Steering Industrial Decarbonisation: Explaining OECD Policy Variation

ABSTRACT The ongoing rise in CO 2 emissions driven by energy‐intensive industries highlights the urgent need for targeted policy interventions, with national strategies playing a crucial role in the low‐carbon transition. However, the factors that shape the ambition of industrial decarbonisation policies remain poorly understood. Previous research suggests that this sector presents significant challenges for policymakers. In this study, I argue that a deeper understanding of the state‐industry dynamics that influence policymaking is essential to explain the variation in policy ambition across countries. By analysing the policy output of 29 OECD countries from 1990 to 2022, the findings reveal that corporatism and left‐leaning governments positively influence policy output—especially in the case of hard policies. Together, the results highlight the independent roles of institutional coordination and partisan orientation in shaping industrial climate governance.