Open Access

Carsten Elsner, Nicolas Kreibich

• Purpose: Financing industrial decarbonization is a critical component in the global effort to mitigate climate change. This paper aims to explore how the Climate Club can improve the financing of industrial decarbonization, especially in developing and emerging countries. Design/methodology/approach: This study uses a qualitative case analysis of five climate initiatives (Energy Transition Accelerator, H2Global, Nitric Acid Climate Action Group, Transformative Carbon Asset Facility and Pilot Auction Facility) that examine novel financing instruments. Data was gathered via desk research and analyzed against criteria like eligibility, risk-sharing and scalability. Findings: In this paper, the authors argue that the Climate Club, throughPurpose: Financing industrial decarbonization is a critical component in the global effort to mitigate climate change. This paper aims to explore how the Climate Club can improve the financing of industrial decarbonization, especially in developing and emerging countries. Design/methodology/approach: This study uses a qualitative case analysis of five climate initiatives (Energy Transition Accelerator, H2Global, Nitric Acid Climate Action Group, Transformative Carbon Asset Facility and Pilot Auction Facility) that examine novel financing instruments. Data was gathered via desk research and analyzed against criteria like eligibility, risk-sharing and scalability. Findings: In this paper, the authors argue that the Climate Club, through its Global Matchmaking Platform, should promote an equitable and effective distribution of climate finance as a legitimate alternative to the United Nations Framework Convention on Climate Change process. The authors argue further, that industry decarbonization efforts must account for each country's and sector's specific needs, using appropriate innovative financial instruments. Finally, they conclude by giving four policy implications for the climate club, namely, leverage blended finance, ensure equity and transparency, mitigate macroeconomic risks and integrate with global initiatives and carbon pricing. Research limitations/implications: This study is exploratory, focusing on select cases. Future research should extend to on-ground case studies in the Global South. Originality/value: To the best of the authors' knowledge, this paper is the first to specifically connect the climate club concept with tangible climate finance mechanisms, offering a novel framework for club-led climate finance as a complementary alternative to the United Nations Framework Convention on Climate Change process.…