FINANCING THE LOW-CARBON TRANSITION: STRATEGIES, ECONOMIC IMPACTS and OPPORTUNITIES IN EMERGING MARKETS

Abstract

The low-carbon transition is essential for mitigating climate change and ensuring sustainable growth, especially in emerging markets. This study aims to identify effective financing strategies for decarbonization, assess the economic implications of climate change policies and explore the challenges and opportunities for sustainable finance in these markets. The paper highlights the importance of clear regulatory frameworks, international cooperation and innovative financial mechanisms, such as sovereign green bonds, fintech integration and carbon trading. These tools are vital for scaling up investments in clean energy and infrastructure. The research also explores how climate policies can drive economic change, emphasizing the role of tax incentives, subsidies and institutional investors in promoting sustainability. In emerging markets, bridging the financing gap requires expanding international climate funds and fostering public-private partnerships to fund large-scale green projects. The study underscores the need for a collaborative, multi-stakeholder approach involving governments, financial institutions and private sector players to mobilize capital for climate action. By aligning financial flows with sustainability goals, this paper advocates for a resilient and equitable low-carbon future. Sustainable finance must remain a priority to support the transition to a green economy and achieve long-term development in emerging markets.