THE GOVERNANCE OF CLIMATE FINANCE IN AFRICA, ASIA AND LATIN AMERICA: SOME CRITICAL REFLECTIONS

This policy brief by the Institute for Security Studies examines the governance of climate finance in Africa, Asia, and Latin America. It analyzes the imbalance between mitigation and adaptation funding, the dominance of private finance over public funds, and the role of regional development banks in shaping climate policy and investment in these regions.

• There is a significant global imbalance in climate finance, with mitigation receiving ten times the resources of adaptation in terms of pledges. In Asia, this is reflected in 113 mitigation projects compared to 40 for adaptation. In Latin America, US$ 222 million has been committed to mitigation versus US$ 57 million for adaptation.
• Africa receives the lowest level of climate funding because mitigation finance is prioritized in fast-developing economies. Consequently, Clean Development Mechanism (CDM) financing is weak in Africa, although Reduced Emissions from Deforestation and Forest Degradation (REDD) is expected to increase finance. Within Africa, the Adaptation Fund under the UNFCCC has only provided finance to Senegal.
• Private finance is more prevalent than public funding across Africa, Asia, and Latin America, which often results in mitigation taking precedence over adaptation. This private-sector dominance can lead to the marginalization of democratic governance principles, such as public participation, informed consent, and social and environmental impact assessments, often resulting in funding decisions that are incompatible with local needs.
• Regional development banks are key players in climate finance and are setting regional policies. Examples include the African Development Bank's proposed Africa Green Fund, the Brazilian Development Bank's management of the Amazon Fund, and the Asian Development Bank's 2009 disbursement of US$ 600 million in grants for low-carbon investments.
• The effectiveness of regional development banks as climate finance channels is questioned due to their preference for loans over grants, their accountability to international investors, and a conflict of interest arising from funding both fossil-fuel based ('dirty') and renewable ('clean') energy.

APA

Whande, W., & Reddy, T. (2011). THE GOVERNANCE OF CLIMATE FINANCE IN AFRICA, ASIA AND LATIN AMERICA: SOME CRITICAL REFLECTIONS. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/No24Jun2011.pdf

Chicago

Whande, Webster, and Trusha Reddy. THE GOVERNANCE OF CLIMATE FINANCE IN AFRICA, ASIA AND LATIN AMERICA: SOME CRITICAL REFLECTIONS. Institute for Security Studies, 2011. https://issafrica.s3.amazonaws.com/site/uploads/No24Jun2011.pdf.

Wikipedia

{{cite report |last1=Whande |first1=Webster |last2=Reddy |first2=Trusha |title=THE GOVERNANCE OF CLIMATE FINANCE IN AFRICA, ASIA AND LATIN AMERICA: SOME CRITICAL REFLECTIONS |publisher=Institute for Security Studies |date=June 2011 |url=https://issafrica.s3.amazonaws.com/site/uploads/No24Jun2011.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{whande2011governance, author = {Whande, Webster and Reddy, Trusha}, title = {{THE GOVERNANCE OF CLIMATE FINANCE IN AFRICA, ASIA AND LATIN AMERICA: SOME CRITICAL REFLECTIONS}}, institution = {Institute for Security Studies}, year = {2011}, month = jun, url = {https://issafrica.s3.amazonaws.com/site/uploads/No24Jun2011.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }