The Guide starts with an overview of Climate Finance and the critical role it plays in enabling action to curtail global warming and build the resilience of countries and communities to climate induced impacts. Effective climate response requires linking policy and resources, and the Guide discusses the emergence of Climate Responsive Budgeting (CRB) as an approach to aligning public finance with the climate change interests and priorities of government.

Summarizing KP’s Climate Finance context, the Guide describes some of the measures taken by the provincial government to address them, as well as local climate change risks and impacts. According to a Climate Public Expenditure and Institutional Review (CPEIR) commissioned by the UNDP, 8.9% of KP’s total budgetary reflected climate activities related to mitigation and adaptation in the financial year 2015/2016.