IBFCR Progress and Achievements
An inception study was conducted for two weeks in January 2017 through intensive desk review and face-to-face interviews and consultations with the key stakeholders and agencies. Three levels of challenges at Policy, Institutional and Operational levels were identified. The study team also suggested a set of way forward against the challenges identified. Based on the study findings the draft inception report proposes some amendments to be included in TPP.
An Inception Workshop jointly organised by the Finance Division and UNDP was held on 29th January 2017 in presence of GoB officials of relevant ministries, departments, agencies, representatives of NGOs and development partners, members of civil society, and academicians. Hon’ble Minster for Finance Mr. Abul Maal Abdul Muhith MP graced the occasion as the Chief Guest and inaugurated the Workshop while the Hon’ble Minister for Planning Mr. AHM Mustafa Kamal MP was present as the Special Guest. Mr. Robert D Watkins, UN Resident Coordinator in Bangladesh and Ms. Alexandra Maclean, Team Leader, Extreme Poverty, Resilience and Climate Change (EPRCC), DFID Bangladesh attended the event as Guests of Honour. The Session was chaired by Senior Secretary of Finance Division, Mr. Mahbub Ahmed.
Briefing session on Pilot Performance Audits
The performance management of climate finance is to be focused on evaluation of the effectiveness of resources utilized which can effectively be done through statutory audit by Office of the Comptroller and Auditor General (OCAG) of Bangladesh. In this regard, component 3 of IBFCR project sets out the goal to improving climate public finance governance through strengthening OCAG, Bangladesh in its audit activity for capturing climate change and climate finance issues. Under this backdrop two pilot performance audits have been taken up by OCAG, to include climate dimension in the audit process, with technical assistance of IBFCR project. Two audit directorates under OCAG have been assigned this job. The Civil Audit Directorate (CiAD) is responsible for conducting the audit on a project funded by BCCTF while the Foreign Aided Projects Audit Directorate (FAPAD) is entrusted to conducting audit on a project funded by BCCRF.
To extending technical support for the audit teams tasked to conduct the audits, a briefing session was held on 13th July, 2017 at the Audit Complex, Segunbagicha, Dhaka, with Director General, FAPAD in the chair. National Project Director (NPD) Mr. Shahabuddin Ahmed, Additional Secretary, Finance Division, Ministry of Finance attended the session on special invitation. The objective of the briefing session was to highlight the significance of embedding climate dimension in performance audits and to guide the audit teams about how the climate change issues can be captured in their audits. The briefing session was also attended by the Deputy Comptroller and Auditor General (Senior), Deputy Comptroller and Auditor General (A&R), Director General (DG) CiAD, Directors of both the directorates, Project Manager (PM), Experts and Consultants of IBFCR project, representatives from Finance Division related to IBFCR project, and the members of the two pilot performance audit teams.
Finance Division Holds Workshop on Operational Guidelines and Training Manual for Inclusion of Climate Dimension in MBF
Operational Guidelines and Training Manual for Inclusion of Climate Dimension in Ministry Budget Framework” workshop was held on 6 August 2017 at CIRDAP International Conference Centre, Dhaka. The event was organized by Finance Division, Ministry of Finance, Government of Bangladesh, in partnership with United Nations Development Programme in Bangladesh under the auspices of its Inclusive Budgeting and Financing for Climate Resilience (#IBFCR) project. The workshop was intended to receive feedback on the Operational Guidelines meant to provide guidance on how the relevant line ministries will embed climate actions and priorities in their budgets and the Training Manual designed to deliver hands-on training to the budget and planning desk officials of those ministries..
Mr. Hedayetullh Al Mamoon, Senior Secretary, Finance Division inaugurated the workshop as the Chief Guest of Inaugural Session chaired by Mr. Shahabuddin Ahmed, Additional Secreatry, Finance Division and National Project IBFCR Project. Around 170 officials from different ministries and departments/agencies attended the workshop.
National Steering committee meeting of IBFCR project
1st National Steering committee meeting of IBFCR project was held at the Finance Division, Ministry of Finance on 21st December 2016. 1'he meeting was chaircd by Mr. Mahbub Ahmed, Senior Secretary, Finance Division, Ministry of Finance. The meeting reflected on the project deliverables of various components. Annual Work Plan (AWP), Procurement Plan of FY 2016- l7 along with the priorities of the project during first year of implementation.
Review and Update the Climate Fiscal Framework (CFF 2014)
A National Climate Fiscal Framework (CFF) has been developed in 2014 which identified key entry points to mainstream climate change into the national finance process (budget, fiscal, classification, audit, and annual development programme and aid effectiveness). As the IBFCR project intends to build on the CFF to align with existing and future PFM reform programmes led by Finance Division, the existing CFF (2014) is reviewing and updating under the project. The reasons of reviewing CFF are to include: new development in Public Financial management (e.g. IBASS++) and in climate policy (country investment plan, Paris Climate Agreement); share international thinking of CFFs; Some missing gaps: private sector, fiscal policy in consultation with new stakeholders in Ministry of Finance, Planning Commission and Ministry of Climate, Environment and Forests.
It is expected that the updated CFF will review the relevance of existing CFF in the context of national budget setting process; assess the effects of fiscal instruments in the CFF like taxation and subsidies; explore the possibility of pro-poor climate response in the event of hypothecated approach to internal resources; build a scenario of the full range of available sources of fund in Bangladesh including domestic and international sources; assess the scope for inclusion of private sector involvement in climate actions; work out a full range of climate finance management options with pros and cons in the country context.
Exposure visit to Indonesia
With support from UNDP’s Governance of Climate Change Finance Programme, 11 Bangladesh Government representatives from the Ministries of Finance, Environment and Forests, Water Resources and Agriculture undertook a climate finance study-tour in Indonesia. The objective of the exposure visits of the officials was to better understand climate vulnerabilities facing Indonesia and the policies and strategies being used to finance mitigation and adaptation actions.
The representatives began their study tour on Monday, October 9 and concluded their meetings with high-ranking Indonesian officials on 13th October 2017. The exchange has allowed the delegation to meet with high-level officials from Indonesia’s Ministry of Finance, Ministry of Environment and Forestry, Ministry of National Development and Planning, and Ministry of Home Affairs.
With the support of DFID and the Government of Sweden, UNDP has been working with both the Governments of Bangladesh and Indonesia to improve climate sensitive budgeting. This is critical because climate policy is translated into climate action through effective and transparent budgets. This exchange was a unique opportunity to build on that progress to further improve the sustainable development benefits of climate finance for both Bangladesh and Indonesia.