Achieving Environmental Justice: The Role of Climate Finance and International Cooperation between Developed and Developing Countries

Abstract

As climate change continues to exert systemic impacts worldwide through physical and transitional risks, the environmental justice gap between developed and developing countries is becoming increasingly pronounced. Addressing the complex challenge of balancing economic development with the demands of climate change adaptation and mitigation requires in-depth exploration. This paper aims to propose solutions better suited to resolving environmental justice issues arising from climate change. The paper begins by examining the impacts of climate-related risks on both developed and developing countries, analyzing how these risks contribute to environmental justice challenges. It then provides a detailed overview of the historical cooperation between developed and developing nations through a series of international treaties to advance climate finance. Furthermore, it critically evaluates how the failures of these treaties and cooperative efforts have exacerbated environmental justice issues. Finally, the paper highlights the advantages of green bonds in achieving distributive, intergenerational, and procedural justice, demonstrating the potential of this financial tool to promote environmental justice.