Why does integration of adaptation into national budgets matter?

Presented by Michael Brossman, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) at NAP Expo 2016

Coordinating
Climate-Resilient
Development
Why does integration of
adaptation into national
budgets matter?
Michael Brossmann
NAP Expo | July 11, 2016

Overview
 The role of domestic budgets in the
NAP process
 How to identify entry points for the
NAP process in the planning and
budgeting process?

Sources of adaptation
financing
Private
Domestic
International
• Domestic budget revenues
• Taxes
• Non-tax: rents, fees, fines
• Other fiscal instruments
• Subsidies, Gov’t bonds
• Grant resources & concessional
finance – bilateral ODA, GCF,
GEF, LDCF, SCCF, AF, etc.
• Philanthropy
• Development banks
Public
• Private commercial finance
• Microfinance
• Market based
• Debt financing: green bonds
• Insurance
• Private commercial finance
• Foreign direct investment
• Private funds mobilized
• Public co-financing
• Public-Private Partnerships
• Payments for Ecosystem Services

 Integration and implementation are not
possible without adequate finance
 Integration into budgeting is a
prerequisite for reliable finance
 Improving chances to access international
climate finance: showing budgetary
commitment, ownership, counterpart
funding
 Gap between what is available via
international sources and what is needed
to meet adaptation needs
Why domestic
budgets matter for
NAPs

Integration into planning and
budgeting processes
NATIONAL
PLANNING
PROCESS
NATIONAL
BUDGETING
PROCESS
National
Budget
Annual
Implementation &
Monitoring
Mid Term Review
of National Plan/
Sectoral Plan &
Adjustments
Annual sectoral
budgets
taking CC into
account
National Plan & Medium
Term Budget/
Expenditure Framework
taking CC into account
Sectoral Plans
Medium Term
taking CC into
account
Final
Evaluation
NATIONAL
PLANNING
PROCESS
NATIONAL
BUDGETING
PROCESS
National
Budget
Adaptation-
related Budget
Annual
Implementation &
Monitoring
Mid Term Review
of National Plan/
Sectoral Plan &
Adjustments
Annual sectoral
budgets
taking CC into
account
Sectoral Plans
Medium Term
taking CC into
account
National Plan & Medium
Term Budget/
Expenditure Framework
taking CC into accountFinal
Evaluation

Entry points for the NAP
process
Targeted & non-targeted
transfers
Coordination of
implementation
Annual tools
Annual development
action plan
Decentralised and
sector annual plans
National budget
Consistency of action + budget
Consistency of
action + budget
Medium term tools
Medium Term Expenditure
Framework
Decentralised and sector
strategies
National Development
Strategy
Harmonisation
of policies
Framework / Ceilings
for resource allocation
Sector projection and
yearly costing
Monitoring of results
Integration of yearly priorities
Monitoring of results
Integration of yearly priorities
Decentralised budgets
Coordination of
implementation
Adapted from Uandela (2010)

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