Decentralized Governance: Opportunity for Climate Change Integration

Workshop

A Workshop on “Increasing Evidence based Budgeting: Lessons learned from collaborative research on effectiveness on climate finance” was organised jointly by Ministry of Agriculture and UNDP in Kathmandu on 6th August 2017. One of the objectives of the workshop was to disseminate results of on-going work on climate finance in Nepal and findings of recently undertaken research on the effectiveness of climate finance in agriculture sector. The second objective of the Workshop was to discuss and agree on a way forward in conducting similar types of research in future to support evidence-based climate responsive budget formulation for climate sensitive sectors. The discussions were supposed to be concentrated into implementation of climate finance in context of the new federal system of governance in Nepal. As one of the participants of the workshop, I had the following observations.

The workshop discussed on on-going work on climate finance and research findings on the effectiveness of climate finance in agriculture sector and way forward. The research was inline with implementing the climate change budget code established at national level in 2011. About 30% of the total NRs 393.3 Billion of annual budget of Nepal has been allocated to activities related to climate change in FY 2017/18. The climate change budget was three times higher figure of the baseline of only 10% in FY 2013/14. Most of the climate relevant programs were accounted from seven ministries namely Ministry of Urban Development, Ministry of Agriculture Development, Ministry of Irrigation, MoPE, MFSC, MoFALD, MoF. The aforementioned information was extracted from Nepal’s citizen Climate Budget that was disseminated during the workshop.

Over the years the budget for climate relevan activiteis has increased noticeably. Ever increasing climate change relevant budget is in an indication of the commitment of the governemtn of Nepal towards translating climate change policy that has provision of implementing upto 80% of the total climate change earmarked budget into action at local level. Increased climate change budget also signified that the central level stakeholders are well aware on the need of integration of climate change budget code at sectoral as well as development plan and polices. Further, it is an example of internalization of the issues by relevant sectoral ministries. Based on the discussion, it was realized that there are some short falls specially to differentiate between climate relevant and development activities and inadequate capacity of the field practitioners.

About 12% of the agriculture sector budget were in line with climate change adaptation pro-poor and gender category .While scrutinizing the budget expenditure pattern in Bardia and Udaypur, over 97% agricultural budgets have been spent in FY 2014/15 by agriculture sector that reflects the climate change budget is being implemented successfully. It exemplifies the fact that the climate change issues have been integrated into sectoral policies. Moreover, it was found that most of the climate change activities were pro-poor, pro-gender and pro-climate change vulnerable. The activities like irrigation canal maintenance, water source protection, transportation of seeds and fertilizer program and cooperative farming were implemented under this heading. These implied that small scale activities are the need of poor, women as well as climate response activities, which contradicts the governmetn’s policies of promoting large sized projects at local level.

The ultimate goal of the climate change adaptation activities should be to persuade local government to allocate more resources for climate change smart activities. Once they understand that the climate change smart activities not only address the issues of environment and climate change, but also the need of gender and climate change vulnerable communities, then the resilient communities as well as sustainable ecosystem can be ensured. It is wise to share the findings with the concerned district stakeholders and convince them for allocating and implementing more climate change activities. Based on the learning of the pilot districts, the experiences can be upscale elsewhere in Nepal.

Some of the key issues come out during the discussion were that there is a need of cross sectoral as well as inter ministerial coordination to make climate change adaptation activities more effective. In the present context, when most of the activities are implemented following sectoral approach, irrigation, forests, agriculture and forests are linked activities therefore these sectors should work in a harmonious ways.

Changing Governance Context

In the context when the central level power has already been delegated to local authority, there is an opportunity of formulating policies, plan and acts, following integrated approach.

According to the existing Local Governments Planning and Budgeting Guidelines 2017, climate change, disaster management, environment friendly local governance should get priority while preparing local development plans. Similarly, one of the basses of prioritization of activities while planning, among others should be sustainable development, environment conservation, and developing climate resilient societies.

Budget ceiling and planning guidelines follow top down approach while the plan approval process and implementation process follow bottom up approach at the local level. In the top down approach front, the process is that the central and provincial government issues budget ceiling and planning guidelines to local government. After discussion on the guidelines and identifying local priority, the municipality/village municipality sends the guidelines to settlement level planning through ward committees. The ward committee then forwards the plan after segregating into subject and priority into village/municipal plan formulation committee (Fig 1).

 The Budget and planning formulation committee at the municipal level should categories the ward level activities into different subjects. Environment and Disaster sectors include forest and watershed conservation, environment conservation, and climate change, among others. The sectoral issues are to be reviewed by a sectoral committee. From the Secctoral committee, the plan goes to the Budget and Program Formulation Committee. The Committee then submit the plan to Executive Committee and then to the Council. In this way, initiatives are taken towards integrating climate change, environment and disaster into local development planning process.

Under Executive Committee, Environment and Disaster Management committee has been proposed that looks after environment conservation and disaster (Fig 2). The Executive committee may take advice of the Sectoral Committee while putting agenda in the Executive bodies. Village Executive (Work Distribution) Regulations 2074, proposed a total six sections in Village/Municipality, one office, sub-section and units are provisioned under the portfolio of Executive Committee. Environment, watershed management, and solid waste management sub-sections are provisioned under section Infrastructure Development and Building Regularization Section. Forest and Watershed Office is provisioned under Economic Section. Infrastructure Development and Building Regularization Section environment friendly, climate change adaptation, environment friendly infrastructure activities are the scope of this section.

Conclusion

Climate change issues have already been included in the budget planning guidelines 2017. The Guidelines requires considering climate change as one of the basis while selecting activities. Also, while prioritizing activities at Ward level, climate change and environment should be considered. Similarly, in order to implement the climate change activities, the local governments are required to establish Environment and Disaster Risk management Section under Executive Committee. Moreover, under the sections, unit is to be established. In this way, all basic frameworks have already been developed at the local level to deal with the climate change issues.

Therefore, in order to ensure long term sustainability, local ownership and adopting integrated planning and budgeting approach, it is essential to implement the activities under the umbrella of local government.