Beyond green tagging

Green budgeting can help governments ensure that their countries’ medium-term budget frameworks and annual budgets align with their international climate-related commitments, such as net zero emissions commitments, as well as national plans and strategies. However, to do so, green budgeting needs to go beyond mere green tagging. This paper discusses new instruments to better link budgets and results, the challenges involved in linking budget and emissions, and the steps needed to overcome them. Finally, it presents the next generation of practices that are being developed in some OECD countries.