Transcript Domestic climate finance in Ghana

Domestic climate finance in Ghana
Professor Felix Asante
Institute of Statistical, Social and Economic Research
University of Ghana
Side event at the UNFCCC, COP 21, Paris
Friday, 11 December 2015
Contents of Presentation
1. African studies on climate finance
2. Ghana
3. Ethiopia
4. Key messages from research
African studies on climate finance
3
Objectives for climate finance studies
 To review public spending on activities that are related to climate
change
 To assess the extent to which this expenditure responds to existing
policy and institutional arrangements
 To show how climate change-relevant expenditure passes through the
country’s budgetary system in response to national policy setting
The purpose of presenting the results of these studies at this side event
at UNFCCC, COP 21 is to show the achievement of governments’
commitment in addressing climate change issues in terms of public
expenditure on climate change relevant actions.
African studies on climate finance
Level of public expenditure on climate change actions1
Country
Annual climate change relevant
expenditure (average)
Years
($ millions)
(% of government
expenditure)
Ethiopia
440
14.5
2008-2011
Tanzania
383
5.5
2009-2012
Ghana
266
2.6
2011-2014
25
0.9
2008-2011
Uganda
1 These
figures relate to spending recorded in the national budget only, for the years stated. They
do not include ‘off-budget’ spending (nor commitments to fund in the future).
5
Domestic climate finance in Ghana
Climate change relevant budget as a
percentage of GDP in Ghana for 2011 - 2014
1.2
1
0.8
0.6
0.4
0.2
0
2011
2012
2013
2014
Proportion of climate change public budget,
2011 - 2014
10%
Adaptation
22%
Mitigation
REDD+
68%
Source: Authors’ own compilation
Conclusions:
The Funding Gap
 The national climate change policy has called for annual spending of
USD 1.3 billion to respond to climate change
 With national budgetary resources for climate change-relevant actions
estimated to be in the order of USD 266 million per year
 and international sources adding an uncertain amount that may be in
the tens of USD million per year
 There appears to be a major financing gap to achieve national
objectives towards responding to climate change.
Domestic climate finance in Ethiopia
Professor Zewdu Eshetu
Climate Science Centre
Addis Ababa University
Side event at the UNFCCC, COP 21, Paris
Friday, 11 December 2015
Climate change relevant budget as a percentage of GDP in Ethiopia
for 2008 - 2011
2.5
2
1.5
1
0.5
0
2008/9
2009/10
2010/11
2011/12
Proportion of climate change public budget,
2008 - 2011
13 %
Adaptation
Mitigation
87 %
Conclusions:
The Funding Gap
 The national climate change strategy has called for USD 150 billion
(annual spending of USD 7.5 billion) to respond to climate change
 With national budgetary resources for climate change-relevant actions
estimated to be in the order of USD 440 million per year
 and international sources adding an uncertain amount that may be in
the tens of USD million per year
 There appears to be a major financing gap to achieve national
objectives towards responding to climate change.
Key messages from research
1. Analyses of spending on climate-related activities will
only be possible if a system to identify climate
spending is put in place
2. All public climate spending should be identified – not
only that which passes through the national budget
3. Major skills improvement programmes on climate
change planning and expenditure should be
implemented
4. There appear to be major funding gaps for climate
change actions – national budgetary expenditure
needs additional resources