Global economic governance and the fight against climate change

The institutions of global economic governance—the World Trade Organization, the International Monetary Fund, and the World Bank Group—face unprecedented challenges at a time when global efforts to mitigate and adapt to climate change are faltering. Rising economic nationalism, resurgent great power competition, and climate-skeptic populism in high-income democracies are undermining the ability of these institutions to coordinate around climate solutions. Facing these pressures, regional and plurilateral arrangements will be increasingly important for providing paths forward. This paper explores the concept of "tied aid" as a means of meeting the global South's need for large transfers in a context of increasing economic nationalism. It also highlights the pivotal role of countries other than the United States and China in sustaining and reforming global governance in a multipolar world. Although not first-best solutions, these approaches may be the most politically feasible strategies for advancing global climate mitigation, adaptation, and finance in the near future.