Climate Change Finance & Public Financial Management
The Forum has been working with partners and Members to strengthen national public financial management (PFM) system and processes and advocacy for climate change indicators/considerations to complement the Public Expenditure and Financial Accountability (PEFA) framework. It also provides advice and support on country readiness for ‘direct access’ through National Implementing Entity (NIE) accreditation to the Green Climate Fund (GCF) and Adaptation Fund (AF).
- The Pacific Climate Change Finance Assessment Framework (PCCFAF) applied in 8 FICs was recognised internationally by the UNFCCC’s Standing Committee on Finance as global good practice for assessing the needs of developing countries.
- Forum Economic Ministers’ approval in May 2019 for further work on a revised PFM approach, including the inclusion of climate finance in the PEFA Framework.
- Completion of a regional consolidated PFM issues matrix for eight FICs and approval of the PFM climate finance pager highlighting key reform areas to enhance accessibility.
- Supported Ocean finance profiling for Tonga in collaboration with the Office of the Pacific Ocean Commissioner (OPOC) and the Forum Fisheries Agency (FFA).
- Kiribati: A draft Treasury Operational Manual consolidating and outlining processes that encompass financial instructions, procedures and rules, was developed for the Ministry of Finance and Economic Development, based on the Public Finance Act. This is part of the Readiness Capacity Support provided to the Government of Kiribati following a joint-climate finance and disaster risk finance assessment.
- Tuvalu: Support Ministry of Finance and Economic Development in strengthening its Internal Audit Unit (IAU). This was done by developing an Internal Audit risk framework as required by climate finance institutions, particularly the Green Climate Fund and the Adaptation Fund. This framework guides the operations of the IAU, in accordance with the International Standards for the Professional Practice of Internal Auditing, which will significantly bolster the Government’s internal controls. This also contributed towards the accreditation of the Ministry of Finance as a NIE for the Adaptation Fund in 2019.
- Solomon Islands: The establishment of a Climate Finance Unit (CFU) within the Ministry of Finance and Treasury was a result of the scoping exercise supported by the CFRP Project. This Unit ensures effective coordination of all climate change finance activities across the government and facilitate the government’s intention to access the GCF and AF.
- Successful implementation of the peer to peer learning where two senior officials from the Government of Tuvalu were hosted by Fiji’s Ministry of Economy for two weeks to enhance their capacities in internal audit and aid management.
Supported by the DFAT/GIZ Climate Finance Readiness for the Pacific (CFRP), SPC/USAID Institutional Strengthening to Adapt to Climate Change (ISACC) Projects, Pacific Financial Technical Assistance Centre (PFTAC).