Abstract

Climate technology (CT) is increasingly used as a strategic tool in diplomacy. Nevertheless, existing research treats it primarily as technology transfer or aid and fails to explain how it generates national influence. This study proposes Market-Driven Climate Technology Diplomacy (MCTD) as a mechanism through which CT progresses from R&D outcomes to diplomatic capital by building trust, institutional legitimacy, and market acceptance. A sequential mixed-method design combined expert FGIs across five Asian countries and validation by international practitioners and policy experts. Results show that CT-based diplomacy is effective only when three conditions align: technologies address local demand, their performance is verified through joint demonstration and international certification, and financial feasibility is ensured through blended finance and public–private partnerships. The MCTD framework demonstrates how technical credibility is converted into policy legitimacy and Soft Power, offering a scalable pathway for leveraging climate innovation in diplomacy.