External Dimensions of the German Energy Transition: The Case of IRENA

International cooperation and the diffusion of policy innovations are considered crucial elements of a global energy transition. At the same time, there is an ongoing debate in the literature how unilateral action by leaders can facilitate activities in other countries even in the absence of multilateral solutions. Starting from these discussions, this paper deals with Germany’s efforts to lead a global energy transition. Indeed, Germany has given itself one of the most ambitious plans to transform its energy system towards a low-carbon future. Germany has also strongly expressed its ambitions to promote its model abroad and has taken considerable action in this direction (Steinbacher and Pahle 2016). However, much less is known about what attracts third states to follow the German lead. Addressing this deficit, this article studies global membership in the International Renewable Energy Agency (IRENA), which is a key international institution created under Germany leadership in order to promote renewable energy deployment and sustainable energy transitions. In so doing, it seeks to identify whether Germany is capable of motivating other states to join this lead institution. More precisely, two channels of influence are studied. First, it is argued that third states join IRENA because of economic integration with Germany, which prompts them to signal conformity with Germany’s policy preferences. The second argument is that reliance on German aid and assistance offers further financial incentives to join IRENA, especially as Germany has become one of the most important donors of bilateral aid in the field of sustainable energy. By examining the effectiveness of different channels of German influence in promoting global institutions for sustainable energy transitions, this article seeks to refine our understanding of external dimensions of national energy transitions and unilateral leadership perspectives.