Reflecting on the example of industry decarbonisation, the German Institute of Economic Research (DIW) investigates how international public climate finance (ICF) can promote global cooperation in the climate commons. DIW finds that reciprocity of contributions, along with the linking of ICF to political levels and the use of innovative ICF instruments are central. Focusing on the steel sector, the study underlines the need for common sustainability standards and opens the door for novel ICF instruments such as carbon contracts for difference.