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Enhancing Malawi's Environmental Budget Integration for Sustainable Development

This project supports the Ministry of Finance in integrating environmental policies into budget guidelines to manage natural resources and address climate change. Through guidance, training, and capacity building, sector ministries learn to incorporate environmental considerations in budget processes, aiming for sustainable development. The study methodology includes desk reviews, interviews, stakeholder consultative meetings, and vetting by directors for recommendations like conducting environmental expenditure reviews and strategic environment assessments. Recommendations also suggest tracking environment-related revenue and enhancing accessibility of Environmental Impact Assessments. Lessons learned highlight the broad scope of the environment domain, inadequate funding for the Environmental Fund, the time-consuming nature of mainstreaming, and the importance of clear expenditure data. The project aims to promote sustainable development in Malawi.

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Enhancing Malawi's Environmental Budget Integration for Sustainable Development

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Presentation Transcript

  1. Malawi Poverty-Environment Initiative Introduction to: ‘Support to MoF in Incorporating Environmental Policy and Tools into the Budget Guidelines’ Country Experience Presented to the PEI Africa Regional Economic Forum 8-11 November 2010

  2. Background to the Project • The Ministry of Finance (MoF) prepares a revised set of budget guidelines annually which need to include environment, sustainable natural resource management and climate change issues. • MoF requested some guidance, tools and capacity building in order to train the sector ministries on how to incorporate environment and sustainable natural resources management in their budgeting processes.

  3. Background cont • ODI reviewed the budget process, interviewed the key actors in the interface between the budget process and environmental policy. • From this they prepared a guidance note proposing how environment and sustainable natural resource management can be better incorporated into the budget process. • After the guidelines material is vetted, ODI will train key MoF and MDPC staff members in integration of environment and sustainable natural resource management in budgeting processes.

  4. The Budget Cycle Source: Public Expenditure Management Handbook, World Bank, 1998.

  5. Study Methodology • Desk reviews and interviews • MOF • Environmental related Ministries/Departments/CSOs • Agriculture and Environment Committee • Stakeholder consultative meetings • Vetting by Directors

  6. Recommendations • Conduct a detailed public environmental expenditure review • Examine options for securing domestic revenue for the Environment Domain, including the operationalisation of the Environment Fund • Undertake Strategic Environment Assessment for specific issues, sectors and policies as a step towards bridging the gap between policy and analysis on environmental management • Ensure the new Environment Outlook Report is regularly produced as this is a key environment M&E tool.

  7. Recommendations • Conduct, through a collaborative effort between EAD, MDPC and DAD, a survey on donor funding to environmental-related investments and activities, which be used to identify resource gaps constraining the pursuit of environmental objectives • Use the financial monitoring and activity quarterly reports and cross reference with the environment domain activities described in the theme and sub-theme classifications in the budget, to ensure that planned activities are being fully funded in a timely manner

  8. Recommendations • Utilise the theme and sub theme segments in the budget classifications to track environment-related revenue, expenditure and activities • Enhance accessibility and understanding of EIAs by including the key points and recommendations made in these assessments in regular and broader evaluation reports • Support the operationalisation of the Environment and Natural Resources Sector Working Group

  9. Lessons learnt • Environment Domain is wide and overlapping • Environmental Fund is legislated (EMA, 1996) and not adequately funded (only IEA) –not other penalties (polluter pays principle, green window fund at the Assembly) • Mainstreaming takes time and requires a lot of investment • PEER would be essential to give clear expenditure

  10. Government of MalawiUNDP-UNEP Poverty- Environment Initiative Thank you for listening http://www.unpei.org/programmes/country_profiles/malawi.asp

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