Moving Toward Climate Budgeting : Policy Note
Climate change action by countries - both mitigation measures and adaptation measures requires planning over a long horizon in the face of uncertainty as well as, for many governments, costly financing in the near term. While flows of international...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/01/23069427/moving-toward-climate-budgeting-policy-note http://hdl.handle.net/10986/21036 |
| Summary: | Climate change action by countries -
both mitigation measures and adaptation measures requires
planning over a long horizon in the face of uncertainty as
well as, for many governments, costly financing in the near
term. While flows of international climate finance have
grown in recent years, it has become ever clearer that
countries need to consider all policy instruments. Climate
change is going to affect, in particular, the core business
of finance ministries related to fiscal policy, government
budgets, and public debt. This note focuses on public
expenditure management for climate actions rather than the
full spectrum of finance ministry responsibilities. Climate
change planning shares some common challenges with other
national policy objectives where multiple interests need to
be managed - but also presents some unique complexities.
This policy note presents several measures of immediate
interest to finance ministries for better fiscal planning
and expenditure management of climate actions. Drawing on
the sourcebook, climate change public expenditure and
institutional review, the note highlights three general
areas of financial and expenditures management where
improved practice will better prepare finance ministries to
deal with the fiscal implications of climate change: (i)
including climate change as a long-term objective in the
national budget and expenditure framework; (ii) improving
financial tracking and performance accountability by
spending agencies; and (iii) strengthening government
financial management systems to efficiently use external
climate finance. Targeted at the climate budget, these
actions will also promote financial discipline and overall
lead to more efficient and strategic public spending. This
policy note provides finance officials with seven detailed
recommendations based on the experience of World Bank client countries. |
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