Tom BeloeGovernance, Climate Change Finance and

Development Effectiveness AdvisorUNDP Asia Pacific Regional Centre

How does it relate to country systems?

COUNRTY LED DEFINITIONS

Characteristics of definitions• Different constituencies – different emphases

• Domestic and international

• Public and private

• Adaptation and mitigation

Focusing on country-led definitions

1. How is climate change policy articulated in public expenditure at the national level?

2. How are countries developing Climate Change Financing and Fiscal Frameworks for the future?

Asia Pacific: a map of climate expenditures

Country % of budget

% GDP Comments on data

Nepal 6.7 % 1.8% 10 ministries reviewed. Not include ‘off-budget’ donor support

Bangladesh 5.5 % 7.2 % (2010/11)

0.9%(2010/11)

37 ministries reviewed. Not include ‘off-budget’ donor support

Thailand 2.7 % 0.5% 14 ministries reviewed. Not include ‘off-budget’ donor support

Cambodia 14.9 - 16.9 % 3.1 – 6.9% All Government programmes reviewed and includes ‘off-budget’ donor support

Samoa 15 % 6 % All Government programmes reviewed and includes ‘off-budget’ donor support

Ministry of Agriculture

Ministry of Natural Resources and Environment

Ministry of Education

Local Government Division

Agriculture

Disaster Management and Relief Division

Local Development

Physical Planning and Works

Irrigation

Public Works and Transport

Ministry of Water Resources and Meterology

Ministry of Health

Land Transport Authority

Electricity and Petroleum Corporation

Ministry of Finance

THAI

LAND

BANG

LADE

SHNE

PAL

CAM

BODI

ASA

MO

A

55%

28%

6%

22%

20%

18%

30%

24%

15%

27%

13%

10%

36%

14%

13%

Climate Financing and Fiscal Frameworks managing future climate finance

• Budget cycle reform

• Improving domestic allocations

• Leveraging international finance

• Incentivising private sector

Planning

Budget

Treasury

ProcurementAccounting

Auditing

Reporting

Public Climate Finance

e.g. Budget requests from different ministries integrate climate change across their programmes and overall budget formulation explicitly includes climate change investment

e.g. Treasury utilises a budget marking system, developed with the budget department, to allow for climate expenditure to be tracked

e.g. Line Ministries establish climate related Key Performance Indicators that enable them to account for the performance of climate expenditure

e.g. Budget expenditure reports include explicit reporting on climate expenditures and impacts and presented to parliament and fed into planning and budgeting process

Civil Society

Parliament

Private Sector

Questions we will be taking forward

• What experience is there of establishing country-led climate financing frameworks?

• How is international finance aligning with country-led frameworks?

• How are we strengthening and using country systems to manage climate change finance?