Public budgets play a crucial role in advancing climate goals. Green budgeting, which aligns national budgets with climate commitments like net zero emissions, is a powerful tool for ensuring climate action is integrated into financial planning. However, going beyond simple green tagging is essential to maximize its effectiveness.
This paper explores how green budgeting can connect budgets with measurable climate outcomes. It examines innovative tools being developed to link budgets with emissions, highlights the challenges in aligning financial and climate data, and outlines practical steps to overcome these obstacles.
The report provides valuable insights into creating more effective budget frameworks that align with both international and national climate commitments.