oikologica logo "OIKO LOGICA is committed to helping communities and governments in vulnerable countries to prepare, face, integrate, comprehend, assimilate and absorb the challenge of climate change and sustainable development."

Public Expenditure and Climate Finance

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Major financial investments, from both public and private sources and guided by smart and equitable policies, are required to transition the world’s economy to a low-carbon path, as well as to reduce greenhouse gas concentrations to safe levels and increase the resilience of vulnerable countries to climate change.
OIKO LOGICA is addressing how these massive investments toward a low-carbon and resilient economy, which we refer to as climate finance, can be carried out.
In developing countries, climate change investment needs are significant. Direct government funding is scarce and the billions of dollars committed to be marshalled by industrialised countries remain inadequate to the magnitude of the challenge of stabilising a steep trajectory of greenhouse gases. Additional financial investment should be accompanied by rules, regulations, fiscal incentives and effective markets at international, national and sub-national levels to shift current and projected “business-as-usual” investments, and mobilise resources at the required scale.
We work with governments to ensure that their structures and processes for managing public expenditure are aligned with delivering strategic priorities effectively and efficiently. We analyse public expenditure to ensure consistency with policy goals and advise on the allocation and management of public expenditure. They may cover all government expenditure or focus on a few priority sectors (e.g. health, basic education, agriculture, climate, water, roads). They can be used to inform strategic planning and budget preparation and to identify ways in which to improve the efficiency and effectiveness of resource allocations in the climate sector. Increasingly, tools such as PEFA (Public Expenditure and Financial Accountability), PERs (Public Expenditure Reviews) and PEMFAR (Public Expenditure and Financial Accountability Review) are followed to review expenditure management systems and institutions, in recognition of the fact that it is the institutional framework, organisational capacity and everyday expenditure management practice of a government which determines the allocation and management of public expenditures.

OIKO LOGICA has assisted governments conducting public finance and expenditure reviews, among others, in the following areas:

1. Poverty Reduction Support Program in Guyana · Analyse past performance in terms of resource allocation and service delivery in order to make a realistic assessment of what the Health, Education and Housing sector should be aiming to achieve in the medium term in Guyana.

2. Cabo Verde PEMFAR in water sector · The work conducted provided the Government of Cabo Verde with an external evaluation of the situation of the Public Expenditure and Financial Management systems in the Water and Sanitation Sector in Cabo Verde between 2005 and 2010. The advice provided a thorough diagnosis of the strengths and weaknesses of public expenditure management at central and decentralised levels, with a specific set of recommendations in the form of an action plan with reforms to be implemented gradually (2012-2015).

3. Bhutan · Monitoring and Assessment of Public Finance Management (PFM) reforms and macroeconomic situation


Related Projects

2012 · LESOTHO · Support Adaptation Programme to the Risks of Climate Change
2012 · NAMIBIA · Action Fiche and TAPs for the Climate Change Adaptation, including energy
2011 · BHUTAN · Budget Support Program to the National Climate Change Adaptation Strategy
2010 · ECUADOR · National Strategy for Economic and Sustainable Development
2010 · GUATEMALA · Budget Management in the Ministry of Health
2009 · GUYANA · Sector Policy Support Programme for Sea and River Defense
2008 · GUYANA · General Budget Support Programme for Poverty Reduction

Related Sectors

Sustainable Development
Climate Change
Public Administration and Governance

Related Services

Risk Impact and Vulnerability
Disaster Management
Project Design and Monitoring
Adaption to Climate Change


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