As countries recover from COVID-19 pandemic, there are growing calls across societies to build forward better, more inclusively and greener, and accelerate the transition to net zero-carbon economies. This Guidance Note draws on the experiences in climate budgeting that emerge from Asia-Pacific countries and captures emerging global trends with adopted principles and steps involved. It builds on the work of UNDP as a technical partner in the Coalition of Finance Ministers for Climate Action. It aims to provide the necessary information with a systematic approach to policy makers and practitioners for integrating climate change into budgets and strengthening climate policy planning and budgeting, with a focus on Medium-Term Budgeting.
The Guidance Note:
- Provides a step-by-step approach to integrating climate change into the budget preparation and approval stage, in line with public finance management (PFM) principles.
- Suggests possible interventions at each sub-stage for different sets of stakeholders.
- Provides supplementary information on relevant tools and case studies of various countries.
- Outlines principles that are responsive to the gradual strengthening of PFM reforms across the different stages of the budget cycle.