CLIMATEGOVERNANCEINTEGRITY

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©2011 Transparency International. All rights reserved.

Cover image: Haitian students take part in a tree-planting campaignin one of the country’s last pine forests. The once great forest has beenheavily depleted for charcoal production and to clear room for farm land. June 2011.

Transparency International is the global civil society organisation leading the fightagainst corruption. Through more than 90 chapters worldwide and an internationalsecretariat in Berlin, we raise awareness of the damaging effects of corruption andwork with partners in government, business and civil society to develop andimplement effective measures to tackle it.

Climate change andcorruptionThe effects of climate change are expected toincrease in scale and intensity well into thenext century. Leaders of developed countrieshave pledged up to US $100 billion by 2020to support adaptation and mitigation activitiesin developing countries. Beyond this,governments around the world are investingheavily in increasing energy security and longterm low carbon pathways.

Climate finance poses governance challengesfor developed and developing countries alike.As new climate money flows increase,concerns are mounting regarding thetransparency, accountability and integrity ofhow spending decisions are being taken, forwhat and how. Insufficiently developedregulatory systems and funding channelscould provide opportunities for corruption.And many countries earmarked to receiveclimate finance face a number of governancechallenges, including the capacity to controlcorrupt abuse.

Transparency International is committed tohelping ensure that public money madeavailable for climate change actions is notdiverted through corruption. Launched in2010, our Climate Governance IntegrityProgramme aims to fulfil this commitment bypromoting viable anti-corruption safeguardsand preventative measures at global andnational levels.

Climate GovernanceIntegrity ProgrammeOur programme is aimed at helping ensurethat climate financing decisions and actionsare conducted with sufficient transparency,accountability and integrity to preventcorruption from undermining climate goals.We also want to increase civil societycapacities to contribute to climate financegovernance policy development,implementation and oversight.

Desired outcomesGreater awareness by citizens,governments and businesses of theneed to address governance challengesto minimise opportunities for corruptionrisks in climate finance

Public and private sector climate financeactors commit to adopting, implementingand enforcing legally binding anti-corruption standards

Increased public demand that climategovernance actors in both the public andprivate sector act with integrity

Greater citizen participation andoversight of climate policy developmentand implementation so that climatefinance achieves social and environmentalbenefits.

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A Bangladeshi family in a makeshift shelter after thedevastation wrought by Cyclone Sidr. December 2009.

Stream onePublic climate finance: Donor contributions

Stream one deals with public finance providedprimarily by donor countries to supportclimate change adaption and mitigationactions in recipient countries. This comprisesbilateral and multilateral funds andmechanisms largely financed by publicresources which are set up to support climateactions mainly in developing countries. Itincludes funds organised under the UNFramework Convention on Climate Changesuch as the Adaptation Fund, the SpecialClimate Change Fund, and the LeastDeveloped Countries Fund, as well as thosemanaged by the Global Environmental Facilityand multilateral development banks such asthe Climate Investment Funds. It also includesthe UN-REDD (Reduced Deforestation andDegradation) programme as a multi-donortrust fund.

Stream twoPublic climate finance: Private sector inputs

Stream two focuses on the use of publicfinance to support or leverage private sectorclimate investments and projects in bothdeveloping and developed countries. Publicfinance under this stream is tied to specificclimate change objectives to reducegreenhouse gas emissions and to contributeto sustainable development. Thisencompasses public funds used to developand support emissions trading schemes andthe international carbon market through theallocation of emissions allowances and thegeneration of carbon credits, largely underthe Clean Development Mechanism. Thestream also covers public subsidies aimed atencouraging greater global energy security,clean energy transitions and low carbontechnology development.

Target groupsOur primary target groups are global and national climate governance stakeholders including:

StructureThe programme approaches the governance of public climate finance as two main streams.

International and national climate financing bodies, including multilateral developmentbanks and export credit agencies

National climate finance institutions of donor countries and recipient countries

Private sector actors engaged in adaptation or mitigation related investments andprojects supported by public subsidies

Non-governmental organisations (including civil society organisations, media andresearch institutes) and affected communities.

Implementing stream oneStream one involves three stages of development.

Stage one: a comprehensive plan to developthe capacity of global and local stakeholdersto better engage in climate change relatedpolicy and law development. This involves fourmain, interdependent components: research,capacity building, advocacy and networking.

Stage two: greater strengthening and outreachof the four components. It employs the stageone assessments as a baseline and applies

the assessment criteria to monitor progressand changes over time. Where theassessment signals governance weaknessesthat could trigger corruption, the secondstage of the programme seeks to develop andimplement a clear strategy to address themby applying our tools and best practices.

Stage three: aims to sustain and strengthenareas of activity in level two.

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A severe drought in East Africa is causing malnutrition ratesto soar and threatening children’s lives throughout the region.

First level action areasAt the first level the programme's main deliverables include:

TimelineThe programme has been designed to span atime frame of five years, from 2011 to 2016.This involves an initial pilot phase followed bytwo ensuing phases to scale up outreach andpursue more focused actions. These will bestrengthened and sustained at the country-level in line with the three level approachoutlined above.

The first phase (2011-2013) sets thegroundwork for future programmedevelopment. The two key project tools(e-learning and climate finance mappingand assessment) are developed andpiloted in six countries: Bangladesh,Dominican Republic, Kenya, Maldives,Mexico and Peru.

The second phase (2012-2015) aims toscale up the programme's outreach andscope. An additional 10-12 countries willinitiate first level programme implementation.Country selection is based on criteria

including financial flow levels, climaticimpacts, affected populations, governanceand corruption ratings, and confidence inthe performance of programmeimplementing partners. Emerging economycountries such as Brazil, China,India, Russia and South Africa are givenpriority as are Least Developed Countries inAfrica including Mozambique, Senegal andZambia. Meanwhile, first phase pilotcountries move to the second level ofprogramme implementation.

The third phase (2014-2016) aims tostrengthen, improve and sustain the workinitiated at level two in first phase pilotcountries. Second phase countries move tolevel two programme implementation.Scaling up in this phase means increasingthe programme's outreach to involve anadditional 20+ countries following theselection criteria applied in phase two.

Research: Global and national climate finance mapping and assessments

Capacity building: E-learning tool on global climate finance governance, including 'train thetrainer' modules

Networking: Global and national networks organised around issue-based communities of practice

Advocacy: Research-based interventions and contributions to global and nationalinstitutions and stakeholders

National multi-stakeholder strategies: Increased and focused actions to promote goodpractices and tools to minimise opportunities for corruption in climate finance arrangements

Sustainability: Actions to secure resources for phase two and three programmeimplementation and the organisation of a High Level Advisory Group to advise on the strategicdevelopment and resources, contribute to key action areas, and promote programme visibilityand overall impacts.

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“All of our history is gone. Our memories, our pictureseverything is gone.” Texan wildfires, US. December 2005.

Global level researchThe programme aims to produce acomprehensive mapping and assessment ofthe global climate financial architecture.Building on available research, theassessment reviews each funding source interms of its governance, with particularattention to the degrees to which climatefinancing institutions and processesincorporate appropriate levels oftransparency, accountability, integrity andindependence. The assessments provideuseful resources to identify best practices andsignal areas where corruption risks are mostlikely to occur and undermine the aims andobjectives of climate finance. Theassessments help to identify strengths andweaknesses within climate finance institutionsand processes to inform policy-makers andparallel advocacy actions. As objectiveanalyses, the assessments also provide abaseline to measure positive or negativechanges over time.

National level researchAt the national level, similar mapping andassessments of climate finance recipientinstitutions and processes are conducted.The mapping exercise aims to produce acomprehensive illustration of all national andlocal bodies responsible for receiving anddistributing national climate finance. From thismapping, a first level risk assessment is doneto prioritise those institutions or processesthat are most vulnerable to corruption andwhose integrity, if compromised, would havethe greatest impact on citizens. Priorityinstitutions are assessed in terms of

transparency, accountability, integrity andindependence. The assessments highlight keyadvocacy areas and provide an informedbaseline to monitor progressive change. Thenational assessments can also reveal bestpractices which, through organised sharedlearning, can prove useful for other countriesand localities. Assessments showing markedweaknesses in certain areas may signal theneed to apply a useful tool or best practice toenable better institutional functions.

Capacity buildingThe programme develops learning tools tohelp citizens understand the scope andgovernance structures of global climatefinancing schemes. These build on the globalclimate finance mapping and assessments byproviding key information on thetransparency, accountability, integrity, anti-corruption safeguards and independence ofbilateral and multilateral institutions andprocesses responsible for delivering climatefinance. The tools include an e-learningcourse on global climate finance which servesas a sustained, easily updatable trainingresource capable of wide stakeholderoutreach. As an e-tool, it reduces costsassociated with travel, time and greenhousegas emissions.

Capacity building also involves 'train thetrainer' activities as direct learningopportunities for stakeholder communitiesless familiar with e-learning approaches orless able to access internet basedtechnologies. The programme enables itsimplementing partners to participate in keyclimate finance and governance learningevents as 'learning by doing' opportunities.

AdvocacyAdvocacy often functions as the bridgebetween knowledge and change. Through theprogramme's research and capacity buildingactions, greater public engagement andadvocacy action is envisaged to demandincreased transparency, accountability andintegrity in the governance of climate finance.

At the global level, key advocacy actions inthe first implementation phase surroundimportant concerns addressed in our GlobalCorruption Report: Climate Change publishedin 2011. This includes concerted inputs tomultilateral mechanisms and funds includingthe Adaptation Fund, the Clean DevelopmentMechanism (CDM), the Climate InvestmentFunds, the UN-REDD Programme, and fundsoperated by the Global Environmental Facility.Particular attention is focused on contributingto the development of the Green ClimateFund. The programme aims to work withpartner stakeholders on joint advocacyinitiatives.

Advocacy actions in the pilot countries areshaped over time in relation to increasedknowledge and capacity to engage in climatefinance governance issues. Each programmeimplementing partner devises an advocacystrategy and works in multi-stakeholderprocesses to develop that strategythroughout the first phase. Working papers,policy positions, and media interventionsprogress over time.

NetworkingClimate governance networks will be formedand organised around the programme'sresearch, capacity building and advocacyaction areas - at both country and globallevels. In developing the climate financemapping and assessment tools, theprogramme seeks to organise communities ofpractice around particular areas of researchand advocacy. This may include particularissue areas such as adaptation finance and/ora focus on institutions and programmesresponsible for delivering climate finance,such as multilateral development banks andthe Climate Investment Funds.

At the country level, all programme tools aredeveloped and implemented through multi-stakeholder processes to ensure therelevance and uptake of the programme'sdeliverables. This process involvesnetworking. Developing a well-representednetwork and key partnerships enables betteroutcomes in achieving the programme's goal.

At the global level, TI has developed agrowing number of strategic partnerships withcivil society groups including AdaptationWatch, CDM Watch, Germanwatch andGlobal Witness and research-basedinstitutions including the StockholmEnvironmental Institute and the WorldResources Institute.

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Pakistan six months after the monsoon rainfall that forcedmore than 20 million people from their homes. December 2010.

Second and third levelaction areasProgramme implementation at the secondlevel involves greater strengthening andoutreach of the four components. It employsthe first level assessments as a baseline andapplies the assessment criteria to monitorprogress and changes over time. Where theassessments signal governance weaknesseswhich could trigger corruption, the secondlevel stage of the programme seeks todevelop and implement a clear strategy toaddress them by applying our tools and bestpractices. The third level of implementationaims to sustain and strengthen level twoareas of activity.

Key second levelobjectives

Applying our existingtools and best practicesAnti-corruption legal advice centresThrough confidential hotlines and face-to-facemeetings, experts at our anti-corruption legaladvice centres offer free assistance to victimsand witnesses of corruption. First piloted in2003, there are now more than 60, in almost50 countries. The centres' effectiveness lies ina two-pronged approach. As well as helpingin individual cases, they take evidence fromthem to advocate for change - legal,administrative or cultural - that will preventfuture corruption. Across areas as diverse asprisoner abuse and traffic fines, union fees orthe misuse of public assets, the centres havehelped improve laws and their application atnational level. They can also be mobilised towork with citizens to increase accountabilityand oversight in the implementation of climateadaptation and mitigation projects at thecountry level.

Integrity pactsMany of our chapters are monitoring publicprocurement and contracting through IntegrityPacts, a tool developed by TransparencyInternational a decade ago. The pacts areagreements between government agenciesand bidders for a public sector contract toabstain from bribery, collusion or othercorrupt practices. An independent externalmonitor ensures the pact is not violated.Pacts have been applied successfully in morethan 15 countries with the total amountmonitored now well over 300 worldwide.These are a desirable tool for climate changeadaptation and mitigation projects,particularly where public procurementprocesses and specific industry sectors areperceived to be vulnerable to corruption.

To apply the mapping and assessmenttool to assess change and progresstowards better climate financegovernance and reduced corruption risks,and to sustain that monitoring work overtime

To further increase capacity building atglobal and national levels to widerstakeholder communities throughe-learning and direct training tools

To further develop, strengthen andsustain climate governance networks andcommunities of practice globally and atcountry levels

To scale up levels of advocacy actionsaimed at reducing corruption risks inclimate financing

To apply and sustain use of bestpractices and tools to addressgovernance challenges and corruptionrisks identified in level one.

Development pactsDevelopment pacts are public agreementsbetween communities and theirrepresentatives that commit both to meetingspecific development priorities. Their goalsrange widely, from building schools or roads,to improving services such as water andhealth. Crucially, communities decide theirown needs, rather than just hearing themfrom others. The pacts bring together localpoliticians, public officials, service providers,service recipients and other citizens, whoagree on a joint roadmap to preventcorruption and ensure tangible results. Acommittee of volunteers then monitorprogress to ensure promises are kept. Thesepacts offer great potential for citizens toencourage public institutions to perform well,with both transparency and accountability.

Forest governance and integritycorruption risk assessment toolThis tool was designed to pinpoint wherecorruption drives illegal logging within forestgovernance systems and supply chains, andis being adapted to assess similar risks withregard to the implementation of ReducedDeforestation and Degradation (REDD)initiatives. It can be further adapted to identifycorruption risks related to climate changemitigation and adaption programmes at thecountry level.

Climate governance integrityprogramme resourcesThe Climate Governance Integrityprogramme's first phase (2011-2013) isfunded by the German Ministry of EnvironmentInternational Climate Initiative. It supports theprogramme's key design and developmenttools and funds global and national levelimplementation through our secretariat inGermany and six programme partners inBangladesh, Dominican Republic, Kenya,Maldives, Mexico and Peru. The first phase ofimplementation total € 2.5 million. The secondphase (2012-2015), which aims to scale upthe programme's outreach and scope tocontinue work in the pilot countries andexpand the programme to include anadditional 12 countries, requiresapproximately € 6.4 million. This involves anoperational cost of € 150,000 in each countryannually. In the third phase (2014-2016) theprogramme will include a total of 38 countriesand require a budget increase to € 12.4million.

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“There were many times we had storms. The worst timethe house collapsed and we had to rebuild again.” Vietnam. June 2006.

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