Topic Guide: Corruption and Climate Finance

Future of the funds: Exploring the architecture of multilateral climate finance. Amerasinghe, N.M., Thwaites, J., Larsen, G. &; Ballesteros, A. 2017. http://www.wri.org/publication/future-of-the-funds

The World Resources Institute provides an overview of the architecture of multilateral climate finance landscape, with analysis of seven of the key multilateral climate funds, including the Green Climate Fund. The paper provides recommendations for increased coordination between the funds, as well as specific operational and architectural reforms targeted to each of the main funds. 

Development success in perspective: A political economy of REDD+ and corruption in Vietnam. Huynn, T.B. 2016. http://www.u4.no/publications/...  

Vietnam has become a key target for donor REDD+ investments. It is estimated that the forest and climate scheme could generate an annual income of between US$80-100 million, roughly half of the country’s annual health sector budget. To realise REDD+ in Vietnam, over US$84 million has been committed since 2009 to support REDD+ readiness activities. It is widely recognised that development of specific governance safeguards is required to ensure the effective use of these funds, given historic and contemporary corruption challenges in the country’s forest sector. This paper assesses REDD+ related corruption risks in the context of Vietnam’s wider development efforts. It highlights opportunities for mitigating REDD+ corruption risks through improving data availability and transparency, promoting national collaboration, enhancing participation and engagement, and improving monitoring and evaluation capabilities.  

REDD+ and corruption risks for Africa’s forests: Case studies from Cameroon, Ghana, Zambia and Zimbabwe. Transparency International. 2016. https://www.transparency.org/whatwedo/publication/redd_and_corruption_risks_for_africas_forests_case_studies_from_cameroon_gh

Transparency International chapters in four African countries – Cameroon, Ghana, Zambia and Zimbabwe – conducted corruption risk assessments for REDD+, employing a multi-stakeholder action research methodology. Stakeholders were selected to participate based on their experience in the forestry sector, and included representatives from governments, academia, the judiciary, non-governmental organisations (NGOs), the media, international organisations and the private sector. 

REDD integrity: An evidence based approach to anti-corruption in REDD+. Williams, A., Dupuy, K., Downs, F. 2015. http://www.u4.no/publications/... 

Schemes for REDD+ have emerged as a means to address deforestation trends in developing countries and related emissions of forest carbon. Governance and corruption challenges facing REDD+ are widely acknowledged to be daunting both in their scale and severity. Learning lessons from empirical studies on corruption, anti-corruption and early REDD+ activities is important for minimising corruption risks in future REDD+ implementation. This U4 Issue paper draws together findings and suggestions for anti-corruption policy and practice from U4’s three-year REDD integrity project. The authors note that corruption in REDD+ requires a broad approach to accountability and not one merely focused on protecting REDD+ financing. There are often few legal mechanisms for external monitoring of community elites engaging with REDD+, and more attention needs to be placed on developing a cadre of REDD+ programme staff with anti-corruption expertise. Clearer procedures for managing forest carbon funds and distributing them to relevant rights holders will be vital to reduce many corruption risks. 

Anti-corruption assessments of the multilateral climate change funds. Transparency International. 2014. http://www.transparency.org/news/feature/climate_change_funds_safe_from_corruption

Transparency International carried out governance assessments that examine the anti-corruption practices and internal accountability mechanisms of seven major climate funds: the Adaptation Fund; the two Climate Investment Fund Trust Funds, two of the Global Environment Facility’s Funds, the UN-REDD Programme and the Forest Carbon Partnership Facility. Since 2014, when the assessments were published, Transparency International’s climate team has engaged closely with the funds’ governing boards and secretariats to provide support for reforms. An updated report on the progress made by the Climate Investment Funds, Global Environment Facility and Adaptation Fund is available here. This research also fed into Transparency International’s recommendations to the developing governance architecture of the Green Climate Fund, which can be accessed here.  

National assessments of climate governance in Bangladesh, Dominican Republic, Kenya, Maldives, Mexico, Peru. Transparency International. 2014 https://www.transparency.org/news/feature/keep_corruption_out_to_halt_climate_change

Transparency International chapters from Maldives, Bangladesh, Kenya, Peru, Dominican Republic and Mexico tracked the climate finance flows from international sources and assessed the governance architecture to manage climate funds in their countries, offering recommendations for strengthened governance and to combat corruption. The reports can be downloaded here: Bangladesh | Dominican Republic | Kenya | Maldives | Mexico | Peru