Climate Change Financing Frameworks (CCFF)

A comprehensive CCFF framework can be understood as a whole-of-government approach that broadly engages all relevant stakeholders toward the mobilization, management, and targeting of climate change finance.

A CCFF includes but is not restricted to the following elements:

Definition of what actually constitutes climate change related activities in a manner that is robust, nationally-determined and commonly agreed by concerned stakeholders
Costing of planned climate change response actions in the medium and longer term
Measurement of resources available to address climate change mitigation and/or adaptation in the medium and long term
Identification of the institutional entry points to bring public sources of climate change relevant finance (domestic and international) into the national appraisal and prioritisation of the budget
Ensuring accountability over the use of climate change related finance, both domestically vis-à-vis the national public and beneficiaries, particularly for the poor and vulnerable.

Example of Bangladesh:

Bangladesh developed a Climate Fiscal Framework, which was approved in June 2014 following the 2012 CPEIR. It aims to promote a reform roadmap whereby:

The definitions of climate change relevant expenditures systematically reflect national policies, priorities and circumstances.
The GoB explores opportunities in accessing more domestic finance through implementation of a carbon tax, reduction of harmful subsidies and other market reforms (e.g. in the electricity market).
Ministry of Finance provide guidelines to line ministries to assess the climate change relevance of their programs through the annual budget circular.
Line ministries explain the climate change impact of their programs in their Ministry Budget Frameworks submitted to Finance Division
Climate change-related expenditures are routinely tracked and measured in the integrated Budget and Accounting System according to the Bangladesh CC Strategic Action Plan thematic areas (adaptation, mitigation, R&D etc.)
The GoB can more effectively access international climate finance as well as manage and monitor off treasury national climate change funds.
National budget processes allows the monitoring and evaluation of climate change activities through reporting on effectiveness (KPIs etc.), CAG led performance audits and parliamentary oversight.
Institutional weaknesses and skills gaps are identified and addressed. For example, Finance Division is considering the establishment of a climate change cell to coordinate climate change related finance mainstreaming.

Other similar frameworks developed In Asia-Pacific include the Mitigation Fiscal Framework of Indonesia published in 2012 and the Cambodia Climate Change Financing Framework in 2014.