Integrating Climate Change and Sustainable Development in Development Planning and Budgeting

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1 Regional Forum on Climate Change Finance and Sustainable Development 1-3 September 2015, Jakarta, Indonesia Integrating Climate Change and Sustainable Development in Development Planning and Budgeting Sovithea KHUN Deputy Director National Council For Sustainable Development

2 Early Stages of the Sustainable Development and Climate Change Agenda (1990s) After Rio Conference on Environment and Development, 1992 Cambodia ratified UNFCCC in 1996 and Acceded to its Kyoto protocol in 2002 Ministry of Environment acting as focal point for sustainable development issues (Agenda 21 etc.) Challenges: Sustainable Development seen as an issue for MoE to deal with; (new concepts, lack of HR Capacity building and lack of financial assistance ) Limited engagement of other ministries; Visibility of climate change relatively low during this period (no direct/major CC impacts has been identified at both national and global level)

3 Establishment of a Climate Change Response (1/2) Institutional changes: Climate Change Office within MOE (2003), then upgraded to full department (2009) Recognizing the cross-cutting dimension of climate change: establishment of a National Climate Change Committee (2006), with 20 Government ministries and agencies represented Climate Change planning: Integration of climate change as a cross-cutting issue in the National Strategic Development Plan ( ); Development of a Cambodia Climate Change Strategic Plan ( ), supported by costed action plans in 14 ministries/agencies.

4 Establishment of a Climate Change Response (2/2) Climate finance: Climate change financing framework: Potential impacts of CC on GDP Assessment of existing climate finance (CPEIR) - 1.3% of GDP in 2012 Costing of the response for next 5 years (based on ministerial action plans) Financing scenarios Analysis of modalities and capacity development needs Budget integration: Pilot programme with Ministry of Economy and Finance and Ministry of Agriculture, Forestry and Fisheries to improve CC integration at various stages of the budget process (budget guidelines, planning/formulation, negotiation ) Improve tracking of external CC finance in the ODA database Integration of climate finance in public financial management training

5 Potential Impacts of Climate Change on GDP Initial analysis based on the scenarios 2 C temperature rise by 2050, impacts of CC on Cambodia annual GDP will at least 1.5% in 2030 and 3.5% in 2050 and the main impact will be agriculture, water resource management and infrastructure.. In other words, if the annual growth rate of GDP without CC was expected to be 4.5% in 2030 it would be reduced to 3% due to CC impacts. By 2050, GDP growth rate could be entirely offset by the impacts of climate change Temperature increase from 1 C to 3 C would reduce GDP by 1% to 5%, developing countries more affected than other countries

6 Costing of the Response for Next 5 Years 1.1 Billion USD 6.3% 4.4% 8.2% 5% 3.9% 4.2% 18.7% 18.2% 26.8% MAFF MoWRAM MPWT MoH MRD MoEYS MoWA NCDM MoE SNAs NGOs Other Ministries Industry&Energy

7 Improved Mechanisms for a Coherent Sustainable Development Agenda Creation of the National Council for Sustainable Development (NCSD) and its General Secretariat in 2015 Rationale for this: Simplification and efficiency: consolidate the mandates of several existing entities (climate change, green growth, biodiversity and biosafety councils); Having a strong policy entity: for dialogue with key policy institutions in the country, and to support line ministries sustainable development efforts with research and analysis; Facilitate mobilization of climate funds or green investment funds from both public and private through recommendation policy reforms and adjustments

8 Governance of the NCSD Prime Minister as Honorary Chair; Minister of Environment as Chair; 37 institutions as members, with 10 in the executive committee; Supported by General Secretariat hosted by Ministry of Environment; Power to create inter-ministerial working group Member are required to comply with council decisions Has its own legal personality Has the right to receive, manage and use funds received from other sources for the execution of its work

9 Governance of the NCSD General Secretariat Overseen by a Secretary General Five departments: Administrative and Finance Climate Change Green Economy Science and Technology National Biodiversity Center Immediate focused priorities Climate change adaptation and mitigation Sustainable cities

10 Challenges and Way Forward New institution, need to establish working procedures, positioning with other ministries and agencies; Inadequate environmental laws and policies and Insufficient of law enforcement mechanism Integration and mainstream policy and strategic plan into sub-national level remain an issue with lack of HR capacity building and financial assistance Promote work across ministries, let concerned ministries/agencies lead NCSD initiatives when related to their mandate (different from the traditional vertical approach), act as service provider to sectoral ministries/agencies rather than competitor; Establish strong partnerships with central policy, planning and budgeting entities (Supreme National Economic Council, Ministry of Economy and Finance, Council of Ministers) to integrate sustainable development in core systems and practices of Government.

11 Thank You! National Council For Sustainable Development