Green budgeting: a toolkit for public sector finance professionals

A new report by ACCA, Green budgeting: A toolkit for public sector finance professionals, shows how action to address the climate challenge requires change across the whole public sector and must be central to every public sector organisation’s decision-making processes.

Accountancy and finance professionals in the public sector are essential to this task, providing leadership and expertise to mainstream climate action.

The budget cycle is at the heart of how every organisation implements its objectives. Green budgeting provides a framework to use the tools of the budget process to work towards implementing climate commitments and achieving environmental goals.

This toolkit:

• notes that green budgeting is a wide-ranging concept and can involve different approaches
• outlines the basics of green budgeting
• focuses on the role of finance professionals
• highlights examples of green budgeting methods
• sets out steps for making green budgeting a success
• provides case studies.
  

The toolkit emphasises the importance of ownership of green budgeting by the finance function to make climate action a priority.
 
The toolkit is divided into three sections:

1. Understanding green budgeting – provides definitions and motivations for adoption.
2. Getting started – sets out three overarching principles to consider at the outset.
3. Making green budgeting a success –  summarises two of the main tools and five factors required to build an effective approach.

There is also an appendix of case studies showcasing green budgeting in action.
 
The case studies include:

• Government of Canada: emissions reduction plan and Federal Budget.
• Government of Kenya: tracking climate change spending.
• Greater London Authority: climate budgeting.
• State of Odisha: climate budgeting.
• Government of Singapore: green bonds.

ACCA is committed to supporting the public sector in confronting the climate challenge. It supports the work of the International Public Sector Accounting Standards Board on sustainability reporting in the public sector.