CABRI Inclusive Budgeting and Financing for Climate Change in Africa

Four Peer Learning and Exchanges (PLEs) were organised during the inception phase, with participation from the following 22 African countries including Anglophone, Francophone and Lusophone Africa: Angola, Benin, Botswana, Burkina Faso, Ghana, Cabo Verde, Eswatini, Ethiopia, Guinea Bissau, Kenya, Lesotho, Liberia, Malawi, Mali, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Seychelles, South Africa and Uganda. In most cases, country representatives presented country experience, either as a formal presenter in the programme or through the opportunities provided for participants to share country experience more informally. Pilots: Ghana. Finalized its Second Climate Public Expenditure and Institutional Review (CPEIR) study. The report has since been published and already informing climate finance frameworks and mainstreaming of climate finance into public financial management systems and reforms. A Climate Budget Tagging (CBT) operations manual and associated guideline for the Government of Ghana has also been finalized. The operations manual provides step by step elaboration (how to) of the climate finance reporting system at the various Divisions at Ministry of Finance i.e. processes and procedures and methods and tools for preparing and analysing economic, financial, technical, legal, and environmental/social benefits to the investment projects/programmes. Cabo Verde. The projects supported the preparation of a financing framework for the National Determined Contribution (NDC). The timing for the Cabo Verde support was timely as the country had also started consultations on a Development Finance Assessment (DFA) and subsequent development of an Integrated National Financing Framework (INFF) for SDGs, aligned to their National Development Plan, also under preparation. Namibia. The country was supported by IBFCCA at the request of the government. Namibia finalized a feasibility study on the Implementation of a Climate Budget Tagging Tool on its fiscus, that led to proposed classification of climate relevant expenditure and coding of climate finance as a means to mainstream climate into public finance management systems. The study will contribute to the facilitation of public finance management systems reforms for effective mainstreaming of climate finance into national planning and budgeting. A similar study was conducted in South Africa which has enabled an exchange of experiences between the two neighboring countries. In the inception phase, each component focused on implementing activities as effectively as possible, in a short timeframe. Regular fortnightly coordination meetings ensured that all partners are aware of progress across the IBFCCA programme and partners have collaborated on some activities (eg UNDP and CARBI on PLE3 and IIED/IBP and CABRI on PLE4).

This is an inception phase (one year) of a wider another four year implementation programme. The wider objectives (full programme) are reduced CC impact with a gender focus and a reduced adaptation gap and promoting opportunities for just transition to low carbon economy. Immediate impact, institutional support: Reform and strengthening of the budget process of countries MoFs, strengthened pan-African negotiating position, empowered CSOs and accontability actors. Further potential impacts are increased levels of CC and gender expenditure public/private, increased effectiveness of expenditure through improved Climate Change Impact Assessment. Outcomes by components respectively: Component A (CABRI) Active liaison  officials/champions, African CC/Gender integration effective and networks working on CC Gender Integration.  Component B (UNDP) Government approval of country review, government approval of pilot reform. Component C (IIEED/IBP) Climate Finance Accountability (CFA)  by governments, state and non-state Accountability Actors, Engagement in peer exchange and Workshops in strengthening Climate Finance Assessment. Ouptputs starting during inception phase: Component A: case studies, peer exchange events, pilot IBFCCA portal, CC/Gender integration cadre operation.There will be four peer exchange and learning events during the Inception Phase, two of which will be led by CABRI under Component A. The third will be organized jointly by CABRI and IBP/IIED, with IBP/IIED organizing the preparation and CABRI organizing the actual peer exchange and learning event. The fourth will be organized jointly by CABRI and UNDP, again with UNDP organizing the preparation and CABRI organizing the event. Two specific reports will be prepared to inform the preparation of the Implementation Phase, one related to gender and the other to Covid. These reports will be self-standing and may be attached as annexes or working papers to the Implementation Phase Document. B: Country reviews differnt methods as CPEIR (CC Public Expenditure and Institutional Review), CCFF (Climate Change Financial Framework), CCIA (Climate Change Impact Assessment) CC tagging. This component will support two country actions in the Inception Phase: the first will be a country review and the second will support piloting a new budget/finance practice. The work will use the methods developed by UNDP Kenya and other relevant ones, with technical and financial support from UNDP Regional Service Centre for Africa, and the extensive experience of the UNDP Regional Hub in Bangkok over the last 8 years. The activities undertaken will be selected and led by country governments. C: Country CFA (Climate Finance Accountability).  The Inception Phase will involve a structured programme of capacity building for partner CSOs in 2 of the 4 focus countries (i.e. Ghana, Kenya, Mauritius and Mozambique). IBP and IIED already have some good working relationships with possible partners which will facilitate a rapid start to activities and minimise the constraints caused by the need to work remotely. The collaboration will be based primarily around the preparation of Climate Finance Accountability (CFA) Assessments for each country. The CFAs will provide a stocktake of the current state of climate finance transparency and accountability, including the role of Accountability Actors (AAs), and the “demand side” of climate finance management, including partnerships with civil society organizations (CSOs). It will build on the joint work of the International Budget Partnership (IBP) and International Institute for Environment and Development (IIED). In addition to the stocktake, the CFAs will provide a capacity needs assessment and propose an Action Plan for improving transparency and accountability over the short, mid and long term. A direct result of the inception phase will be a four year proposal of an implementation phase.  The following activities are expected to have substantial progress completed by the end of month 8 although the activities may not be completed and dissemination and approval work is unlikely to have taken place. • keynote papers and case studies for the first two peer exchange and learning (i.e. the review of African experience with integration and the gender/CC integration exchange)• two peer exchange and learning (i.e. for the review of experience with CC integration and for gender/CC integration)• the design studies for the portal and the capacity building and cadre• the country review (e.g. CPEIR/CCFF/CCIA)• the pilot reform (e.g. tagging)• the Country Climate Finance Accountability Landscape Assessments and the keynote paper for the third peer exchange and learning on CFAs.