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Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Transparency of support:
Tracking financial resources
received
Sara Moarif
CCXG Global Forum on the Environment
15-16 March 2016
2 Climate Change Expert Group
Transparency of financial support
received: outline
 Reporting of information under UNFCCC
o Current status
o Relevance
o Challenges
 Tracking receipt and use of finance
o Relevance
o Challenges
o Ongoing efforts
 Discussion questions
3 Climate Change Expert Group
Information on support received
currently requested under UNFCCC
4 Climate Change Expert Group
This information serves several purposes
within UNFCCC…
 Confirming whether funds for climate-relevant activities
are reaching developing countries
 Globally, providing a more complete overview of the flow
of climate finance
o Relevant to global stocktake (Art. 14)
o Transparency framework for support to provide clarity on
support received (Art. 13.6)
 To inform any assessment of “effectiveness”
o Reporting on support received, including the use, impact
and estimated results thereof (para 94d)
o Global stocktake meant to review adequacy and
effectiveness of support provided for adaptation (Art. 7.14)
5 Climate Change Expert Group
…though it remains difficult to
report…
 Limited guidance on how and what to report
 Setting up domestic tracking system can be challenging
 No connection to domestic tracking systems in place
6 Climate Change Expert Group
…and is ultimately most relevant for
domestic policy making
 Improves coordination and management needed for
policy implementation
 Provides accountability, i.e. resources are reaching
projects and people as planned, policies being delivered
 Assists with securing financial resources
 Helps in overall strategic planning, including pushing for
better donor coordination
7 Climate Change Expert Group
Tracking systems are specific to particular
domestic contexts and purposes
 Connected to overarching development priorities,
national budgets, existing tracking systems
 Covers wider range of activities, e.g. climate co-benefits
Tracking inflows and allocation in budgets
and expenditures
Domestic
public and
private funds
External
public and
private funds
Strategic
priorities
8 Climate Change Expert Group
Main challenges to tracking climate
finance received (1)
 Donor coordination, resource
predictability
 Lack of dialogue and
coordination between donor
and partner country
 Funds not always channelled
to central government, various
actors can be involved
 Limited use of national
tracking systems
9 Climate Change Expert Group
Main challenges to tracking climate
finance received (2)
 Need to add climate
“indicator” or “marker” to
financial flows and
budget systems
Country-specific
 Adapting existing
systems or developing a
new system for
monitoring climate funds
can be resource intensive
Source: Governance of Climate Change
Finance Team (UNDP) (2015), Budgeting
for Climate Change.
10 Climate Change Expert Group
Countries are actively working to
improve their domestic tracking systems
 Using a wide variety of tools, as appropriate for a given
country’s situation and priorities
o Climate Public Expenditure and Institutional Review
(CPEIR)
o Climate Budget Tagging (CBT)
 Low emission budget tagging and scoring system
(LESS)
 Climate expenditure tracking framework (CETF)
o Climate Change Financing Frameworks (CCFF)
o Setting up special climate change funds
 Best implemented in the context of broader budget
transparency and management systems
11 Climate Change Expert Group
Discussion questions
 How has tracking climate finance inflows helped improve
prioritisation, planning, and the identification of funding
gaps?
 What are three main challenges associated with tracking
climate finance inflows, and what options exist to
address them?
Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Thank you
sara.moarif@oecd.org

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Transparency of support: Tracking financial resources received, by Sara Moarif

  • 1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm Transparency of support: Tracking financial resources received Sara Moarif CCXG Global Forum on the Environment 15-16 March 2016
  • 2. 2 Climate Change Expert Group Transparency of financial support received: outline  Reporting of information under UNFCCC o Current status o Relevance o Challenges  Tracking receipt and use of finance o Relevance o Challenges o Ongoing efforts  Discussion questions
  • 3. 3 Climate Change Expert Group Information on support received currently requested under UNFCCC
  • 4. 4 Climate Change Expert Group This information serves several purposes within UNFCCC…  Confirming whether funds for climate-relevant activities are reaching developing countries  Globally, providing a more complete overview of the flow of climate finance o Relevant to global stocktake (Art. 14) o Transparency framework for support to provide clarity on support received (Art. 13.6)  To inform any assessment of “effectiveness” o Reporting on support received, including the use, impact and estimated results thereof (para 94d) o Global stocktake meant to review adequacy and effectiveness of support provided for adaptation (Art. 7.14)
  • 5. 5 Climate Change Expert Group …though it remains difficult to report…  Limited guidance on how and what to report  Setting up domestic tracking system can be challenging  No connection to domestic tracking systems in place
  • 6. 6 Climate Change Expert Group …and is ultimately most relevant for domestic policy making  Improves coordination and management needed for policy implementation  Provides accountability, i.e. resources are reaching projects and people as planned, policies being delivered  Assists with securing financial resources  Helps in overall strategic planning, including pushing for better donor coordination
  • 7. 7 Climate Change Expert Group Tracking systems are specific to particular domestic contexts and purposes  Connected to overarching development priorities, national budgets, existing tracking systems  Covers wider range of activities, e.g. climate co-benefits Tracking inflows and allocation in budgets and expenditures Domestic public and private funds External public and private funds Strategic priorities
  • 8. 8 Climate Change Expert Group Main challenges to tracking climate finance received (1)  Donor coordination, resource predictability  Lack of dialogue and coordination between donor and partner country  Funds not always channelled to central government, various actors can be involved  Limited use of national tracking systems
  • 9. 9 Climate Change Expert Group Main challenges to tracking climate finance received (2)  Need to add climate “indicator” or “marker” to financial flows and budget systems Country-specific  Adapting existing systems or developing a new system for monitoring climate funds can be resource intensive Source: Governance of Climate Change Finance Team (UNDP) (2015), Budgeting for Climate Change.
  • 10. 10 Climate Change Expert Group Countries are actively working to improve their domestic tracking systems  Using a wide variety of tools, as appropriate for a given country’s situation and priorities o Climate Public Expenditure and Institutional Review (CPEIR) o Climate Budget Tagging (CBT)  Low emission budget tagging and scoring system (LESS)  Climate expenditure tracking framework (CETF) o Climate Change Financing Frameworks (CCFF) o Setting up special climate change funds  Best implemented in the context of broader budget transparency and management systems
  • 11. 11 Climate Change Expert Group Discussion questions  How has tracking climate finance inflows helped improve prioritisation, planning, and the identification of funding gaps?  What are three main challenges associated with tracking climate finance inflows, and what options exist to address them?
  • 12. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm Thank you sara.moarif@oecd.org