OECD presents toolkit to finance industrial decarbonisation under climate club initiative

The OECD has released a draft version of the “Climate Club Financial Toolkit,” a comprehensive guide outlining financial instruments to support the decarbonisation of heavy industries. The report, developed as part of the Climate Club’s 2024 work programme (Pillar III, Module 2), targets both developed and developing economies by identifying strategies to mobilise private capital and reduce risks associated with low-carbon investments.

The toolkit includes an analysis of 28 financial instruments divided into three categories: economic instruments, de-risking tools, and financing mechanisms. Each instrument is assessed for its potential benefits, use cases, and relevance to key sectors such as cement, iron and steel, and petrochemicals. The document also presents a series of international case studies demonstrating the application of these tools in real-world decarbonisation projects.

A notable component of the report is the economic assessment of selected low-carbon technologies, designed to highlight their viability in various market environments and country contexts. The assessment focuses on hard-to-abate sectors that are typically more challenging to decarbonise due to technical, financial, and regulatory barriers.

The toolkit is expected to inform upcoming financial and technical assistance programmes within the Climate Club and support policy makers and industry stakeholders in identifying effective pathways to achieve net-zero targets. It serves as a resource for mobilising private investment in emissions reductions while enhancing cross-border cooperation on climate goals.

This initiative reflects growing international recognition of the need for targeted financial strategies to accelerate industrial decarbonisation and support global efforts to meet the goals of the Paris Agreement.