As climate finance grows, so do the risks of corruption. Weak oversight mechanisms, lack of transparency, and insufficient accountability frameworks can result in the diversion or misuse of climate funds. Corruption undermines the integrity of projects designed to strengthen resilience, distorts environmental regulations, and fuels practices such as greenwashing or manipulation of carbon credit systems. These challenges reduce public trust, limit the impact of investments, and slow down progress toward global climate targets.
Corruption also weakens environmental governance by allowing undue influence and regulatory capture in decision-making processes. When vested interests shape policies, the result can be inadequate enforcement of environmental standards, preferential treatment in green technology procurement, or exploitation of critical minerals in ways that harm local communities. Integrating anti-corruption measures into national climate strategies and financing frameworks such as climate budget tagging, transparent reporting, and independent auditing is therefore essential. Given these persistent risks and their far-reaching implications, addressing corruption in climate action remains a key focus area.
