Navigating political dynamics, institutions and ideas: climate finance trajectories in Brazil

This thesis examines the evolution of climate finance in Brazil, focusing on its conceptual, policy, and institutional dimensions within the country’s governance and political landscape. It conceptualises climate finance as both a governance tool and a contested political space, shaped by institutional legacies, ideas, and stakeholder negotiations. By tracing Brazil’s climate finance trajectory from 1995 to 2020, the research highlights the interplay between structural constraints - such as entrenched policies and institutions - and ideational shifts that frame low-carbon development as either an economic burden or an opportunity. It reveals the fragility of institutional progress amid shifting political contexts, demonstrating the enduring “stickiness” of entrenched logics and practices. The study also introduces the concept of climate finances, drawing on boundary objects, to capture the multiple, often conflicting, meanings ascribed to climate finance by different actors. While this interpretive flexibility enables collaboration, it also obscures power asymmetries, reinforcing dominant financial and governance structures. Finally, the thesis examines the role of the Brazilian Development Bank (BNDES) as an institutional actor in climate finance governance. It posits BNDES not just as a financial intermediary but as an agent of institutional work, actively shaping norms, investment priorities, and governance structures. However, its reliance on project-level interventions and susceptibility to political volatility constrain its ability to drive systemic transformation. Theoretically, this thesis contributes to debates on the politics of climate finance, institutional change, and power asymmetries in governance. Empirically, it sheds light on the dynamics of climate finance in an emerging market context, offering insights into the interplay between international pressures and domestic dynamics. Together, these findings advance the understanding of climate finance as a critical, yet deeply contested, tool in addressing the climate crisis.