Decolonial climate finance in practice: assessing proposed reforms

The research paper examines the 'coloniality' of the international financial architecture, arguing that current climate finance mechanisms are controlled by the Global North and perpetuate power imbalances. The authors propose a decolonial framework based on the 'matrix of power' to evaluate reforms. Applying this to the Bridgetown Initiative, they find that while it is led by the Global South, it remains limited by its reliance on existing institutions like the IMF and World Bank, a lack of focus on debt cancellation, and an over-emphasis on private sector finance. The paper recommends shifting toward grants-based public finance, unconditional debt cancellation, local-level funding access, and global tax and trade reforms to achieve a truly decolonial system.

• The current global financial architecture, established during the 1944 Bretton Woods conference, continues to serve the interests of the wealthy Global North countries that created it, resulting in structural inequalities and unequal power dynamics.
• The Bridgetown Initiative is recognized as a significant step because it is led by the Global South and focuses on the interconnected crises of cost of living, debt, and climate change facing lower-income countries.
• Despite its origins, the Bridgetown Initiative is criticized for failing to address the root causes of the debt crisis, as version 3.0 removed measures related to debt reduction or cancellation.
• The Bridgetown Initiative's reliance on private sector finance and the strengthening of institutions like the IMF and World Bank may consolidate power within colonial-rooted entities and undermine the principle of historical responsibility.
• A truly decolonial approach to climate finance requires a shift from loan-based instruments to grants-based public finance, as grants currently represent less than 5% of total climate finance.
• To ensure climate justice, finance must be channeled directly to local communities and Indigenous Peoples, bypassing the restrictive accreditation requirements of large-scale mechanisms like the Green Climate Fund.
• Global tax reforms, such as those discussed by the International Tax Task Force, could potentially raise over USD 1 trillion per year in public funds for the Global South.

APA

Ghosh, E., Shawoo, Z., & Nazareth, A. (2025). Decolonial climate finance in practice: assessing proposed reforms. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2025/01/decolonial-climate-finance-assessing-proposed-reforms-sei2025-003.pdf

Chicago

Ghosh, Emily, Zoha Shawoo, and Anisha Nazareth. Decolonial climate finance in practice: assessing proposed reforms. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/2025/01/decolonial-climate-finance-assessing-proposed-reforms-sei2025-003.pdf.

Wikipedia

{{cite report |last1=Ghosh |first1=Emily |last2=Shawoo |first2=Zoha |last3=Nazareth |first3=Anisha |title=Decolonial climate finance in practice: assessing proposed reforms |publisher=Stockholm Environment Institute |date=January 2025 |url=https://www.sei.org/wp-content/uploads/2025/01/decolonial-climate-finance-assessing-proposed-reforms-sei2025-003.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ghosh2025decolonial, author = {Ghosh, Emily and Shawoo, Zoha and Nazareth, Anisha}, title = {{Decolonial climate finance in practice: assessing proposed reforms}}, institution = {Stockholm Environment Institute}, year = {2025}, month = jan, url = {https://www.sei.org/wp-content/uploads/2025/01/decolonial-climate-finance-assessing-proposed-reforms-sei2025-003.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }