Conference Agenda

International cooperation on greenhouse gas mitigation has proven challenging. First, abatement levels are insufficient because countries primarily consider only their own benefits from abatement. Second, low global abatement levels weaken incentives for green innovation. This paper examines how closer international cooperation on green innovation can address these challenges. We propose that willing countries should form a Green Innovation Club, which establishes a patent pool among member countries' innovating firms. Member countries collectively invest in breakthrough green technologies and gain free access to all patents developed within the club. We show that such a club, based on patent pooling, can increase global investment in green innovation. Furthermore, since member countries benefit from higher abatement levels, the club could also serve as a mechanism to spur global emission reductions. The club structure leverages the monopoly power of intellectual property rights to attract participation: non-members must license the technology, while investing members gain free access. This incentive structure ensures that members remain in the club, even when members abate more than non-members.