According to the World Bank, aligning climate goals with political and economic realities is essential to drive impactful policies and initiatives. Effective climate adaptation and mitigation efforts increasingly rely on understanding the political and economic factors that shape international climate finance. IFSD’s Political Economy Analysis (PEA) enables partners to navigate complex governance structures, stakeholder dynamics, and economic incentives, empowering them to make informed decisions that align with sustainable development and climate resilience.
Our PEA approach is grounded in rigorous analysis of the socio-political landscape surrounding climate projects. IFSD examines power dynamics, political structures, and stakeholder incentives to provide a comprehensive view of the challenges and opportunities within climate finance projects. Through targeted stakeholder engagement and in-depth policy reviews, we help partners create nuanced, context-specific strategies that prioritise both effective governance and equitable impact.
Through our PEA services, IFSD has supported partners in designing policies and programs that are resilient to socio-political shifts and are responsive to local needs. By enabling a deeper understanding of political and economic factors, our insights help stakeholders improve policy alignment, optimise resource allocation, and achieve lasting impact on climate adaptation and development initiatives.
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