Presentation by Anila Cili (Financial Expert and Trainer, International Institute for Sustainable Development) given at the workshop "Jamaica’s National Adaptation Plan: Integrating Climate Change into National and Ministerial Budgets" in July 2017.

1. Coordinating
Climate-Resilient
Development
Institutionalizing financing of
climate change adaptation
Anila Cili
July 25, 2017
Kingston, Jamaica

2.  Crosscutting issues and how to overcome a
fragmented approach to assessing, planning,
mobilizing, spending and monitoring climate
finance
 The role of the Ministry of Finance and the Ministry
of Economic Growth and Job Creation
 The importance of collaboration between policy
and budget officers
Highlights

3. Overcoming a
fragmented
approach

4. Institutional Framework for
budget formulation, execution
and monitoring
 Institutional Framework (hierarchy of roles &
responsibilities of all institutional structures during
the budget cycle) refers to the government
functions, which in turn are reflected in the line
ministry missions, sector policies and their
portfolios.
 The head of the line ministry is ultimately the
person responsible to the government/parliament
for the formulation, execution and reporting on the
annual budget (budget is a political and financial
document).

5. Government Functions - OECD
1. General Public Services
2. Defense
3. Public Order and Safety
4. Economic Affairs
5. Environmental Protection
6. Housing and Community Amenities
7. Health
8. Recreation, Culture and Religion
9. Education
10.Social Protection

6. Line Minister role in budgeting
 Make sure the budget to be submitted in MoF is in line with
government policy formulation and the ministry strategic plan.
 Play a key role in the strategic planning process which will be
the basis for budget preparation.
 Make sure budget is submitted to MoF on time
 Make sure that budget is realistic and deliverable
◦ The organisation have adequate resources, i.e. human
resources and assets?
◦ The budget could be defended at MoF budget hearings.
◦ The budget is flexible to cope with any unforeseen events
during the year?
 Make sure that the budget is consistent across departments
 Establish the monitoring procedures (monthly/ quarterly/
yearly)

7. 1. Institutional structure responsible for strategic
planning
2. Ministry responsible for climate change: Leader for
preparation of the Climate Change strategy and
National Adaptation Plan,
3. Ministry of Finance: Main authority for preparation
and monitoring of public finance framework.
4. Line Ministries: Responsible for policy formulation
and implementation of respective sector strategies,
within annual financial plans.
5. National departments and agencies under
supervision of Line Ministries: Budget
implementation and monitoring functions.
6. Subnational institutions
Institutional structures involved
in CCA process

8.  Generally, the institutional framework is not prepared to
respond to initiatives with cross sectoral impact (i.e.
climate adaptation, gender, youth policy)
 Collaboration between institutions and knowledge about
the budget process are both crucial under the new
circumstances
 Therefore the need to create new instruments and
institutional structures while making use of or preserving
the country’s current legislation framework
Implications of cross-sectoral
issues into the Institutional
Framework for budget formulation,
execution and monitoring

9. The complexity of climate change adaptation
policies that have cross-cutting impacts.
Effective adaptation might lead to a reassessment of other
policy goals, and require coordination across regions, sectors
and tiers of government. This might require a review of
existing sectoral plans and medium term/annual budget as
well
 Is a policy with a cross-cutting impact considered a priority
by each line ministry / subnational institution?
 Are the finance experts aware about the new policy from
the very beginning?
Ministries/institutions may end up with budgetary requests
for additional funding during the programming phase.
Planning / Programming issues

10. Recently the focus is on the preparation of cross-sectoral
strategies and establishing several thematic groups and
mechanisms to overcome the fragmented approach in
planning process and resource mobilization.
 Are the above structures integrated into the vertical chain of
decision-making, up to approval of the final national budget
document?
 Do they have any authority on the public investment
management cycle (i.e. project screening criteria, approval
of new projects)?
 What communication links are established with the
respective heads of institutions?
Planning / Programming issues

11. Cross-cutting policies are difficult to implement
and report on from the managerial accountability
point of view.
 Who is the main manager / institution responsible
and accountable for implementing the new policy
and achieving the results?
 How should the accountability be divided between
institutions?
 Who is responsible for the budget execution within
the institutions (policy makers or finance officers)?
 Who reports to whom?
Implementation and Reporting
Issues

12. Generally, the coordination/inter-ministerial structures and
the climate change structure are responsible for reporting.
But they do not have control over the budget execution of
ministries, and their activity is not audited.
 Are the reporting lines the same as budget monitoring
lines?
 Could it be possible for inter-ministerial groups to ensure
control over the budget reallocations?
 Is it possible to centralize execution of the climate
change adaptation budget (i.e. create a CCA national
fund) under the authority of one inter-ministerial
body/national institution?
Implementation and Reporting
Issues

13. Institutional arrangements for the climate change adaptation
planning process should make as much use as possible of
existing institutional arrangements within organizations and
the national budgeting procedures, including the public
investment management system. The hierarchy of policy
decision-making (up to the head of institution and
government) cannot be replicated or replaced with horizontal
lines in low level management within and between
institutions.
How to overcome the fragmented
institutional approach and regulatory
barriers?

14. Albanian
Case

15. Medium Term Budgeting Program –
Institutional Review

16. Integrated Management Mechanism for
Implementation of Cross–Sector Strategies

17.  Who does what during the process?
 Which could be the appropriate approach? Potential
barriers?
‐ setting up a national institution on CC? What
status?
‐ setting up a national coordination body?
‐ setting up an integrated management body for
policy making, planning and monitoring?
‐other?
 How to influence policy decision‐makers in your
ministry and beyond?
Key points for
discussion

18. www.napglobalnetwork.org
info@napglobalnetwork.org
Twitter: @NAP_Network
Financial support provided by Secretariat hosted by

19. Suggested further reading about domestic public finance:
Frankfurt School UNEP Collaborating Centre for Climate &
Sustainable
Energy Finance (n.d.): National Climate Finance Institutions Support
Programme
GIZ (n.d.‐b): NAP Align: Recommendations for aligning national
adaptation plan processes with development and budget planning
GCCA+ (n.d.): Mainstreaming climate change in the budgetary
process
Hurley & Voituriez (2016): Financing the SDGs in the Least
Developed Countries (LDCs): Diversifying the financing toolbox and
managing vulnerability
UNDP (2011): Blending Climate Finance through National Climate
Funds. A Guidebook for the Design and Establishment of National
Funds to Achieve Climate Change Priorities
UNDP (2012): National Climate Funds: Learning from the experience
of Asia‐Pacific countries
UNDP (2015b): Climate Public Expenditure and Institutional Review
(CPEIR): A Methodological Guidebook
Additional resources

20. Suggested further reading about international public
finance:
Adaptation Committee (2015): Navigating the landscape of
support for the process to formulate and implement national
adaptation plans
GCF (2015): Engaging with the Green Climate Fund: A
resource guide for national designated entities and focal
points of recipient countries
OECD (n.d.): Climate Fund Inventory database
LEG (2015): Information paper on how the process to
formulate and implement national adaptation plans can be
supported in least developed countries.
National Adaptation Plan Global Support Programme (NAP‐
GSP). (n.d.).: NAP Global Support Programme jointly
implemented by UNDP and UNEP
Additional resources