Evaluating the Legitimacy of Carbon Pricing Initiatives: Public-Private Hybridization and Institutional Trust in a Fragmented World

Global interest in carbon pricing mechanisms has resurged, with both developed and emerging economies adopting or considering these market-based policies to combat climate change. Since the Paris Agreement, the governance landscape has evolved significantly. After setbacks with the Clean Development Mechanism under the Kyoto Protocol, the UNFCCC has reemerged, alongside the World Bank, to advance global carbon pricing and implement Article 6 of the Accord. Meanwhile, the governance architecture of offset standard-setting has grown more complex, featuring competing private organizations and new national agencies. Given the rising complexity, competition, and hybrid public-private initiatives, questions about the legitimacy of these governance structures have become critical. This study uses surveys, targeting country officials to assess how nations perceive the legitimacy of international organizations and initiatives promoting global carbon pricing. It explores two key questions: (1) How do countries view the legitimacy and accountability of private offset standard-setting organizations facing increased scrutiny? (2) Do developing countries trust the World Bank and IMF as partners in establishing carbon markets, or do they prefer emerging UNFCCC-backed initiatives? The findings could have significant implications for evaluating these initiatives' effectiveness and inform strategies for promoting fair and effective global policy adoption.