13 Climate Budget Tagging: Amplifying Sub-National Government’s …
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better than the existing practices shown through climate budget tagging exercises.
It is a matter of integrating one development agenda into other targets governments
commit to achieving. Instead of specifically addressing only one problem at a time,
climate co-benefits can also be expected from other clusters of development that
are closely related to the climate mitigation while maintaining economic growth.
As identified by Ministry of Finance, there are five other prioritized sectors that
will significantly help the climate; these are: agricultural energy and industry, transportation and urban planning, education and health, and disaster mitigation (MoF
2015). The above-mentioned priorities should be more climate-sensitive, along with
conservatively relying on the natural resource protection to gain benefits of climate.
Hence, it is suggested that sub-national governments should improve the way planning is conducted by incorporating activities target indicators that are contributing
to climate impacts in order to serve more significant outputs and outcomes that help
the government in achieving their planned climate targets.
Deliberate on the use of climate budget tagging to see how governments translate the implementation of climate targets, the more comprehensive the activities’
indicators, output and outcome that include suitable climate targets are, the easier
will be tracking and assessing climate-relevant spending. The information resulting
from the tag can be used to notify the state of planning, budgeting as well as implementation to strengthen the transparency and accountability around climate change
commitments, both at the sub-national and national governments. Besides, if applied
consistently across sub-national governments under similar framework and indicators, the national government can compare outcomes, which will then help the
national government to subsequently refocus the expenditures to achieve the targets
better.
Anticipating the Incoming Reform at the Sub-National Level
Under the enacted Law No. 23 of 2014 on local government, there is a reform in
land-use governance at the sub-national level where authorities on forestry, mining
and energy sectors are based at the provincial level, while agriculture, plantation and
other land-use allocations are still governed at the district level. Having the situation
in hand, sub-national governments need to be more adaptive in anticipating such shift
without contravening the Governor’s Regulation on their strategic and action plans
for climate mitigation. There is a large opportunity for district governments to involve
further in forest and land management in accordance with Law No. 23 of 2014. One
opportunity that the Law unlocks is the opportunity for district governments to translate and articulate management efforts supported by a robust financing policy and
framework, which incentivizes land governance. There is the need of an elaborative
attempt to follow-up on targets that can be achieved at the provincial and district
levels under the current regime, especially knowing that land-use sector contributes
the most to the greenhouse gas emissions in Indonesia (Republic of Indonesia 2016).
Having smaller scope of the intervention area and slimmer structure of entities to
277
better than the existing practices shown through climate budget tagging exercises.
It is a matter of integrating one development agenda into other targets governments
commit to achieving. Instead of specifically addressing only one problem at a time,
climate co-benefits can also be expected from other clusters of development that
are closely related to the climate mitigation while maintaining economic growth.
As identified by Ministry of Finance, there are five other prioritized sectors that
will significantly help the climate; these are: agricultural energy and industry, transportation and urban planning, education and health, and disaster mitigation (MoF
2015). The above-mentioned priorities should be more climate-sensitive, along with
conservatively relying on the natural resource protection to gain benefits of climate.
Hence, it is suggested that sub-national governments should improve the way planning is conducted by incorporating activities target indicators that are contributing
to climate impacts in order to serve more significant outputs and outcomes that help
the government in achieving their planned climate targets.
Deliberate on the use of climate budget tagging to see how governments translate the implementation of climate targets, the more comprehensive the activities’
indicators, output and outcome that include suitable climate targets are, the easier
will be tracking and assessing climate-relevant spending. The information resulting
from the tag can be used to notify the state of planning, budgeting as well as implementation to strengthen the transparency and accountability around climate change
commitments, both at the sub-national and national governments. Besides, if applied
consistently across sub-national governments under similar framework and indicators, the national government can compare outcomes, which will then help the
national government to subsequently refocus the expenditures to achieve the targets
better.
Anticipating the Incoming Reform at the Sub-National Level
Under the enacted Law No. 23 of 2014 on local government, there is a reform in
land-use governance at the sub-national level where authorities on forestry, mining
and energy sectors are based at the provincial level, while agriculture, plantation and
other land-use allocations are still governed at the district level. Having the situation
in hand, sub-national governments need to be more adaptive in anticipating such shift
without contravening the Governor’s Regulation on their strategic and action plans
for climate mitigation. There is a large opportunity for district governments to involve
further in forest and land management in accordance with Law No. 23 of 2014. One
opportunity that the Law unlocks is the opportunity for district governments to translate and articulate management efforts supported by a robust financing policy and
framework, which incentivizes land governance. There is the need of an elaborative
attempt to follow-up on targets that can be achieved at the provincial and district
levels under the current regime, especially knowing that land-use sector contributes
the most to the greenhouse gas emissions in Indonesia (Republic of Indonesia 2016).
Having smaller scope of the intervention area and slimmer structure of entities to