Assessing the Effectiveness of Climate Finance Instruments in Promoting Renewable Energy Adoption and Mitigating Greenhouse Gas Emissions in Kenya: A Systematic Review

Abstract

Climate change is one of the most pressing global challenges of our time, with far-reaching implications for ecosystems, economies and human well-being. This paper essentially reviews the interaction between climate change and the finance instruments through the lens of Economic Theory and Innovation Diffusion Theory. Requirements for financing climate resilient infrastructure such as clean energy projects, energy efficient buildings, carbon-free transportation, water, waste management, and supply chains. Through innovation and diffusion there is emphasizes on importance of understanding how new technologies, such as renewable energy solutions, spread throughout societies. Climate finance instruments facilitate technology transfer, research, and development in alignment with the theory, promoting the adoption of renewable energy innovations globally. In the pursuit of sustainable development, nations around the world increasingly recognize the urgency of transitioning to cleaner and more sustainable energy sources Kenya, like many other developing nations, grapples with the dual challenge of meeting its growing energy demands while mitigating the adverse effects of climate change. In this context, evaluation of climate finance tools is paramount to understand their effectiveness in promoting renewable energy adoption and reducing greenhouse gas emissions Kenya should be commended in embracing renewable energy sources in recognizing the need to reduce fossil fuel dependency and harness abundant renewable resources progress has been made the deployment of climate finance instruments such as international grants, loans and carbon financing mechanisms.