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Regional, rural and urban development

Subnational Green Budgeting

 

28/3/2022

Subnational Green Budgeting

The Paris Collaborative on Green Budgeting, established in 2017 with the OECD serving as the Secretariat, aims to design new, innovative tools for national and subnational governments to better align national expenditure and revenue processes with climate and other environmental goals. 

The Centre for Entrepreneurship, SMEs, Regions, and Cities (CFE) leads the OECD’s work on subnational green budgeting and collaborates with internal and external partners to raise awareness on the topic and disseminate the latest research.  

Green budgeting is a priority-based budgeting approach that uses the tools of budgetary policymaking to help governments at all levels achieve environmental and climate objectives. Examples of green budgeting tools include green impact assessments, green budget tagging, applying a green lens to expenditure reviews, and environmental fiscal reform, among others. 

Subnational green budgeting is still in its nascency but there is a rapidly growing interest in the topic. Several regional and local governments across the OECD are experimenting with this approach as a decision-making tool to help align their expenditure and revenue with their green objectives.

On this page, you will find our latest research on subnational green budgeting, including our publication, our Subnational Green Budgeting Toolbox, our case studies and links to other key resources on the topic.

OECD Subnational Green Budgeting Guidelines 


The new OECD subnational green budgeting guidelines were developed based on a stocktake of existing subnational green budgeting practices and two green budgeting case studies. Any region or municipality can use these guidelines, and the recommendations that accompany them, to develop their own green budgeting practice or strengthen an existing one. 

 

OECD Subnational Green Budgeting Resources


SNG Climate Finance Hub 

 The OECD-EC publication “Aligning Regional and Local Budgets with Green Objectives: Subnational Green Budgeting Practices and Guidelines

 22 June 2022

Green budgeting is emerging at subnational levels as an important tool for regions and cities to use to align their expenditure and revenues with their green objectives, and enhance the transparency and accountability of their climate and environmental action. It is also a tool that subnational governments can use to prioritise low-carbon investments and identify funding gaps, as well as to mobilise additional sources of both private and public climate finance. In order for subnational governments to make full use of green budgeting however, more methodological, technical, and financial support is needed. This report presents a first stocktake of subnational green budgeting practices in OECD and EU countries as well as a set of guidelines for subnational governments to use in developing and launching a green budgeting practice.

 For SNG Finance Hub Green Budgeting page  Subnational Green Budgeting Tool Box (1,2, & 3 parts)
1. Self-assessment Tool

What are your strengths and potential gaps for starting a green budgeting practice or improving an existing one?

Check with our Self-assessment Tool (SAT)

 Green Budgeting 2. Case studies of the Region of Brittany and the City of Venice 
Find the case studies here in (Brittany French – English) and the City of Venice (English) 

 For SNG Climate Finance Hub

3. Policy Highlight: subnational green budgeting guidelines and concrete                        recommendations for supranational organisations, national and subnational governments

Forthcoming in EN, ES, FR, and IT.

Other Subnational Green Budgeting Resources


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