Mapping Private Sector Engagement in Climate Finance: A Systematic Review and Topic Modelling Analysis
DOI:
https://doi.org/10.53555/jaes.v22i1.134Keywords:
Climate Finance, Private Sector Engagement, Green Financial Instruments, Mitigation and Adaptation, ESG Performance, Systematic Literature Review, Topic ModellingAbstract
Private sector actors are increasingly recognised as critical contributors to climate finance, particularly as public funding alone remains insufficient to meet global climate goals. While governments and international organisations promote green and sustainable finance frameworks, academic research on private sector climate finance remains fragmented. This article analyses the existing literature on private sector climate finance to identify dominant research themes and uncover gaps for future investigation. A Systematic Literature Review (SLR) was conducted on 27 peer-reviewed journal articles selected from the Scopus database. The review reveals a rapid growth in scholarly interest since 2022, with most studies relying on quantitative secondary data. Topic-modelling using orange software identifies four major themes: corporate and capital-market-based climate finance instruments, private investment mobilisation for climate action, public–private interactions in climate finance, and governance and institutional determinants. The findings show strong emphasis on mitigation-oriented finance and risk–return considerations, while climate adaptation, local-level finance, and distributional outcomes remain underexplored. Future research should focus on adaptation finance, firm-level behavioural drivers, and the role of institutional quality in mobilising private capital. Policymakers are encouraged to strengthen governance frameworks and de-risking mechanisms to enhance private sector participation in climate finance.
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