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Harmonizing Environmental Expenditure Information Systems with OECD/Eurostat Standards
Studies on environmental expenditure in transition economies have been an important component of the EAP Task Force Work Programmes since 1994. These studies covered a wide range of CEE and EECCA countries and provided empirical support for the deepening of on-going work on environmental finance in the region. Most of the work is synthesized in the report «Financing Water and Environmental Infrastructure».
The analysis of environmental expenditure proved difficult due to the lack of definitions and classifications for the compilation of relevant statistics and insufficient reporting from national/local governments and the private sector. These shortcomings of environmental expenditure data in EECCA are closely associated with drastic budgetary cuts, weak environmental institutions and little support for environmental policies in the region.
The collection of high-quality and reliable environmental expenditure data is crucial for policy makers to develop effective environmental policies and for donors and international financing institutions to target their assistance programmes better. This information is also valuable for strengthening public participation in policy decisions in EECCA.
To address these concerns, the EAP Task Force helps selected EECCA countries to strengthen the accuracy, international comparability and timeliness of environmental expenditure data, and to promote the use of data in policy-making and informing the public. In particular, these data support the development of environmental financing strategies in the region and the analysis of environmental expenditure trends.
Pilot projects in four EECCA countries (Georgia, the Kyrgyz Republic, Moldova and the Russian Federation) have demonstrated the benefits of collecting better information on environmental expenditure: how much is spent, for what specific purposes and how it compares with international benchmarks. This information supports a policy discussion on how existing resources could be used most efficiently. A project in Georgia has demonstrated how a system for collecting expenditure data compatible with the OECD/Eurostat standards could be established. A similar project was developed in Ukraine and in the Kyrgyz Republic (English, Russian).
The collection and analysis of data on environmental expenditure in the EECCA and CEE countries by the EAP Task Force have delivered a unique and solid information basis for policy analysis and reform in the “Environment for Europe” process. A new report on Trends in Environmental Finance in Eastern Europe, Caucasus and Central Asia report was will be submitted to the 6th “Environment for Europe” Ministerial Conference to be held in Belgrade in October 2007. (English, Russian). In 2003, a similar report was prepared and its conclusions and recommendations for improving environmental statistics, as a prerequisite for addressing the environmental financing challenge in EECCA, were endorsed by the Environment Ministers gathered in Kiev for the 5th "Environment for Europe" Conference. Trends in Environmental Expenditure and International Commitment for the Environment in EECCA, 2003 (English, Russian).
More details on these activities, with their objectives, specific tasks, outputs and benefits are provided as attachments above. For further information on this work, please contact Carla BERTUZZI at Carla.Bertuzzi@oecd.org.
In addition to project-related work in this area, the EAP Task Force also maintains a downloadable database on the macroeconomic situation, public finance and financial sector in EECCA. This provides an important context for the analysis of environmental finance data.
Files to download:
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