The OECD and the European Commission DG REGIO launched the project "Measuring and Enhancing Subnational Government Finance for Environment and Climate Action in OECD and EU Countries" in 2022.
Tracking climate revenue at subnational level
Supporting subnational government climate actions requires having a better understanding of the way they are funded and financed. The combination of public sources of revenue (e.g., grants, subsidies, user charges, tax revenue) and external sources of revenue (e.g., loans, loan guarantees and bonds) available to subnational governments frame their room for manoeuvre in implementing their climate plans. Subnational climate-revenue tracking is essential for assessing the financial role of subnational governments in the carbon-neutral transition in light of global, national and subnational climate objectives.
About
Our mission
Establishing a pioneering methodology for making the inventory of the combination of public sources of revenue (e.g., grants, subsidies, user charges and fees, tax revenue) and external sources of revenue (e.g., loans, loan guarantees and bonds) available to subnational governments in implementing their climate plans and policies.
How it works
The OECD developed the Compendium of Financial Instruments that Support Subnational Climate Action in OECD and EU Countries to provide an overview of some climate-related public revenue sources transferred to subnational governments from central governments. The Compendium is completed by an analysis which shed light on the diversity of climate-related revenue sources available to subnational governments and gaps that exist, providing recommendations on how and at what levels of government additional climate finance resources should be mobilised.
311
public sources of funding for subnational climate-related actions
311 public instruments were inventoried as available for subnational governments to fund climate-related activities, in OECD and EU countries as of June 2022.
41
countries
Instruments to fund climate-related activities were found for 41 OECD and EU countries (8 federal and 33 unitary), plus the European Union.
40%
of subnational climate-related funding instruments are targeted to the energy sector
Out of 311 instruments, 40% list energy projects as eligible for funding (renewable energy development, energy efficiency upgrades, etc.).
Compendium of Financial Instruments for Subnational Climate Action in OECD and EU Countries
The Compendium provides an overview of some climate-related public revenue sources available to subnational governments as of 2022 in 43 OECD and EU countries, including information on: the level of government providing the support; the type of instruments available; the sectors targeted; whether the instrument supports climate change mitigation, adaptation, or both; and the conditions under which the financing can be accessed.
Latest events
Get in touch
For more information about the project and upcoming events, please contact Isabelle Chatry (isabelle.chatry@oecd.org)