Presentation "Integrating Green in the Budget Cycle: A primer" by Margaux Lelong during the 3rd session of the 9th Meeting of the OECD Paris Collaborative on Green Budgeting held on 17 and 18 of April 2023 in Paris

1. OECD Paris Collaborative on Green Budgeting
17 April 2022
Integrating Green in the Budget Cycle: A primer
Margaux Lelong
Public Management and Budgeting Division

2. Budget Planning
3
Institutional
arrangements
Alignment with
medium-term
priorities
Macro-fiscal
projections
Medium-term
expenditure
framework
Capital budgeting
framework
Fiscal risk
management
• Budget planning determines the government’s relevant
parameters, policies and priorities for the budget.
• It involves setting medium-term goals and objectives,
within a budget framework.
• Key components for integrating climate and
environmental considerations into the planning phase
are:
o Institutional arrangements
o Alignment with medium-term priorities
o Macro-fiscal projections
o Medium-term expenditure framework
o Fiscal risk management
o Capital budgeting framework

3. Budget Preparation
4
Develop a baseline
Analyse proposals
Establish
performance settings
Integrate into budget
negotiations
• Budget preparation determines how public funds will be
allocated and spent during the budget year.
• Integrating green considerations into the budget preparation
allows governments to take climate and environmental
considerations into account in decision-making.
• Key components for integrating climate and environmental
considerations into the preparation phase are:
o Developing a baseline
o Analysing proposals
o Establishing green indicators in the performance
settings
o Integrating green considerations into the budget
negotiations

4. Budget Approval
5
Parliamentary process
Parliamentary budget
offices
Budget transparency
• Budget approval is the process of democratically
deciding how public funds are allocated in the budget
law.
• Integrating a green perspective into the budget
approval process can help ensure that the budget is
discussed and voted upon according to climate and
environmental goals and targets.
• Key components for integrating climate and
environmental considerations into the approval phase
are:
o Debate and approval in parliament
o Parliamentary budget offices
o Budget transparency

5. Budget Execution
6
Monitoring and reporting
Evaluation
Budget flexibility
• Budget execution refers to implementing, monitoring, and
controlling the spending of public funds in accordance with
the approved budget.
• It involves programming expenditure, monitoring results,
and ensuring compliance with laws, managing risks,
evaluating effectiveness, and making corrections as
needed.
• Key components for integrating climate and environmental
considerations into the execution phase are:
o Monitoring and reporting
o Evaluation
o Budget flexibility

6. Budget Reporting and Oversight
7
Oversight institutions
Financial reporting
• Budget oversight is the final step of the budget cycle
and is to provide assurance that public funds are
allocated and managed in an efficient, equitable, and
transparent manner.
• Integrating green budgeting into the budget oversight
phase allows oversight institutions to analyse green
action and to make proposals for improvement.
• Key components for integrating climate and
environmental considerations are:
o Financial reporting
o The role of oversight institutions

7. www.oecd.org/environment/green-budgeting/
Thank you