Congratulations to Samoa for publishing the first report using the PEFA Climate module!
The PEFA 2021 Climate Assessment conducted by PFTAC, with the support of the Pacific Region Infrastructure Facility, Pacific Island Forum, World Bank, IMF, and PEFA Secretariat, aimed at evaluating the responsiveness of the Samoan PFM system to climate change.
According to the report, “Adaption to the impacts of a changing climate and the decarbonization of the economy pose significant challenges for all countries. Planning and implementing climate action, using information, regulation, taxation, and public expenditure to guide and support households, businesses and local authorities will require a systematic whole-of-government approach which encompasses the PFM cycle including climate informed macroeconomic analysis and planning, revenue, public investment, procurement, and expenditure management.”
The report appreciates that sectoral strategies adequately reflect the Nationally Determined Contribution, and that “A single point of coordination through the Ministry of Finance has complemented the overall guidance from the Nationally Determined Contribution, the development strategy, the sectoral strategies, enabling accurate identification of funding gaps.” The report also underlines the robustness of the planning and budget processes, the strength of internal controls, and the existence of a responsive procurement in case of disaster.
Four areas of improvement are highlighted: tracking of climate related expenditure, review of the climate impact of the revenue policy, mainstreaming of climate change resilience characteristics in the investment management, and introduction of climate change objectives in annual budget circular.
More technical information is available in the integral report.