Abstract
<jats:title>Abstract</jats:title> <jats:p>To meet internationally agreed emissions targets and limit the negative impacts from climate change, an accelerated release of climate financing is urgently needed. Institutions for Climate Financing explores current trajectories of state- and market-based climate financing. Through detailed empirical work, the book identifies political institutional factors associated with increased domestic climate spending and international climate aid generosity, and the influence of a range of political and economic institutional factors on green bond performance. By analysing public climate financing, market-based climate financing, and the impact of state institutions on private green finance, the book explores the sources that are key to meeting the challenge of climate change. Overall, in highlighting the impact of government composition and inter-party electoral competition on domestic climate spending, of national cultural values and partisan orientation on climate aid, and of Central Bank asset purchases and underwriters’ operations’ influence on the performance of green bond markets, the book sheds new light on the political economy of climate financing. By showing what works and identifying areas for improvement across institutional constellations, the book makes the case for an ‘evidence-based optimism’ on climate financing.</jats:p>