Topic Guide: Corruption and Climate Finance

Corruption risks and mitigating approaches in climate finance. http://www.transparency.org/files/content/corruptionqas/Corruption_risks_and_mitigating_approaches_in_climate_finance_2016.pdf

This study provides an overview of the major integrity and corruption challenges associated with climate finance. This review serves as an update on the Helpdesk Answer published in 2014 on climate finance corruption and mitigation strategies. The study focuses particularly on risks in adaptation financing, and explores the distinct corruption risks related to climate finance according to the phase of the process: undue lobbying and conflict of interest at the policy development and project approval stage; and bribery, nepotism and embezzlement at the execution stage of mitigation and adaptation projects.

Carbon market corruption risks and mitigation strategies. http://www.transparency.org/files/content/corruptionqas/Carbon_market_corruption_risks_and_mitigation_strategies_2015.pdf

This paper examines the developing carbon market architecture’s vulnerability to corruption and other integrity risks. These risks are significant, because any attempt to undermine the carbon market jeopardises one of the major elements of our global response to climate change. It concludes each section with an overview of some of the mitigation strategies in place to reduce corruption and ensure that the carbon market functions to fulfil its ultimate aim: to reduce greenhouse gas emissions.

Overview of corruption risks in REDD+ in the Congo Basin. http://www.transparency.org/files/content/corruptionqas/Corruption_risks_in_REDD+_in_the_Congo_Basin_2014.pdf

This overview explores the corruption risks related to the REDD+ mechanism in detail. In the readiness phase, the areas of risks identified are: determining forest and carbon rights, setting carbon reference levels and deciding on how to share revenue. In the implementation phase, the risks identified are: land and forest rights implementation, measuring and verifying carbon credits and collecting and managing REDD+ revenues. The study explores these risks and their particular relevance in the Congo Basin.

Corruption risks and mitigating approaches in climate finance. http://www.transparency.org/files/content/corruptionqas/Corruption_risks_and_mitigating_approaches_in_climate_finance_2014.pdf

This is an overview of key literature and findings related to the major governance and corruption challenges associated with climate finance. When this study was conducted, climate governance was still in a formative stage and, as such, research on the corruption risks associated with climate finance was nascent. An important stream of research focused on understanding the complex web of actors and institutions involved in climate finance decisions, the scale and nature of money flows, as well as where the money was sourced and allocated. This overview finds that lessons learnt on best practice from development assistance as well as other sectors can help inform the debate.