climate finance and country systems: methodology for review neil bird research fellow climate and...
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Climate finance and country systems: methodology for review
Neil BirdResearch 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
CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
• 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
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)
Sources of climate finance CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
1. 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.
Why is using country systems important?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
Definitions: using country systemsCAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
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)
CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
Country Systems for Climate
Finance (CSCF) Criterion
Questions for global stock-take
1 Public climate change finance
is focused on results that
meet country priorities
Do major climate change-related funded
programmes appear as priority actions within
national climate change strategies and national
development plans?
2 Public climate change finance
is predictable over the budget
year
Is the credibility of the central government
budget improving with respect to climate
finance?
3 Countries PFM and
procurement systems are
strengthened for the delivery
of climate finance
Does the national budget link to climate change
policy priorities, with systems in place to ensure
timely implementation and reporting?
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 (CSCF) Criterion
Questions for global stock-take
4 Public climate change finance is
on-budget that is subject to
scrutiny by the national legislature
Does the legislature and its relevant
committees scrutinise government financial
performance, including performance against
climate change-related objectives?
5 Information on public climate
change finance is publicly available
Do mechanisms and modalities that
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 (CSCF) Criterion Driving questions for global stock-take
Countries systems are strengthened Does the national budget link to climate change policy priorities, with systems in place to ensure timely implementation and reporting?
Gender equality and women’s empowerment is a consideration in public climate change finance delivery
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
Do policy platforms provide opportunities for all stakeholders to contribute to the process?
Country Systems for Climate
Finance (CSCF) Criterion
Questions for global stock-take
6 Gender equality and women’s
empowerment is a consideration in
public climate change finance
delivery
Is the planning and prioritization
process for the major climate
change related programmes gender
aware?
7 Civil society and the private sector
operate within an environment
which maximises their engagement
in and contribution to climate
compatible development
Do policy platforms provide
opportunities for all stakeholders to
contribute to the process?
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
Country assessments – the context
GAIN index on vulnerability to climate change (rank out of 176 countries)
CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
Increasing vulnerability
Germany – 8
USA – 15
Colombia – 57
Indonesia – 88
Uganda - 134
Spending on Climate Change in Uganda CAPACITY DEVELOPMENT FOR
DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
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.
Criterion 1:Public climate change finance is focused on results that meet country priorities
CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
Climate change is a new policy concern that has matured in the last five years.
Criterion 2:Public climate change finance is predictable over the budget year
CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
Annual predictability of donor funding is also low, with less than half of
relevant committed funds disbursed each year since 2008 .
Budgeted expenditure
(bn Shs)
Outturn expenditure
(bn Shs)
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
Criterion 5:Information on public climate change
finance is publicly available
CAPACITY DEVELOPMENT FOR DEVELOPMENT EFFECTIVENESS FACILITY FOR ASIA AND PACIFIC
The challenge is that many climate change relevant expenditures have not
yet been identified within the national budget documentation.
Policy Area and Output
Reporting Period
Budget Expenditure
Weather, Climate and Climate Change
July 2012 to June 2013
The total budget for 2012/13 was Shs 33.0 million funded from central government.
By the end of June 2013 Shs 12.7 million had been spent.
Source: www.budget.go.ug
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 Institute203 Blackfriars Road, London, SE1 8NJ [email protected]