MATERIALIZING CLIMATE FINANCING IN SOUTH AFRICA AND INDONESIA: GAPS FROM THE PAST, PRESENT, AND FUTURE

Abstract

Developing countries need financial assistance from developed countries to support their efforts in climate change mitigation and adaptation through climate finance commitments and technology transfer mechanisms. The actual funding disbursements fall short of meeting developing countries' requirements despite international agreements, which include a proposed post-2025 climate finance target of USD 300 billion that will be implemented annually by 2035. The research study analyzes the trends of climate finance from the past, present, and future in South Africa and Indonesia. The research investigates how institutional capacity, governance frameworks, and financing systems affect climate finance success through its secondary data and comparative case study methods. The research results show that concessional loans make up the majority of climate finance distribution, which increases debt risks while hindering successful adaptation results. Institutional fragmentation, limited private sector participation, and weak transparency mechanisms further constrain effective utilization. The paper argues that unless climate finance frameworks prioritize grant-based funding, accountability, and alignment with national development strategies, Global South countries will continue to face systemic barriers to climate resilience and low-carbon transitions