In the Philippines, a push to boost climate finance transparency

How can one effectively monitor where government spending on climate-related activities is going and measure its impact? A country that is among the most vulnerable to natural disasters and climate change, the Philippines is introducing a landmark climate finance tagging system as a way to promote greater transparency and accountability of public spending on climate-related activities. With technical assistance support from the World Bank and co-funding from the Australian government, Philippine government agencies this year started the process of tagging climate-related activities in the proposed 2015 budget, which allocated 136.3 billion Philippine pesos ($3.04 billion) to climate change adaptation and mitigation programs. “The tagging system is rooted on the government’s promise to deliver services faster and more efficiently, before and after disasters,” Rolly Toledo, director at the fiscal planning bureau of the Philippines’ Department of Budget and Management, said at a news conference attended by Devex Friday. “We have to show people the effect and impact of climate funding and how it is spent.” The official added that apart from the tagging initiative, the government is planning to speed up the process of disbursing disaster funds, particularly to local government units, which are the first to respond to climate-related disasters. The government is targeting to reduce the processing time from 81 days to one month, according to Toledo. There are currently 42 local government units that have voluntarily participated in the tagging initiative on a pilot basis; the goal is to get all LGUs to participate by 2016. The Philippines is one of the few countries now tagging climate-related activities. Indonesia, Nepal and Bhutan are among those already implementing the initiative. Climate Change Commission Secretary Lucille Sering, meanwhile, said this effort to climate-proof the budget is a sign of increased synergy between the government and the rest of the international development community to address climate change issues. “This is part of our responses in making the national budget respond to the challenges of climate change,” she said. “They said before that we’re too reactive, but with this, we now want to be proactive. We are putting the money to where it should be placed which is climate resiliency and building back better.” Among the climate-related allocations in the 2015 Philippine budget is 45.1 billion Philippine pesos for flood control and 14 billion Philippine pesos for the country’s disaster risk reduction and management fund. The 1 billion Philippine peso People’s Survival Fund, a financing instrument that is meant to help vulnerable communities and local governments build resiliency to climate change, will draw financing from the latter. Check out more practical business and development advice online, and subscribe to Money Matters to receive the latest contract award and shortlist announcements, and procurement and fundraising news.