Climate Public Expenditure and Institutional Reviews (CPEIRs): Past Experience and the Way Forward 10th-12th September 2012, Bangkok View of workshop Over 22 countries from Asia Pacific, Africa, Latin America and Europe represented by Ministries of Finance, Ministries of Planning and Ministries of Environment met to discuss Climate Public Expenditure and Institutional Reviews (CPEIRs) together with multilaterals and bilateral agencies including the EU, Germany (GIZ), Korea, Sweden (SIDA), OECD, UK (DFID), USAID, the UN (UNCDF, UNDP and UNEP) and the World Bank. UNDP has so far supported CPEIRs in Bangladesh, Cambodia, Nepal, Samoa, Thailand and World Bank has supported them in Morocco and Philippines - many other countries are now interested. Context [1] Climate change is a development issue and development is managed by Ministries of Finance and Planning so they need to play a leading role – which CPEIRs can facilitate. [2] Dynamics of UNFCCC are such that climate finance is earmarked – challenge is how to ensure it is transferred and spent in most effective ways - applying the lessons from development effectiveness. [3] This require climate change and public finance policy specialists to be brought together and Finance, Planning and Environment ministries speaking the same language [4] CPEIRs are a demand driven tool arising from the global south, relevant for the global debateLearning from national experiences The rationale for doing a CPEIR [5] Provides analytical support to inform government decision-making and support climate change strategy development [6] Enhances understanding of what the public finance impacts of climate change are [7] Raises awareness on climate change issues amongst public finance managers [8] Enables better integration of climate issues in routine development plans and budgets [9] Potential exists to enable and outline reforms that strengthen accountability, transparency, good governance and environmental sustainability [10] It has the potential to be used as a tool to help mobilize resources and budget support [11] Reviews the role played by communities, civil society, private sector and international support in responding to climate change – and in complementing domestic finance [12] Climate change has specific challenges (uncertainty, extended timeframe, , wide scope (public sector infrastructure, tax issues etc.) that more general Public expenditure reviews might not address Approach taken to CPEIRs [i] Cross government steering group led by Finance and Planning Ministries with technical input from Ministry of Environment, e.g. Thailand’s Working Committee on Climate Fiscal Framework [ii] Builds and expands on Public Expenditure Review modality [iii] Review of policies and institutions [iv] Reviews whole budget (including sub-national level) to assess activities relevant for climate change Challenges in undertaking CPEIRs [1] All countries faced challenges in definition and identification of expenditures [2] Data collection challenges, particularly with external financing, public enterprises, local governments [3] Inclusion of climate change aspects in budget performance indicators is not yet systematised – difficult to assess ‘quality’ of climate expenditures and align expenditures with policy goals Opportunities in undertaking CPEIRs [i] Increases the visibility of climate change as a development issue across government [ii] Helps countries move towards greater policy and institutional coordination [iii] Ensures greater coherence between international and domestic climate finance flows [iv] Allows adjustments to be made to national budgets to promote longer term development outcomes.
Posted on: Fri, 14 Feb 2014 16:12:13 +0000
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