Transcript A Climate Financing Framework - adaptation

Linking economic analysis to the
articulation of a
Climate Financing Framework
Alex Heikens
Regional Policy Advisor Climate Change
UNDP APRC
[email protected]
1
Contents
• Towards a Climate Financing Framework
• The baseline situation: Climate Public Expenditure and
Institutional Review
• CPEIRs in Asia-Pacific: What have we learned so far?
• Cambodia’s case
2
A Climate Financing Framework
– link CC priorities with expenditure and taxation
decisions through the national budget process
– ensure that any external finances are used most
effectively alongside domestic resources,
– provide a framework to incentivize private
investments
3
Elements of a Climate Financing Framework
Identification &
integration
Accountability
Implementation
4
1. Identification & integration
Climate policy and measures are:
1. costed and prioritized
2. reflected in the planning and budgeting processes
3. at national and local levels.
5
2. Implementation
Climate related investments are designed and implemented
in ways that contribute to capacities of country systems for:
1. public financial management (PFM)
2. procurement
3. programme management
6
3. Accountability
An accountability framework is operationalized for
monitoring and reporting on:
1. climate related expenditures
2. achieved results
Build on existing national systems and accountability
mechanisms to parliament and citizens
7
Define your baseline situation first
8
Climate Public Expenditure and Institutional
Review (CPEIR)
Objective: To review allocation, management and results
of public expenditures related to climate change
Key-question: How is climate change reflected in national
policies, institutions and public expenditures?
Implementation: Led by government through cross
government steering group chaired by Finance or Planning
9
CPEIRs – what have we learned?
Policy and institutional recommendations
• Link budget to climate policy, so climate is part of budget
framework and performance measures
• Link climate policy to budget, so climate strategies are
prioritized and costed
• Coordination by finance & planning ministries with
technical input from environment ministries
• Large development projects should be made climate
resilient
• Local government also a key channel for climate finance
10
CPEIRs – what have we learned?
Expenditure recommendations
• The budget is key since much climate expenditure is
already in budget
• Sectoral focus: local government (Bangladesh, Nepal);
transport (Cambodia and Samoa); irrigation (Thailand)
• Too much focus on ‘extra-budgetary climate funds’
• Local government and social protection expenditures
much more significant
• Climate budgeting systems should review “dirty
expenditures”
11
CPEIRs – what have we learned?
Conclusions & take away messages
• CPEIRs help to set a baseline against which future
expenditures can be measured and monitored
• Economics of adaptation need to be much better
understood (costing & prioritizing)
• Capacity to deliver needs to be strengthened, and quality
of expenditures need to be improved and monitored
• International finance should build on domestic finance
• Promote the use national systems for planning,
execution, monitoring and reporting.
12
Cambodia’s case
•
•
•
•
•
Initial National Communications: 2002
Second National Communications: under prep
NAPA: 2007
Cambodia Climate Change Alliance: 2009
Cambodia CPEIR: 2012
– Around 15% of annual expenditure CC related
– In 2011: USD 769 million
• Cambodia Climate Change Strategy and Plan: under
prep
– Sector CCSPs: under prep
13
Costing the CCSP
• Nine sector Climate Change Strategic Plans under prep
– visions, goals and strategies in each sector.
• About 200 “strategies or actions” have been defined in
eight draft sector CCSPs so far available.
• None of the sector CCSPs include any costing
 Cambodia Climate Financing Framework (CCFF)
14
Developing the CCFF
•
•
•
•
•
Defining and costing strategies
Resources availability
Prioritization
Modalities
Management
15
Cambodia case
Planned Cost Benefit Analysis
• About 6 rapid CBAs on a range of CCSP actions
• Use available evidence and relying on quick consultation
• Focus on main investment actions across the sector
CCSPs.
• Estimate the total economic benefits of implementing the
CCSP.
• Identify main weaknesses in data
• Inform the formulation of the CCFF
16
Fitting CBA into a Climate Financing
Framework
Identification &
integration
Accountability
Implementation
17
Thank you
18
Group discussion
• What are the main gaps in understanding the baseline
situation in your country?
• What are the key-challenges with:
– Prioritizing programmes for budget allocations
– Implementing programmes
– Assuring the quality of expenditures
– Monitoring and reporting
• How much do the most vulnerable people really benefit?
19