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Investigation into the causes of corruption in climate financing and action

Comparative Politics
Environmental Policy
Governance
Qualitative Comparative Analysis
Causality
Climate Change
Energy
Energy Policy
Lilian Fiala
University of Duisburg-Essen
Lilian Fiala
University of Duisburg-Essen

Abstract

What causes corruption in the field of climate financing and action? Especially in the context of the Paris Agreement where both international- and domestic climate finance flows with a great scale of funds are being rapidly integrated, mitigating the corruption risk in the delivery of climate finance and action is more than essential. Corruption does not only occur on the receiving end of funds meant to provide resources but can be found in all areas of the intertwined network of global as well as local players and structures. Thus, to effectively assess corruption risks in the field of climate finance and action, it is necessary to first identify under which conditions corruption occurs in the context of climate financing and action. Second, the identified causes of corruption in climate finance and action must be clearly communicated ahead in future policymaking, financing, and implementation of climate interventions. In line with this, the goal of the paper is to present a systematic investigation on the different conditions that lead to corruption in climate finance and action and suggest relevant directions for future research to alleviate corruption risks in climate finance and action. The paper includes a brief discussion on the existing literature on the relationship between corruption and climate action, as well as the introduction of the analytical framework. This framework is part of the current research of Fiala and Dose. The paper aims to elaborate on the "why" behind corrupt acts, referring to real life examples such as the resignation of Portuguese Prime Minister António Costa over a corruption probe in connection with lithium mining concessions and the corruption scandal involving local and central government officials in South Korea in connection with solar power projects. The analytical framework will be applied on some of said examples, outlining the path for future research. Lastly, the ultimate purpose of the paper is to highlight the importance of interdisciplinary research collaboration in the future. The fight against corruption can only succeed when practitioners and scholars from different fields join their expertise and contribute to a comprehensive understanding of the how’s and why’s of corruption in climate financing and action.