A new World Bank report shares international experiences from climate change budget tagging. It highlights some interesting challenges, lessons, and insights, including:
* Tagging has focused on the expenditure side of the budget, with inadequate consideration given to revenues as a tool for climate change policy... These include, among other revenue: carbon taxes; taxes, levies, and fees on fossil fuels, vehicles, and fossil fuel–powered transport; and royalties, licenses, and fees from the exploitation of forests, water, and other environmental assets.
* Design the tagging system so that it facilitates the mobilization of climate finance. Alignment of the tagging system with the GBP (green bond principles) will facilitate the issuance of green finance instruments should the government decide to do so.
* Generate information that decision makers need in formats they can use... Specific routines and templates will have to be put in place to ensure that the information generated through tagging is available to decision makers at a time and in a format that is useful to them. This may require information to be tailored to the needs of different audiences.