Pakistan pilots the Climate Change Integration Index to reveal its progress in climate-sensitive budgeting

Pakistan has become one of only two countries piloting a new Climate Change Integration Index (CCII) which enables it to assess its progress towards integrating climate change into public finance, and ensure that its national and provincial budgets are sensitive to climate change issues.

The CCII is an innovative tool developed by the United Nations Development Programme (UNDP) Regional Hub in Bangkok, Thailand, in consultation with UNDP Pakistan. The tool was also tested in Nepal.

The CCII helps to develop a systematic and objective assessment of how well climate change is integrated into countries’ public financial management systems. It establishes a baseline for countries, and can help develop reform agenda to improve climate change integration. The index also enables comparison across countries.

With assistance from the UK Department of International Development (DFID) and the Government of Sweden, UNDP Pakistan, with support from UNDP Bangkok Regional Hub, conducted a CCII assessment based on discussions with government officials and other stakeholders, and a desk review of existing documents. The Ministry of Finance observed that the CCII assessment will provide a key benchmark for progressing towards integration and institutionalization of climate change in Pakistan.

The assessment found that Pakistan has a strong grounding for integrating climate change into public financial management. The policy and strategic component in Pakistan is particularly strong, but the systems and procedures required to institutionalize climate change financing need to be strengthened.

The CCII builds on UNDP Pakistan’s work with the Ministries of Finance and Climate Change to complete a Climate Public Expenditure and Institutional Review in 2015 which assessed and benchmarked climate-related public expenditures at the federal level and in one province and three areas of the country.

Related links: CPEIR