What does the climate crisis have to do with corruption?

The climate crisis is arguably the biggest global challenge we have ever faced. The cost of responding to it, adapting to and mitigating the worst effects of global heating will be immense. These huge financial investments create tempting opportunities for corruption.

Climate finance is needed in trillions, and international funding for climate change adaptation and mitigation is set to reach from USD 100 billion to over USD 300 billion per year by 2035. At COP29, developed nations agreed to provide at least $300 billion annually to assist developing countries in combating climate change, including both adaptation and mitigation efforts. While these funds are intended to address urgent climate challenges, especially in vulnerable and developing countries, there are several risks that could lead to mismanagement and corruption. This is due to a lack of transparency, oversight, and anti-corruption safeguards within climate finance frameworks that increases the potential for exploitation by corrupt entities.

The climate crisis affects all of us, but corruption weakens our ability to respond to its impacts. If we are going to do something about it, we must start with ensuring that our city, state, and national governments meet their climate goals. International coordination is also key when it comes to this truly global issue.

While governments have pledged to finance climate action and reduce emissions, the lack of robust anti-corruption safeguards at COP raises serious concerns. Undue influence from powerful sectors, particularly the fossil fuel industry, is hijacking climate negotiations. With conflicts of interest clouding decision-making, it is crucial to ask: whose interests are truly being represented, and are our governments acting with the integrity required to drive real, transformative action.

The rates of corruption in climate vulnerable countries receiving climate finance is a serious cause for concern. The climate funding landscape is complex and fragmentary, complicating efforts to track financial flows (there is still no universally agreed upon definition of climate finance), and to ascertain who should be held accountable for decisions and their results.

We need to act together and put good governance at the centre of climate finance and action.

TI’s Climate Governance Integrity Programme is committed to preventing corruption and shining a light on existing corruption risks and is pushing for changes:

• Budgets, financial flows, and other relevant data must be publicly available.
• Local communities have to be involved in decisions about how money is spent.
• Safeguards are needed to prevent public officials and private operators getting kickbacks from climate projects.
• Accountability systems to ensure independent monitoring of climate action.
• Safe and accessible complaint mechanisms must be available and promoted.
• Whistleblowers must be protected and the corrupt to be sanctioned.