Political Economy Of Climate Change: Policy, Power, And Profit In The Global System

Abstract

Climate change is not just an environmental issue it is a deeply political and economic challenge that intersects with global governance, corporate interests, and social inequalities. This explores the political economy of climate change by analyzing how policy, power, and profit shape climate action and inaction across the world. It examines the role of international agreements, such as the Paris Accord, in structuring global climate policies while highlighting the influence of powerful states and multinational corporations in either advancing or obstructing meaningful change. The paper further investigates how financial mechanisms, carbon markets, and green technologies are leveraged by businesses and governments to balance economic growth with environmental sustainability. Though, it also critiques the inequities in climate finance, showing how developing nations and marginalized communities often bear the greatest burden of climate-related disasters while receiving insufficient support. Finally, this study argues that addressing climate change requires not only technological solutions but also a fundamental restructuring of economic and political systems to ensure a just and sustainable future.

Keywords: Climate Policy, Global Governance, Corporate Influence, Climate Finance