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A rapid decarbonisation of electricity is necessary to limit global temperature increase to well-below 2°C pre-industrial levels. This empirical analysis investigates the drivers and barriers to the decarbonisation of electricity in OECD countries with a focus on the role of climate policies, policy misalignments between other policy areas and climate policies, as well as political economy factors. Results are consistent with the finding that climate policies are insufficient to decarbonise electricity. Policymakers need to review the broader policy environment to understand how this is enabling or impeding decarbonisation. Moreover, climate and non-climate policies significantly affect the share of renewables in capacity and generation; but there is no observable robust effect on emissions. In contrast, political economy factors, that is, stakeholders' underlying interests towards decarbonisation, are a significant and robust determinant of emissions in addition to the share of renewables in generation and capacity. Government rents from fossil fuels and employment in the fossil fuel industry are a major impediment to decarbonising electricity. Governments must concentrate on integrating these interests in their decarbonisation strategy.
