Climate Change Financing Frameworks (CCFF)

 

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.

 

Related Document