From Pilots to Scale Fiji’s Journey to Climate Sensitive Budgeting National & Subnational Budgets as a Source of Climate Sensitive Governance 4th March 2019 Ministry of Economy Government of the Republic of Fiji

Need for Climate Sensitive Development MAP OF FIJI Strong emphasis on sustainable, inclusive, resilient and low carbon development A ‘development-first’ approach to managing climate and disaster risks in Fiji Centralised role of Climate Change and International Cooperation Division within Ministry of Economy Financing Needs National Development Plan = US $25 billion by 2036 Climate Vulnerability Assessment = US $4.6 billion by 2036 NDC Implementation Roadmap = US $2.9 billion by 2030

National Budget Process PSIP Submissions Made Budget Circular Government Agencies Prepare PSIP Submissions Budget Appraisal Process Begins Final Budget Prepared Draft Budget Prepared Consultations with Public Consultations with Government Agencies Annual Work Programme Budget Endorsed by Parliament after Rigorous Debate Budget Uploaded onto FMIS System PFM System used year long to access and report on budget usage RIE Request

Fiji’s PFM Improvement Plan Current system is more than 10 years old Systematic overhaul of financial policies, procedures and technology by 2020 with new chart of accounts A plan that the Fijian Government is using to introduce risk informed development PFM System FMIS Ministry of Economy PFM Users Government Agencies Communities

The Bigger Story Demonstrate The Nasolo farm road project is risk-informed Replicate The Ministry of Rural Development applies this approach to all its capital development submissions Scale PSIP approach will adopt this approach for all capital development projects in Fiji Measure Learn Build Measure Learn Build Measure Learn Build Scale Replicate Demonstrate

Demonstrate

Nasolo Farm Road Situation Regular disaster events (cyclones, flooding) Recurring social and economic impacts Community development planning process The Project Priority risks directly informed the design and construction Funding mobilized from Northern Division capital budget The Results The road withstood 2 cyclonic events Maintaining access to markets, income levels and wellbeing

REPLICATE

Ministry or RMD replicating to - townships, transport infrastructure and health, public buildings already working on replicating through partnership with you all.

SCALE

The Circular Flow of Development at Scale 6/2/2019 Project Appraisal Guidelines requires integration of CC/GE concerns: usage of nationally approved CC scenarios, CVAs CC-adjusted CB, co-benefits in planning templates submitted to Planning Commission Performance Audits/Compliance Audits report to Parliament and/or PAC-PAC conducts sessions to discuss reports Public Programs Parliament Planning Budget Formulation Approval Procurement Treasury Accounting Monitoring and Reporting Auditing e.g. Budget Circular requires line ministries to identify CC/GE dimension and CC/GE relevance of projects and linkages with NCCAP in their Budget Submissions Climate/GR KPIs =Budget Negotiations =Budget Allocations e.g. Progress reports versus NCCAPs and N GEPs and Targets Climate change and GE expenditure reports Public Finance integrating CC e.g allocations and expenditures that integrate CC and/or GE concerns are tagged in budget and information systems (FMIS…) Budget Hearings in Committees informed by Budge Briefs on CC Finance and Gender Budget Speech makes reference to CC and Gender and Enactment e.g. Green and Climate Change Compatible Procurement Law and Guidelines

“Development Finance is Climate Finance”, Minister of Economy Policy Implications Getting our own home in order Move away from projectized financing to programmatic financing Do not reinvent the wheel, Perfect it - Practical approach to mainstreaming climate sensitized budgeting into national planning “Development Finance is Climate Finance”, Minister of Economy

FIJI IS READY TO ENGAGE AND LEARN FROM YOU ALL! Thank You FIJI IS READY TO ENGAGE AND LEARN FROM YOU ALL!