Corruption Perception Index 2024

Corruption & the Climate Crisis (Part 2)

2. EMBEZZLEMENT AND MISUSE OF CLIMATE FUNDS 
Corruption threatens the funding allocated to mitigate and adapt to the effects of global heating. While the amount currently invested in mitigation and adaptation measures is just a fraction of what the United Nations (UN) estimates is needed to face this challenge, corruption – aided by lack of transparency – can undermine the effectiveness of these funds by diverting them from their intended purpose. There is also a worrying lack of metrics and frameworks for climate transparency and accountability, allowing some countries to be vague around their commitments: this can provide opportunities for corruption, as little information is available about the actual funds disbursed and the projects carried out. 

Very often, the countries that need this money the most, also tend to struggle to control corruption. By mainstreaming transparency and anti-corruption provisions into the management frameworks for such funds, stakeholders can help maximise their impact. 

In particular, safeguarding climate mitigation and adaptation initiatives from corruption can make them more effective and beneficial for the most vulnerable groups. Marginalised people usually have fewer options for adapting to extreme weather and pollution, leaving them most in need of government support. However, as corruption diverts much-needed funds into private pockets, these groups often remain particularly exposed to the effects of climate change caused by inadequate infrastructure, poor disaster preparedness and other forms of neglect. 
 
3. WEAK ENVIRONMENTAL PROTECTION 
Corruption severely undermines the enforcement of environmental laws and policies, by weakening regulatory oversight. Bribery and kickbacks can lead public officials, law enforcement, customs agents, harbour authorities, licensing bodies and regulators to either overlook environmental violations or actively benefit from them.
Combatting corruption is therefore essential to ensuring that existing environmental regulations are enforced, preventing harmful practices and unsustainable resource exploitation. It is also vital in the fight against environmental crime – now the fourth- largest form of organised crime, generating annual profits for criminal networks estimated at between US$82 billion and US$238 billion.
 
IN RUSSIA (22), an audit found strong indications that millions of dollars were misappropriated from a project funded by the Global Environment Facility and managed by the UN Development Programme (UNDP), which aimed to reduce emissions by strengthening energy efficiency standards. The project – which ran from 2010 to 2017 – reportedly failed to meet any of its emissions reduction targets. 
 
DENMARK (90), the highest-ranking country on the CPI, is also seen as one of the most prepared for tackling the effects of climate change. Recognising the importance of addressing climate risks, the country adopted its first national adaptation strategy in 2008. This was followed in by a national action plan in 2012, which highlights the vital role of local actors – including municipalities, businesses and individuals – in driving adaptation efforts. Today, 95 of Denmark’s 98 municipalities have climate action plans aligned with the Paris Agreement. Climate policymaking, however, is subject to the same structural challenges as other high-profile policy areas, including the risks of lobbying influence and a lack of transparency in the decision- making process. 
 
Transparency International. Berlin, Germany.