Query: What could be different when measuring in emerging markets in financing needs for climate action in BRICS economies? The environmental challenges faced by BRICS countries significantly influence their need for climate financing, as each nation must navigate complex energy dynamics, resource dependencies, and financial limitations in their transition to sustainable practices.
1. Dependence on Fossil Fuels and the Need for a Just Transition
•	China and India are heavily reliant on coal for energy production, which contributes to high greenhouse gas (GHG) emissions. For China, the "coal conundrum" results in severe air pollution, impacting public health and increasing pressure to invest in cleaner energy solutions. Similarly, India’s dependence on coal, which fuels around 70% of its electricity, complicates its transition to renewables despite ambitious targets (e.g., achieving 500 GW of non-fossil fuel capacity by 2030). These countries require substantial climate financing to shift their energy infrastructure toward renewable sources, improve air quality, and reduce their carbon footprint (Mohanty & Sethi, 2022; Wang et al., 2022).
•	Russia, being a major fossil fuel exporter, faces a dilemma where reducing its reliance on oil and natural gas could hurt its economy. The aging energy infrastructure and limited investment in renewables highlight the need for financial support to diversify its energy portfolio and achieve its 2060 carbon neutrality goal (Bashmakov, 2024). Access to climate financing is essential for Russia to modernize its infrastructure and incentivize clean energy investments, which are currently hindered by policy inertia (Salonen, H. 2020).
2. Vulnerability to Climate Variability
•	Brazil heavily depends on hydropower, which constitutes over 60% of its electricity. However, this reliance exposes the country to risks associated with climate variability, such as severe droughts that reduce water levels, affecting not only power generation but also agriculture and economic stability (Athayde et al., 2019). To mitigate these vulnerabilities, Brazil needs climate financing to diversify its energy mix, invest in drought-resistant infrastructure, and enhance its resilience to climate change impacts.
•	South Africa, with its coal-dependent energy sector, faces not only environmental degradation but also economic instability due to frequent power outages caused by aging infrastructure. The country needs significant investments in renewable energy to reduce its carbon emissions and improve energy security. Climate financing would support South Africa in overcoming the high costs of transitioning to cleaner energy sources, thus promoting a more stable and sustainable energy system (Chapungu et al., 2022).
3. Regulatory and Financial Barriers
•	India faces regulatory and financial hurdles in achieving its renewable energy ambitions. Despite its significant potential for solar and wind energy, the country struggles with financial constraints that impede large-scale renewable projects. Climate financing is critical for India to overcome these barriers, allowing for investments in technology, grid infrastructure, and capacity building to meet its sustainability targets (Anjanappa, 2024).
•	In Russia, the lack of incentives for renewable energy investments slows down progress in adopting sustainable energy solutions. Climate financing can play a pivotal role in providing the necessary financial incentives and institutional support for a green transition, especially considering the country's "Forest Last" strategy that requires cross-sectoral emissions reductions (Bashmakov, 2024).
Leveraging green finance for sustainable development.
• The integration of FinTech and Islamic finance, such as Green Sukuk, offers a promising pathway for BRICS countries to attract climate financing. For example, Malaysia and Indonesia have successfully used green sukuks to fund renewable energy projects.  In the United Kingdom, Islamic FinTech has been growing significantly, with the first sovereign Sukuk issued in 2014 (Alex Fahrur Riza, 2019). 

     The UK Islamic Finance Council has established the Islamic FinTech Panel (UKIFTP) to promote and develop the Islamic FinTech industry (Alex Fahrur Riza, 2019). Singapore has also created an Islamic FinTech ecosystem through the Monetary Authority of Singapore (MAS) (Nik Azman et al., 2020) and launched ETHIS, a major Islamic crowdfunding platform (Nik Azman et al., 2020). Hong Kong has issued multiple Sukuk since 2014 (Alrasyid et al., 2023) and has developed Islamic FinTech regulatory frameworks (Alrasyid et al., 2023). Japan has established regulations for Islamic finance products in 2008 (Supriadi et al., 2023) and multiple banks offering Islamic FinTech services(Supriadi et al., 2023)  . (Thaker et al., 2022)have demonstrated a model that BRICS nations could adopt to mobilize resources for sustainable infrastructure. This innovative financing mechanism aligns with the Sustainable Development Goals (SDGs) by promoting affordable and clean energy (SDG 7) and climate action (SDG 13), thereby addressing both environmental and financial challenges.

     Key integration areas for Islamic FinTech in these countries include digital banking, crowdfunding, P2P lending, digital investment platforms, and smart contracts (Todorof, 2018). However, major challenges such as regulatory alignment, Shariah compliance verification, technical infrastructure, and market education need to be addressed to ensure the success of Islamic FinTech initiatives (Todorof, 2018)

    Overall, the adoption of Islamic FinTech initiatives by non-Islamic countries demonstrates the growing interest in Islamic finance and the potential for FinTech to promote financial inclusion and economic growth(Ali et al., 2019).

Conclusion
The diverse environmental challenges across BRICS countries, from fossil fuel dependence to climate vulnerability, underline the urgent need for substantial climate financing. Such funding is critical to support their transitions to cleaner energy sources, enhance resilience against climate variability, and overcome economic and regulatory barriers. Leveraging innovative financial instruments like Green Sukuk can further mobilize the capital needed for sustainable development, driving progress toward global climate targets and sustainable growth.













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Subject: environmental science
Intent: Literature Understanding