, 2010. "The costs of adaptation," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 1(1), pages 23-30, January.
    2. De Silva, Muthu & Howells, Jeremy & Meyer, Martin, 2018. "Innovation intermediaries and collaboration: Knowledge–based practices and internal value creation," Research Policy, Elsevier, vol. 47(1), pages 70-87.
    3. Bessant, John & Rush, Howard, 1995. "Building bridges for innovation: the role of consultants in technology transfer," Research Policy, Elsevier, vol. 24(1), pages 97-114, January.
    4. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
    5. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, October.
    6. Megan Bowman & Stephen Minas, 2019. "Resilience through interlinkage: the green climate fund and climate finance governance," Climate Policy, Taylor & Francis Journals, vol. 19(3), pages 342-353, March.
    7. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02276707, HAL.
    8. Geroski, Paul, 2003. "The Evolution of New Markets," OUP Catalogue, Oxford University Press, number 9780199248896.
    9. Johan Schot & Laur Kanger & Geert Verbong, 2016. "The roles of users in shaping transitions to new energy systems," Nature Energy, Nature, vol. 1(5), pages 1-7, May.
    10. James Stewart & Sampsa Hyysalo, 2008. "Intermediaries, Users And Social Learning In Technological Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 295-325.
    11. Declan Conway & Johanna Mustelin, 2014. "Strategies for improving adaptation practice in developing countries," Nature Climate Change, Nature, vol. 4(5), pages 339-342, May.
    12. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02312706, HAL.
    13. Yongrok Choi, 2015. "Intermediary Propositions for Green Growth with Sustainable Governance," Sustainability, MDPI, vol. 7(11), pages 1-17, November.
    14. Musiolik, Jörg & Markard, Jochen & Hekkert, Marko & Furrer, Bettina, 2020. "Creating innovation systems: How resource constellations affect the strategies of system builders," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    15. Reinsberg, Bernhard, 2019. "Blockchain technology and the governance of foreign aid," Journal of Institutional Economics, Cambridge University Press, vol. 15(3), pages 413-429, June.
    16. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    17. Luis Gomez-Echeverri, 2013. "The changing geopolitics of climate change finance," Climate Policy, Taylor & Francis Journals, vol. 13(5), pages 632-648, September.
    18. Saleemul Huq & Hannah Reid & Mama Konate & Atiq Rahman & Youba Sokona & Florence Crick, 2004. "Mainstreaming adaptation to climate change in Least Developed Countries (LDCs)," Climate Policy, Taylor & Francis Journals, vol. 4(1), pages 25-43, March.
    19. Joel B. Smith & Thea Dickinson & Joseph D.B. Donahue & Ian Burton & Erik Haites & Richard J.T. Klein & Anand Patwardhan, 2011. "Development and climate change adaptation funding: coordination and integration," Climate Policy, Taylor & Francis Journals, vol. 11(3), pages 987-1000, May.
    20. Lant Pritchett, Michael Woolcock, Matt Andrews, 2010. "Capability Traps? The Mechanisms of Persistent Implementation Failure - Working Paper 234," Working Papers 234, Center for Global Development.
    21. Barabási, A.L & Jeong, H & Néda, Z & Ravasz, E & Schubert, A & Vicsek, T, 2002. "Evolution of the social network of scientific collaborations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 311(3), pages 590-614.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kristina Fidali & Ofusina Toamua & Hemah Aquillah & Sereima Lomaloma & Placida Riah Mauriasi & Steve Nasiu & Aliti Vunisea & Sangeeta Mangubhai, 2023. "Can civil society organizations and faith‐based organizations in Fiji, Samoa, and Solomon Islands access climate finance?," Development Policy Review, Overseas Development Institute, vol. 41(S2), December.
    2. Joshua Long, 2021. "Crisis Capitalism and Climate Finance: The Framing, Monetizing, and Orchestration of Resilience-Amidst-Crisis," Politics and Governance, Cogitatio Press, vol. 9(2), pages 51-63.
    3. Christoph Nedopil & Truzaar Dordi & Olaf Weber, 2021. "The Nature of Global Green Finance Standards—Evolution, Differences, and Three Models," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
    4. Joseph Earsom, 2024. "Fit for purpose? Just Energy Transition Partnerships and accountability in international climate governance," Global Policy, London School of Economics and Political Science, vol. 15(1), pages 135-141, February.
    5. Borrás, Susana & Haakonsson, Stine & Taudal Poulsen, René & Pallesen, Trine & Hendriksen, Christian & Somavilla, Lucas & Kugelberg, Susanna & Larsen, Henrik & Gerli, Francesco, 2023. "The Transformative Capacity of Public Sector Organizations in Sustainability Transitions: A Conceptualization," Papers in Innovation Studies 2023/2, Lund University, CIRCLE - Centre for Innovation Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caloffi, Annalisa & Colovic, Ana & Rizzoli, Valentina & Rossi, Federica, 2023. "Innovation intermediaries' types and functions: A computational analysis of the literature," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    2. Kivimaa, Paula & Boon, Wouter & Hyysalo, Sampsa & Klerkx, Laurens, 2019. "Towards a typology of intermediaries in sustainability transitions: A systematic review and a research agenda," Research Policy, Elsevier, vol. 48(4), pages 1062-1075.
    3. Williams, Christopher & van Triest, Sander, 2023. "Understanding performance in professional services for innovation intermediation: Technology consultants vs. management consultants," Technovation, Elsevier, vol. 126(C).
    4. Bhatnagar, S. & Sharma, D., 2022. "Evolution of green finance and its enablers: A bibliometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    5. Levänen, Jarkko & Lindeman, Sara & Halme, Minna & Tervo, Matti & Lyytinen, Tatu, 2022. "Bridging divergent institutional logics through intermediation practices: Insights from a developing country context," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    6. Rossi, Federica & Caloffi, Annalisa & Colovic, Ana & Russo, Margherita, 2022. "New business models for public innovation intermediaries supporting emerging innovation systems: The case of the Internet of Things," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    7. Maxim Kotsemir & Alexander Abroskin & Dirk Meissner, 2013. "Innovation concepts and typology – an evolutionary discussion," HSE Working papers WP BRP 05/STI/2013, National Research University Higher School of Economics.
    8. Conroy, Kieran M. & Jacobs, Simon & Liu, Yang, 2023. "The dual knowledge role of open innovation intermediaries: Internal weaving and external filtering for MNE subsidiaries," Technovation, Elsevier, vol. 123(C).
    9. Hyysalo, Sampsa & Juntunen, Jouni K. & Martiskainen, Mari, 2018. "Energy Internet forums as acceleration phase transition intermediaries," Research Policy, Elsevier, vol. 47(5), pages 872-885.
    10. Paula Kivimaa & Wouter Boon & Sampsa Hyysalo & Laurens Klerkx, 2017. "Towards a Typology of Intermediaries in Transitions: a Systematic Review," SPRU Working Paper Series 2017-17, SPRU - Science Policy Research Unit, University of Sussex Business School.
    11. Marine Agogué & Elsa Berthet & Tobias Fredberg & Pascal Le Masson & Blanche Segrestin & Martin Stoetzel & Martin Wiener & Anna Yström, 2013. "A contingency approach of open innovation intermediaries - the management principles of the "intermediary of the unknown"," Post-Print hal-00881577, HAL.
    12. van Winden, Willem & Carvalho, Luís, 2019. "Intermediation in public procurement of innovation: How Amsterdam’s startup-in-residence programme connects startups to urban challenges," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    13. Mikko Koria & Roberto Osorno-Hinojosa & Delia del Carmen Ramírez-Vázquez & Antonius van den Broek, 2022. "One World, Two Ideas and Three Adaptations: Innovation Intermediaries Enabling Sustainable Open Innovation in University–Industry Collaboration in Finland, Mexico and Nicaragua," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    14. Ileana Palaco & Suk Kyoung Kim & Min Jae Park & Jae Jeung Rho, 2022. "Exploring capabilities of international technology transfer intermediaries between emerging and developed countries," The Journal of Technology Transfer, Springer, vol. 47(1), pages 307-352, February.
    15. Thorsten Roser & Ksenija Kuzmina & Mikko Koria, 2023. "Enabling Sustainable Adaptation and Transitions: Exploring New Roles of a Tourism Innovation Intermediary in Andalusia, Spain," Tourism and Hospitality, MDPI, vol. 4(3), pages 1-16, June.
    16. Tindara Abbate & Raffaella Coppolino & Francesco Schiavone, 2013. "Linking Entities in Knowledge Transfer: The Innovation Intermediaries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(3), pages 233-243, September.
    17. Kivimaa, Paula, 2014. "Government-affiliated intermediary organisations as actors in system-level transitions," Research Policy, Elsevier, vol. 43(8), pages 1370-1380.
    18. Selviaridis, Kostas & Hughes, Alan & Spring, Martin, 2023. "Facilitating public procurement of innovation in the UK defence and health sectors: Innovation intermediaries as institutional entrepreneurs," Research Policy, Elsevier, vol. 52(2).
    19. Bertha Vallejo & Banji Oyelaran-Oyeyinka & Nicholas Ozor & Maurice Bolo, 2019. "Open Innovation and Innovation Intermediaries in Sub-Saharan Africa," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    20. Adomako, Samuel & Amankwah-Amoah, Joseph & Dankwah, George Obeng & Danso, Albert & Donbesuur, Francis, 2019. "Institutional voids, international learning effort and internationalization of emerging market new ventures," Journal of International Management, Elsevier, vol. 25(4).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5507-:d:381817. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.