ACCA-绿色预算：公共部门财务专业人员的工具包

GREENGREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALSDecember2022AboutACCAACCA(theAssociationofCharteredCertifiedAccountants)istheglobalprofessionalbodyforprofessionalaccountants.We’reathrivingglobalcommunityof241,000membersand542,000futuremembersbasedin178countriesandregions,whoworkacrossawiderangeofsectorsandindustries.Weupholdthehighestprofessionalandethicalvalues.Weoffereveryoneeverywheretheopportunitytoexperiencearewardingcareerinaccountancy,financeandmanagement.Ourqualificationsandlearningopportunitiesdevelopstrategicbusinessleaders,forward-thinkingprofessionalswiththefinancial,businessanddigitalexpertiseessentialforthecreationofsustainableorganisationsandflourishingsocieties.Since1904,beingaforceforpublicgoodhasbeenembeddedinourpurpose.InDecember2020,wemadecommitmentstotheUNSustainableDevelopmentGoalswhichwearemeasuringandwillreportoninourannualintegratedreport.Webelievethataccountancyisacornerstoneprofessionofsocietyandisvitalhelpingeconomies,organisationsandindividualstogrowandprosper.Itdoesthisbycreatingrobusttrustedfinancialandbusinessmanagement,combatingcorruption,ensuringorganisationsaremanagedethically,drivingsustainability,andprovidingrewardingcareeropportunities.Andthroughourcutting-edgeresearch,weleadtheprofessionbyansweringtoday’squestionsandpreparingforthefuture.We’reanot-for-profitorganisation.Findoutmoreat©2022AssociationofCharteredCertifiedAccountantsForewordJohnLelliottOBEFCCA,Non-ExecutiveDirectoroftheEnvironmentAgencyClimatechangeisthedefiningchallengeofourage.Thepublicsectorhasacriticaldualroleinrespondingtothischallenge:initspolicymakingandregulatoryfunction,settingtheagendaforwidersociety,andensuringthatitsownorganisationalpracticesminimisetheimpactontheclimateandtheenvironment.Actiontoaddresstheclimatecrisisrequireschangeacrosstheentirepublicsector.Climateconsiderationsmustbecentraltoeverypublicsectororganisation’sdecision-makingprocesses.Thecommitmentsgovernmentshavemadetoreducinggreenhousegas(GHG)emissionsnowneedtobetranslatedintofundedandmeasurableactions.Accountancyandfinanceprofessionalsinthepublicsectorwillbeessentialtothistask;theycanprovideleadershipandexpertisetomainstreamclimateactionineverypublicsectororganisation.Thebudgetcycleisattheheartofhoweveryorganisationimplementsitsobjectivesandfinanceprofessionalsareintegraltoeveryaspectofthisprocessinthepublicsector.Greenbudgetingprovidesaframeworkforpublicsectororganisationstousethetoolsofthebudgetprocesstoworktowardsimplementingclimatecommitmentsandachievingtheirenvironmentalgoals.Greenbudgetingisawide-rangingconceptandcaninvolvevariousdifferentapproaches.Thistoolkitoutlinesthebasicsofgreenbudgeting,focusingontheroleoffinanceprofessionals.Ithighlightsexamplesofgreenbudgetingmethodsandsetsoutthestepsformakinggreenbudgetingasuccess,emphasisingtheimportanceofownershipbythefinancefunctiontomakeclimateactionapriority.Thetoolkitalsoincludescasestudiesfrompublicsectororgansiationsacrosstheworldwhichareimplementinggreenbudgetingapproaches.ClimatechangeisaglobalchallengeandACCA,astheleadingglobalaccountancybody,iscommittedtosupportingthepublicsectortoconfrontthischallengeacrossthedifferentregionsinwhichweoperate.Alongsidethistoolkit,wearealsosupportingtheworkoftheInternationalPublicSectorAccountingStandardsBoardonsustainabilityreportingforthepublicsector.Wewillcontinuetohighlighttheimportantroleoffinanceprofessionalsinthepublicsectorindrivingchangeandhelpingtobuildabetterworld.GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|INTRODUCTIONIntroductionClimatechangeisalreadyhavingaprofoundimpactonourplanet,societyandglobaleconomy.Governmentsareattheforefrontoftheresponsetoclimatechange;countrieshavesetnationalgoalsandmadeglobalcommitmentstoprotecttheenvironmentandmitigateclimatechange.Forcountriestoachievethesetargets,sustainedeffortwillberequiredacrossthepublicandprivatesectors.Theimpactofeveryorganisation’sactivitiesonclimatechange,biodiversitylossandenvironmentaldegradationneedstobeunderstoodandthenmitigated.ACCAhashighlightedthecriticalroleofprofessionalaccountantsinthedrivetodecarboniseandputsustainabilityattheheartofdecision-making(ACCA,2021a).Financeprofessionalscanprovideleadershipandexpertiseasorganisationsimplementplansforclimateaction.Allpublicsectororganisations,whetherlargeorsmall,produceabudget,usuallyannually.Budgetsmatter.Theydemonstratetheprioritiesofpublicsectororganisations.AstheUSPresident,JoeBiden,hassaid:‘DON’TTELLMEWHATYOUVALUE.SHOWMEYOURBUDGET–ANDI’LLTELLYOUWHATYOUVALUE’.JoeBiden,USPresidentGREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|INTRODUCTIONAnorganisation’sbudgetisastatementofintentandthereforeapowerfultoolforbothraisingawarenessofanorganisation’senvironmentalobjectivesandoperationalisingthem.Greenbudgetingenablesorganisationstousetheirexistingbudgetprocesstoconsidertheimpacttheorganisation’sactivitieshaveonitsenvironmentalobjectives.Fromthisstartingpoint,greenbudgetingcanbeusedtoalignbudgetsmorecloselywithclimatechangeandsustainabilitygoals,aspartofanintegratedapproach.Overtime,itshouldenableorganisationstomovefromactivitiesandinvestmentswithdamagingimpactsontheenvironment,towardsmoresustainableandeven‘climatepositive’actions.Thereisacriticalroleforprofessionalaccountantsandthefinancefunctioningreenbudgeting.Financeprofessionalsarecentraltothebudgetprocessinpublicsectororganisations;bytakingtheleadindevelopingandimplementinggreenbudgetingapproachestheycanmakeitapriorityintheirorganisation.ToolkitToolkitoutline SECTION1:Understandinggreenbudgetingoutlinesthedefinitionofgreenbudgetingandidentifiesfourkeymotivationsforpublicsectororganisationsadoptingthesepractices. SECTION2:Gettingstartedhighlightsthreeoverarchingprinciplestoconsiderattheoutsetfororganisationsimplementinggreenbudgeting. SECTION3:Makinggreenbudgetingasuccessfocusesontheimplementationprocess,summarisingtwoofthemaingreenbudgetingtoolsthatthepublicsectorcanadoptandhighlightingthefiveprincipalfactorsneededtobuildaneffectiveapproach. APPENDIX:Learningfromothersoutlinesfiveexamplesofdifferentpublicsectororganisationsacrosstheworldthatareadoptinggreenbudgetingapproaches.WatchtheGreenBudgetingvideohere5GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|1.UNDERSTANDINGGREENBUDGETING1.UnderstandinggreenbudgetingWhatisgreenbudgeting?GreenbudgetinghasbeendescribedbytheOECDas‘acompassforachievingourenvironmentalobjectives’(OECD,2020).Atitssimplest,itisanapproachwhichidentifiesandassessestheclimateandsustainabilityimpactsofbudgetitems.Buildingonthisinformation,organisationscanaligntheirbudgetsmorecloselywithclimateandsustainabilityobjectives.Greenbudgetingpracticesarestilldevelopingandtheconceptissometimesdefinedfairlywidely.Ourfocusinthistoolkitisonthoseapproachesthataremostcloselyassociatedwiththebudgetprocessitselfandwithanorganisation’sbudgetcycle.Focusingprimarilyonthebudgetprocessenablesallpublicsectororganisationstoconsiderhowtheycanadoptgreenbudgetingasanapproach.Greenbudgetingenablesorganisationstousethetoolsofbudgetarypolicymakingtosupporttheachievementofenvironmentalgoals.Itiscrucialthereforethatthegreenbudgetingpracticeschosenbyanorganisationbuildontheexistingbudgetprocess.Thisisanimportantstrengthofgreenbudgeting;itcomplementscurrentarrangementsandcanbedevelopedovertime.Itdoesnotrequireneworalternativebudgetmanagementsystems.Greenbudgetingcanbeseenaspartofawidergreenpublicfinancialmanagement(PFM)approach,encompassingallthearrangementsgovernmentsputinplacetomanagepublicspending,includingfiscalpolicy(Gonguetetal,2021).Forexample,theWorldBank’sPublicExpenditureandFinancialAccountability(PEFA)programmehasdevelopedaframeworkwhichassessestheextenttowhichPFMsystems,processesandinstitutionsareclimateresponsive(PEFA,2020).PriorityandOutcome-BasedBudgetingGreenbudgetingisatypeofoutcome-basedorpriority-basedbudgeting.Ithassimilaritieswithotherapproaches,likegenderbudgeting(ACCA,2021b),well-beingbudgetingandSustainableDevelopmentGoals(SDG)budgeting.Attheheartofthisapproachisanemphasisondevelopingsystematiclinksbetweenbudgetdecisionmakingandspecificoutcomes.Whentheseoutcomesarestrategicpriorities,thisapproachtobudgetinghelpstofocusactionacrossanorganisationonthesegoals.WhyWhygreenbudgeting?Eachorganisationwillhaveitsownmotivationforadoptinggreenbudgeting.Indeed,inmanycasesitislikelytoinvolveacombinationoffactors.FromthefindingsofanOECDsurveyof35countries(OECD,2021),weidentifyfourkeyfactors:nsupportingtheachievementofinternationalandnationalcommitmentsandgoalsnpromotingenvironmentallyresponsivepolicymakingnfosteringbudgettransparencynfacilitatingplanningandreportingforgreenbonds.GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|1.UNDERSTANDINGGREENBUDGETINGSupportingtheachievementofinternationalandnationalcommitmentsandgoalsAlmostallcountrieshavesigneduptotheUnitedNations’ParisAgreement,committingtosubstantiallyreduceglobalgreenhousegas(GHG)emissionstolimitglobaltemperaturerisesto2degreesCelsius.Thenetzerotargetssetbyover70countriestogethercoverabout76%ofglobalemissions.ThesecountriesincludethelargestGHGemitters:China,theUSandtheEuropeanUnion(UN,2022).Thesecommitmentsmustbeputintoaction.Greenbudgetingenablesthemtobetranslatedintoclear,measurableandfundedactionsacrossorganisations.Bylinkingemissions-reductiontargetsandcapsonemissionstospecificbudgetaryitems,publicsectororganisationscanstarttotranslatehigh-levelgoalsintoactionthroughtheirday-to-dayactivities.PromotingenvironmentallyresponsivepolicymakingGreenbudgetingembedsanapproachwhichintegratesclimatechangeandenvironmentalconsiderationsintodecision-makingacrossanorganisation.Thebudgetprocesscanbeusedtoevaluatepriorities,takingintoaccountclimateandsustainabilityconsiderations.Throughoutthebudgetcycle,inbudgetarydiscussions,decisionmakingandmonitoring,thisprocessenablesallpartsofanorganisationtobeheldaccountablefortheimpactoftheiractivitiesandpolicies.Tacklingclimatechangeneedsawhole-of-governmentapproach.Specificpolicymeasurestoaddressclimatechangewillbevital,buteverysinglepolicyneedstobeevaluatedforitsimpactonclimatechangeandtheenvironment.Greenbudgetingapproachescanevaluatetheimpactofbudgetmeasuresthroughcost-benefitanalysistechniquesorenvironmentalimpactassessmentsofspendingplans.FosteringbudgettransparencyTransparencyin,andaccountabilityfor,publicspendingisincreasinglyapriorityforbothcitizensandthepublicsectoritself.Greenbudgetingenablesidentificationofthespecificelementsofanorganisation’sbudgetdirectedtocombatingclimatechangeandachievingsustainabilitygoals.Thiscanhelptodemonstrateanorganisation’scommitmenttotheseobjectivesandhighlightactivityacrossthewholeorganisation.Greenbudget‘tagging’canidentifythosebudgetitemsthatmakeapositivecontributiontoachievingbroadenvironmentalobjectives.Forexample,budgetitemswithanexplicitgreenobjectivecanbetagged;similarly,thosewithnegativeimpactsontheseobjectivescanalsobehighlighted.Thisassessmentisoftenthefirststepingreenbudgetingandovertimeitsscopecanbebroadened,asorganisationalcapacitydevelops.FacilitatingplanningandreportingforgreenbondsIncreasinglyinvestorsarefavouringinvestmentsinsustainableactivities,aspartoftheirenvironmental,socialandgovernance(ESG)priorities.Themarketforsustainablebonds,sometimesknownasgreen,socialandsustainability(GSS)bonds,wasestimatedatUS$2.9trillionin2022(BIS,2022).Localgovernmentandstate-ownedenterpriseswerethefirstpartsofthepublicsectortoofferGSSbonds,and,since2017,nationalgovernmentshavealsoissuedsustainability-linkedbonds.Greenbudgetingcansupporttheissuingofbondsbysignallingpublicsectororganisations’commitmenttoclimatechangeandsustainabilityissues.Morespecifically,itcanfacilitatebudgetingandreportingtobondinvestors,toshowhowfundingisbeingappliedtoclimate-relatedexpenditure.GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|2.GETTINGSTARTED2.GettingstartedCreatingtherightconditionsOnceapublicsectororganisationhasdecideditwantstoadoptgreenbudgeting,ensuringtherightenvironmentforimplementationiscriticalforitseffectiveness.Eachpublicsectororganisation’scontextisuniqueandisshapedbypolitical,historicalandlegalfactors.Forthebestchanceofmakinggreenbudgetingasuccess,wehaveidentifiedthreekeyprincipleswhichwillsupportitsintegration:npoliticalwillnbuildingonexistingprocessesnawholepublicsectorapproach.GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|2.GETTINGSTARTEDPoliticalwillForgreenbudgetingtosucceed,politicalwill,especiallyattheoutset,isacrucialenablingfactor.Whiletheprocessisofteninitiatedbyofficials,securingsupportfromthepoliticalleadershipofanorganisationorgovernmentwillensurethisapproachismorelikelytotakeroot.Toobtainpoliticalsupport,organisationsneedtobeclearabouttheirmotivationsforintroducinggreenbudgeting.Themaindriversfortheapproachmustbeidentifiedearlyon.Thiswillallowtheselectionofappropriatepracticesandenablepoliticalleadershiptoendorseanddrivethegreenbudgetingagenda.BuildingonexistingprocessesPublicsectororganisationsfaceresourceconstraints,whichhaveonlyincreasedsincethepandemic.Greenbudgetingdoesnotrequirecostlynewsystemsorextensiveexternalsupport.Mostgreenbudgetingpracticescanbuildonthearrangementsorganisationsalreadyhaveinplace.Giventheimportanceoftheclimatechangeagenda,progresswithgreenbudgetingreformsisurgentlyneeded.Integratingpracticesintoexistingbudgetprocessesandsystemswillspeeduptheintroductionofreformsandwillminimisecostanddisruption.Asorganisations’approachesdevelopandevolve,techniquesandsystemscanbeadaptedthroughaniterativeprocess.AwholepublicsectorapproachForgreenbudgetingtobeeffective,itmustbeadoptedatdifferentlevelsofgovernment.Morethanhalfofpublicspendingonclimateandtheenvironmentisatasub-nationallevel(OECD,2021)andlocalgovernmentspioneeredtheissueofgreenbonds.Allpublicsectororganisationsneedtoconsiderhowtheycanadoptgreenbudgetingtomeettheirownclimatechangeandsustainabilityobjectives.Implementinggreenbudgetingateverylevelofgovernmentwillhelptodevelopacoordinatedapproach,enablingorganisationstosharegoodpracticeandprovideopportunitiestoinnovate.Asthepublicsectorsustainabilityreportingagendadevelops,organisationswithgreenbudgetingapproacheswillbeinagoodpositiontorespondtonewreportingrequirements.IMPLEMENTINGGREENBUDGETINGATEVERYLEVELOFGOVERNMENTWILLHELPTODEVELOPACOORDINATEDAPPROACH,ENABLINGORGANISATIONSTOSHAREGOODPRACTICEANDPROVIDEOPPORTUNITIESTOINNOVATE.GreenbudgetingandUNSDGsApotentialdriverforpublicsectororganisationsconsideringgreenbudgetingistosupportprogresstowardstheUN’sSustainableDevelopmentGoals(SDGs).Theare17goals,agreedby193UNmemberstates,whichsetoutasharedvisiontoendpoverty,fightinequalityandinjustice,andtackleclimatechangeby2030.ManyoftheSDGsdirectlyrelatetoclimateandenvironmentalobjectives,includingSDG7(AffordableandCleanEnergy),SDG13(ClimateAction)andSDG15(LifeonLand).GreenbudgetingcansupporttheachievementofSDGsbyevaluatingtheenvironmentalimpactofbudgetproposals,aswellasmonitoringandtrackingexpenditureonactivitiesconnectedtotheenvironmentalgoals.ManyoftheSDGsrelatetocross-cuttingissuesandgreenbudgetingfacilitatesacoordinatedapproachtomakingprogressonachievingthesegoals.99GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|3.MAKINGGREENBUDGETINGASUCCESS3.MakinggreenbudgetingasuccessGREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|3.MAKINGGREENBUDGETINGASUCCESSFinanceprofessionalsmustbeatthecentreofgreenbudgetingapproachesinpublicsectororganisations.Professionalaccountants’skillsandtherolestheyundertakeinthepublicsectorequipthemtosupporttheirorganisationsineachofthefivekeystepstoimplementinggreenbudgeting.Thesestepsalsohighlighttwoofthemostwidelyusedpractices,firstly,greenbudgettaggingand,secondlyevaluationapproaches,suchasenvironmentalimpactassessmentsandenvironmentalcost-benefitanalysis.FIGURE1:FivekeystepsSTEPSTEP1:Developabaseline1STEP5:Learnandimprove2Fivekeystepstoimplementinggreenbudgeting3STEP3:STEP4:CategoriseandmonitorspendingSTEP2:PrioritisespendingwiththemostimpactEnsureexternalreview45GREENBUDGETING:ATOOLKITFORPUBLICSECTORFINANCEPROFESSIONALS|3.MAKINGGREENBUDGETINGASUCCESSSTEP1:DevelopSTEP1:DevelopabaselineAsafirststepingreenbudgeting,publicsectororganisationsneedtodevelopaclearunderstandingoftheimpactoftheirexistingspendingontheenvironmentandclimatechange.Identifyingtheextenttowhichexpenditurealignswiththecurrentgovernment’spoliciesandprioritiesforthisagendaprovidesanevidencebaseandexpenditurebaselinetoinformfuturespendingdecisions.FINANCEPROFESSIONALSCANSUPPORTTHISPROCESS,USINGTHEIREXPERTISEINBUDGETINGORCOSTING.Financeprofessionalscansupportthisprocess,usingtheirexpertiseinbudgetingorcosting,forexample,throughacomprehensiveclimatetaggingexerciseorenvironmentalimpactassessmentsofexistingmajorexpenditureitems.Themethodchosenmustbeachievablewithinreasonabletimeandcosts.Crucially,itshouldnotbeanacademicexercise,itsfindingsmustinformtheorganisation’snextsteps.Itislikelythatthebaseliningprocesswillrevealgapsbetweenexistinglevelsofspendingandthelevelrequiredtomeettheorganisation’sclimatechangeandenvironmentalobjectives.Thiscanhelpthenextstepintheprocess,identifyingthespendingprioritiesfortheorganisation.Greenbudgettagging:Identifyingclimate-andsustainability-relatedexpenditureThefirststeptakenbypublicsectororganisationsimplementinggreenbudgetingisoftenanexercisetoidentifythebudgetelementsrelevanttoaddressingclimatechange.Thekeyaspectfororganisationstoconsideristhescope.Thiscanbedefinednarrowly:forexample,thoseactivitiesthatdirectlycontributetoemissionsreductions,ormorewidely:suchasallspendingthatcontributestoalow-carbonenvironmentallysustainableeconomy.Oncethedefinitionhasbeenagreed,theseitemscanbetagged,aprocessknownasgreenbudgettaggingorclimatebudgettagging.Thisprocess,alone,doesnotprovideenoughinformationtodeterminewhetherthelevelofspendingissufficientorprovidesvalueformoney.Butitisacrucialfirststepinfactfinding,promotingtransparencyandenablingthepublictoseehowtheorganisation’sspendingisdirectedtotacklingclimatechangeandpromotingsustainability.Forgreenbudgettaggingtobeeffective,itmustbemorethananawareness-raisingexercise.Itsupportsorganisationstobuildupacomprehensivepictureofhowalltheiractivitiesaffectclimateandtheenvironment.Thisshouldthenhelptoinformbudgetplanningandallocationdecisions,linkingobjectivesdirectlytospendingplans.Itcanenablelinkstobemadebetweendifferentprogrammes,providingopportunitiesforbetterco-ordinationoreconomiesofscale.Greenbudgettaggingcanalsofacilitatetheidentificationofeligibleprojectsandtrackexpenditureforfinancinggreenbonds.Publicsectororganisationsissuingthesebondsarerequiredtoprovideallocationreportstoinvestorsandbudgettaggingcanhelpensureconsistencyandalignmentwiththerequirementsofmanaginggreenbonds.Publicsectororganisationscantakeanadaptiveapproachtogreenbudgettagging,enablingthescopeandcomplexityoftheprocesstoscaleupasorganisationalcapacityincreases.Forexample,budgetmeasureswhichundermineclimateandenvironmentalgoalscouldalsobetagged,toestablishamorecomprehensiveevidencebaseofhowtheorganisation’sactivitiessupportorconflictwithitsgreenobjectives.Ensuringtherightconditionsforgreenbudgettaggingisessential.Thecriteriafortaggingexpenditureshouldlinktotheorganisation’sclimatechangeandenvironmentalobjectives.Taggingshouldbecarriedoutatasufficientlydetailedleveltoprovidemeaningfulinformationforbudgetdecisionmakers.Aweightingsystemcouldbeimplementedtotakeaccountoftherelevanceofdifferentbudgetmeasures.Ultimately,greenbudgettaggingworksbestaspartofabroaderapproachtogreenbudgeting.STEP2:STEP2:PrioritisespendingwiththemostimpactPrioritisingexpenditureonactivitiesthathavethegreatestimpactontheorganisation’sclimatechangeandenvironmentalobjectivesiscrucial,giventhepublicsector’sgenerallylimitedresources.Thisinvolvesaconsistentapproachtoevaluatingproposalsfornewspendingandaligningthebudgetwiththeprioritiesandcommitmentsorganisationshavemade.Bringingtogethertheexpertiseofalltheorganisation’sstafftosupportthisassessmentiscritical.Whileresourcingandcapabilitieswilldifferbetweenorganisations,thiscouldincludeenvironmentalandclimatechangespecialists,economistsandthoseinvolvedinthedeliveryofservices,togetherwiththefinancefunction.FINANCEPROFESSIONALSSHOULDTAKETHELEADINIDENTIFYINGTHEIMPACTOFPROPOSEDSPENDING,EVALUATINGTHEEFFICIENCY,EFFECTIVENESSANDECONOMYOFPROPOSEDOPTIONS.Financeprofessionalsshouldtaketheleadinidentifyingtheimpactofproposedspending,evaluatingtheefficiency,effectivenessandeconomyofproposedoptions,withsupportfromcolleagueswithexpertiseontheenvironmentaldimensionsofpolicies.Costbenefitanalysesandenvironmentalimpactassessmentsarebotheffectivewaysofanalysingindividualproposals.Thebudgetprovidesaclearframeworkforaligningprioritieswithspending.Itenablesaconsistentandrigorousapproachtoconsideringproposalsfornewexpenditure.Importantly,thebudgetprocessalsoengageskeydecisionmakersinpublicsectororganisations.Usinggreenbudgetingtoolsensuresanorganisation’sclimateandenvironmentalprioritiesareembeddedinthedecision-makingprocess.EnvironmentalimpactassessmentandenvironmentalcostbenefitanalysisAnimportantpartofthebudgetingprocessisassessingproposalsfornewspending.Allnewbudgetmeasuresshouldbeevaluatedfortheirpotentialimpactonclimateandenvironmentalobjectives.Environmentalimpactassessmentsareatoolcommonlyusedtoevaluateproposalsandinformbudgetingdecisions.Theycanbeintegratedintoexistingprocesses,alongsidevalue-for-moneyassessmentsofeconomy,efficiencyandeffectiveness.Asastartingpoint,theproposalcan