Topic Guide: Corruption and Climate Finance

Corruption risks can hamper effective climate action at all levels, from international climate policy development to the implementation of climate adaptation and mitigation projects in developing countries. Climate finance encompasses many kinds of activities and diverse investments in recipient countries that often have weak institutions and governance frameworks. Furthermore, climate finance is being channelled through a complex network of (relatively new) institutions at the international, national and local levels, and into sectors that have high risks of corruption, such as construction, forestry and energy. The scale and urgency of the climate crisis generates a rush and pressure to spend which could further exacerbate corruption risks. The diversity in scope of climate finance investments means that the risks of corruption are varied and context specific. Corruption may be hard to detect due to the complexity of the procedures involved, which often require a high level of technical expertise at all stages of the process.