Paris Collaborative on Green Budgeting

Budget tools and fiscal policies for the ecological transition

The Paris Collaborative on Green Budgeting was launched by the OECD Secretary-General Angel Gurría at the One Planet Summit in Paris on 12 December 2017. It aims to design new, innovative tools to assess and drive improvements in the alignment of national expenditure and revenue processes with climate and other environmental goals. This is a crucial step in achieving a central objective of the Paris Agreement on climate change as well as of the Aichi Biodiversity Targets and the United Nations’ Sustainable Development Goals – aligning national policy frameworks and financial flows on a pathway towards low greenhouse gas emissions and environmentally sustainable development.

What is Green Budgeting?

Environmentally responsive or green budgeting means using the tools of budgetary policy-making to help achieve environmental goals. This includes evaluating environmental impacts of budgetary and fiscal policies and assessing their coherence towards the delivery of national and international commitments. Green budgeting can also contribute to informed, evidence-based debate and discussion on sustainable growth.

Why Green Budgeting?

One of the most important tools that policy makers have at their disposal for resourcing and implementing their national policies on environmental goals is budget and fiscal policy. Incorporating environmental dimensions into fiscal frameworks, including the annual budget document, evaluation of tax and expenditure policies and long-term sustainability analysis, will help governments to become more accountable for their environmental commitments and support them in transforming towards sustainable and resilient societies.

Green budgeting will support governments in achieving environmental goals by:

  • evaluating environmental impacts of budgetary and fiscal policies
  • assessing their coherence towards the delivery of national and international commitments
  • contributing to informed, evidence-based debate and discussion on sustainable growth

Working method

The Paris Collaborative is convened by the OECD, working in close partnership with governments and experts to co-design practical and pragmatic approaches. It provides a co-ordinating platform for:

  • identifying research priorities and gaps
  • sharing best available data, expertise and information to advance policy-relevant research and implementation
  • facilitating alignment of national and international budget policy design
  • introducing a coherent narrative across what would otherwise be disparate research outputs
  • communicating results to raise awareness and signal support for action and accountability on environmental policy imperatives
  • developing cross-national indicators of progress against various international environmental goals

It brings together international work-streams on environmental policy and climate change, budgeting and tax policy, green accounting and inclusive sustainable growth. It will work towards agreed definitions and methodologies that can support national approaches to green budgeting and develop outputs that can improve co-ordinated national and international policy design. It seeks to build upon and support established international reporting practices rather than to develop duplicative approaches.

How to get involved

The Paris Collaborative seeks close partnership with governments around the OECD and beyond to co-design practical and pragmatic approaches to put Green Budgeting into action. In practice, this will involve close consultation with national Finance and Environmental experts to develop new tools and methodologies that are sensible and effective.

Governments can participate by:

  • Joining our regular network meetings and workshops to input their country views and share expertise and notable examples of good practice
  • Advancing national projects and initiatives that come within the scope of the Green Budgeting work programme under the Paris Collaborative umbrella
  • Testing and piloting Green Budgeting methodologies in their country

Contact us

Should you be interested in finding out more about the project or in becoming more actively involved as a country delegation or potential contributor to the research work, please contact:

Andrew Blazey

OECD Directorate for Public Governance

Tel. +(33-1) 45 24 18 09

Follow us on Twitter: @OECD_ENV / @OECDgov