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Roundtable Discussion: Climate Budget Tagging and Engaging with Investors

September 13, 2022

Photo credit Adobe Stock

Climate Budget Tagging is an important tool for governments to monitor and track what they spend on climate-related activities and communicate them to investors. 

On September 13 World Bank Treasury organized a roundtable discussion on best practices for tagging climate-related expenditures in the national budget system—an emerging practice more and more ministries of finance are engaging in.

The benefits of Climate Budget Tagging are multiple. The mechanism promotes transparency and accountability, enabling the prioritization of investments towards national objectives and international commitments. It also raises awareness of and showcases efforts to tackle climate challenges, fosters better cooperation between government ministries, and mobilizes domestic and international finance by enabling the tracking of the allocation of resources. 

More than 70 debt management and budget department officials from 32 countries participated in the roundtable with 12 investors convened by UN Principles for Responsible Investment, who said that climate budget tagging could contribute toward a holistic understanding of a country’s sustainability journey.