Phyllis Dininio, the Chief of Party for the USAID-funded Countering Transnational Corruption Grand Challenge, contributes the following announcement:

Carbon markets, which enable the trading of carbon credits and emission allowances, can help reduce carbon emissions by channeling funds from those seeking to offset their carbon emissions to those who can reduce emissions through conservation, renewables, forest protection, and other initiatives. Yet carbon markets entail important corruption risks. To take just a few examples:

• In the Democratic Republic of Congo (DRC), the head of the ministry that manages forests embezzled around $38 million of funding from REDD+ (Reducing Emissions from Deforestation and Forest Degradation), which provides a framework to give developing countries payments in exchange for reducing deforestation.
• Also in the DRC, a French oil company and its local partner leased 70,000 hectares of land from the government to offset emissions by planting acacia trees; local farmers claim they were displaced from this land without appropriate consultation or compensation by the government.
• In Slovakia, the government sold about 15 million tons of carbon offset units for half their market price to a firm that turned out to be a shell company run by people connected to the government; that firm turned around and sold the units for their market value, making $47 million.

To help address these sorts of problems, the USAID-funded Countering Transnational Corruption (CTC) Grand Challenge, in partnership with BHP Foundation and the Global Partnership for Social Accountability, has launched the Safeguarding Carbon Markets Challenge. The CTC Grand Challenge team is hoping to make awards of up to $500,000 in February 2025. And will accept concept notes until mid-August. Possible innovations might ways to improve procurement, certification, and licensing practices in carbon markets; efforts to improve oversight, transparency, and accountability; employing data transparency and risk assessment tools; improving land use tracking; and empowering communities, environmental journalists, and diverse civil society groups. The CTC team is also looking for partners to help with disseminating the call for proposals, serve as judges, support solvers as mentors or in testing out their solutions, provide further financial support to the challenge, or in other ways so please check out the website and get in touch.