Transcript 1. What is climate finance? - Climate Change Finance and

CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Climate finance and country systems:
methodology for review
Neil Bird
Research Fellow
Climate and Environment Programme
Using country systems to manage climate change finance: a Global Forum
2 December2013, Sheraton Incheon Hotel, Republic of Korea
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Purpose of study
• To review whether country systems are being used
to manage domestic and international climate
change finance across a range of countries
• To identify ways to strengthen country systems to
manage domestic and international climate change
finance
Sources of climate finance
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
For all countries:
• National revenues
• Domestic private sector
• Foreign private flows
There are two additional sources for non-Annex 1 countries :
• International climate funds
• Donor funds (bilateral and multilateral)
Why is using country systems important?
1.
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Country ownership is considered central to effective development, and
use of country systems is seen as a key driver of ownership.
2.
Well-functioning government institutions are vital for successful
development to occur.
3.
Aligning international funding better with government priorities, and
working more closely with government entities, has the potential to
make obtaining better results more likely, not least because it allows
for more cohesive planning processes and a whole-of-government
approach.
4.
Country systems influence access options for international climate
finance.
Definitions: using country systems
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Country – while ‘country ownership’ is often seen as going beyond the
national government, there is consenus that ‘country systems’ means
state institutions and processes.
Systems – going beyond public finance management and procurement
processes.
Methodology encompasses 4 categories of system:
1.National policy processes
2.Financial management systems
3.Implementation procedures
4.Accountability systems
Background to methodological
framework
•
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
A broad definition of ‘country systems’ (i.e. beyond financial
systems) is used.
•
A country-led understanding of what ‘climate finance’ should
cover (but excluding private sources for now).
•
Assess measures related to country system strengthening.
•
Existing assessments of the strength and use of country
systems are likely to be adequate for the analysis we are
carrying out/new measures are unlikely to be better.
•
Gender-sensitivity of methodology.
Criteria for use of Country Systems by climate
finance (CSCF)
Country Systems for Climate
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Questions for global stock-take
Finance (CSCF) Criterion
1
Public climate change finance
Do major climate change-related funded
is focused on results that
programmes appear as priority actions within
meet country priorities
national climate change strategies and national
development plans?
2
Public climate change finance
Is the credibility of the central government
is predictable over the budget
budget improving with respect to climate finance?
year
3
Countries PFM and
Does the national budget link to climate change
procurement systems are
policy priorities, with systems in place to ensure
strengthened for the delivery
timely implementation and reporting?
of climate finance
Criteria for use of Country Systems by climate
finance (CSCF)
Country Systems for Climate
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Questions for global stock-take
Finance (CSCF) Criterion
4
Public climate change finance is
Does the legislature and its relevant
on-budget that is subject to
committees scrutinise government financial
scrutiny by the national legislature
performance, including performance against
climate change-related objectives?
5
Information on public climate
Do mechanisms and modalities that
change finance is publicly available
promote transparency of climate finance
exist?
Criteria for use of Country Systems by climate
finance (CSCF)
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Country Systems for Climate Finance Questions for global stock-take
(CSCF) Criterion
Country Systems for Climate Finance (CSCF) Criterion
6
Gender
equality and women’s
Countries systems are strengthened
Driving questions for global stock-take
empowerment is a consideration in
process for the major climate
Gender equality and women’s empowerment is a
public
climate change finance
consideration in public climate change finance delivery
change related programmes gender
delivery
7
Is the planning and prioritization
Does the national budget link to climate change policy
priorities, with systems in place to ensure timely
implementation and reporting?
Is the planning and prioritization process for the major
climate change related programmes gender aware?
Civil society and the private sector operate within an
environment which maximises their engagement in and
contribution to climate compatible development
Civil society and the private sector
aware?
Do policy platforms provide opportunities for all
stakeholders to contribute to the process?
Do policy platforms provide
operate within an environment
opportunities for all stakeholders to
which maximises their engagement
contribute to the process?
in and contribution to climate
compatible development
Country reviews
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Early reviews to test this methodology are now being carried out
in five countries:
•Colombia
•Germany
•Indonesia
•Uganda
•United States of America
Country assessments – the context
Annual CO2 emissions (kt)
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Uganda
Colombia
Indonesia
Germany
USA
0
1000000
2000000
3000000
4000000
5000000
6000000
Country assessments – the context
GAIN index on vulnerability to climate change
(rank out of 176 countries)
Germany – 8
Increasing
vulnerability
USA – 15
Colombia – 57
Indonesia – 88
Uganda - 134
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Spending on Climate Change in
Uganda
Over the 4-year
period, 2008/9
to 2011/12,
available
evidence does
not show
significant
levels of
funding to have
come from
international
climate funds.
Donor
funds
Domestic
funds
Climate
funds
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Criterion 1:
Public climate change finance is focused
on results that meet country priorities
Climate
change is a
new policy
concern that
has matured
in the last
five years.
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Criterion 2:
Public climate change finance is predictable
over the budget year
Budgeted
expenditure
(bn Shs)
Outturn
expenditure
(bn Shs)
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Outturn vs.
budget as a
percentage
2008/09
96.9
41.5
57.2
2009/10
203.4
53.2
73.9
2010/11
153.6
66.5
56.7
2011/12
136.0
71.8
47.2
Annual predictability of donor funding is also low, with less than half of
relevant committed funds disbursed each year since 2008 .
Criterion 5:
Information on public climate change
finance is publicly available
Policy Area and
Output
Weather,
Climate and
Climate Change
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Reporting
Budget
Expenditure
Period
July 2012 to The total budget for
By the end of June 2013 Shs
June 2013 2012/13 was Shs 33.0
12.7 million had been spent.
million funded from central
government.
Source: www.budget.go.ug
The challenge is that many climate change relevant expenditures have not yet
been identified within the national budget documentation.
Climate finance and country systems
•
CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY
FOR ASIA AND PACIFIC
Studies of how both domestic and international climate finance
uses country systems have just begun.
•
Evidence on use and strength of country systems is urgently
needed to inform national and international policy on climate
finance
•
Countries will benefit from being able to exchange lessons and
innovation in this regard
•
Country assessment and methodology development should be
completed in January 2014
Thank you
Neil Bird
Overseas Development Institute
203 Blackfriars Road, London, SE1 8NJ
[email protected]