CHINA COUNTRY BRIEF Climate Public Expenditure and Institutional Review in China OCTOBER 2014
Summary of ongoing analysis and proposed next steps China has achieved some important preliminary successes in its efforts at addressing climate change. The Chinese government considers climate change as a top item on its policy agenda and has put considerable resources into the green sectors. It is evidenced by the fact that China is now the world leader in clean energy investment, with investment of $54 billion in renewables in 2013 1. It leads the world in terms of installed wind capacity and ranks the second in terms of installed photovoltaic power capacity in the world. 2 Despite the successes, more climate actions are clearly needed. Just like many countries in the world, China is grappling with how to finance the transition to a sustainable, low carbon economy. This transition requires a shift of development model, which also requires substantive changes in the public and private financing system. Climate change mitigation and adaptation require proactive policies and government planning. Public sector interventions provide information, incentives, and an enabling environment for communities, households, and private firms to change their behaviors, their consumption and investment choices. Such interventions require the use of a range of policy levers: information, regulation, taxation, and public spending, where public expenditure is a crucial part of this set of levers. While it is clear that very sizeable public financial resources have been dedicated to climate change mitigation and adaptation in China, there are no estimates of the government s overall climate expenditure. The lack of a clear picture of the climate-related public spending pattern makes it very difficult for the government to evaluate and inform the alignment of public spending with its climate-related priorities. Extensive review of the existing literature on the climate finance landscape in China indicates that there has not been any known systematic attempt to estimate the overall size and pattern of public climate expenditure. Against this backdrop, UNDP initiated the Climate Public Expenditure and Institutional Review (CPEIR) with the Research Institute for Fiscal Science (RIFS) under the Chinese Ministry of Finance, with the aim of assisting the Government of China in strengthening its understanding of public climate expenditure pattern and to ensure climate change priorities are integrated into budget formulation and implementation process. The research project 3 began in February 2014. 1 Source: Pew Charitable Trust. 2014. Who s Winning the Clean Energy Race? 2013. Link: http://www.pewtrusts.org/en/research-andanalysis/reports/2014/04/03/whos-winning-the-clean-energy-race-2013 2 Source: http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy/review-by-energytype/renewable-energy/wind-energy.html (wind energy); http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-ofworld-energy/review-by-energy-type/renewable-energy/solar-energy.html (solar energy) 3 Materials presented here are preliminary findings of the ongoing CPEIR in China. Final findings of the CPEIR might be subjected to changes upon further research. Page 2 of 14
Brief Description of CPEIR in China The CPEIR provides an overview of climate-related law and regulation. It reviews a wide spectrum of government measures, ranging from administrative measures to economic policies (including pricing and industrial policies) that have implications on the country s efforts at addressing climate change. The study in particular puts a strong focus on reviewing the policies on public investment, taxation and government procurement. 1. Summary of the key findings A key component of the first phase of CPEIR is the exercise of identifying the climate-relevance of over 800 items on the Chinese central government budget. Through this exercise, the report estimates the share of climate-relevant expenditure in the total central government budget for the year 2013 and 2014. The preliminary findings of the CPEIR show that 6.92% of total planned central budgetary expenditure (excluding budgetary expenditure on payment for the principal and interest of debt) in 2014 has high or medium climate relevance. As for 2013, 7.55% of central budgetary expenditure (excluding budgetary expenditure on payment for the principal and interest of debt) had high or medium climate relevance. In the area of energy conservation and emission reduction, the government continues to intensify its efforts in this area, developing and implementing a series of policies and measures to promote energy conservation and emission reduction. During 2006-2012, the central government finance in this area totaled more than RMB 400 billion (USD 65.57 billion). 4 National public expenditure for energy conservation and environmental protection was RMB 244.198 billion (USD 40.03 billion) in 2010. It was increased to RMB 296.346 billion (USD 48.58 billion) in 2012 and then declined to RMB 180.39 billion (USD 29.57 billion) in 2013. It went up to RMB 210.909 billion (USD 34.58 billion) in 2014. Central government expenditure on energy conservation and environmental protection increased significantly, from RMB 6.948 billion (USD 1.14 billion) in 2010 to RMB 29.067 billion (USD 4.77 billion) in 2014. Local government expenditure on energy conservation & environmental protection increased at the very beginning but then declined. It was RMB 237.25 billion (USD 38.89 billion) in 2010 and was increased to RMB 289.981 billion (USD 47.54 billion) in 2012. In 2013 it fell to RMB 156.596 billion (USD 25.67 billion). In 2014, the planned local government budget for energy conservation and environmental protection is RMB 181.842 billion (USD 29.81 billion). Over the course of the past five years, the share of total national public expenditure for energy conservation and environmental protection was on an overall downward trajectory. It accounted for 2.72% of the total national budgetary expenditure in 2010 and 1.29% in 2013. The budget of 2014 is approximately 1.38% of the national budgetary expenditure. 2. Implementation of the CPEIR Implementation of the CPIER led by the RIFS under the Ministry of Finance has received strong support from the Ministry itself, which reflects government ownership of the CPEIR work. Representatives from the Ministry s various departments, including the Budgeting Department, Agricultural Department and Economic Construction Department, etc. have been involved in the consultation process over the course of the project. Similarly, the National Development and Reform Commission China s planning commission and leading ministry in the area of climate change also provides strong support to CPEIR work, in the form of comments to the report drafts and participation in the consultation workshops of the project. The consultation process also involves experts from academia who work in the area of climate finance. 4 The USD figures in this paper are calculated by authors using the 1:6.1 exchange rate between USD and RMB. Page 3 of 14
Brief Overview of China s Climate Policies 1. Overall Climate Policy Direction Chinese government attaches much significance to the issue of climate change. Since its 11 th Five-year Plan period (2006-2010), China has launched and improved all kinds of laws, regulations and policy measures to control greenhouse gas emission. In 2006, China introduced the binding target that energy intensity, i.e. energy consumption per unit of GDP, must be decreased by 20% below the 2005 levels by 2010. In 2009, China set up the target that carbon intensity, i.e. carbon emission per unit of GDP, would decrease by 40-45% below the 2005 levels by 2020. In 2011, China entered the 12 th Five-year Plan period (2011-2015), for which binding targets were introduced to decrease energy intensity by 16% and carbon intensity by 17%, and increase the share of non-fossil fuels in primary energy consumption to 11.4 % (8.3% in 2010) during the 5-year period. The five-year plan also further specified China s mission, policy orientation, and projects for addressing climate change during 2011-2015. 2. Major Fiscal Policy Instruments Main Fiscal Policy Areas Direct expenditure policy Sub-areas Directly Addressing Climate Change Readjusting Industrial Structure Energy Conservation and Enhancement of Energy Efficiency Optimizing Energy Structure Promoting Pollutant Discharge Reduction Energy Conservation and Emission Reduction Demonstration Projects Examples of Policy Instruments Special fund for air pollution control Phasing out financial support for outdated production capacity; Fiscal subsidy for construction of energy management center Financial support for transforming energy conservation technology; Financial support for energy performance contracting Special fund for renewable energy development; Financial support for biofuel development Financial support for environment monitoring system Financial support for demonstration sites Taxation Policy Major related Taxes Resource tax; Vehicle tax; Consumption tax Major preferential Taxation Policies Government Procurement Policy Mandatory Procurement of Energy-Saving Products Procurement of Products with Environmental Label Major Actors in China s Climate Public Finance Institutional Landscape 1. National Leading Group to Address Climate Change Preferential tax policy for energy performance contracting projects; Preferential tax policy for imports of energy conservation equipment To strength national efforts at addressing climate change, the State Council (i.e. the Chinese cabinet) established the National Leading Group to Address Climate Change in June 2007, which succeeded its predecessor the National Coordination Committee on Climate Change. Chinese Premier heads the Leading Group, with group members coming from 28 ministries. As the national deliberation and coordinating unit to address climate change, this Leading Group mainly undertakes the following major tasks: research and formulate major national strategies; draft guidelines and Page 4 of 14
policies to address climate change; make overall arrangement of work for addressing climate change, research and deliberate on international cooperation programmes and negotiation; organize and implement guidelines and policies of the State Council on energy conservation and emission reduction. 2. National Development and Reform Commission National Development and Reform Commission (NDRC) is the planning agency in China and was vested to lead overall work on climate change among the ministries. The climate-related work of NDRC is led by its Climate Change Department, which was established in 2008. The general office of the National Leading Group to Address Climate Change is also placed in NDRC. The climate-related functions of NDRC mainly include: Organize and draw up key strategies, plans and policies to address climate change, work with relevant ministries to jointly lead and participate in the international negotiation for climate change, and take charge of carrying out work related to the United Nations Framework Convention on Climate Change (UNFCCC). Undertake specific work of National Leading Group to Address Climate Change Advance sustainable development strategies; take charge of overall coordination of energy conservation and emission reduction; coordinate formulation and implementation of policy measures for developing circular economy; coordinate major issues related to ecological construction, conservation and integrated utilization of energy and resources; coordinate and promote work related to environmental protection and clean production Carry forward strategic adjustment of economic structure; coordinate formulation of comprehensive industry policies; coordinate major developments in the primary, secondary and tertiary industry; undertake responsibilities for planning major construction projects, draw up targets, policies and measures related to the total scale and structure of fixed asset investment in the entire country. 3. Ministry of Finance Ministry of Finance undertakes multiple duties, including formulation of macro-economic policies; revenue and expenditure control of the central government finance; management of non-tax government revenues; coordinate formulation and amendment of tax-related laws and regulations; as well as management of domestic and foreign debts of the government. Among them, the climate-related duties of the Ministry are: Compile and coordinate the implementation of annual central government budget and final accounts that cover the budgets of climate-related departments; Improve the transfer payment system including the mechanism for ecological compensation; undertake work concerning the budgets for industry, transport, resources and construction departments; undertake financial administration of policy subsidies; Lead the research on financial supporting policy in agriculture, and manage relevant supporting funds; put forward through studies central government financing policies for relevant industries; Draw up laws and regulations concerning environmental protection tax and other relevant tax items, as well as tax policy adjustment program that are related to energy conservation, emission reduction and comprehensive utilization of resources; Organize and formulate the centralized payment and collection system of the treasury; Establish and monitor the governmental procurement mechanism (including government procurement for energy-saving products and environmental products); and Manage bilateral and multilateral cooperation; Manage China s clean development mechanism fund; The relevant departments and bureaus include Department of Budget, Department of Economic Construction, Department of Agriculture, Department of Tax Policy, Department of Treasury, Department of International Affairs, Department of Finance, and China s Management Center of Clean Development Mechanism Fund, etc. Page 5 of 14
Analysis of China s Public Climate Expenditure 1. China s key public climate expenditure items Main category Climate change mitigation Climate Change Adaptation Capacity Building Examples Energy conservation and energy efficiency improvement: energy conservation projects; demonstration of fiscal policies for supporting energy conservation & emission reduction; subsidies for fuel-efficient cars; pilots on demand side management; financial incentives for transforming of energy-saving technology and energy-efficient buildings, etc. Energy structure adjustment: Support for renewable energy (wind, solar, biomass, etc.), clean coal technology, and nuclear power, etc. Industrial structure adjustment: Elimination of backward production capacity (emphasis on employee relocation and debt restructuring); Special funds for the 7 strategic emerging industries, etc. Development of forest carbon sinks: forestry projects; forestry ecological compensation; afforestation fund; forestry loan with discounted interests; subsidies for forestry insurance premium, etc. Agriculture: Expenditure on agricultural monitoring and early warning; disaster prevention and mitigation; improve adaptability Water conservancy: Expenditure on flood control and drought relief, water conservancy, etc. Meteorology: Expenditure on monitoring, forecasting and evaluating China's climate change Hygiene and health: Expenditure on hygiene and disease control; assessment of climate change s impact on human health Urban infrastructure construction: Expenditure on revising relevant standards; strengthen risk management and disaster emergency systems, particularly expenditure on underground pipelines, etc. Institutions and personnel: Expenditure on the operation of relevant government agencies Expenditure on R&D Expenditure on climate education Expenditure on climate training Expenditure on international exchange 2. Climate-related Public Expenditure in China a) Direct fiscal spending under Certain Central Government Policies In recent years, the government continues to intensify its efforts on energy conservation & emission reduction, develop and implement a series of policies and measures to promote energy conservation and emission reduction. On public spending policy, dozens of such policies have been introduced and the structure of public expenditure has been constantly geared toward energy conservation & energy efficiency, promotion of new energy and renewable energy development, promotion of resource conservation & comprehensive utilization, development of circular economy, promotion of pollutants reduction and ecological environmental protection, etc. During 2006-2012, the central government finance in this area totaled more than RMB 400 billion (USD 65.57 billion). b) National Budgetary Expenditure for Energy Conservation and Environmental Protection National budgetary expenditure for energy conservation and environmental protection was RMB 244.198 billion (USD 40.03 billion) in 2010. It was increased to RMB 296.346 billion (USD 48.58 billion) in 2012 and then declined to RMB 180.39 billion (USD 29.57 billion) in 2013. It went up to RMB 210.909 billion (USD 34.58 Page 6 of 14
billion) in 2014. Central budgetary expenditure on energy conservation & environmental protection increased significantly, from RMB 6.948 billion (USD 1.14 billion) in 2010 to RMB 29.067 billion (USD 4.77 billion) in 2014. Local budgetary expenditure on energy conservation & environmental protection increased at the very beginning but then declined. It was RMB 237.25 billion (USD 38.89 billion) in 2010 and was increased to RMB 289.981 billion (USD 47.54 billion) in 2012. In 2013 it fell to RMB 156.596 billion (USD 25.67 billion). In 2014, the planned local budgetary budget for energy conservation and environmental protection is RMB 181.842 billion (USD 29.81 billion). Over the course of the past five years, the share of total national budgetary expenditure for energy conservation and environmental protection was on an overall downward trajectory. It accounted for 2.72% of the total national budgetary expenditure in 2010 and 1.29% in 2013. The budget of 2014 is approximately 1.38% of the national budgetary expenditure. Figure 1: National Public Expenditure on Energy Conservation & Environmental Protection Unit: USD billion Data sources: Finance Year Book of China of 2012 and 2013, Report on the Central and Local Budget Performance in 2013 and the Central and Local Drafted Budgets in 2014 issued by the Ministry of Finance, and the budget sheet on central public finance expenditure in 2014. For the figures above, all data are on actual spending except those in 2014, which is the planned budget. c) Central Budgetary Expenditure on Energy Conservation and Environmental Protection There are 14 sections of central budgetary expenditure on energy conservation and environmental protection, among which, natural forest protection and energy conservation & utilization were the two biggest items in 2012. But in 2013, expenditure on energy management affairs soared to RMB 13.851 billion (USD 2.27 billion) from RMB 83 million (USD 13.61 million) in 2012. In 2014, the expenditure on energy management affairs dropped slightly to RMB 12.997 billion (USD 2.13 billion), but still accounted for 44.7% of the central expenditure on energy-saving and environmental protection. In 2014 the section-level expenditure of energy conservation & utilization has increased significantly from RMB 1.774 billion (USD 290.82 million) in 2013 to RMB 7.798 billion (USD 1.28 billion). Page 7 of 14
Figure 2: Central Government Expenditure Portfolio on Energy Conservation and Environmental Protection Total Central Government Expenditure on Energy Conservation and Environmental Protection: RMB 6.36 billion (USD 1.04 billion) Total Central Government Expenditure on Energy Conservation and Environmental Protection: RMB 23.79 billion (USD 3.9 billion) Total Central Government Expenditure on Energy Conservation and Environmental Protection: RMB 29.07 billion (USD 4.77 billion) Data sources: Finance Year Book of China of 2012 and 2013, Report on the Central and Local Budget Performance in 2013 and the Central and Local Drafted Budgets in 2014 issued by the Ministry of Finance, and the budget sheet on central public finance expenditure in 2014. In the figure above, all the data are on actual spending except those in 2014, which is the planned budget. The central budgetary expenditure does not include transfer payments from the central government to local governments. Page 8 of 14
Central Government Climate Budget Analysis 1. Defining climate relevance of budget items Based on CPEIR methodology adopted in other Asia Pacific countries, items in China s budgetary system are groups into different categories in accordance with the degree of their climate relevance: (1) High relevance: The specific and primary goal of a given expenditure is directly related to measures that seek to address climate change, including renewable energy, natural ecological protection, natural forest protection, returning farmland to forests and returning grazing land to grassland, energy conservation & utilization, subsistence allowance against natural disasters, disease prevention and control, emergency treatment to sudden public health events, basic public health services, major public health projects, forestry, disaster risk reduction, etc. (2) Medium relevance: The secondary target or partial target of a given expenditure is related with measures that seek to address climate change, including water conservation, energy management services, development and reform in general public services, environmental protection & management services, other public health expenditure (excluding those with high climate relevance), planning and protection of the national key scenic spot, planning and management of urban and rural communities, urban and rural community facilities, south-to-north water diversion projects, etc. (3) Low relevance: The items here include expenditure related to measures that seek to address climate change, such as financial and statistical type of work in association with general public services, management services in the area of science and technology, administrative work pertaining agriculture, forestry, water, expenditure on poverty alleviation, etc. 2. Preliminary Results of Climate Relevancy Analysis In recent years, Chinese government makes the budget increasingly open and transparent. The disclosed budget has become more and more detailed, which also offers the possibility of analyzing some basic data on budget items and determining their climate relevancy. In accordance with the definition of various levels of climate relevancy and using the latest budget data released by the Ministry of Finance s Treasury Department, preliminary CPEIR results are as follow: In 2013, among the central budgetary expenditure (excluding budgetary expenditure on payment for the principal and interest of debt), expenditure with high climate relevance totaled RMB 24.054 billion (USD 3.94 billion), accounting for 1.31% of total central budgetary expenditure; expenditure with medium relevance totaled RMB 114.212 billion (USD 18.72 billion), accounting for 6.24%; expenditure with low relevance totaled RMB 318.378 billion (USD 52.19 billion), accounting for 17.39%; the expenditure with no relevance or unclassifiable totaled RMB 1.37 trillion (USD 225.21 billion), accounting for 75.05%. In 2014, among the central budgetary expenditure (excluding budgetary expenditure on payment for the principal and interest of debt), expenditure with high climate relevance totaled RMB 29.069 billion (USD 4.77 billion), accounting for 1.46% of total central government budget; expenditure with medium relevance totaled RMB 108.942 billion (USD 17.86 billion), accounting for 5.46%; expenditure with low relevance totaled RMB 337.416 billion (USD 55.31 billion), accounting for 16.91%; expenditure with no relevance or unclassifiable totaled RMB 1520.385 trillion (USD 249.24 trillion), accounting for 76.18%. Page 9 of 14
Figure 3: Share of Climate-relevant Expenditure in Total Government Budgetary Expenditure in 2013-2014 Unit: USD billion Data sources: Report on the Central and Local Budget Performance in 2013 and the Central and Local Drafted Budgets in 2014 issued by the Ministry of Finance, and the budget sheet on central budgetary expenditure in 2014. The data of 2014 are on the planned budget while the data of 2013 are on actual spending. The central budgetary expenditure here does not include expenditure on repayment of principal and interest of national debts. What s next: Proposed Second Phase of CPEIR in China While the first phase of CPEIR provides a comprehensive review of China s climate change policies, institutional arrangement and estimation of the country s public climate-relevant expenditure at the central government level, there are several caveats: 1. A key objective of the CPEIR is to integrate climate change priorities into government budget formulation and implementation, with climate change-related issues being more explicitly considered during the whole budgeting process. For example, the creation of a climate change-specific budget item would be one of the options to ensure that there is a clear indicator of whether sufficient government financial resources are directed into the area of climate change. Introducing a tracking system of climate public expenditure would be another option. While the first phase of CPEIR made an initial attempt to estimate the size of government budget on climate change at the central level, it does not engage in activities that seek to actualize the integration of climate change consideration into government budget. However, it is encouraging to note that, based on previous research cooperation between the Research Institute for Fiscal Science of MOF and the Climate Change Department of NDRC, a new subsection named Addressing Climate Change Management Affairs has been introduced into the 2015 Government Revenue and Expenditure Classification System, under the Development and Reform Affairs section of the General Public Services category. The proposed second phase of CPEIR could build on this development. 2. Given the accessibility of data, the first phase focuses on central government expenditure on climate change. It is however clear that a hefty majority of public climate expenditure are incurred by the local governments. Take budgetary expenditure on energy conservation and environmental protection as an example: in 2014, the central government is expected to spend 29.67 billion RMB (USD 4.86 billion) in this area, whereas the local governments are expected to spend 181.84 billion RMB (USD 29.8 billion). The local-central spending ratio is 6.25:1. Such local-central spending disparity suggests that focusing only on the central government expenditure would considerably underestimate the climate Page 10 of 14
public expenditure of the entire country. Therefore, one would also need to examine local governmentlevel data to obtain a more accurate picture of China s entire climate public expenditure. 3. The first phase examines direct government expenditure related to climate-friendly activities. A comprehensive CPEIR should however also consider looking at the so-called negative expenditure (e.g. fossil fuel subsidies), which have negative impact on climate change. Government resources channeled through the revenue side of the budget (e.g. preferential tax treatment) that promotes climate-friendly actions should also be examined to provide a comprehensive overview of government s financial inputs in the area of climate change. 4. Inaccessibility of data on programme-level budget at the moment means that the analysis carried out in the first phase is on broad functional budget items. It creates difficulty in terms of identifying the climate-relevance of each budget item in very precise fashion. Proposed outcomes, outputs, and activities of the second phase of CPEIR in China The proposed second phase of CPEIR would seek to assist the Chinese government in systematically integrating climate change priorities into budget formulation and implementation at central and local government levels. Through obtaining a comprehensive picture of the climate public spending pattern, the CPEIR can help the Chinese government to ensure its public financial resources are directed into programmes and projects that are closely aligned with its climate change priorities. The intended impact of the CPEIR would be changes in the government budget formulation and implementation process such that it explicitly takes climate change into account. Another intended impact of the CPEIR would be the reallocation of public financial resources to reconcile actual government spending with its climate change priorities. As the CPEIR will generate considerable climate change-relevant knowledge and data, the programme also seeks to facilitate cross-country knowledge sharing, in particular South-South exchange, in order to build regional expertise that will sustain work on strengthening the governance of climate change finance in Asia and the Pacific, and also other regions. As CPEIR is still a relatively new concept to many of the developing countries and many of them are in the similar situation where governments do not have proper systems in place to identify climate public spending pattern, they could benefit from learning the experiences of other countries in implementing CPEIR. Such South-South exchange is also crucial for the accumulation of the regions collective knowledge in implementing CPEIR. In order to achieve the aforementioned outcomes, the proposed second phase of CPEIR will seek to achieve the following three main outputs: Output 1: Pilot CPEIR in selected provinces The activities under this output are aimed at carrying out CPEIR in 2-3 selected pilot provinces in China, with focus on both mitigation and adaptation. Given local governments are responsible for a substantial majority of climate public expenditure, it is crucial to carry out provincial-level CPEIR to obtain a full picture of public climate finance flow in China. As the fiscal system of China is highly decentralized, there does not exist a centralized system at the central government level where provincial data on public expenditure is easily accessible. In order to obtain provincial-level data, one therefore would need to work with provincial government and its finance bureau, hence the need to carry out provincial pilots. The selection of pilots will be based on multiple considerations, including emission levels, vulnerability to climate change, and data accessibility, among others. These proposed provincial CPEIRs can also refer to the experiences of implementing sub-national CPEIRs in other countries both developed and developing ones. Output 2: Refinement of CPEIR methodology and analysis The activities under this output are aimed at refining the existing CPEIR methodology and analysis. The refinement will include, but not limited to, expanding the scope of CPEIR and examine negative expenditure, such as fossil fuel subsidies, and how government resources can be channeled into climate-relevant activities Page 11 of 14
through the revenue side of government budget, such as tax incentives. Based on consultations with officials from the Ministry of Finance, there is an expectation that data on programme-level government budgets will become increasingly accessible, the second phase of CPEIR will also seek to look into programme-level data that allow a more precise determination of the climate-relevance of public expenditure. Under this output, analysis of public expenditure s ability to leverage private capital for climate-relevant programmes will also be carried out. Output 3: Implementation of recommendations of the CPEIR in relation to integrating climate change priorities into budget formulation and execution, and formulating provincial adaptation plans Upon the completion of the CPEIR analysis, the project will seek to implement the specific recommendations resulting from the analysis. Overall, the activities will support the Ministry of Finance and other ministries involved in the budget formulation process to integrate climate change analysis into key budget documents and medium- to long-term fiscal and macro-economic frameworks. As findings of the provincial CPEIRs will shed lights on the pattern of climate public expenditure, they are expected to provide provincial governments with data on their spending on climate change adaptation. This could provide valuable information on the cost of different adaptation options, which is crucial to the formulation of the provincial adaptation plans. Under this output, a long-term roadmap for systematic integration of climate change analysis within the budget formulation process will be developed, along with a reference guide to support the drafting of a Climate Budgeting Handbook. The project team will deliver on-the-job trainings to key government officials, and work with them to implement climate change analysis as part of the formulation of priority budget documents. The team will also identify options and piloting approaches to integrate climate change expenditure reporting and tracking systems. Figure 4: Proposed outputs under the Second Phase of CPEIR in China Provincial CPEIR Pilots Proposed CPEIR Second Phase Refinement of CPEIR methodology Implementation of CPEIR Recommendations Page 12 of 14
AUTHORS Dr. SU Ming, Fellow Researcher, Deputy Director General of the Research Institute for Fiscal Science, Ministry of Finance, PRC Dr. WANG Guijuan, Fellow Researcher, Deputy Director of Foreign Fiscal Research Division, Research Institute for Fiscal Science, Ministry of Finance, PRC Mr. Jackie Hoi-Wai CHENG, National Economist, UNDP China Page 13 of 14
FOR MORE INFORMATION Dr. WANG Guijuan Research Institute for Fiscal Science Ministry of Finance, PRC Email address: wgjly2001@163.com Mr. Jackie Hoi-Wai CHENG UNDP China E-mail: jackie.cheng@undp.org THIS INITIATIVE IS SUPPORTED BY: Swedish International Development Cooperation Agency UK Department for International Development Page 14 of 14