What drives national support for multilateral climate finance? International and domestic influences on Australia’s shifting stance

The fulfilment of wealthy countries’ commitment to mobilise $100 billion a year in climate finance by 2020 will hinge on maintaining domestic political support in contributor countries. Predictability in flows of climate finance is likely to enhance the overall stability of the climate finance system and the broader climate regime. However, at present it remains unclear how the 2020 target will be achieved and little is known about what drives fluctuations in support among contributor countries. This article explores domestic and international factors that may explain fluctuations in national support through a case study of Australia’s climate finance from 2007 to 2015. Drawing on documentary analysis and interviews with officials and stakeholders, the paper tracks two domestic factors that may influence support for climate finance—the government’s political orientation and public concern about climate change—and two international factors—commitment to multilateral agreements and international peer pressure. While some accounts view climate policy choices as being driven primarily by domestic factors, we find that the government’s political orientation on domestic climate policy and aid explains some but not all variations in Australia’s stance on climate finance. International peer group effects have moderated the positions of two governments that were otherwise reluctant to act on climate change. National policy reforms combined with improved multilateral oversight and more established replenishment cycles could bolster support in contributor countries and thereby strengthen the capacity of the climate finance system.