IIU holds webinar with DAEs on climate finance accountability in practice

On 16 October, the Independent Integrity Unit (IIU) held a webinar with three GCF Direct Access Entity (DAE) representatives to discuss climate finance accountability. This event was part of the Countering Environmental Corruption Practitioners Forum, which is a global network of anti-corruption and conservation professionals for countering environmental corruption, led by the Basel Institute on Governance, Transparency International, WWF, and TRAFFIC. IIU is one of the partner institutions and organisers of the Climate Finance Working Group within this Forum. In this most recent event, speakers shared their experiences implementing integrity functions within GCF-funded projects.    

Milagros Moscoso, Head of Risk Management at Integrity at Profonanpe, presented on FP193 about the implementation of a due diligence process, a commitment to prevent and combat corruption, fraud, money laundering and terrorism financing, and the establishment of safeguards and financial monitoring. She noted that having strong policies on paper does not guarantee corruption-free projects; rather, these policies must be actively communicated to stakeholders.  

Ecobank, a commercial bank DAE based in Ghana, was represented on the panel by Internal Audit Manager Kwame Amaning. Accredited in 2019, Ecobank recently received its first GCF project supporting solar energy systems, FP231. He presented how Ecobank conducts diligence checks and established a whistleblowing channel for staff and beneficiaries to report corrupt practices. These measures, along with the adoption of GCF standards, has positively impacted project implementation, enhancing donor confidence, accelerating disbursement approvals, and improving the structure and readiness of high-risk projects. 

Also during the panel, Mukti Chhetri, Project Development and Post Accreditation Support Consultant at the Alternative Energy Promotion Centre in Nepal, described how AEPC recently completed a GCF funded readiness project and is currently implementing FP172. To ensure high levels of integrity, AEPC established a grievance mechanism that allows local communities to resolve issues before escalating. Additional measures, such as third-party verification, are used to cross-check vendor claims. These and other integrity functions such as clean procurement and transparent hiring practices have increased trust and strengthened country ownership. 

All three of these DAEs are part of peer learning programmes implemented by IIU that provide capacity building on climate finance integrity among DAEs. In the current Peer Learning Programme cohort, there are 14 DAEs participating, representing Latin America, the Caribbean, Africa, Asia, and the Pacific. Learn more about the IIU’s approach to peer learning on the IIU website.