Regional Seminar on Green Fiscal Policy Instruments, Climate Change and Environmental Sustainability

The Regional Seminar on green fiscal policy instruments, climate change and fiscal sustainability held in San Jose, Costa Rica on November 7 and 8, 2018, aimed to provide an updated view of management and actions taken by the Treasury or Finance Ministries of the SICA countries internationally, in terms of fiscal and environmental sustainability, particularly in terms of green fiscal instruments, robust public investment in climate risks and budgetary classifiers, among others. Likewise, it sought to obtain elements to strengthen the priority lines of action of the COSEFIN Ministries, considering south-south cooperation.

The seminar attendees welcomed the progress made with the approval of the Environmental Fiscal Strategy in Guatemala, as well as the implementation of the Financial Strategy for disaster risk management in Costa Rica and the application of fiscal instruments to support fiscal and environmental sustainability in the Dominican Republic. Advances made on including disaster risk and climate change in the national public investment systems of Panama, Honduras, Costa Rica and El Salvador were highlighted. Methodology on including the social cost of carbon in public investment projects that could open doors for national and international climate financing was widely debated.

The application of climate change budget classification in Honduras was analyzed, as well as efforts made and short-term plans in Costa Rica climate associated budget classification. Nicaragua’s experience in using parametric insurance against catastrophic risks within the framework of the Caribbean facility was analyzed receiving comments and feedback from World Bank officials present at the Seminar.

The next steps for the creation of a regional compilation of methodologies, regulations, procedures, didactic material and curriculum for the strengthening of capacities among technical officials of national and regional institutions related to public investment including disaster risk management and the response to climate change and environmental sustainability were defined. Another Regional Seminar on robust public investment before disaster risk and on lowering greenhouse gas emissions is planned to take place in the first half of 2019.