How Corruption Undermines Efforts to Combat Climate Change

Corruption stands as a central impediment to meaningful climate action. While challenges such as insufficient funding, weak policy enforcement, limited data, and technological barriers dominate discussions, corruption undermines progress at every level. Transparency International aptly defines corruption as “the abuse of entrusted power for private gain.” This phenomenon not only disrupts development broadly but also poses a unique threat to climate initiatives. After all, climate action is, at its core, a form of development—one aimed at building resilience, reducing emissions, and safeguarding the future.

Empirical evidence reveals a troubling connection between corruption and climate vulnerability. Countries with high corruption levels frequently rank poorly in climate resilience, illustrating how entrenched corruption exacerbates the risks posed by a warming planet. Transparency International has shown how weak governance allows funds meant for adaptation or mitigation to be misappropriated, environmental assessments to be manipulated, and enforcement mechanisms to be compromised. This combination not only derails policy effectiveness but also fosters public disillusionment, further eroding collective willpower to act.

Unfortunately, the reach of corruption extends far beyond the mismanagement of funds, seeping into nearly every aspect of climate action. It weakens the foundation for building reliable and resilient climate infrastructure, leaving communities more vulnerable to climate impacts. It discourages potential investors from supporting climate initiatives which erodes confidence in the systems meant to drive sustainable development. Furthermore, corruption significantly delays the transition to net-zero emissions by derailing critical projects and policies, undermining global efforts to curb greenhouse gas emissions and mitigate the climate crisis.

As the global community rallies around ambitious climate goals, addressing corruption must be treated with utmost urgency. Without transparency, accountability, and robust institutional frameworks, even the most innovative solutions risk being diluted. Corruption’s presence is not a peripheral concern—it is foundational, shaping whether progress can be sustained or squandered. How, then, does corruption appear in climate change actions?

Anyone observing global climate efforts is not wrong for thinking they are faltering in the face of insurmountable challenges. Despite growing awareness of the climate crisis, progress remains uneven, with corruption often acting as a silent but powerful force undermining crucial initiatives. Yet while corruption undoubtedly worsens climate vulnerability, it is vital to examine where its impacts are most pervasive and where solutions might still prevail.

The misappropriation of climate funds is one such area where corruption casts a long shadow. International climate finance, intended to help nations adapt to climate impacts and transition to low-carbon economies, often fails to reach its target. Weak governance allows funds to be diverted into private accounts or unrelated projects, leaving communities unprepared for climate disasters. Or worse still, some of these funds are funnelled into constructing substandard infrastructure presented as climate solutions. Such infrastructure, however, may fail catastrophically when extreme weather events strike, leading to devastating loss of life and property. Closely tied to this issue of misallocated funds is the fraudulent misuse of carbon credits. Carbon credits, which essentially represent a reduction in greenhouse gas emissions achieved by a project and sold as offsets, are often plagued by a lack of transparency. Some projects turn out to be fraudulent or exaggerated in their claims. A shocking example surfaced in 2023 when media investigations revealed that one of the largest carbon offset initiatives in Zimbabwe was largely fabricated. This project, certified by the Verified Carbon Standard (Verra), had attracted investments from major companies such as Nestlé, and other well-known companies, yet its purported environmental benefits were exposed as a mirage.

The exploitation of vulnerable populations highlights another critical issue. Corruption often enables the displacement of communities reliant on natural resources. In many countries, officials approve land acquisitions for large-scale projects through bribes, disregarding the rights of indigenous and rural populations. These actions frequently leave people landless and impoverished. This issue manifests in two critical ways: one that appears beneficial but is inherently harmful, and another that is outright exploitative. The growing demand for raw materials has significantly increased competition for land, much of which is acquired for mining. Corruption often fosters collusion between political elites and illegal mining operations. A striking example is Colombia, where illegal mining is reportedly backed by powerful political forces, making it the most dangerous country in the world for human rights, environmental, and land defenders. On the other hand, seemingly beneficial land-based climate solutions, such as reforestation and afforestation, may proceed without obtaining Free, Prior, and Informed Consent (FPIC) from Indigenous and local communities. This oversight can result in displacement, conflicts of interest, and significant harm to the very communities that should benefit from such initiatives.

Corrupt lobbying also distorts climate policymaking. Powerful industries, such as fossil fuels and agriculture, often influence legislation through unethical lobbying. This results in weaker regulations, subsidies for carbon-intensive sectors, and policies misaligned with climate science. At COP28, for example, 2,456 fossil fuel lobbyists were granted access to the conference—nearly quadrupling the 636 registered at COP27. This year, 1,800 fossil fuel lobbyists were granted access to the conference. The presence of such representatives raises critical questions: What stake could industries responsible for driving climate change have in shaping solutions to it? Such lobbying not only delays progress but also creates a policy landscape that favours short-term profits over long-term sustainability.

Finally, climate washing—the misrepresentation of environmental efforts—has become a pervasive issue. Corporations frequently present themselves as leaders in sustainability while continuing harmful practices. For instance, some companies announce ambitious net-zero targets but rely on dubious carbon offsets or fail to make meaningful operational changes. This form of deception misleads stakeholders and delays systemic action, perpetuating a cycle of inaction disguised as progress.

Corruption in climate change activities cannot be separated from the broader challenges of corruption in other sectors. Yet, its impact on global efforts to combat the climate crisis is profound, undermining trust, misdirecting resources, and threatening the very goals we aim to achieve. Rather than resign ourselves to frustration, it is essential to explore practical avenues for fostering transparency and accountability in climate actions.

This begins with the fundamentals: strengthening institutional frameworks and accountability mechanisms. Without clear governance structures and enforcement capabilities, even the most ambitious climate projects are vulnerable to inefficiency and abuse. But institutional reforms alone are insufficient. Transparency thrives when the public has access to information. Detailed disclosures about climate funds, project progress, and outcomes enable citizens and stakeholders to monitor and evaluate these initiatives, ensuring resources are used where they are needed most.

At the same time, robust mechanisms for auditing and monitoring must be implemented. Independent evaluations of climate funds and projects can provide the impartial oversight needed to detect irregularities and safeguard investments. For instance, stringent reporting requirements by global climate funds have helped to minimize misuse, but scaling such practices globally is vital. Equally important is fostering an environment where whistleblowers feel safe and empowered to report wrongdoing. Legal protections and secure reporting channels are essential to encourage those on the frontlines of corruption to come forward without fear of reprisal. Programs that offer anonymity and robust support systems have proven effective in exposing misconduct.

While challenges remain, these strategies represent tangible steps toward a climate action framework built on transparency, equity, and integrity—one that ensures every dollar and decision contributes to a sustainable and just future.