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USE OF COUNTRY PLANNING AND BUDGETING SYSTEMS TO RESPOND TO CLIMATE CHANGE PAUL STEELE, UNDP Country systems for climate change: It’s a plumbing job Integrate climate into planning Integrate climate to budgets Country systems: Institutional reforms • Budget process: public expenditures and incentivizing private finance • Promote climate finance units in Ministry of Finance(Indonesia, India) • Inter-ministry climate finance groups (Bangladesh, Thailand, Cambodia) • Local government needs climate expertise Country systems: Budget execution and implementation • Climate Fiscal Framework (Bangladesh) • Climate impacts of capital budget assessed (VietNam) • Climate strategy costed for budget (Cambodia) • Local climate expenditure targets (Nepal) • Public financial management for managing climate finance (Bangladesh) • • • • Country systems: Accountability and monitoring Climate included in performance based budgeting (Bangladesh) Assessing climate expenditure quality ie cost-effectiveness (Indonesia) Budget climate coding/tracking (US, EC, Nepal, Indonesia) Distributional impacts of climate finance (Bangladesh) Assessing country systems for climate: Climate Public Expenditure and Institutional Reviews (CPEIR) • Review of Policies, Institutions, Expenditure • Led by Ministry of Finance/Planning • 10 countries in Asia Pacific (Bangladesh, Cambodia, Nepal, Indonesia, Pakistan, Samoa, Thailand, Viet Nam, soon India, China) • Africa, Latin America and Caribbean • Budgets and country systems • Positive and negative expenditures CPEIR Results • Climate expenditure is significant (3-15% of total) • Domestic expenditures important • Climate funds can be a distraction as other expenditures more significant (eg Local Government, Social protection) • Public Finance Management needed to manage climate finance • Quality of expenditure key • Ministry of Finance to Coordinate