Why Capital Is Not Enough: Institutional Fragility and Financial Barriers to the Energy Transition in the BRICS

Capital mobilization is often portrayed as the main bottleneck to decarbonization in emerging economies, yet BRICS countries struggle to scale clean energy even when funding is formally available. This paper argues that capital is a necessary but insufficient condition for the energy transition in the BRICS because institutional fragility creates binding financial barriers. Drawing on a comparative, document based analysis of Brazil, Russia, India, China and South Africa, the study synthesizes academic literature, international reports and policy documents on clean energy investment, governance and financial systems. It develops a conceptual framework linking political and regulatory risk, fiscal constraints and the role of public development banks to the cost and allocation of capital for low carbon projects. The analysis highlights common patterns—such as high perceived country risk, policy instability and weak project pipelines—that raise the cost of capital and deter private investment, as well as country specific institutional configurations that condition outcomes. The paper concludes that improving governance, policy credibility and the design of public financial institutions is as important as mobilizing new capital, and discusses implications for climate finance strategies and future research on the political economy of the energy transition in emerging markets.