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INTRODUCTION:
THE PARIS COLLABORATIVE
ON GREEN BUDGETING
Ronnie Downes
Public Governance Directorate,
Budgeting and Public Expenditures Division
Paris Collaborative on Green Budgeting
Expert Workshop on Green Budgeting
20 June 2018, OECD Headquarters, Paris
Domestic and international action on
environment:
– Biodiversity, water, air pollution, and climate
– International agreements
• Paris Agreement
• Aichi Biodiversity Targets
• related Sustainable Development Goals (eg. #6, #7,
#13, #14, #15. #17)
2
“National and international commitments”
But action is needed
….using the tools and processes of
budgetary policy-making
- by evaluating and improving the
environmental impact of
budgetary policies
- assessing their coherence with
national and international
commitments
 help achieve environmental goals
3
What is “Green Budgeting”
The Paris Collaborative on Green Budgeting
• launched at One Planet Summit,
12 Dec 2017 in Paris
• convened by OECD, working in
close partnership with
governments, OECD working
groups and experts
• to develop and refine new
methodological approaches and
pragmatic green budgeting tools
• Budgeting for inclusive and sustainable
growth
• Long-term fiscal sustainability
• Environmental cost-benefit
assessments
• Environmental fiscal reform
• Carbon pricing and reform of
potentially harmful subsidies
5
Building on existing OECD work streams
Office of the
Secretary General
Public Governance
Committee
WP of Senior
Budget Officials
(SBO)
SBO Performance
and Results
SBO Financial
Reporting and
Accounting
Environment
Policy Committee
Joint Meeting, Tax
and Environment
Experts
WP on Climate,
Investment &
Development
WP on
Biodiversity, Water
& Ecosystems
Committee on
Fiscal Affairs
Joint Meeting, Tax
and Environment
Experts
6
Work with broader OECD networks
Background note on:
• Definition of Green Budgeting
• Proposed working method
• Initial examples of how countries examine
environmental impacts of budget measures
• Discussion of draft Green Budget
Statement
• Progress on deliverables and next steps
7
Draft output :
Green Budget Primer
8
4. Greening public finance
Greening of public revenue
raising
Greening of public
expenditures
 taxing carbon emissions
 taxing activities or pollutants
with adverse effects on
biodiversity
 component of environmental
fiscal reform
 Identify and unintended
negative environmental impacts
of taxes
 Interaction of taxes with other
instruments
 scale back any existing support
measures for fossil fuel
generation or use
 environmentally motivated tax
preferences
 assessments of expenditures
regarding their environmental
impacts
 cost-benefit analysis (CBA)
• What notable examples of good practice exist
in your country?
• Are there national initiatives that can be
advanced under the PCGB umbrella?
• Feedback on activities and topics that you
consider most relevant for the future
(evaluation sheet).
10
How can you contribute today?
Contacts:
Ronnie.DOWNES@oecd.org
Juliane.JANSEN@oecd.org
Simon.BUCKLE@oecd.org
Nathalie.GIROUARD@oecd.org
Kurt.VANDENDER@oecd.org
David.BRADBURY@oecd.org
Thank you

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Green budgeting: what and why? - Ronnie Downes, OECD

  • 1. INTRODUCTION: THE PARIS COLLABORATIVE ON GREEN BUDGETING Ronnie Downes Public Governance Directorate, Budgeting and Public Expenditures Division Paris Collaborative on Green Budgeting Expert Workshop on Green Budgeting 20 June 2018, OECD Headquarters, Paris
  • 2. Domestic and international action on environment: – Biodiversity, water, air pollution, and climate – International agreements • Paris Agreement • Aichi Biodiversity Targets • related Sustainable Development Goals (eg. #6, #7, #13, #14, #15. #17) 2 “National and international commitments” But action is needed
  • 3. ….using the tools and processes of budgetary policy-making - by evaluating and improving the environmental impact of budgetary policies - assessing their coherence with national and international commitments  help achieve environmental goals 3 What is “Green Budgeting”
  • 4. The Paris Collaborative on Green Budgeting • launched at One Planet Summit, 12 Dec 2017 in Paris • convened by OECD, working in close partnership with governments, OECD working groups and experts • to develop and refine new methodological approaches and pragmatic green budgeting tools
  • 5. • Budgeting for inclusive and sustainable growth • Long-term fiscal sustainability • Environmental cost-benefit assessments • Environmental fiscal reform • Carbon pricing and reform of potentially harmful subsidies 5 Building on existing OECD work streams
  • 6. Office of the Secretary General Public Governance Committee WP of Senior Budget Officials (SBO) SBO Performance and Results SBO Financial Reporting and Accounting Environment Policy Committee Joint Meeting, Tax and Environment Experts WP on Climate, Investment & Development WP on Biodiversity, Water & Ecosystems Committee on Fiscal Affairs Joint Meeting, Tax and Environment Experts 6 Work with broader OECD networks
  • 7. Background note on: • Definition of Green Budgeting • Proposed working method • Initial examples of how countries examine environmental impacts of budget measures • Discussion of draft Green Budget Statement • Progress on deliverables and next steps 7 Draft output : Green Budget Primer
  • 8. 8 4. Greening public finance Greening of public revenue raising Greening of public expenditures  taxing carbon emissions  taxing activities or pollutants with adverse effects on biodiversity  component of environmental fiscal reform  Identify and unintended negative environmental impacts of taxes  Interaction of taxes with other instruments  scale back any existing support measures for fossil fuel generation or use  environmentally motivated tax preferences  assessments of expenditures regarding their environmental impacts  cost-benefit analysis (CBA)
  • 9. • What notable examples of good practice exist in your country? • Are there national initiatives that can be advanced under the PCGB umbrella? • Feedback on activities and topics that you consider most relevant for the future (evaluation sheet). 10 How can you contribute today?