USE OF COUNTRY PLANNING AND BUDGETING SYSTEMS TO RESPOND TO CLIMATE CHANGE PAUL STEELE, UNDP.

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Presentation transcript:

USE OF COUNTRY PLANNING AND BUDGETING SYSTEMS TO RESPOND TO CLIMATE CHANGE PAUL STEELE, UNDP

Country systems for climate change: It’s a plumbing job Integrate climate into planning Integrate climate to budgets

Country systems: Institutional reforms Budget process: public expenditures and incentivizing private finance Promote climate finance units in Ministry of Finance(Indonesia, India) Inter-ministry climate finance groups (Bangladesh, Thailand, Cambodia) Local government needs climate expertise

Country systems: Budget execution and implementation Climate Fiscal Framework (Bangladesh) Climate impacts of capital budget assessed (VietNam) Climate strategy costed for budget (Cambodia) Local climate expenditure targets (Nepal) Public financial management for managing climate finance (Bangladesh)

Country systems: Accountability and monitoring Climate included in performance based budgeting (Bangladesh) Assessing climate expenditure quality ie cost-effectiveness (Indonesia) Budget climate coding/tracking (US, EC, Nepal, Indonesia) Distributional impacts of climate finance (Bangladesh)

Assessing country systems for climate : Climate Public Expenditure and Institutional Reviews (CPEIR) Review of Policies, Institutions, Expenditure Led by Ministry of Finance/Planning 10 countries in Asia Pacific (Bangladesh, Cambodia, Nepal, Indonesia, Pakistan, Samoa, Thailand, Viet Nam, soon India, China) Africa, Latin America and Caribbean Budgets and country systems Positive and negative expenditures

CPEIR Results Climate expenditure is significant (3-15% of total) Domestic expenditures important Climate funds can be a distraction as other expenditures more significant (eg Local Government, Social protection) Public Finance Management needed to manage climate finance Quality of expenditure key Ministry of Finance to Coordinate