And other takeaways from our 2025 Policy Conference on Just Green Transitions and Climate Finance
As climate change accelerates and the urgency of green energy transitions grows, countries in the Global South face a profound dual challenge: how to secure financing for the transition to low-carbon economies while ensuring these efforts are inclusive and equitable. These transitions demand more than just infrastructure—they require systemic shifts that address social, economic, and governance dimensions across diverse national contexts.
Financing mechanisms must not only be innovative and sustainable but also accessible to informal workers, youth, women, and other marginalized groups. Likewise, policy solutions must be rooted in national realities and guided by principles of justice and inclusion. Recognizing this, the 2025 PEP Policy Conference centered its agenda on two intertwined themes: the structural and practical challenges in financing and implementing green energy infrastructure in the Global South, and the urgent need to design just transitions that integrate equity, participation, and the voices of those most affected by climate impacts.
On June 11, 2025, the Partnership for Economic Policy (PEP) convened its annual Policy Conference in Nairobi, Kenya, to tackle one of the defining issues of our time: “Financing and Inclusivity in Green Energy Transition in the Global South.”
This full-day conference brought together over 140 researchers, policymakers, development partners, and thought leaders from more than 30 countries. From carbon pricing to clean energy entrepreneurship, the discussions revolved around how to make the global push for green energy fair, effective, and inclusive.
PEP Executive Director Professor Jane Mariara opened the conference by warmly welcoming participants both onsite in Nairobi and online. She emphasized the urgency of ensuring that the voices, realities, and priorities of the Global South are not only acknowledged but actively reflected in global climate policy discourse. Highlighting the significance of the conference theme, she reaffirmed PEP’s mission to promote Southern-led research and policy engagement, stating:
“As the world moves rapidly toward green energy solutions, it is essential that the voices, realities, and priorities of the Global South are reflected in global policy discussions—and that no one is left behind in this transition". — Professor Jane Mariara
Later in the opening session, Carol Newman, Chair of the PEP Board of Directors, emphasized the importance of aligning green transitions with equity and Southern-led insight. She noted that the day’s discussions would focus on how limited financial resources could be used most effectively to drive equitable green transitions, how to ensure the inclusion of women, youth, and marginalized groups, and how Southern research and perspectives could inform global policy and action.
“Today’s program was designed to examine not just how to finance the green transition, but how to do so in a way that is inclusive, grounded in local realities, and led by the Global South.”
— Carol Newman, Chair, PEP Board of Directors
Financing the Transition: The Promise and Limits of Carbon Markets
“Carbon markets are not a silver bullet—but if properly designed and communicated, they can be effective, equitable, and sustainable tools for achieving global climate goals.”
— Dr. Simone Borghesi, Director, Florence School of Regulation – Climate, EUI.
In his keynote address, Dr. Simone Borghesi explored the opportunities and limitations of carbon pricing instruments like the EU Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM). Drawing from decades of experience, he emphasized the need for strong governance and redistribution of revenues to ensure these markets work for, not against, the Global South.
Participants raised concerns around fairness, trust, and the capacity of developing countries to engage in such mechanisms. Dr. Borghesi agreed, urging for more global cooperation and inclusion of local communities in the design of voluntary carbon markets (VCMs).
Deploying Green Infrastructure: Realities from the Ground
The morning panel session, titled “Challenges in Financing and Implementing Green Energy Infrastructure Unique to the Global South”, featured insights from researchers, energy utility experts, and donors. Panelists shared practical and policy-level experiences across different country contexts in Africa and Asia.
Muhammad Zeshan (PEP researcher and Pakistan Institute of Development Economics) called for more inclusive support for the informal sector, which plays a critical role in many developing economies.
“You cannot eliminate the informal sector—it is a reality and a growth engine. What we need is a people plan: training, support, and fair policies that bring informal actors into the green transition.”
Adeola Adenikinju (PEP policy mentor, University of Ibadan, Nigeria) highlighted Africa’s dual challenge of income and energy poverty, particularly in rural areas. He stressed that:
“Access is different from affordability. We must use our natural resources wisely to fund our own transitions.”
Elizabeth Njenga (KenGen, Kenya) discussed the land acquisition barriers faced by large-scale renewable energy projects and how KenGen uses concessional loans and deep community engagement to enable implementation:
“Power plants don’t exist in a vacuum. We build schools and clinics to coexist with communities.”
Bhim Adhikari (IDRC) spoke on the need for blended finance to reduce risk and crowd in investment, especially for clean energy and climate adaptation. He noted that equity must remain central:
“It’s not just about de-risking capital—it’s about enabling people.”
Reflections on Panel 1 – Financing and Implementing Green Energy Infrastructure
During the morning panel session, participants responded to the discussions on infrastructure and finance by raising several critical issues from their country contexts:
One participant highlighted that young entrepreneurs in green SMEs face critical barriers, including limited access to capital, land, and bureaucratic hurdles. This aligned with Muhammad Zeshan’s earlier emphasis on the need for more inclusive support for informal workers and entrepreneurs in the green economy.
A participant from Senegal advocated for reframing the term “informal sector” as “semi-structured,” recognizing its significant contribution to economic growth and stressing that it should be integrated into policy frameworks rather than treated as a peripheral issue.
A Just Transition: Centering Inclusion and National Realities
In the afternoon, the conference shifted its focus from financing infrastructure to the equally urgent question of who benefits from the green transition—and how. The second panel explored what it truly means to ensure a just transition, emphasizing that technical solutions alone are not enough. For green energy transitions to succeed in the Global South, they must be grounded in social equity, national realities, and inclusive participation.
Speakers shared diverse perspectives on integrating justice into climate action—from designing carbon markets that empower farmers, to addressing the entrenched barriers that exclude women, youth, and marginalized groups from green opportunities.
Sim Sokcheng (PEP researcher and Cambodia Development Research Institute) shared how carbon credits can incentivize women farmers to adopt climate-smart agriculture.
“In Cambodia, women are eager to learn and adopt new green technologies—but without profitability and ownership, no transition can be sustained.”
Aisha Nanyiti (PEP researcher and Makerere University, Uganda) emphasized the need for tailored solutions that build trust:
“It’s not only about finance; it’s about understanding farmers’ needs.”
Joanes Atela (African Research Impact Network) outlined five key transition pathways—policy, technology, market, ecological, and social—and called for integrated strategies.
“Justice is not a technical construct—it is a social one.”
Ann Kingiri (African Centre for Technology Studies) brought attention to the disproportionate barriers women and youth face, from financing gaps to societal norms.
“Inclusivity means going beyond gender. It’s about refugees, widows, indigenous people—everyone who tends to be left behind.”
Moving from Dialogue to Action
As the conference ended, several key messages emerged:
- Carbon pricing is powerful but delicate – Transparency, equity, and local ownership must be built into market mechanisms.
- Just transitions must be human-centered – Informal workers, local entrepreneurs, and vulnerable communities must be included in planning and benefit-sharing.
- Financing models must evolve – Blended and de-risked finance needs to target not just infrastructure but inclusion.
- Policy must be practical and effective – Good policies are only useful if they are grounded in local realities and can be implemented.
Empowerment is key – Long-term success depends on building skills, financial literacy, and a sense of ownership in green initiatives.
Reflections on Panel 2 – Just Green Transitions and Inclusion
During the afternoon panel session, which focused on justice, equity, and national realities in green transitions, participants contributed powerful reflections that reinforced the urgency of inclusion and systemic reform:
A participant from Burkina Faso, addressed the social and cultural dimensions of exclusion, particularly in community leadership structures. She emphasized that exclusion is not only economic but deeply embedded in norms and practices that affect women and other marginalized groups.
A participant from Ghana raised concerns about exploitative carbon market contracts, especially in rural contexts where information asymmetry can lead to long-term disadvantages for farmers. This spurred discussion around the need for transparency, community oversight, and inclusive benefit-sharing.
A recurring concern was the sustainability of new green technologies after donor projects end. In response, Sim Sokcheng emphasized that profitability and a sense of ownership are crucial for long-term adoption of climate-smart solutions.
Other participants urged better alignment between international financing and domestic policy systems, with calls for stronger institutional capacity, local implementation frameworks, and accountability to ensure that funds actually reach the most affected communities.
Closing Reflections
In her closing remarks, Dominique van de Walle, member of the PEP Board of Directors, expressed heartfelt appreciation to all speakers, participants, and funders who made the 2025 Policy Conference a success. She emphasized the richness of the day’s dialogue—from the keynote on carbon markets to the robust exchanges on financing mechanisms and the living dimensions of inclusion. She underscored the critical role of Southern-led research and local context in shaping effective, inclusive green transitions.
“Let us leave here today committed not only to advancing green energy solutions, but to doing so in ways that are just, inclusive, and rooted in the lived realities of communities across the Global South.”
— Dominique van de Walle, Member, PEP Board of Directors
She also reaffirmed PEP’s dedication to fostering policy-relevant research and building global partnerships that enable equitable development pathways. The day closed with a call to action for all stakeholders—researchers, policymakers, donors, and practitioners—to carry forward the insights and energy of the conference into their work and advocacy.
This year’s conference highlighted the importance of Southern-led research and the value of cross-sectoral collaboration in shaping inclusive green transitions. The insights shared during the discussions will contribute to informing future research and policy efforts aimed at advancing sustainable and equitable energy systems in the Global South.
The conference was made possible through the support of the International Development Research Centre (IDRC), the William and Flora Hewlett Foundation, Global Education Analytics Institute, Global Affairs Canada, Fund for Innovation in Development and other committed partners.
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