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Abstract
International funding for climate change action in developing countries may enhance the
legitimacy of global climate governance. However, by allowing for a fragmented approach to
mobilizing funds, current multilateral commitments raise further legitimacy challenges. We analyze
the potential for unilateral and coordinated approaches to advance “output” and “input” legitimacy
respectively by raising adequate funds and representing interests in contributing and recipient
countries that are affected by funding decisions. Achieving legitimacy will require coordinated
approaches to goal-setting, oversight and effort-sharing. Vesting contributing countries with
substantial discretion over funding sources may enhance taxpayers’ support and boost funding
more rapidly. However, multilateral coordination will be necessary to maximize opportunities for
raising revenue from carbon pricing and to minimize adverse impacts of funding choices on
developing countries. Our analysis provides a principled justification for the degree of
fragmentation compatible with achieving legitimacy. These insights may inform future evaluation
of legitimacy requirements in other spheres of environmental governance.