Public Environmental Expenditure Review

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  • Publication
    Blended Finance for Climate Investments in India
    (Washington, DC: World Bank, 2024-03-13) International Finance Corporation
    The document collection focuses on the concept of blended finance for climate investments, emphasizing the need for innovative financial mechanisms to address climate change. It discusses the potential of blending public and private capital to mobilize investment in climate-related projects, aiming to achieve both environmental and financial returns. The collection explores various models and case studies to demonstrate the effectiveness of blended finance in driving sustainable development and combating climate change on a global scale.
  • Publication
    Climate Change Budget Tagging: A Review of International Experience
    (World Bank, Washington, DC, 2021-02) World Bank
    The purpose of this report is to provide development practitioners and government officials with an understanding of the context and key design features of climate budget tagging initiatives. It is based on a review of 18 climate budgeting tagging methodologies as well as key informant interviews with practitioners during 2020. The review is structured into five sections. The first draws lessons from three precursors of climate expenditure tagging: poverty tagging, gender-budget tagging, and budgeting for international development goals. The second provides an overview of climate finance reporting methodologies and climate expenditure reviews supported by international organizations. The third reviews technical and institutional aspects of the climate budget tagging methodologies and practices of a number of national governments. The fourth explores links between climate budget tagging and the green bond frameworks used to mobilize climate finance. The final section discusses the benefits of and challenges in implementing a climate change tagging system and also presents lessons learned from experience in budget tagging in general and its application to climate change in particular. The report does not assess the effectiveness of climate budget tagging, as this would require a more thorough and long-term evaluation.
  • Publication
    Environmental Fiscal Reform in Morocco: Options and Pathways
    (World Bank, Washington, DC, 2019-04-25) Peszko, Grzegorz; Platonova-Oquab, Alexandrina; Heine, Dirk; Timilsina, Govinda
    In response to the request from the Ministry of Environment and in close collaboration of the Ministry of Economy and Finance, the World Bank Group, with support from the Partnership for Market Readiness (PMR) and the NDC Support Facility, provided technical support to Morocco aimed at exploring the opportunities offered by environmental fiscal reform (EFR), such as that incorporating carbon pricing, to strengthen green growth. As part of this support, the WBG has assessed carbon pricing options that could be appropriate for Morocco and simulated their selected economic impacts with macroeconomic model in collaboration with the Research and Forecast Department of the Ministry of Economy and Finance (MoEF) of Morocco. This report outlines the key considerations for policy-makers in Morocco and presents a preliminary finding from modelling conducted by the MoEF in collaboration with the WBG, as well as identifies the needs for the secondary analysis. As part of its national development strategy, Morocco is implementing and planning further reforms of its fiscal systems, energy sector, industrial structure, as well as an ambitious climate change action as per the objectives of the Nationally Determined Contribution. This note explores whether and how these reforms might be supported by aligning fiscal incentives with sectoral policy objectives to accelerate the rate of future growth while reducing its carbon emission intensity. Environmental fiscal reforms (EFRs) are a collection of changes to tax, expenditure, and other policies which collectively seek to raise national development and welfare. This report explores potential options for implementing an environmental fiscal reform (EFR) as part of Morocco’s broader economic strategy and tests the impacts of these options with the Morocco’s CGE model. It is structured as follows. The second section discusses Morocco’s national development challenges and the strategic policy goals, where EFR can play a role. The third section provides an overview of options for EFR in Morocco, as identified by the World Bank Group team and national experts, including (i) modifications of fuel tax structure (TICs) to better reflect social costs of fuel use, (ii) butane subsidy reform, or (iii) more direct environmental pricing through taxes or emissions trading. The fourth section introduces the CGE model for Morocco, used by the DEPF, and simulates impacts of several potential EFR design options identified in the previous section. It also discusses the limitations of the existing CGE model to reflect the impacts of the EFR, and in this context analyzes the results of scenario analysis conducted with the CGE model. The fifth and final section concludes.
  • Publication
    Financing Vietnam's Response to Climate Change: Building a Sustainable Future
    (World Bank, Washington, DC, 2015-05-04) Vietnam Ministry of Planning and Investment; World Bank Group; United Nations Development Programme
    The Government of Vietnam (GoV) has conducted a Climate Public Expenditure and Investment Review (CPEIR) with the support of the World Bank and the United Nations Development Programme (UNDP). The review examined Vietnam’s policies and climate change expenditure for the period 2010–2013 from five ministries (MONRE, MOIT, MARD, MOC, and MOT) and three provinces (Bac Ninh, Quang Nam and An Giang). To assess the public expenditure and improve alignment with policy goals and targets, a Typology of Climate Change Response Expenditures (TCCRE) was developed. This typology was used to classify the government’s spending on its climate change response into three pillars: (i) Policy and Governance (PG), (ii) Scientific, Technological and Societal Capacity (ST), and (iii) Climate Change Delivery (CCD). The typology also examined how expenditure within each pillar and in each sector is relevant to Vietnam’s climate change response (CC-response). Since roughly 70 percent of the total investment spending is allocated at the provincial level, the analysis does not represent the totality of Vietnam’s CC-response, but still offers substantive insight into spending, in particular through a comprehensive focus on the five key line ministries. Based on its findings, the CPEIR proposes solutions for how to accelerate Vietnam’s CC-response through the state budget and informs decision makers on readiness for scaling up the CC-response while increasing coherence across sectors’ and provinces’ policies. The CPEIR report is released at an opportune time, allowing the review’s recommendations to inform the formulation and implementation of the SEDP 2016–2020, and enabling/ promoting the GoV’s post-2015 climate change and green growth response program.
  • Publication
    Financing Vietnam's Response to Climate Change: Smart Investment for a Sustainable Future
    (World Bank, Washington, DC, 2015-04) Vietnam Ministry of Planning and Investment; World Bank Group; United Nations Development Programme
    Climate-related hazards have adverse effects on national growth and poverty reduction, affecting the poor and several sectors of the economy simultaneously. At its current rate of growth, Vietnam will become a major global greenhouse gas (GHG) emitter. The Government of Vietnam initiated the Climate Public Expenditure and Investment Review (CPEIR) to advance an understanding of the current policy and institutional architecture as well as to assess current spending on its climate change response to help guide future climate change-related expenditures and policy implementation. The report has three components: (i) a policy, institutional and methodological review; (ii) an analysis of climate change response (CC-response) spending in five line ministries and three provinces; and (iii) recommendations and an action plan. The main goal of the CPEIR is to provide an overview of the current CC-response activities and formulate recommendations for how to improve priority setting, capacity building, coordination, expenditure management, and mainstreaming of CC-response strategies into socio-economic development plans.
  • Publication
    Getting a Grip on Climate Change in the Philippines : Extended Technical Report
    (Washington, DC, 2013-06) World Bank
    Philippines currently experience and will continue to face significant impacts from climate change. To ensure climate resilience, build a low-carbon economy, and increase its role in the global climate change dialogue, the Philippine government has launched strong climate policy and institutional and financing reforms, supported by a clear rationale for no-regrets action. However, transformative progress toward a more climate resilient society and low carbon economy remains limited. Carried out at mid-term of the first phase of the National Climate Change Action Plan (NCCAP), the Philippine Development Plan (2011-2016) and the current Administration, this review is an opportunity, and comes early enough, to ensure that first phase reforms are finalized and the groundwork for the second and third phases put in place. Recommendations consolidate the strategic direction of the NCCAP and set the stage for scaling up action over the next two phases. Specific activities are proposed to support eight objectives organized around three pillars: (i) strengthening the planning, execution, and financing framework for climate change; (ii) enhancing accountability through monitoring, evaluation, and review of climate change policies and activities; and (iii) building capacity and managing change.
  • Publication
    Getting a Grip on Climate Change in the Philippines : Executive Report
    (Washington, DC, 2013-06) World Bank
    The Philippines already experiences and will continue to face impacts from climate change. In the decades ahead, the most serious consequences will be felt in coastal and urban areas. Severe hardships are expected in agriculture and fisheries, leading to negative impacts on jobs and the economy. With these risks in mind the Philippine Government has initiated significant climate reforms, establishing a basis for transformation. To assess gaps and accelerate implementation of the climate reform agenda, in 2012 the Department of Budget and management and the climate change commission sought advisory services from the World Bank to carry out a Climate Public Expenditure and Institutional Review (CPEIR). Carried out at mid-term of the first phase of the national climate change action plan, the Philippine development plan (2011-2016), and the current administration, this review comes early enough to help guide the finalization and operationalization of the first phase of the climate reform agenda. This executive report summarizes the findings and recommendations of the CPEIR, including an analytical snapshot of the policies, institutions, and expenditures for undertaking climate action in the Philippines, and recommendations to contribute to a successful implementation of the Philippine climate reform agenda.
  • Publication
    Financing Public Environmental Expenditures in Mongolia
    (Washington, DC, 2010-03) World Bank
    Public environmental expenditure is an important policy matter for the Mongolian economy and society. Environmental expenditures include items related to protection of the environment that may be incurred by the public or private sectors. There are issues of coverage; in particular, some countries do not include natural resource sectors. Where an investment is made by industry, part of it may have the effect of reducing emissions. Rules for establishing environmental expenditure data were prepared by the Organization for Economic Cooperation and Development (OECD) in the late 1970s and revised in 2001. This note reviews the financing of public environmental expenditures in Mongolia. The aim is to obtain more information on the trends in this sector with respect to levels of spending as well as the breakdown of that spending between different areas. The study also aims to shed light on the effectiveness of the expenditures and how this has been changing since 2000. Finally, it makes some recommendations for changes that could improve the management of this sector.
  • Publication
    Implementing the Agenda of the Namibian Ministry of Environment and Tourism : A Rapid Country Environmental Analysis with a Public Expenditure Review for Aligning Policy, Institutional and Financing Priorities
    (Washington, DC, 2008-12) World Bank
    This report is organized around three thematic chapters. Chapter one looks at the contribution of the environment and tourism sector to the Namibian economy as well as at some key achievements and challenges. Chapter two describes the policy and legislative framework, and the institutional analysis of the environment and tourism sector. Chapter three examines the financing of the sector and some key budget management issues. And finally in chapter four of volume one, a set of recommendations and short- and medium-term actions are proposed that aim to assist the Ministry in the implementation of its up-coming work programs as well as the strategic plan. Chapter four of volume two includes the assessment of the financing of the sector at the local level using the example of the Erongo Region.
  • Publication
    Financing the Environment : Ukraine's Road to Effective Environmental Management
    (Washington, DC, 2003-02) World Bank
    This study presents a detailed analysis of the system of environmental expenditure in Ukraine with a particular focus on public expenditures. It examines the extent to which the present system meets national environmental objectives and identifies ways in which it can be improved and made more cost-effective. Since environmental spending is closely tied to sources of environmental revenues (partly a result of earmarking and partly because of the regulatory role that pollution charges and fines play), this review also covers revenue issues. The study is based on international systems of environmental accounting established by Organization for Economic Cooperation and Development (OECD).