Climate budget tagging system to integrate climate considerations into public financial management processes

South Africa addresses climate change challenges with dedicated resource pool

The South African government is taking proactive steps to address the challenges posed by climate change on local infrastructure.

A dedicated resource pool of R1.57 billion has been established to cover the repair and rehabilitation of infrastructure damaged by flooding in February and March 2023.

R1.57 billion allocated to repair and rehabilitate climate-damaged infrastructure

This allocation consists of R372 million added to the Municipal Disaster Response Grant and R1.2 billion added to the Municipal Disaster Recovery Grant.

National Treasury develops disaster risk financing strategy to reduce budget reallocations

The National Treasury is actively working on developing a disaster risk financing strategy to enhance existing risk financing instruments and reduce the overreliance on budget reallocations.

Climate budget tagging system to integrate climate considerations into public financial management processes

The National Treasury has also initiated a climate budget tagging system to integrate climate considerations into public financial management processes.

This project has progressed through consultation, awareness-raising workshops, and piloting across different government levels.

South Africa strengthens response to climate change impacts on infrastructure and financial systems

The next phase of the climate budget tagging project will involve refining the framework, consulting stakeholders, revising guidance materials, and establishing governance arrangements.

This will ultimately strengthen South Africa’s response to climate change impacts on its infrastructure and financial systems.

Conclusion

The South African government is taking concrete steps to address the challenges posed by climate change.

The dedicated resource pool of R1.57 billion, the disaster risk financing strategy, and the climate budget tagging system are all important initiatives that will help to protect the country’s infrastructure and financial systems from the impacts of climate change.

World News