Do you know what a “U” Budgetary Program is? According to the classification of Budgetary Programs set out by the CONAC, the U “Other Subsidies” category are those public interventions for granting subsidies not subject to operating rules, when applicable, through agreements.

The Mexican-German Climate Change Alliance from GIZ in México, supports the SEMARNAT in designing and implementing a U Budgetary Program to funnel public resources from the Federal Expense Budget (PEF). It is identified as one of the main public instruments, substituting some of the functions developed by the Climate Change Fund (CCF) which is in the process of being phased out. The U Budgetary Program will function as a financial vehicle to transparently channel, enforce, manage, prioritize, measure, and report on the use of federal public resources annually. This is with the goal of fulfilling the mitigation and adaptation goals set out in the Nationally Determined Contributions (NDC). Said resources are federal subsidies that are assigned by the departments and entities for the population according to objectivity, equity, transparency, publicity, selectivity, and seasonality criteria (Article 74 of the Reform to the Federal Law on Budget and Treasury Responsibility, LFPRH).

To allocate subsidies to the population, the departments and entities must guarantee that the resources are channeled exclusively to the target population and ensure equitable access to all social groups. Likewise, there must be follow-up, oversight, and evaluation mechanisms for the economic and social benefits arising from the allocation and implementation.

The Alliance, committed to fostering transparent and strategic planning in setting national and sectoral targets, as well as to improving the mechanisms for public instrument use, promotes the development of the U Budgetary Program to address, efficiently and transparently, compliance with the national climate change goals and objectives.