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In light of commitments made under the UNFCCC Paris Agreement and Glasgow Climate Pact, trillions of dollars are needed to fund climate mitigation and adaptation in developing countries. However, few studies have investigated the effectiveness of climate finance or how it impacts barriers to renewable energy development in recipient countries. This article contributes to the literature by investigating climate finance effectiveness through comparative case study analysis of its impacts on geothermal development in Indonesia and the Philippines. The article finds that three mechanisms of climate finance—utility modifier, social learning and capacity building—work interdependently in impacting the financial, regulatory, and technical barriers to geothermal development in Indonesia and the Philippines but are individually insufficient to scale the industry; political will and energy shocks play a significant intervening role. This paper raises policy implications for climate finance effectiveness and renewable energy technology deployment in developing countries. [ABSTRACT FROM AUTHOR]