Climate policy expert and EfD Associate Professor Mark Purdon warns that current carbon pricing mechanisms are insufficient to drive meaningful reductions in emissions in developing countries. He presented findings from his new book, “The Political Economy of Climate Finance Effectiveness in Developing Countries: Carbon Markets, Climate Funds, and the State”, at a seminar hosted by the EfD Uganda at Makerere University. He said climate finance is only effective where political will aligns with development efforts.
Drawing from a 10-year comparative study in Uganda, Tanzania, and Moldova (2008–2018), Purdon found that carbon markets and climate funds were largely ineffective in isolation due to low financial incentives. In countries like Uganda, however, where climate finance was used to support existing development projects such as forestry and afforestation, results were more positive.
“Tanzania’s lack of engagement wasn’t due to weak institutions but due to limited political interest,” he noted, highlighting that Moldova and Uganda had more effective outcomes despite varying state capacities. The seminar drew attendance from students and staff across economics and agricultural disciplines and served as a platform to emphasize the importance of integrating climate finance into national development plans.
Purdon urged policymakers to treat climate finance not as a standalone effort, but as a catalyst that can enhance domestic development goals. His book aims to guide researchers, development partners, and governments on creating effective, politically grounded climate finance strategies.
Uganda to launch National Climate Finance Strategy
Peter Babyenda, Policy Engagement Specialist at EfD, revealed that Uganda will launch its first National Climate Finance Strategy on September 12, 2025. He called it a “milestone” in Uganda’s climate policy landscape and highlighted the importance of attracting private sector investment, particularly in adaptation-focused initiatives.
“Our climate financing is currently skewed toward mitigation, yet Uganda’s pressing needs lie in adaptation, especially in agriculture,” Peter Babyenda said. He shared insights from a recent consultancy for International Fund for Agricultural Development(IFAD), where he examined ways to draw private investment into agricultural adaptation. The report is expected to influence future donor engagements and domestic policy.
Babyenda also raised concern over rising global regulatory pressures, including the European Union’s Cross-Border Adjustment Mechanism, which could limit market access for Ugandan exports like coffee if deforestation-free certifications aren't in place.
He further emphasized that the success of climate finance instruments depends on national interest and commitment - echoing Purdon’s findings. He encouraged students and academics to explore these issues in their research, underlining the availability of funding for impactful work in this space.
“Critical insights for evidence-based policy”
Book reviewer and environmental policy expert Patrick Byakagaba lauded Mark Purdon’s work for offering a much-needed combination of theoretical grounding and real-world evidence.
“It shows what’s working, what’s not, and what needs to be done,” he said.
Byakagaba stressed that many students and practitioners working on donor-funded climate projects would find the book especially relevant. He praised its comparative analysis of Uganda, Tanzania, and Moldova for demonstrating how political interest, rather than state capacity alone, determines the effectiveness of climate finance instruments.
He urged more researchers to contribute field-based evidence to guide evidence-based climate policies, a sentiment echoed by other participants during the seminar. The book, according to Byakagaba, fills a critical gap in linking research with actionable, policy-relevant insights.
By: Jane Anyango, Communication Officer