Microsoft Word - Policy brief 2_CT.doc

This policy brief, published by the Institute for Security Studies in June 2011, examines the governance of climate change funds—specifically the Adaptation Fund, the Clean Development Mechanism (CDM), and Reduced Emissions from Deforestation and Forest Degradation (REDD)—across several developing countries in Africa, Asia, and Latin America. It highlights systemic issues regarding accountability, stakeholder representation, and the risk of private sector interests overriding local needs.

• The governance of climate finance often follows a 'pyramid' structure where accountability is directed upward toward donors rather than downward toward the local communities receiving the funds. This arrangement can result in initiatives that are not socially sanctioned or ecologically viable.
• Bilateral funding for climate action is frequently opaque, with conditions that are not clearly defined or openly declared. In some instances, such as a forestry project in Tanzania, bilateral funds act as a 'pathfinder' for private sector investors who may displace local populations and limit access to natural resources.
• The Clean Development Mechanism (CDM) has been criticized for lacking inclusive governance and benefit-sharing mechanisms. In Thailand, the Designated National Authority (DNA) board excludes civil society and local community representatives, while in the Philippines, CDM credits have disproportionately benefited wealthy families and conglomerates, sometimes supporting projects that exacerbate climate change.
• REDD initiatives in Brazil and Tanzania have raised concerns regarding the loss of livelihood and land rights. In Brazil, monetary stipends are provided to communities in exchange for forest access, but there is no clear way to equate these payments with the loss of essential social, cultural, and economic forest use.
• Institutional capacity and conflicts of interest hinder the effectiveness of the Adaptation Fund. In Senegal, the National Implementing Entity is dominated by a single unit in the environmental ministry, and the director's multiple roles across different funds create potential conflicts of interest.
• The document recommends that climate finance governance be reformed to include social and environmental safeguards, such as the protection of tenure rights and the requirement of free and prior informed consent, to prevent 'land grabs' and protect indigenous populations.

APA

Institute for Security Studies (n.d.). Microsoft Word - Policy brief 2_CT.doc. https://issafrica.s3.amazonaws.com/site/uploads/No25June2011.pdf

Chicago

Institute for Security Studies. Microsoft Word - Policy brief 2_CT.doc. n.d. https://issafrica.s3.amazonaws.com/site/uploads/No25June2011.pdf.

Wikipedia

{{cite report |author=Institute for Security Studies |title=Microsoft Word - Policy brief 2_CT.doc |url=https://issafrica.s3.amazonaws.com/site/uploads/No25June2011.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforsecuritystudiesndmicrosoft, author = {{Institute for Security Studies}}, title = {{Microsoft Word - Policy brief 2\_CT.doc}}, institution = {Institute for Security Studies}, url = {https://issafrica.s3.amazonaws.com/site/uploads/No25June2011.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }