In this chapter, I argue that the countries in the South can gain from stringent own climate policies. This is so, as in the current situation, the south tends to be dominated by the climate policies of northern countries and climate finance largely supports single projects and technology transfer that are not embedded in a broader policy framework in southern countries. Adopting own
stringent policies could help to counteract this and to channel these financial means to their most beneficial use. This could help southern countries to follow an agenda that is different from the fossil fuel based development path of the north. Such a “green new deal” could be a promising economic and technological development strategy. Stringent climate policies would strengthen the southern countries in the international climate negotiations and southern countries could take the lead in the climate change mitigation debate. Technology transfer and the carbon finance sector would play a crucial role for this. Climate policy and climate finance could thus be used to set a new stage, where the south is not at a disadvantage with respect to the north.