Fomentando la política fiscal para el cambio climático en América Latina y el Caribe

Implementing organization: BID    Duration: 11/2021 - 12/2027 Main counterpart: SHCP IKI area: Mitigation







Initial situation 

To shift financial flows, it is also essential to consider fiscal policy and green budgeting approaches. Ministries of finance in Latin America and the Caribbean are becoming increasingly aware of climate change and the importance of fiscal policy in this regard, but the scale of the challenge requires greater action. The Fund contributes to the successful design and implementation of Nationally Determined Contributions and long-term strategies. It also supports the regional climate change platform for ministries of finance to facilitate knowledge exchange. These activities help countries achieve greater efficiency in climate-related spending and support fiscal policies for the transition toward net-zero emissions and climate-resilient economies. 

Objectives

Support the design, implementation, and evaluation of initiatives to increase the transparency, effectiveness, and efficiency of climate-related fiscal policies. 

Activities

  • Integrate the fiscal dimension into the design of long-term climate strategies and NDCs; address macro-fiscal climate risks; promote green budgeting; strengthen public investment management for resilience and decarbonization; develop green procurement systems; and evaluate and reform fiscal policy. 
  • Create working groups on debt management and green financing, fiscal incentives, and public expenditure. 
  • Publish knowledge products and provide tailored training.  
  • Create a website, a quarterly newsletter, and an internal online community for platform members.  
  • Develop innovative tools, such as recorded masterclasses, while strengthening partnerships with relevant stakeholders including the United Nations Framework Convention on Climate Change, the Pacific Alliance, the Coalition of Finance Ministers for Climate Action, the Latin American and Caribbean Results-Based Budgeting Network, and the Network of National Public Investment Systems of Latin America and the Caribbean, thereby expanding opportunities for collaboration and mutual learning. 
  • Implement a follow-up mechanism to monitor the use of products developed through the platform and the implementation of green fiscal policies.