Mozambique – Mainstreaming climate into budget planning

Mozambique is extremely vulnerable to the adverse effects of climate change, being periodically hit by extreme weather events that have dire social, environmental and economic consequences. While adaptation and building resilience are Mozambique’s priorities, the country has also submitted ambitious mitigation targets in its updated nationally determined contribution (NDC).

To implement its NDC between 2020 and 2030, the country needs substantial technical and financial support, with NDC implementation costs estimated at around USD 7.6 billion, more than half of its gross domestic product (GDP). The government is aware of this challenge and has been taking concrete steps to prepare and set a strong basis for bold climate action. To this end, the Partnership supports Mozambique in mainstreaming climate into core planning and budgeting processes and mobilizing climate finance.

For the former workstream, the Partnership has embedded a senior economic advisor in the Ministry of Economy and Finance (MEF), with support from the World Bank, to integrate climate change into the country’s planning and budgeting instruments. The advisor has developed the Climate Change Institutional Assessment, a roadmap and specific tools to integrate planning into the annual planning and budgeting process and strengthened the capacities at the national and subnational levels. Additionally, the Partnership supported the revision of the NDC and its costing through our Climate Action Enhancement Package.

To support climate finance mobilization, the Partnership has embedded, with support from Belgium/Enabel, a senior climate finance expert in MEF. The advisor is supporting efforts to coordinate actions on resource mobilization, track climate finance, design a climate finance strategy, assist the development and advancement of specific funding proposals and build capacities on different sources of climate finance and strategies to achieve them. The NDC Partnership also supported the update of the NDC Implementation Plan and the preparation of several project concept notes and proposals focusing on adaptation, renewable energy and waste management, which are under review by respective ministries.

Moving forward, the Partnership will continue to support Mozambique in its efforts to mainstream climate into core policy, planning and investment frameworks, mobilize finance and implement ambitious climate action. There will also be further capacity-building efforts to support issues surrounding gender and climate change, building a business approach to the National Adaptation Plan , carrying out assessments and research on climate risk and strengthening capacity of local governments in the context of decentralization.