Egmont Group: Financial intelligence might help end destructive ecological activities

There is an entire economy accelerating climate change worldwide, said Mohammed Shahid Ahmed, Vice-Chair of the Egmont Group, Report informs.

Shahid Ahmed made this insight at the Financial Intelligence Opportunities to Support Global Efforts to Combat Anthropogenic Climate Change event held as a part of COP29.

"In this context, financial intelligence allows us to analyze and detect illicit financial flows that finance and carry out environmental damage," Ahmed stated. "We should use our knowledge of illegal financial patterns to determine where ecologically degrading activities backed by money are occurring and how they cross borders. With robust financial intelligence mechanisms, we can halt these illicit flows and put an end to the environmentally destructive activities they sustain."

He further noted that illegal logging is rampant worldwide. "Deforestation accelerates climate change and disrupts the stability of ecosystems. Through financial intelligence, we can track the revenue generated from these activities, identify the parties involved, and disrupt their operations," he explained.

Moreover, financial intelligence exposes corruption that undermines climate governance. "When public funds for climate initiatives are diverted through corruption, it deprives communities of resources and erodes trust, allowing illicit gains to influence politics," Shahid Ahmed pointed out.

The vice-chair emphasized the need to amplify the importance of financial intelligence in addressing climate change. "It is an indispensable tool for disrupting the financing of environmental crimes and safeguarding the integrity of our climate policies. By investing in and prioritizing financial intelligence, we can dismantle the financial networks profiting from environmental harm and ensure that funds intended for climate action are protected from corruption," he concluded.