Managing Corruption Risks in Multilateral Climate Funds
Outcomes of session 2 of the webinar series on Climate Change and Corruption, organized by the SDC’s CDE and PGE Networks together with U4.
Event summary
Session 2 of the webinar series on Climate Change and Corruption, organized by SDC’s CDE and PGE Networks together with U4, examined corruption risks in multilateral climate finance. The discussion focused on how existing and emerging climate finance mechanisms, including major climate funds, operate in complex political environments where there is often pressure to disburse funds quickly despite limited oversight, fragmented accountability and evolving governance structures. It explored the limits of existing compliance and accountability mechanisms, and how SDC and its partners can contribute to stronger risk management.
Saul Mullard (U4) highlighted that corruption risks in climate finance extend beyond the misuse of funds and are often rooted in political influence, patronage, and vested interests. He argued that conventional compliance systems frequently miss these politically embedded risks and emphasized the value of a political economy lens to better understand power dynamics and decision-making processes. Strengthening integrity therefore requires not only robust controls, but also meaningful participation, independent oversight, and accessible grievance mechanisms.
Gabriela Alberola (University of Amsterdam) presented research showing that political dynamics can influence how climate finance is allocated, sometimes directing resources away from areas of greatest need towards politically aligned localities. She emphasized that local actors often have a clearer view of exclusion, political relationships, and access to resources than donors or formal integrity systems. As climate finance moves through multiple levels of implementation, responsibility for addressing corruption risks can become blurred. She concluded that decentralized implementation should be complemented by stronger accountability and political economy analysis, leveraging locally grounded knowledge.
Group discussions reinforced the need to look beyond compliance-based approaches and strengthen accountability through evidence, local knowledge, and contextual analysis. Participants highlighted the importance of linking insights from actors on the ground with decision-makers, addressing concentrations of power, and increasing transparency around project locations, funding decisions, and implementation processes.
Documentation
Past and next sessions in this series
Understanding corruption risk in climate finance
Outcomes of session 1 of the webinar series on Climate Change and Corruption, organized by the SDC’s CDE and PGE Networks together with U4.
Corruption risk management in locally led climate action
Session 3 of the webinar series on Climate Change and Corruption, organized by the SDC’s CDE and PGE Networks together with U4.
- 4 November 2026
- 12:00 - 13:30