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Green Budgeting - Ronnie DOWNES, OECD

This presentation was made by Ronnie DOWNES, GOV-BUD, OECD, at the 14th CESEE SBO meeting held in Zagreb, Croatia, on 24-25 May 2018.

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PARIS COLLABORATIVE ON
GREEN BUDGETING:
FROM CONCEPT TO ACTION
Ronnie Downes
Budgeting and Public Expenditures Division
CESEE SBO
23-24 May 2018
Zagreb, Croatia
…using the tools of budgetary policy-making to
improve the impact of environmentally sound and
sustainable policies
This includes:-
– assessing the trajectory towards meeting national and
international commitments
– identifying “policy gaps” and areas for particular action
– assessing the coherence of policies and resources
– taking stock of environmental relative to other priorities
– contributing to informed, evidence-based debate and
discussion on sustainable and inclusive growth
2
“Green Budgeting”
Domestic and international action on environment:
– Air pollution, biodiversity, climate
– International agreements (Paris Agreement, Aichi
Biodiversity Targets, related Sustainable Development Goals)
– Imperative to align policy and all financial flows
3
“National and international commitments”
Implications for public finances?
 Fiscal sustainability
 Perverse incentives and misalignments
 Budgetary process (responses and preparation)
Launch of the Paris Collaborative
• Launched at One Planet
Summit, 12 Dec 2017 in
Paris
• Convened by OECD,
working in close
partnership with
governments and
experts
• Budgeting for inclusive and sustainable
growth
• Long-term fiscal sustainability
• Environmental cost-benefit
assessments
• Environmental tax reform
• Carbon pricing and reform of harmful
subsidies
5
Building on existing OECD work streams
1. Primer on green budgeting
2. new Green Budget Statement
3. Engage working groups for
further scoping and refine new
green budgeting tools
4. Develop new methodological
approaches
6
A roadmap for the Paris Collaborative

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Green Budgeting - Ronnie DOWNES, OECD

  • 1. PARIS COLLABORATIVE ON GREEN BUDGETING: FROM CONCEPT TO ACTION Ronnie Downes Budgeting and Public Expenditures Division CESEE SBO 23-24 May 2018 Zagreb, Croatia
  • 2. …using the tools of budgetary policy-making to improve the impact of environmentally sound and sustainable policies This includes:- – assessing the trajectory towards meeting national and international commitments – identifying “policy gaps” and areas for particular action – assessing the coherence of policies and resources – taking stock of environmental relative to other priorities – contributing to informed, evidence-based debate and discussion on sustainable and inclusive growth 2 “Green Budgeting”
  • 3. Domestic and international action on environment: – Air pollution, biodiversity, climate – International agreements (Paris Agreement, Aichi Biodiversity Targets, related Sustainable Development Goals) – Imperative to align policy and all financial flows 3 “National and international commitments” Implications for public finances?  Fiscal sustainability  Perverse incentives and misalignments  Budgetary process (responses and preparation)
  • 4. Launch of the Paris Collaborative • Launched at One Planet Summit, 12 Dec 2017 in Paris • Convened by OECD, working in close partnership with governments and experts
  • 5. • Budgeting for inclusive and sustainable growth • Long-term fiscal sustainability • Environmental cost-benefit assessments • Environmental tax reform • Carbon pricing and reform of harmful subsidies 5 Building on existing OECD work streams
  • 6. 1. Primer on green budgeting 2. new Green Budget Statement 3. Engage working groups for further scoping and refine new green budgeting tools 4. Develop new methodological approaches 6 A roadmap for the Paris Collaborative
  • 7. Launch at One Planet Summit, 12 Dec 2017 in Paris 22 May 2018 Introductory workshop 20 June 2018 Experts Workshop September: One Planet Summit progress report 7 A roadmap for the Paris Collaborative • Elaborate on green budgeting definition • Scope potential green budgeting tools • Engage working group for further scoping • Develop new methodological approaches • Pilot and refine new green budgeting tools
  • 8. a voluntary reporting tool to assess: • the environmental impact of key budget measures • contribution of annual budget to reaching environmental objectives • level and aptness of resources associated with policy measures • consistency of budgetary policies • areas for future action 8 draft output 1: Green Budget Statement prototype
  • 9. 9
  • 10. • Green Budget Statement – see next slide • Green Budget Baseline Analysis - “heat-map” of the environmental impact of the expenditure and tax-policy baseline • Green Budget Benchmarks to provide cross-national indicators of progress against various international environmental goals • Environmental Cost-Benefit Analysis, a major update of OECD reference publication • Green Budget Sustainability Report – long-term fiscal implications of low carbon, environmentally-sustainable economy • Tax Decarbonisation Country Scan to gauge the impact of carbon pricing and decarbonisation on fossil fuel use and on tax revenues • Green Balance sheet – valuing natural assets and liabilities • Sectoral Profile – practical impact of environmental tools? 10 Other potential deliverables
  • 11. • How relevant is ‘green budgeting’ for your countries? • Which potential outputs would be most promising, in your view? • How would CESEE SBO network and its members wish to get involved? 11 Questions for discussion