|
The report builds on the analysis of environmental financing in Eastern Europe, Caucasus and Central Asia (EECCA) prepared within the framework of the “Environment for Europe” ministerial conferences. It provides a comprehensive picture of financial flows for the improvement of the environmental conditions in the EECCA region based upon the assessment of domestic environmental expenditure as well as donors’ assistance and lending from International Financial Institutions (IFIs).
Results show that total environmental expenditure has increased in almost all countries of the region, although growth patterns reflect the sharp dichotomy between richer and poorer EECCA countries.
Bigger economies offer more opportunities to increase and diversify the level of expenditure and particularly the share of investments, while the smaller economies may have to wait for higher income levels before allocating more resources to the environment, despite the positive effects that such expenditures could have on economic development and public health.
The structure of international assistance is changing, with the increasing prominence of lending from IFIs, although both bilateral and multilateral assistance remain marginal as a share of GDP and cannot be a substitute for domestic environmental finance. However, projects supported by the international community have demonstrated positive and catalytic effects, both in terms of technological transfer and in the development of know-how.
The report makes the case for improved monitoring of environmental expenditure data, as a prerequisite for the design and assessment of efficient environmental policies.
Trends in Environmental Finance in Eastern Europe, Caucasus and Central Asia (English, Russian)
|
