Working Paper
The political economy of clean energy transitions at sub-national level

Understanding the role of international climate regimes in energy policy in two Brazilian states

This paper examines the political economy aspects, particularly the influence of the Clean Development Mechanism, in clean energy and climate change policies in the states of Bahia and Rio Grande do Sul in Brazil. The different mechanisms for responding to climate change are financing opportunities in some of the ‘green’ industries, but the results show a gap between the initial objectives of global policies and their results.

The research identified pitfalls and opportunities for new strategies and mechanisms for boosting clean energy in Brazil and the role that the Clean Development Mechanism and future mechanisms can play in the political economy of clean energy transitions. The paper concludes with a discussion on the lessons learned from experience of the Clean Development Mechanism and its implications for the future of the Paris Agreement.