JOINT MEMORANDUM CIRCULAR - dbm.gov.ph

1 ~,..I'iG[('0G.,-;."0'"REPUBLICOFTHEPHILI PPINESD epartmentof ,2015 FORAllHeadsof Departments,Agencies,Bureaus,Offices,Com missions,StateUniversitiesandColleges,Go vernment-OwnedandControlledCorporations, andOtherInstrumentalitiesof theNationalGovernmentandall OthersConcernedSUBJECTR evisedGuidelinesforClimateChangeExpendit ureTagging(CCET) implementinga comprehensivereformagendato respondto climatechange(CC).. Withthegoalofusingthebudgetprocesstoplan ,prioritize,andmonitorCCexpenditure,theG overnmenthasmobilizedtheNationalBudgetPr eparationProcessto tagclimatechangeexpendituresusinga (RRP),a programthatconstitutesa ,coupledwiththedevelopmentsinthebudgetin gsystemintroducedbytheDBM, ,theimplementationof theUnifiedAccountsCodeStructure(UACS)to strengthentheprocessfortracking,monitori ng,andreportingofCCexpenditures,andperfo rmance-informedbudget-outcomebasedstarti ng2015,andtherevisionin theclimatechangetypologies, ,2013is theDBM,performanceindicatorsspecificto climatechangeexpendituresshallalsobeform ulatedin ,monitorandreportclimatechangeprograms,p rojectsandactivitiestoenableoversightand linedepartmentmanagersto monitorclimatechange-relatedexpenditures .)]

2 AndTodefineandclarifyresponsibilitiesofn ationalgovernmentagencies,theDepartmento f BudgetandManagement(DBM),andtheClimateCh angeCommission(CCC)relativeto theclimatechangeexpendituretaggingat thevariousstagesof ~ a changein climatethatcanbe identifiedby changesin themeanand/orvariabilityof itspropertiesandthatpersistsforanextende dperiodtypically,attributeddirectlyor indirectlyto humanactivitythataltersthecompositionof theglobalatmosphereandis in additionto anactivityshouldbeclassifiedasadaptation -relatedif it intendsto reducethevulnerabilityof humanor naturalsystemstotheimpactsof climatechangeandclimate-relatedrisks, theresultof themagnitudeof exposureof ,lackof economicassetsandlackof knowledgeontheriskssincetheylimitthecapa cityoftheexposedpopulationtocopeproperly to theexpenditureprogramsthatfallunderthisc ategoryincludepovertyreduction,incomeand livelihooddiversification.

3 Andhealthprogramsthatarespeciflcallvdesi gnedto respondto climatechangevariability,suchas infrastructuresthatincorporateclimatecha ngerisksin theirdesignand/ortheirimplementationto ,reforestationprograms,climateresilientc ropvarietiesor farmingtechniques,effectiveearlywarnings ystemsandotherinvestmentsspecificallydes ignedto respondto financingusedto includesbaselineobserveddata,climatetren ds,variabilityandhigherorderstatistics,e xtremes,inter-annualvariability,andinter -decadalvariability, an activityshouldbe classifiedas climatechangemitigationif it aimsat reducinggreenhousegasemissions(GHG),dire ctlyorindirectly,byavoidingorcapturingGH Gbeforetheyareemittedtotheatmosphereor sequesteringthosealreadyin theatmospherebyenhancing"sinks" reducegreenhousegas(GHG)emissionssuchas butnotlimitedtoimprovedenergyefficiency, renewableenergyprojects,reforestation/im provedforestmanagement, arerisksvariablesin extremevaluesof theclimateorweathervariables:highwindspe ed(storm),highriverwaterstaged(flood),lo wwaterstages(drought).

4 Thisalsoincludesslowonset(changesintempe ratureandprecipitationleadingto drought). arethelikelyor achievedshort-termandmedium-termeffectso fanintervention' ,usuallyastheresultofcoordinatedshort-te rminvestmentsinindividualandorganization alcapacitybuildingforkeydevelopmentstake holders.'In thecontextof theNationalClimateChangeActionplan,these areimmediateoutcomesdefinedalongtheseven thematicareaswhoseinterrelatedresultarea scontributetotheNCCAP'sultimateoutcomeso f"enhancedadaptivecommunities,resilience ofnaturalecosystemsandsustainabilityofbu iltenvironmenttoclimatechangeandsuccessf ultransitiontowardsclimatesmartdevelopme nt". refersto programs(GAS,STO,operations) areclimatechange-relatedactivitieswhichs hallincludebutnotbelimitedto vulnerabilityandimpactassessmentstudies, climatechangeandvariabilityresearches,cl imatemodeling,capacitybuilding,policies, theabilityof socialor ecologicalsystemto absorbdisturbanceswhileretainingthesameb asicstructureandwaysof functioningandcapacityforself-organizati onandto adaptto theconceptcombinesthemagnitudeof theimpact(a specificchangein a systemcausedby its exposureto climatechange)withtheprobabilityofits occurrence(IPCC4thAssessmentReport,Worki ngGroupIl, AppendixI) thedegreetowhichgeo-physical,biologicala ndsocio-economicsystemsaresusceptibleto, unabletocopewiththeadverseimpactsof climatechange.

5 , (UACS)- is a ,aggregating,andreportingfinancialtransa ctionsinbudgetpreparation,execution,acco unting, climatechangerelatedstrategiesandinvestm entsof thegovernmentshallbeidentifiedas adaptationandmitigationas definedin (QAR)Guidelines(AnnexA) developedby theCCC,whichshallbeaccomplishedbytheAgen ciesin theevaluationandfinalizationof ,analysisof proposedPIA/Psandrelationshipof contributingfactorstowardtheattainmentof betaggedin theOnlineSubmissionof BudgetProposal(OSBP),NEPandGAA, ,SUCsandGOCC sshallreview/examinethePIA/Pstechnicaldo cumentsif it qualifiesasanadaptationormitigationrespo nsebasedontheguidedquestionsincludedin AnnexA; mitigation,theentireP/A/Pbudgetshallbeta ggedasCCexpenditures,if oneofthemainobjectivesof theP/A/Pis to ,onlythebudgetsforthosecomponentsof theP/A/PthatdirectlyaddressCC,basedonthe CCtypology(AnnexB),willbe includedas CCexpenditure; ,SUCs,andGOCC swilltagtheidentifiedCCexpendituresbased ontheCCtypology,whichwillbeincludedin theBPForm201-ForDBMForm712as partof theironlinesubmissionof budgetproposed(OSBP).

6 Eitherclimatechangeadaptationor mitigationcantick'NoClimateChangeExpendi ture'intheirrespectiveBPForm201-For DBMForm712; ,SUCs,andGOCCsin ,HelpDeskcanbe reachedthroughphoneat (02)735-3144or emailat thetotalcostof a PIAIPin ,theclimatechangeexpendituresasprescribe din standardizedQualityReviewandAssurance(QA R)(AnnexA)withsupportof theCCC; (NEP)andtheGeneralAppropriationsAct(GAA) withintwo(2)weeksuponsubmissiontoCongres sandeffectivityof theGAA,respectively;and, BudgetandManagement(DBM) theconcernedDepartments,Agencies,Bureaus ,Offices,Commissions,StateUniversitiesan dColleges,OtherInstrumentalitiesoftheNat ionalGovernmentandallOthersConcernedis ; ,togetherwiththeCCC,a HelpDesktoprovidesupporttoagenciesconsis tentwithfunctionsstatedin ; (forNGAsandSUCs)orDBMForm712(forGOCCs)an dotherpertinentdataneededin ordertotakestockof,monitor,andanalyzenat ionalclimatechangeexpenditure; thetaggingsystems, (CCC) ; ; (TBH)ofconcernedagencies,whennecessary; ,strengthenNGAs',SUCs'andGOCCs' \.

7 ~ke=:-=~ BudgetandManagemen~f \I'(}-' 6 Annex A CCET and QAR Guidelines Overview The Philippines has led the development of a standardized CC typology and coding structure for use in the planning, budgeting, monitoring, and reporting of public CC expenditures. On December 27, 2013, the Climate Change Commission (CCC) and the Department of Budget and Management (DBM) issued as JOINT MEMORANDUM CIRCULAR (JMC) 2013-01 mandating government agencies to track their climate change expenditure sin their respective 2015 budget submissions using a common framework more popularly known as "Climate Change Expenditure Tagging (CCET)". January Initial work on CC expenditure tagging by DBM ad CCC October Test run and consultation with Nat'l Agencies on the CC Expenditure Tagging November Review of Y1 and updating of the.)

8 1MC June CPEIR was launched 2013 December Issuance of DBM/CCC MC 2013-01 2014 First Yea* of Imp:e f entaDou January Issuance of the amended DBM/CCC JCM 2014-01 Second Year Figure 1 Development of the CC Expenditure Tagging Alongside the submissions of BP Form 201F (for NGAs and SUCs) and DBM Form 712 (for GOCCs), ensuring the quality of the submissions is an integral part of the CC expenditure tagging. Documentation of the basis for the tagging decisions increases transparency and credibility of the CC expenditure reported by the Government. This Annex provides two guidance processes entwined: (1) Step-by-step guide in identifying climate change expenditure, including details of the Help Desk; and a (2) Standardized Quality Review and Assurance guide to systematically document and ensure quality of the climate change expenditure data.

9 Annex A CCET and QAR Guidelines Step-By-Step: Identification of Climate Change Expenditure Step 1: Identify P/A/Ps with climate-related adaptation and mitigation expenditures. Refer to the P/A/Ps technical document Is the Program a climate change expenditure? Using the technical document of the WAS, identify on whether it is adaptation or climate change mitigation (Refer to Box 1). Answer can be (i) adaptation, (ii) mitigation, (iii) both, or (iv) none. BOX 1: Defining Climate Finance ADAPTATION: An activity should be classified as adaptation-related if it intends to reduce the vulnerability of human or natural systems to the impacts of climate change and climate-related risks, by maintaining or increasing adaptive capacity and resilience. MITIGATION: An activity should be classified as climate change mitigation related if it contributes to the objectives of stabilization of greenhouse gas (GHG) concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system by promoting efforts to reduce or limit GHG emissions or to enhance GHG sequestration.

10 Is the main (or one of the main) objectives EXPLICITLY articulate adaptation or climate change YES Tag the entire PAP budge as CC Expenditure Is the Program a climate change expenditure? Is the main (or one of the main) objectives EXPLICITLY articulate adaptation or climate change _mhawation? 1 o 0 Are there any projeciabicnviries that directly address CC? rt Tag the proportion Of he the lute that is CC-related Tag the entire PAP budge as CC Expenditure Annex A - CCET and QAR Guidelines Step 2: For P/A/Ps with adaptation or mitigation, the entire P/A/P budget shall be tagged as CC expenditures, if THE MAIN OBJECTIVE OR ONE OF THE MAIN OBJECTIVES OF THE P/A/PS is to address climate change. Is the Program a climate change expenditure? lithe P/A/P's objective do not explicity articulate addressing climate change, identify only the components of the P/A/Ps that directly address climate change based on the CC typologies (Refer to Annex B).