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71. Follow the money: connecting anti-money laundering systems to disrupt environmental crime in the Amazon

Author:
Melina Risso, Carolina Andrade Quevedo, Lycia Brasil, Vivian Calderoni, and Maria Fe Vallejo
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Igarapé Institute
Abstract:
Environmental crime became the world’s third most lucrative illicit economy after drug trafficking and smuggling, with estimates of $110 to $281 billion in annual profits. Between 2006 and 2016, environmental crimes grew at a rate of 5% to 7% per year, a pace two or three times faster than that of global GDP growth. Money laundering is part of the criminal machinery that plunders the Amazon Rainforest. The study “Follow the Money: connecting anti-money laundering systems to disrupt environmental crime in the amazon” reveals the need for systems, agencies, and institutions responsible for preventing money laundering to turn their attention to the connections between this illicit practice and environmental crimes. The Igarapé study shows that the money laundering cycle follows three stages before the laundered funds can enter the financial system: placement, layering, and integration. However, not all proceeds from criminal activity are directly laundered into the formal financial system. Thus, informal diversification constitutes the process of moving illegal flows into the informal economy. It is estimated that 30% of the money to be laundered is used to pay the operating expenses of illicit economies. Cash transactions, divided into small amounts and deposited by “money mules,” are used to finance the hiring of precarious labor, accommodations, food, security, transportation, health services, leisure, and machinery, for example. The remaining 70% of illicit proceeds are formally inserted into the financial system. The study also recalls that the World Bank estimated in 2019 that governments lose between 6 and 9 billion dollars in tax revenue each year due to illegal logging. Similarly, other environmental crimes such as illegal mining, especially of gold and diamonds, generate between 12 and 48 billion dollars in revenue. In 2018, Interpol’s Global Illicit Flows Atlas found that illegal logging accounted for a percentage between 15% and 30% of the global timber trade, calculated between 51 billion and 152 billion dollars per year. The illegal logging industry is responsible for up to 90% of deforestation of tropical forests in African countries such as the Democratic Republic of Congo. Combating illicit financial flows is a powerful tool for dismantling illegal economies. It becomes even more relevant when it is identified that illicit financial flows fuel an ecosystem of environmental crime composed of a convergence of environmental and non-environmental crimes, such as corruption, fraud, tax evasion, and others.
Topic:
Security, Environment, Financial Crimes, Money Laundering, and Illicit Financial Flows
Political Geography:
Brazil, South America, and Amazon Basin

72. Economic and Environmental Impacts of China’s New Nationwide CO2 Emissions Trading System

Author:
Lawrence Goulder, Xianling Long, Chenfei Qu, and Da Zhang
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China’s National Emissions Trading System (ETS) has already become the world’s largest ETS and is expected to contribute substantially toward meeting China’s pledge to peak its carbon emissions before 2030 and achieve carbon neutrality before 2060. The new system is based on a tradable performance standard (TPS), a rate-based system under which each covered facility receives from the government in each compliance period a certain number of emissions allowances based on its output and the government’s assigned “benchmark” ratio of emissions per unit of output. Economic and Environmental Impacts of China’s New Nationwide CO2 Emissions Trading System describes the results from a multi-sector multi-period general equilibrium model designed to assess the potential economic, energy mix, and emissions impacts of different future policy options under China’s National ETS over the period 2020–2035, by sector and province and in the aggregate
Topic:
Environment, Economy, Trade, and Carbon Emissions
Political Geography:
China and Asia

73. The Science of Rapid Climate Change in Alaska and the Arctic: Sea Ice, Land Ice, and Sea Level

Author:
John P. Holdren
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The Earth’s surface north of the Arctic Circle, which includes nearly a third of Alaska, is warming 3-4 times faster than the global average.1 Alaska as a whole is warming twice as fast as the lower 48 states.2 As is true for most of the manifestations of anthropogenic climate change, moreover, the extremes of temperature are growing faster than the averages: the highest-ever temperature north of the Arctic Circle—100.4°F—was recorded in Verkhoyansk, Siberia, in June 2020;3 Anchorage reached an all-time high of 90°F on July 4, 2019;4 and Utqiavgik, Alaska, the northernmost U.S. city, reached an all-time winter high of 40°F in December 2022.5 The reasons warming is so fast in the Far North are quite well understood scientifically. The most important factor is the ice-snow-albedo feedback, in which warming reduces the area of land and water covered by ice and snow, which means less reflectivity and more absorption of incident solar energy at the surface, hence further warming.
Topic:
Climate Change, Environment, Carbon Emissions, and Sea Ice
Political Geography:
North America, Alaska, Arctic, and United States of America

74. How non-state armed groups engage in environmental protection

Author:
Jairo Munive and Finn Stepputant
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Non-state Armed Groups have a mixed - and mostly negative - impact on the environment, but there are ways in which NSAG’s engagement can have positive effects on the environment during and after armed conflict. The adoption of the UN principles for the protection of the environment in relation to armed conflict can provide an avenue for constructive engagement.
Topic:
Environment, United Nations, Non State Actors, Armed Forces, and Armed Conflict
Political Geography:
Global Focus

75. Climate change adaptation relevance of Tanzania’s national budget

Author:
Noah Pauline, Peter Rogers, Edmund Mabhuye, Beatrice Sumari, Lucas Katera, Jamal Msami, Per Tidemand, and Esbern Friis-Hansen
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In Tanzania, climate change adaptation is financed by international development assistance and by nationally generated revenue. While international development assistance is registered by OECD and climate change adaptation relevance tagged by donors, the proportion of the nationally generated revenue that is climate change adaptation relevant is unknown. This DIIS Working Paper analyses the climate change adaptation relevance of the national budget (from 2014 to 2022), using the same methodology applied in a previous study (Yanda et al., 2013). The study further assesses the degree to which climate change adaptation financed is devolved to local government. The study finds that a disproportionately high proportion of climate adaptation finance is used at central government levels due to priorities being established at the ministry level. Moreover, the study finds that local governments lack discretion over climate change adaptation finance due to the country’s highly centralised policies, practices and procedures. Qualitative fieldwork indicates that nearly all climate change adaptation finance accessed by local governments comes with a central government tag (directive) on how to use it.
Topic:
Climate Change, Development, Environment, Poverty, Budget, and Inequality
Political Geography:
Africa and Tanzania

76. Inclusion and exclusion in Somali drought emergency assistance

Author:
Ahmed Musa
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
When drought or other emergencies strike in the Somali regions, the first responders are Somalis themselves, not the international humanitarian system. Based on family, kinship and more distant social ties, Somalis mobilise and deliver various forms of emergency assistance to the affected communities. Yet, mechanisms of inclusion and exclusion vary significantly, pending on the closeness of social ties, the power relations between local and international actors, and the number and forms of intermediaries. In this new DIIS Working Paper, Ahmed M. Musa, examines such local and transnational humanitarian practices and the mechanisms of inclusion and inclusion that they entail. Focusing on instances of drought in Somaliland, Musa argues that emergency assistance based on close social ties observes the overall humanitarian principle of impartiality. There are challenges, however, particularly when the social ties are more distant, as in the case of government-led or international responses. This may be mitigated, Musa shows, by the social contract of reciprocity between givers and recipients of assistance, going hand in hand with social sanctions where people abstain from helping those in need. Familiarity is thus central for impartial and inclusive access to emergency assistance, rather than an obstacle. The paper is an output from the Diaspora Humanitarianism in Complex Crises (D-Hum) research project in which Musa was a postdoc between 2020 and 2022. D-Hum analyses how Somali diaspora actors and their local counterparts mobilise, channel and deliver humanitarian assistance to Somalia and Somaliland during complex humanitarian crises. The project is funded by the Danish Consultative Research Committee for Development Research (FFU). Share on FacebookShare on TwitterShare on LinkedInSend link to page with mailPrint page
Topic:
Climate Change, Development, Environment, Migration, Poverty, Natural Resources, Inequality, Conflict, Borders, and Peace
Political Geography:
Africa and Somalia

77. Climate change actions in conflict affected contexts

Author:
Helene Maria Kyed and Justine Chambers
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Violent conflict and state oppression in Myanmar demonstrates the importance of placing conflict analysis and people-centred approaches at the centre of international programming on climate change and environmental protection. In 2021, the United Nation’s Intergovernmental Panel on Climate Change (IPCC) warned that the impacts of the climate crisis will be particularly pronounced in poor and conflict-affected countries. Research also identifies climate change as a ‘threat multiplier’ that, in combination with socio-political factors like poverty, state incapacity and inequality, can intensify violent conflict. However, gaps remain in how to address the increase in climate change vulnerabilities in contexts with violent conflict and state oppression. This is evident in Myanmar, where a historically repressive military regime is threatening to cause longer-term ‘climate collapse’. Since a military coup in February 2021, extractive activities and war economies are destroying the natural environment and placing communities at further risk of displacement, violent persecution and food shortages. These effects of conflict are reducing local people’s capacity to adapt to climate change and threatening civil society’s efforts to protect the environment. Under such conditions, climate change programming needs to place conflict analysis at its centre stage and substitute state-centric and purely technical approaches with people-centred ones, in alignment with the localisation of aid agenda.
Topic:
Climate Change, Democratization, Environment, Natural Resources, and Peacebuilding
Political Geography:
Southeast Asia and Myanmar

78. Most green funds do not have a sustainability impact

Author:
Jan Fichtner, Robin Jaspert, and Johannes Petry
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
ESG funds are growing rapidly. However, their impact on climate change mitigation and sustainability remains unclear. Recent research on the transmission mechanisms from sustainable finance to the real economy has identified key shortcomings that need to be addressed in order to reduce greenwashing and make these funds truly green.
Topic:
Climate Change, Environment, Capitalism, and Sustainability
Political Geography:
Global Focus

79. What needs to change for green funds to be truly green

Author:
Jan Fichtner, Robin Jaspert, and Johannes Petry
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Green investment funds are growing rapidly. However, their impact on climate change mitigation and sustainability remains unclear. Recent research has identified key shortcomings that need to be addressed in order to reduce greenwashing and make these funds truly green. Green finance is playing an ever more prominent role in recent years. Environmental, social and governance (ESG) funds, which constitute a key pillar of green finance, saw record inflows of hundreds of billions of US-dollars in recent years, primarily by retail investors. Essentially, these ‘green’ funds are integrating environmental, social and governance criteria, such as greenhouse gas emissions, labour rights and gender diversity into their investment strategy. They claim to invest less in the stocks of firms that are highly polluting or have bad governance practices, and instead buy the shares of corporations that appear to be more sustainable. In industry and policy debates, ESG funds are often cited as advancing the promotion of sustainability and helping to address climate change. However, the ESG concept, its underlying criteria, and its potential effects are highly controversial. Many critics see ESG primarily as ‘window dressing’, with no significant positive impact – either for the environment or for investors and employees.
Topic:
Climate Change, Environment, Oil, Gas, Capitalism, Sustainability, and Minerals
Political Geography:
Global Focus

80. Why adaptation projects do not stop climate-related migration

Author:
Lily Salloum Lindegaard, Nauja Kleist, Francis Jarawura, and Joseph Teye
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Climate change constitutes a critical challenge for subsistence rain-fed agriculture in the Global South. Increasing temperatures, irregular rainfall, and dry spells have negative, sometimes devastating, consequences for rural communities. Harvest yields diminish or fail, the planting season becomes unpredictable, and the dry season may be prolonged. While subsistence farming has always been demanding in such areas, climate change amplifies these challenges. As a result, local communities draw on a range of alternative farming methods and livelihood strategies, ranging from employing different crops to seasonal or long-term migration. Migration as an adaptation strategy, however, is widely rejected by international donors, national governments and sometimes local authorities. Rather, these actors often aim to enhance and promote local agriculture or other locally based livelihoods through in-situ adaptation projects, or adapting in place. This can be through providing (or selling) inputs to increase yields, e.g. drought resistant seeds, fertilizers or pest control; promoting new farming techniques, e.g. climate smart or conservation agriculture; or improving access to key resources, for instance water access through irrigation. Affected communities are supposed to stay where they are – in other words, deal with the challenges on the ground.
Topic:
Climate Change, Environment, Migration, Natural Resources, and Adaptation
Political Geography:
Global Focus and Global South