Incorporation of climate action in decentralization policies and subnational fiscal management

Subnational governments (SNG) share responsibilities with national governments in areas of public policy that are relevant to climate change (CC) mitigation and adaptation. To achieve the commitments established in their NDCs, countries require joint work between their different levels of government. The objective of this TC is to support the incorporation of climate action in fiscal decentralization policies and in subnational fiscal management in LAC countries in the areas of: i) subnational public spending with CC considerations (including resilient and low carbon public investment, sustainable public procurement, and planning and management of CC-related fiscal risks in SNG); ii) subnational taxes and fees with climate impact; iii) transfer systems and transition towards decarbonized economies in SNG; iv) financing for subnational climate action; and v) intergovernmental coordination, multilevel governance, and institutional capacity for climate action. Although the activities proposed in this TC are regional in nature, it is proposed to focus on countries with mature decentralization processes and advances in fiscal policy and CC issues. This will allow for the development of various instruments and methodologies that allow experiences to be contrasted and lessons drawn that are relevant to other LAC countries. The products will be disseminated through specialized exchange initiatives and networks.

Project Detail

Country

Regional

Project Number

RG-T4341

Approval Date

November 2, 2023

Project Status

Implementation

Project Type

Technical Cooperation

Sector

REFORM / MODERNIZATION OF THE STATE

Subsector

DECENTRALIZATION & INTERGOVERNMENTAL RELATIONS

Lending Instrument

Lending Instrument Code

Modality

Facility Type

Environmental Classification

Total Cost

USD 990,000.00

Country Counterpart Financing

Original Amount Approved

USD 990,000.00

Financial Information

Operation Number	Lending Type	Reporting Currency	Reporting Date	Signed Date	Fund	Financial Instrument
ATN/FC-20418-RG	Sovereign Guaranteed	USD - United States Dollar	Jul. 22, 2024	Nov. 2, 2023	Fostering Fiscal Policy for Climate	Nonreimbursable

Operation Number

ATN/FC-20418-RG

Lending Type: Sovereign Guaranteed
Reporting Currency: USD - United States Dollar
Reporting Date: Jul. 22, 2024
Signed Date: Nov. 2, 2023
Fund: Fostering Fiscal Policy for Climate
Financial Instrument: Nonreimbursable

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Implementation Phase

https://www.iadb.org/document.cfm?id=EZIDB0000981-2058049910-22

TC Document

Documento de CT - Divulgacion_60439.pdf

Nov. 02, 2023

Spanish