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The Club‐based Climate Regime and OECD Negotiations on Restricting Coal‐fired Power Export Finance

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  • Jessica C. Liao

Abstract

This article examines the origin, process, and outcome of an understudied, but important multilateral climate change negotiation: the OECD negotiation to restrict export finance for coal‐fired power projects. It assesses how the United States – the OECD’s most powerful member – led the negotiations, and how Japan, South Korea, and China – a non‐OECD state – affected the negotiation’s outcome. It shows how internal and external dynamics of the negotiation under the shadow of China’s rising market influence shaped the preferences of Japan and South Korea in such a way that constrained US attempts to build new rules in curbing coal export finance. This research illustrates the collective action problem in an increasingly fragmented global governance landscape driven by transitions in global power. Contrary to critics that have identified China’s participation in multilateral organizations as weakening the global liberal order, this research shows that a ‘club‐based’ approach to this liberal order proved ineffective absent China’s participation.

Suggested Citation

  • Jessica C. Liao, 2021. "The Club‐based Climate Regime and OECD Negotiations on Restricting Coal‐fired Power Export Finance," Global Policy, London School of Economics and Political Science, vol. 12(1), pages 40-50, February.
    • Handle: RePEc:bla:glopol:v:12:y:2021:i:1:p:40-50
    DOI: 10.1111/1758-5899.12894
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    References listed on IDEAS

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    Cited by:

    1. Paul Bertheau & Robert Lindner, 2022. "Financing sustainable development? The role of foreign aid in Southeast Asia's energy transition," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 96-109, February.
    2. Christian Downie & Maxfield J. Peterson, 2025. "Public financial institutions in the energy transition: the impact of export credit agencies," Climatic Change, Springer, vol. 178(3), pages 1-18, March.
    3. Caixia Mao, 2023. "North–South development competition and the quality and sustainability of Chinese and Japanese trans‐national infrastructure initiatives," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(2), pages 331-346, March.
    4. Andreas Klasen & Roseline Wanjiru & Jenni Henderson & Josh Phillips, 2022. "Export finance and the green transition," Global Policy, London School of Economics and Political Science, vol. 13(5), pages 710-720, November.
    5. Andreas Klasen & Jan Vassard, 2023. "The new OECD arrangement on export credits: Breakthrough or bad compromise?," Global Policy, London School of Economics and Political Science, vol. 14(5), pages 958-961, November.

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