1. Afghanistan Climate Budgeting Guidelines
Opportunities and challenges with mainstreaming climate change in national budgeting processes
Bangkok, 4 March 2019

2. Why Climate Change in Afghan Budgets?
Impact on key development concerns: livelihoods, food & water security, poverty, disaster risk reduction
Inherent adaptation/mitigation opportunities to be explored
CC risks to Afghanistan
Afghan CPEIR on sector-wise impact on GDP growth
Gaps in funding to meet adaptation needs
Evidence on Loss and Damage from CC
38% reduction in development aid between
Donor aid – major off-budget resource for the country
Recent trend in donor support
This slide is to mention the policy and economic context – and rationale to take up a reform like the ACBG.

3. Enabling conditions in Afghan policy context
Ongoing reform
Improved fiscal projection and reporting practices
Gender-responsive budgeting
Afghan CPEIR
First step in this mainstreaming pathway already achieved
Indicative climate change financing framework (CCFF) also provided
Advantages
Expected loss & damage from future CC risks mapped across key sectors
Strong basis to link budgets with CC priorities
This slide is too discuss the enabling factors that helped introduce the ACBG among the MoF and other stakeholders.

4. ACBG: Piloting and Adoption
Steered by the Ministry of Finance (MoF) – central authority in coordinating and approving line Ministry budgets
Piloted in select line ministries – Ministry of Agriculture, Irrigation and Livestock (MAIL), Ministry of Energy and Water (MEW) and Ministry of Rural Rehabilitation and Development (MRRD) – which implement projects closely related to natural resource management, rural livelihoods and vulnerable communities
Consultative phase involving important stakeholders from the start by engaging with the NEPA, MoF and line ministries
Practical and operational inputs – from technical and sectoral nodal officers
Strategic oversight – from key senior leadership of line ministries
Iterative rounds of training and capacity building conducted leading to robust and well understood climate budgeting guidelines and toolkit
MoF approved ACBG in December 2018 – poised for expansion to all relevant ministries from this upcoming financial year
Budgets have the potential to be defended also based on their CC linkages, for project approval
This slide is to explain the process followed in developing and institutionalising the ACBG (we can convert this into a flow chart, for easier understanding after getting Sayed Naseer Sb’s inputs)

5. Integration into the Afghan budget calendar
Short-term
Fiscal space and priority setting
Identify programmes for further scrutiny
Short -term
Budget prioritization
Inform the concerned Ministry on high priority programmes
Medium-term
Systems development
Codify programmes from a budget reporting perspective
Medium-term - Improved capacity to deliver climate resilient programmes
Access additional climate finance through identification of budget gaps in climate relevant programmes
Long-term - Climate-responsive budget strategy, which would evolve from regular tracking of climate relevance of prioritised programmes
Re-shape budget orientation for greater CC response
This slide is to discuss the proposed integration with budget phases – needs to be further modified by Sayed Naseer Sb, based on more recent updates (this is just a template)

6. ACBG: Role in Climate Finance Mobilisation
CAPACITY - Increased sensitisation among line ministries on CC linkages with their programmes important to plan public expenditure in a CC resilient manner
PLANNING to reduce vulnerability of infrastructure and communities to adverse CC impacts over time by allocating funds to programmes addressing these concerns
REPORTING – budgets communicate climate relevance of budgets give high visibility to public expenditure that already have climate co-benefits, which can be monitored closely
FINANCE - Opportunity to leverage existing budgets to tap international climate funds important to strengthen co-financing prospects and donor support by showcasing climate- sensible initiatives being undertaken by Afghanistan
This slide is to provide perspective on how the ACBG would be a tool in mobilising domestic adaptation finance – and a way ahead.

7. Thank you!