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Regional, rural and urban development

Subnational Government Climate Finance Hub

 

What's the issue?

Despite the key financial role that regions and cities play in the carbon-neutral transition and the global response to climate change due, in large part, to their jurisdiction over crucial adaptation and mitigation-relevant policy areas (land-use planning, waste management, transport) there is a lot that we do not know about their financial role :

  • How much are subnational governments spending and investing on climate change adaptation and mitigation?
  • How has their climate-related spending and investment evolved over time?
  • What public revenue streams are available to subnational governments to fund and finance their climate action? How can these sources be scaled-up?
  • Are the spending, investment, and revenue raising decisions of subnational governments aligned with their green objectives? 

Given the urgency of the climate crisis, it is more important than ever to improve our understanding of the financial role of subnational governments in the transition, to track the progress regions and cities are making towards achieving the Paris Agreement commitments and other green objectives, and to identify areas where further action is needed to align their expenditure and investment with their climate goals and mobilise additional sources of finance.

 Getty Image of Hand holding small bit of earth

What can the OECD and CFE offer?

The OECD supports evidence-based policymaking that will drive the carbon-neutral transition and promote sustainable, resilient, and inclusive regions and cities. We conduct policy analysis and share best practices in order to: i) craft actionable place-based policies; ii) improve coordination across levels of government; iii) amplify subnational governments’ significant, yet often overlooked, role in designing and implementing ambitious environmental and climate policies.

Based on the joint OECD and European Commission project Measuring and Enhancing Subnational Government Finance for Environment and Climate Action in OECD and EU Countries, the Subnational Government Climate Finance Hub encompasses three pillars of work:

 

 

 

 

 

Climate Expenditure Tracking

(Subnational Government Climate Finance Database & Methodology) 

 

Climate Revenue Tracking

(Compendium of Financial Instruments that Support Subnational Government Climate Action) 

 

Subnational Green Budgeting

(Guidelines, case studies, and self-assessment tool) 

 
 
Introducing the Subnational Government Climate Finance Hub
 


Past Events


Financing Climate Action in Regions and Cities: Launch & Conference 

June 22nd, 2022

Since 2020, the OECD and the European Commission (DG REGIO) have been engaged in a joint project to improve the understanding of the financial role of regions and cities in the carbon-neutral transition by enhancing the tracking, measurement, and mobilisation of subnational public climate finance. The Financing Climate Action in Regions and Cities conference, took place on 22 June 2022, presented the outputs of this project and the newly created Subnational Government Climate Finance Hub. It also convened numerous stakeholders, international organisations, national and subnational governments, and academics to answer key lingering questions about the financial role of subnational governments in the carbon-neutral transition:  

  • How much are subnational governments spending and investing on climate change adaptation and mitigation?  

  • How has their climate-related spending and investment evolved over time?  

  • What public revenue streams are available to subnational governments to fund and finance their climate action? How can these sources be scaled-up?  

  • How to better align spending, investment, and revenue raising decisions of subnational governments with their green objectives?  

  • How subnational green budgeting can help mobilise additional public and private sources of finance, including green bonds?

This event convened speakers from the OECD, the European Commission, national and subnational governments, and climate finance experts and practitioners from other institutions for two sessions on subnational green budgeting and enhancing the mobilisation of public and private subnational climate finance.

Access the Agenda

 

 Cop26

OECD & CCFLA Joint COP26 Event: “Financing Climate Action in Regions and Cities”

 10 November 2021, 14:00-16:00 (CET)

The OECD and The Cities Climate Finance Leadership Alliance (The Alliance) joined forces to facilitate an event that convened national and subnational policy-makers, climate and public finance experts, and private sector stakeholders from across the globe, and leveraged their combined expertise in subnational climate finance.

Access the event recording here

Expert Workshop on Tracking and Measuring Subnational Climate Finance (2021 OECD Forum on Green Finance and Investment)
13 October 2021, 15:30-17:30 (CEST)

This expert workshop is held as part of a joint project led by the OECD and the European Commission on Measuring and Enhancing Subnational Government Finance for Environment and Climate Action in OECD and EU Countries (see above).

This virtual event gathered subnational government representatives, international partners and climate finance stakeholders engaged in tracking and measuring subnational climate finance worldwide. The event consisted of two sessions featuring keynote presentations from the OECD followed by roundtable discussions that discussed the preliminary findings of the project.

 SNG Climate Finance Hub homepage Towards green budgeting in Brittany (Vers une budgétisation verte en Bretagne)
24 March, 2021

As part of the two day event entitled "Towards green budgeting in Brittany (Vers une budgétisation verte en Bretagne)", co-organised by IHEST and the Region of Brittany, our team presented on the work of the Paris Collaborative on Green Budgeting and the current state-of-play of subnational green budgeting among OECD and EU countries. The presentation (De l’initiative Paris Collaborative on Green Budgeting à l’approche territoriale) highlighted existing subnational green budgeting initiatives, the challenges that exist in implementing green budgeting, and the benefits of green budgeting in helping subnational government align their fiscal strategies with their climate and environmental goals.

Presentation by Isabelle Chatry

 

 

For SNG Climate Finance Hub homepage

2020 OECD Forum on Green Finance and Investment

6-9 October 2020

As part of the High-level Plenary on Accelerating Green Investment, our team organised and facilitated a session on the role of cities and regions in financing a green and sustainable post-COVID recovery. Bringing together elected officials and experts from development finance institutions and think-tanks, the session identified three key aspects that decision-makers should consider when designing recovery plans:

  • Subnational governments need to be included in the design and implementation of the plans as they are at the forefront of tackling both climate change and the pandemic.
  • Subnational governments requires enhanced technical and advisory assistance, in addition to financial resources, to effectively scale-up their green activities.
  • Governments of all levels need to ensure that recovery plans fully address and integrate social issues to mitigate the potential impacts of the plans on vulnerable populations.

Access the summary of the plenary discussion

More information on the Forum

 

Key Resources


Logo used for SNG Climate Finance Hub The OECD/UCLG World Observatory on Subnational Government Finance and Investment (SNG-WOFI)

2016-ongoing

The World Observatory on Subnational Government Finance and Investment (SNG-WOFI) was launched in November 2017, as a joint endeavour of the Organisation for Economic Co-operation and Development (OECD) and United Cities and Local Government (UCLG). 

Brochure

Website

 

 

The Regional Recovery Platform

Last updated May 2022

The OECD Regional Recovery Platform contains internationally-comparable subnational data on the COVID-19 crisis and provides a compendium of policy solutions to support the recovery. The health, economic and social impacts of the crisis have been uneven across and within countries – and recovery from the crisis, so far, has also been uneven. Understanding the spatial dimension of the recovery and developing place-based policies is vital to support recovery in all regions.
 
2018 Policy Paper cover ‌

Financing Climate Objectives in Cities and Regions to Deliver Sustainable and Inclusive Growth

September 2019

This study is the first of its kind to explicitly develop a methodology for tracking and measuring climate and environment-related expenditure and investment in cities and regions across the OECD. The results revealed that regions and cities play an important role in financing climate action but more assistance from national governments is needed to mobilise additional public and private sources of funding. The study also highlighteda need for improved data collection and statistical systems to track the alignment of public financial flows with climate objectives, including at the subnational level, as called for in the Paris Agreement.

 Access the key findings 

 Access the full report

 

Other Resources

Within the OECD, this work on subnational climate finance is aligned with broader national and international climate finance and climate policy initiatives, including the International Programme for Action on Climate Change (IPAC) and the Paris Collaborative on Green Budgeting. For more information on all of the OECD’s work on climate change, check out the OECD Climate Change Hub.

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