Transcript Managing climate finance through country systems: UK

Managing climate finance through
country systems: UK experience
Malcolm Smart
Senior Economic Adviser
Department for International Development
Global Forum on Using Country Systems to Manage Climate Change Finance, 2-3
December 2013, Incheon, Korea
What I will cover
•How does the UK manage its resources to address climate change?
•What international climate finance does the UK provide?
•What is the UK’s commitment to using country systems
•Support to help build country systems for climate finance
•Managing climate finance through country systems
Slide 2
How does the UK manage its resources to address climate change?
Adaptation
Mitigation
• Legislates long-term
2050 emissions cut
target
• Rolling 5-year national
carbon budgets –
packages of measures
• Target-consistent
carbon prices in
policy/project
appraisals
• Taxes, ETS to internalise
cost of carbon
• Not about tracking
finance – tracking GHG
impact
Slide 3
Act sets the requirements for
DECC
DfT
Climate
Change
Act
Defra
National
UK CC Risk
Adaptation Assessment
Programme
Public resources
Devolved
Govts
Parliament
Env
Agency
Met
Office
Local
Government
Regional
bodies
Committee
on Climate
Change
Private Sector
•
•
Insurance industry
Advice & support to companies
See https://www.gov.uk/government/policies/adapting-to-climate-change
What international climate finance does the UK provide?
The International Climate Fund
Forests
Low Carbon Devt
Slide 4
Issues
Adaptation
What
• £3.8 billion over 5 years
• Split between 3
Departments (DFID,
DECC, Defra)
• Spent
• through multilateral
bodies (GEF, CIFs)
• on global progs.
• in-country
• 3 themes
Strong focus
on private
sector
Fast Start
pressures
on monitoring &
evaluation –
results
Mainstreaming CC
into other DFID progs
UK’s commitment to using country systems
Commitment to Busan principle
of country ownership
Issues in choice of climate
finance modality for working
with Government
 Support to strengthen
systems
 Considerable use made of
country systems where
conditions allow:
 Existence of costed national
strategy on climate change?
 Policy consistency?
 Reflected in budgetary
allocations?
 Able to track the finance?
 Results framework?
 CF greater fiduciary risks?
• Partnership Principles
• Fiduciary Risk
• Strong focus on results
and VfM
Slide 5
•
•
•
‘new’ partners in govt
no single Min oversight?
doing new things?
The UK is helping develop country systems for climate
finance
East African economics of CC
Planning & Strategy
Supporting state
action and other
subnational plans in
South Asia CPGD
Helping
Govts’
develop
M&E
systems TAMD
IIED
More generic
support to
strengthen
PFM &
accountability
Slide 6
National
development plan
Evaluation
MTEF rolling multiyear budget
Budget
Formulation
Audit
Monitoring
results
Accounting
for spend
Budget
Execution
studies & other support for
national plans in Rwanda, Kenya
(StARK+), Ethiopia CRGE
(SCIP), Nepal LAPAs, Indonesia
low carbon support to Min of
Finance, LDCF for NAPAs
Tanzania Climate Change
Institutional Strengthening
Programme to improve
Tanzania's access to climate
finance and use it effectively
Asia Regional programme
supporting strengthening
climate finance governance
(CPGD)
Support for CPEIRs via ODI
policy research programme
For project info see: http://devtracker.dfid.gov.uk/
Managing climate finance through country systems
Project using
DFID systems
Project with clearly
specified areas of spend
Most
Degree of Earmarking
Ethiopia £15m
through
MoFED as
part of ‘CHIP’
Seek to
ensure:
• consistency
with plans
• on-budget
Slide 7
Potentially India’s
National Rural
Employment
Guarantee
scheme
(MNREGA)
Support to the
Implementation
Plan for
Development
Resilient to CC in
the Caribbean £5m via regional
body
Other support
through Govt with CC
benefits
e.g.£344m for Ethiopia
Productive Safety-Nets
Climate change budget
support (DPL-type)
Least
Rwanda –
FONERWA
£22.5m to
National
climate fund
open to
GoR, CSO &
private
sector
None
to
date