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Session 2 Adrian Fozzard

Climate Change Tagging-Emerging Issues Green Budgeting Virtual Meeting - 17 March 2020

1 of 8
Climate Change Tagging
Emerging Issues
2
Applications
 Development Finance
 All ODA (Rio Markers) since 1998
 All Multilateral Development Banks
since 2011
 Green Bonds
 Institutional issuers since 2008
 Sovereign bonds since 2016
 Public Expenditure Reviews
 World Bank and UNDP, 20+ since 2010
 Budgeting
 Developing countries, 11+ since 2012
3
Key Elements
Policy
 Mitigation
 Adaptation
 Adverse climate
impacts
Definition
 Positive list
 Objective
 Policy Alignment
Measurement
 All
 Objective
 Policy Alignment
4
Coverage
 Expenditures (programs)
 Tax Expenditures
 Subsidies / Guarantees
 Revenues
 Sub-National
Government
 State-Owned Enterprises
1. Central
agencies
propose macro &
budget work
2. Government
approves
guidelines &
ceilings
3. Central
agencies issue
budget circular &
ceilings
4. Spending
agencies prepare
budget proposals
5. Central &
spending
agencies
negotiate
budgets
6. Central
agencies
finalizes State
budget
8. Legislature
debates,
amends,
approves state
budget 7. Government
approves &
submits to
legislature
9. Central
agencies
release funds
10. Spending
agencies
execute and
report
12. Audit
Institution
prepares &
issues audit
report11. Central
agencies
prepare reports
& statements
Integration in
Budget Process
13. Legislature
reviews &
approves audit
report
Climate
Policies &
Plans:
Bangladesh,
Vietnam
Climate
Guidelines
Bangladesh,
Nepal
Philippines,
Indonesia,
Uganda
Climate Annex
Bangladesh,
Finland,
Indonesia,
Philippines,
Uganda
Climate Citizens
Budget
Bangladesh,
Philippines,
Nepal
Execution
Report
Bangladesh
Performance
Audit
Bangladesh
?
6
Impacts
Awareness Raising 
Communication 
Resource Allocation  ?
Resource Mobilization 
Fiduciary 
Accountability 

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Session 2 Adrian Fozzard

  • 2. 2 Applications  Development Finance  All ODA (Rio Markers) since 1998  All Multilateral Development Banks since 2011  Green Bonds  Institutional issuers since 2008  Sovereign bonds since 2016  Public Expenditure Reviews  World Bank and UNDP, 20+ since 2010  Budgeting  Developing countries, 11+ since 2012
  • 3. 3 Key Elements Policy  Mitigation  Adaptation  Adverse climate impacts Definition  Positive list  Objective  Policy Alignment Measurement  All  Objective  Policy Alignment
  • 4. 4 Coverage  Expenditures (programs)  Tax Expenditures  Subsidies / Guarantees  Revenues  Sub-National Government  State-Owned Enterprises
  • 5. 1. Central agencies propose macro & budget work 2. Government approves guidelines & ceilings 3. Central agencies issue budget circular & ceilings 4. Spending agencies prepare budget proposals 5. Central & spending agencies negotiate budgets 6. Central agencies finalizes State budget 8. Legislature debates, amends, approves state budget 7. Government approves & submits to legislature 9. Central agencies release funds 10. Spending agencies execute and report 12. Audit Institution prepares & issues audit report11. Central agencies prepare reports & statements Integration in Budget Process 13. Legislature reviews & approves audit report Climate Policies & Plans: Bangladesh, Vietnam Climate Guidelines Bangladesh, Nepal Philippines, Indonesia, Uganda Climate Annex Bangladesh, Finland, Indonesia, Philippines, Uganda Climate Citizens Budget Bangladesh, Philippines, Nepal Execution Report Bangladesh Performance Audit Bangladesh ?
  • 6. 6 Impacts Awareness Raising  Communication  Resource Allocation  ? Resource Mobilization  Fiduciary  Accountability 
  • 7. 7 Critiques Relevance  Credibility  Spending Bias  Decision Making  Policy Straitjacket Romain Weikmans, J. Timmons Roberts, Jeffrey Baum, Maria Camila Bustos & Alexis Durand (2017) Assessing the credibility of how climate adaptation aid projects are categorised, Development in Practice, 27:4, 458-471. Proportion of projects that each donor has over-coded
  • 8. 8 Next Steps  Evaluation  Revive Policy Analysis  Knowledge Exchange