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Corruption and fraud risks high because of complexity, uncertainty and novelty that surrounds many climate issues.

Multi-billion pound spending on climate change and carbon markets could be wasted because of significant corruption and fraud, according to charity Transparency International.

In a report to be released today the anti-corruption group will warn that all of the 20 countries most affected by climate change score badly on its corruption index.

The industries likely to benefit from the $100bn spending on anti-climate change measures include forestry and agriculture. Transparency International is warning its is these industries that could be targeted by fraudsters.

The report states: “Where huge amounts of money flow through new and untested financial markets and mechanisms, there is always a risk of corruption.”

The report is being released today in Bangladesh, one of the countries most at risk from climate change.

It warns: “Corruption risks are also high because of the level of complexity, uncertainty and novelty that surrounds many climate issues.”

The report also goes on to warn about “greenwashing”, companies giving themselves green credentials they don’t really possess.

The report states: “better climate governance will ultimately require the genuine commitment and cooperation of all stakeholders, from governments and business to non-governmental organizations, scientists and society at large.”

The Daily Telegraph, 30 April 2011