The Climate Fiscal Framework (CFF), published by the Ministry of Finance, provides principles and tools for climate fiscal policy-making (CFP), helping to identify the demand and supply sides of climate fiscal funds (expenditures vis-à-vis revenue or finance, respectively), and to ensure that CFP is transparent and sustainable in the longer term.
The CFF determines:
- The equitable division of climate funds and their allocation to relevant sectors
- The division of services, identification of the demand for climate fund, and expenditure areas of financial authority for raising revenue, for national and international financing options, and for fiscal tools
- A governance framework for climate change funds under national fiscal policy
The CFF also recommends a set of climate codes designed to (i) track climate change expenditures for policy analysis and reporting, and (ii) estimate long-term climate finance needs by identifying potential climate-related public expenditures across government ministries.