Domestic climate finance in Ghana Professor Felix Asante Institute of Statistical, Social and Economic Research University of Ghana Side event at the UNFCCC, COP 21, Paris Friday, 11 December 2015

Contents of Presentation 1.African studies on climate finance 2.Ghana 3.Ethiopia 4.Key messages from research

African studies on climate finance 3

Objectives for climate finance studies  To review public spending on activities that are related to climate change  To assess the extent to which this expenditure responds to existing policy and institutional arrangements  To show how climate change-relevant expenditure passes through the country’s budgetary system in response to national policy setting The purpose of presenting the results of these studies at this side event at UNFCCC, COP 21 is to show the achievement of governments’ commitment in addressing climate change issues in terms of public expenditure on climate change relevant actions.

African studies on climate finance 5 Level of public expenditure on climate change actions 1 1 These figures relate to spending recorded in the national budget only, for the years stated. They do not include ‘off-budget’ spending (nor commitments to fund in the future). Country Annual climate change relevant expenditure (average) Years ($ millions) (% of government expenditure) Ethiopia Tanzania Ghana Uganda

Domestic climate finance in Ghana

Climate change relevant budget as a percentage of GDP in Ghana for

Proportion of climate change public budget, Source: Authors’ own compilation

 The national climate change policy has called for annual spending of USD 1.3 billion to respond to climate change  With national budgetary resources for climate change-relevant actions estimated to be in the order of USD 266 million per year  and international sources adding an uncertain amount that may be in the tens of USD million per year  There appears to be a major financing gap to achieve national objectives towards responding to climate change. The Funding Gap Conclusions:

Domestic climate finance in Ethiopia Side event at the UNFCCC, COP 21, Paris Friday, 11 December 2015 Professor Zewdu Eshetu Climate Science Centre Addis Ababa University

Climate change relevant budget as a percentage of GDP in Ethiopia for

Proportion of climate change public budget,

 The national climate change strategy has called for USD 150 billion (annual spending of USD 7.5 billion) to respond to climate change  With national budgetary resources for climate change-relevant actions estimated to be in the order of USD 440 million per year  and international sources adding an uncertain amount that may be in the tens of USD million per year  There appears to be a major financing gap to achieve national objectives towards responding to climate change. The Funding Gap Conclusions:

Key messages from research 1.Analyses of spending on climate-related activities will only be possible if a system to identify climate spending is put in place 2.All public climate spending should be identified – not only that which passes through the national budget 3.Major skills improvement programmes on climate change planning and expenditure should be implemented 4.There appear to be major funding gaps for climate change actions – national budgetary expenditure needs additional resources