Making the Case for Green Accountability

Why should you read this: The World Bank’s Global Partnership for Social Accountability (GPSA) and Climate Collective recently launched the Green Accountability Technology Accelerator to promote transparency and trust in climate finance. Green accountability is a new concept that ensures climate funds are used effectively and responsibly. It empowers individuals and communities to ensure that governments and corporations are responsive to their needs and deliver on their promises. As this is a new concept, this blog explores what we mean by Green Accountability, why it matters, and how different groups are incorporating this concept to deliver on our common climate goals.

Table of Contents

· Introduction
· I. The Climate Finance Gap: Why Transparency and Participation Matter
· II. The Case for Green Accountability
· The Opportunity Ahead
· Conclusion

Introduction

What if we told you that our limited climate funds could be used more effectively by incorporating the insights of those most directly affected by climate change? Or that some of the most innovative climate solutions might not come from technology labs or politicians, but from civil society or communities who manage a significant portion of the world’s natural resources — if they were given funding for their ideas.

Imagine if we could allocate climate capital more effectively by championing inclusivity and participation in overseeing and implementing climate finance and actions. What if we told you that a more participatory and representative approach would not only lead to better use of resources but also strengthen trust and engagement in global decarbonization

Green Accountability is a new approach that extends the principles of Social Accountability into the climate space. It empowers individuals and communities to ensure that climate finance is used effectively, equitably, and transparently. By prioritizing inclusion, participation, and accountability, Green Accountability can maximize the impact of every dollar invested in climate action.

This approach is crucial given the urgent need for climate action and the limited resources available. Developed nations have fallen short of their commitments to provide climate finance, leading to distrust and slowed progress. For example, Oxfam’s report revealed a significant discrepancy between the reported and actual value of climate finance provided. Additionally, OECD data shows that most climate finance is provided as loans, rather than grants, exacerbating debt problems in developing countries.

Green Accountability can help address these challenges. By building trust, promoting accountability, and fostering inclusion, Green Accountability can unlock additional climate finance. For every dollar spent on Green Accountability, an additional $3-$12 could be mobilized for climate action.

We recognise that the climate crisis is a global crisis, and it requires a global response. Green accountability creates systemic ways for people to have a voice and role in the climate decisions that most impact their lives. It places citizens and civil society at the heart of climate finance to direct funding, implement solutions, and hold decision-makers accountable for effective and equitable climate action.

— Aly Zulficar Rahim, Program Manager for the Global Partnership for Social Accountability

I. The Climate Finance Gap: Why Transparency and Participation Matter

The fight against climate change requires substantial funding, robust policies, and behavioral changes. Developing nations (excluding China) need $2.4 trillion annually, but current allocations fall far short, barely reaching 20% of the target. This shortfall, combined with a delay of a more recent $100 billion pledge, has eroded trust between the Global North (the primary providers of capital) and Global South (the primary recipients). This disparity is a critical roadblock that must be addressed to foster mutual trust and effectively combat climate change, specially for the most vulnerable communities.

This funding gap perpetuates three key challenges that undermine global efforts to address climate change.

1) Unreliable Funding Hinders Progress

Developing nations face significant challenges due to unreliable funding for climate action. They need predictable financial support to plan and execute complex projects that take time. Uncertainty around funding can lead to delayed projects and missed opportunities. More than half of climate finance is provided as unfavorable non-concessional loans. Compounded with foreign currency fluctuations, this further complicates long-term planning, raises costs and erodes fiscal sustainability of developing countries.

2) Critical Sectors and Voices of Most Affected are Marginalized

With limited resources, capital is often directed towards ‘low-hanging fruits’ or projects that would happen anyway but are tweaked with a ‘greening’ strategy — rather than addressing the most pressing needs. Vulnerable communities and Indigenous Peoples are often excluded from decision-making processes, like shortlisting climate finance priorities or designing national or sub-national action plans, resulting in deprioritization of key areas like adaptation and resilience. Indigenous Peoples have unique perspectives and knowledge of what works in their regions, failing to build solutions around these experiences weakens the impact and success of investments.

3) Inefficient Resource Use And Distrust

Without clear and transparent systems for tracking funds, there is a substantial risk of misallocation or misuse. This can render climate finance efforts ineffective or counterproductive, undermining trust in climate policies — at a time when trust for public institutions is at a historical low. There are few pathways for citizens to hold decision-makers accountable for effective and equitable climate action. This applies to government initiatives, multilateral climate commitments and corporate net-zero pledges.

There is a huge trust deficit. We urgently need to boost accountability and transparency across climate finance ecosystems to address this imbalance, creating local-led approaches that will mobilise billions of dollars into projects in the Global South and support climate projects across the globe.

— Bogolo Kenewendo, Africa Director & Special Advisor of the UN High Level Climate Champions Team

II. The Case for Green Accountability

Green Accountability is a promising approach to integrate across climate finance. A recent report by Systemiq estimated that 75% of committed climate finance remains unspent or undeployed. Green Accountability could improve distribution and allocation of over $100 billion a year, significantly improving our climate outcomes. This aligns with repeated calls for a just and fair climate transition from the UN Secretary General,, developing countries, and civil society.

What is Green Accountability?

Green Accountability creates “systemic ways for people to have a voice and role in the climate decisions that most impact their lives. It places citizens and civil society at the heart of climate finance and connects them to direct funding, helps them to inform and implement solutions, and to hold decision-makers accountable for effective and equitable climate action.”

The key benefits of this approach include:

• Transparency: Clear communication on funding sources, conditions, and results builds trust and enables informed decision-making.

• Demand-Driven Allocation: Funds are allocated based on the needs of those affected by climate change, ensuring solutions address real problems.

• Market Building: Investments strengthen local economies by using local banks and intermediaries, increasing local capacity and expertise.

• Responsiveness: Flexible financing allows for adjustments based on changing needs or unforeseen challenges, ensuring continuous improvement.

• Accessibility: Streamlined procedures and reduced costs for accessing climate finance ensure everyone has a chance to participate.

The five key benefits of Green Accountability

What does Green Accountability look like in practice?

• Local Decision-Making: Local voices shape climate projects, ensuring they address real needs, via co-designing climate projects, participatory climate budgeting processes or ‘Local Climate Action Plans. For example, Spain’s CitiES 2030 platform includes 15 cities, 8 academic institutions, 17 private entities, and 7 public institutions, collaboratively working towards accelerating local climate action for decarbonisation and climate resiliency — placing citizens at the heart of the design and budgeting process. Porto Alegre in Brazil has used participatory budgeting to decide how to allocate climate finance since the 1980s. Residents vote on proposals for climate-related projects, such as improving public transportation, installing solar panels on public buildings, or creating green spaces. GoVocal is an AI-powered platform that empowers citizens to have a meaningful voice in shaping their communities. By working with over 500 local governments and organizations, GoVocal has facilitated the collection and analysis of input from over 1 million community members. This data has been used to identify key community priorities, inform decision-making processes, and co-create actionable solutions through inclusive engagement.

• Transparency and Data: Open data allows everyone to track progress and hold actors accountable. Prague’s “Golemio’’ platform is an open-source solution providing urban governance through data-driven insights. By improving transparency, accountability, and service delivery, it fosters sustainable city development and strengthens local governance. Klimatkollen (Climate Checker) is a Swedish open source platform that visualizes climate data for citizens, allowing individual people to hold decision makers accountable for progress. The Aid Transparency Index has tracked the transparency of the largest international aid organizations over the last 12 years and invites citizens to hold organizations accountable for resource use.

• Citizen and Civil Society Involvement: Communities participate in decision-making and monitoring. The Green Accountability Platform launched by WRI, Huairou Commission and SouthSouthNorth and funded by the World Bank’s GPSA supports CSOs and fosters knowledge sharing to improve the impact and equity of climate finance projects to benefit local communities.

• Direct Access to Finance: Local stakeholders participate in project implementation by being rewarded for conservation of biodiversity activities. For example, GainForest uses Conservation Basic Income to reward local communities for their climate positive work, such as planting mangroves or collecting forestry data.

What does Green Accountability look like in practice?

III. The Opportunity Ahead

Unlocking the potential of Green Accountability will drive three key advantages/outcomes.

1) Ensuring Funds Reach End Users

Green Accountability can help reduce the significant amount of climate finance that is wasted. An alarming 75% of promised climate funds never reach projects, often due to funds not being deposited, approved for disbursement, or simply disappearing. Implementing Green Accountability could reduce waste by 20–45%, translating to an additional $14-$24 billion reaching the right people and projects.

2) Allocating Resources to Critical Sectors

Currently, resources are often directed to areas where private investment is already strong, neglecting critical sectors like adaptation or resilience. Adaptation projects receive only $1 for every $10 in climate finance, and Indigenous Peoples and Local Communities receive a fraction of this despite managing vast lands with significant carbon storage potential. Green Accountability can help shift resources towards adaptation and empower local decision-making, potentially closing a $360-$860 billion gap.

3) Improving Outcomes of Deployed Capital

Green Accountability promotes ongoing monitoring and inclusive design, ensuring projects are tailored to real needs and adaptable to changing circumstances. This approach reduces the risk of maladaptation — situations where projects increase vulnerability rather than reducing it. With one in six adaptation projects at risk of maladaptation, implementing Green Accountability could save $27-$58 billion by 2030.

The opportunities Green Accountability can unlock

Climate Collective is leveraging its climate tech community and strategic partners to explore the role of disruptive technologies in Green Accountability. For example, one of the most overlooked benefits of Artificial Intelligence (AI) in the public sector is its potential to make government websites, documents, and communication more accessible to citizens, especially in countries where people speak many languages and dialects. Below are a number of Technology and Digital Solutions that can Strengthen implementation of Green Accountability:

Improving Transparency:

• Open Data Platforms: Making data on climate finance, projects, and outcomes accessible to the public can increase transparency and accountability.

• Blockchain Technology: Blockchain can provide a secure and immutable ledger for tracking climate finance, reducing the risk of fraud and ensuring transparency.

Enhancing Citizen Engagement:

• AI-Empowered Information: Using AI to make websites, documents and communication more accessible to facilitate citizens’ access to information, ease of reporting issues, and participation in decision-making processes.

• Mobile Apps: Developing mobile apps that strengthen direct feedback loops where citizens can monitor climate projects and report irregularities.

Strengthening Monitoring and Evaluation:

• Remote Sensing: Using satellite imagery and other remote sensing technologies to track project progress, measure environmental impacts, and identify potential risks.

• AI & Data Analytics: Employing machine-learning to analyze large datasets, identify trends, and assess the effectiveness of climate interventions.

Facilitating Accountability:

• Citizen Oversight Committees: Using digital tools to connect citizens and form online oversight committees that can monitor climate projects and hold decision-makers accountable.

• Social Media: Leveraging social media platforms to raise awareness, mobilize citizens, and pressure governments and institutions to act.

Together with the World Bank and other partners, we will expand on these findings in the coming months.

We will not achieve a just transition without Green Accountability. It is essential to the legitimacy and sustainability of climate finance, both public and private. History tells us that we ignore governance gaps at our peril. Transparency, participation and accountability matter for securing the quantity and quality of finance needed in the face of the climate emergency.

— Michael Jarvis, Executive Director of the Trust, Accountability and Inclusion Collaborative

IV. Conclusion

Integrating Green Accountability from the start is essential for closing the climate finance gap and ensuring effective usage of funds. By promoting transparency, inclusivity, and responsiveness, Green Accountability can unlock billions in climate finance, allocate resources equitably, and improve climate action outcomes.

Digital technologies are affordable and accessible, making them well suited to support Green Accountability frameworks. Global connectivity, geospatial infrastructure, and digital monitoring solutions can strengthen accountability systems.

Integrating accountability across the climate finance architecture will take time, but it is a worthwhile investment. We call upon climate donors and thought leaders to embrace Green Accountability in their work and the international climate agenda. This approach is not only a step towards a just transition but also a powerful strategy to ensure our collective efforts against climate change have the intended impact and leave no one behind.

About Climate Collective: The Climate Collective is a coalition of early-stage startups, investors, scientists and non-profits using novel digital infrastructure (i.e., AI/ML, blockchain, IoT, geospatial tech, etc.) to scale climate and nature action. It is a connective force in the ecosystem, incubating innovative technologies through grant giving, member partnerships, technical advisory and community education. Learn more at climatecollective.org.

You can find us on Twitter and Medium.

About GPSA: The Global Partnership for Social Accountability (GPSA) was established by the World Bank’s Board of Directors in 2012 to expand opportunities for civil society and governments to work together to solve pressing governance problems and improve development outcomes. Its “collaborative social accountability” model facilitates engagement of citizens and civil society organizations (CSOs) with public sectors to promote transparency and accountability of government policies and services and improve their performance and responsiveness. The Green Accountability Technology Accelerator is part of the Green Accountability Initiative, which the GPSA launched at COP28 to develop an ecosystem of CSOs embedding transparency, accountability and participation across the climate finance agenda. This includes a global knowledge platform on green accountability managed by WRI, Huairou Commission and SouthSouthNorth. Learn more at https://greenaccountability.org/.