Climate Change Planning and Budgeting

UNDP, Cambodia

Cambodia is consistently ranked as one of the ten countries most vulnerable to climate change, and one of the three most vulnerable in Asia. Initial analysis based on the scenario of a 2°C temperature rise by 2050 estimates that the full damage of climate change on Cambodia’s GDP will be at least 1.5% in 2030, and 3.5% in 2050. In other words, if the annual growth rate of GDP without climate change was expected to be 4.5% in 2030, it would be reduced to 3% due to the impacts of climate change. By 2050, GDP growth could be almost entirely offset (reduced to 1% only) by the impacts of climate change (CCFF, 2014).

A recent Climate Public Expenditure Review conducted for the development of the Cambodian Climate Change Financing Framework (CCFF) indicated that the level of climate related expenditures has grown steadily from 0.9% of GDP (367 Bn riels) in 2009 to 1.3% of GDP (847 Bn riels) in 2014. Due to the potential impacts of climate change on the Cambodian economy, it is essential that climate related expenditures be managed in the most efficient and effective way.

In this context, the National Council for Sustainable Development (NCSD) and the Ministries of Environment (MOE) and Economy and Finance (MEF) have agreed a three year programme to strengthen the integration of climate change into government planning and budget processes.

As part of this programme, planning and budgeting processes are being reviewed and tools are being tested so as to reflect climate change in national planning and budgeting processes, and to take into account climate change in the prioritization of public investments. Given the climate sensitivity of public infrastructure and in particular of the water management and public works and transport sectors in the management in the climate change response, Ministry of Public Works and Transport (MPWT) and Ministry of Water Resources and Meteorology (MoWRAM) have been selected to conduct this initiative in 2016, following an initial pilot in the agriculture sector in 2015. Both ministries have 5-year Climate Change Action Plans in place, and designated focal points for climate change.

The main objective of this assignment was to improve the efficiency and effectiveness of climate public expenditure under MPWT and MOWRAM and to support the mobilization of corresponding resources through the strengthening of these ministries capacities and skills to:

  • Ensure that the climate change dimension is recognized explicitly in MPWT and MOWRAM budget submissions to the Ministry of Economy and Finance, and supported by cost-benefit analysis (and other evidence as required);
  • Provide evidence to prioritize climate change budgets and projects and align them with national and sectoral climate policy objectives;
  • Provide guidance and recommendations to the Climate Change focal points and concerned departments in the ministries on integrated planning and budgeting related to climate change, as well as monitoring and evaluation of the impacts of expenditures related to climate change.

Image by Juan Antonia Segal

The people behind the project

Principal Consultant