This study takes stock on the experience of some twenty countries and several international development institutions in Environmental Budget Tagging. It identifies the expected benefits and the conditions to achieve them: take into account the measures that are unfavorable to the environment, consider the outcomes of assessed measures and not only their intention, repeat the exercise over time and fit it into the existing administrative culture and processes…
Climate and environmental issues affect all aspects of a nation’s economic life. Acknowledging this reality, more and more finance ministries are implementing tools to facilitate and optimize the consideration of the environment in budgetary decisions, known as “green budgeting” tools. The Environmental Budget Tagging (EBT) is one such tool, which aims to highlight all budgetary measures related to one or more dimensions of environmental action, such as climate change, biodiversity or land degradation.
This review tries and provides answers to two questions: What are the expected benefits of these tools? Under what conditions are they achieved? It takes stock on the experience of some twenty countries and several international development institutions (UNDP, IDB, World Bank, OECD), through bibliographic reviews and a large series of interviews with national practitioners, researchers, and experts from various international institutions. 10 case studies (8 from Latin America + Indonesia and France) were examined in depth, their conclusions and comparisons being compiled in a methodological annex to this report. In particular, the study focuses on the differences between “minimal” and comprehensive evaluations, finding that the significant additional benefits associated with a comprehensive evaluation more than justify the additional effort involved.