‘We need a climate change kitty’

For Uganda to adapt and become more resilient to climate change, Climate financing should be prioritized in the National Budget Framework Paper. In an interview with Prosper magazine’s Martin Luther Oketch, Mr Onesmus Mugyenyi, the deputy executive director and research fellow at Advocates Coalition for Development and Environment (ACODE) explains that climate change funding should be included in the National Budget to reduce climate risk in Uganda.

What is ACODE’s view on the first budget circular?
Our analysis revealed that two of the set objectives in the circular namely; “attracting climate change financing and; leveraging research, innovation and adoption of green technologies to incentivise conservation and diversify economic opportunities for communities in the vicinity of natural resources” had not been appropriately met.
What is more challenging is that there is no earmarked funding for dealing with climate change at the local government level. Local governments are projected to receive an average of about Shs5.8 million each in FY 2020/21 to manage the environment and natural resources. Spread across the year, this translates into about Shs483,000 per month across the financial year. This is grossly inadequate given the scale of the climate-related challenges we face as a country. So we recommended that in the short term, government could consider including a climate change parameter in all the grant allocation formulae for local government grants.
In the long run, the government could consider dedicating a grant for climate change adaptation and mitigation because the effects of climate change are bound to increase if no action is taken.

Last Wednesday, ACODE appeared before Parliament’s standing committee on Climate. Did the committee agree with what you presented?
Yes, the committee agreed with our findings and recommendations.

How serious is climatic change to Uganda’s economy?
The effects of climate change are already widespread and costly. They are likely to increase in the future. First, the phenomenon is a threat to peoples’ livelihoods. It is responsible for the rising temperatures, frequent erratic and extreme weather, droughts, floods, heat waves and landslides in areas such as Bududa and Rwenzori regions.
Climate change is also responsible for the devastating effects on agricultural production, food security, reduced fish stocks, forests, infrastructure, health systems, incomes and overall development. Although it is very difficult to quantify the impact of climate change on the economy, its devastating effect affects production in all sectors.

You did say jointly with Care International that two of the climate change objectives in the first budget call circular have not been addressed by the majority of the sectors in the National Budget Framework Paper. Where do you want the money for climatic change to be allocated (which Ministry)?
Money for climate change cannot be allocated to only one particular sector because it is a cross-cutting issue. Every sector must plan and budget for climate change interventions but the ministry of Water and Environment can do the overall coordination. Climate change affects all the sectors in one way or another.
However, one of the key issues we have raised is that there is no dedicated funding for combatting climate change at local government-level. The little money that funds environmental activities is negligible and mostly covers wages. In addition, the Climate Change Department in Ministry of Water and Environment, which is the coordinating entity for climate change-related activities, is grossly underfunded with a projected budget of Shs660 million for the entire financial year; of which about three-quarters is for paying salaries.

How much should be allocated for climate change?
Not sure on this. I’d refer you to the climate change department in Ministry of Water and Environment which has access to the Costed Implementation Strategy of the National Climate Change Policy.

Should climate change money come from the treasury or development partners?
Climate change financing should come from both development partners and government along with the private sector in the country. The climate change mitigation and adaptation mandate is so big to be fully funded by one actor.

Why should the Public Finance Management Act be amended to provide for a certificate of climate change compliance akin to the one on Gender and Equity?
So that a provision can be added to the law that requires sector budgets to demonstrate mainstreaming of climate change before they are approved by Parliament.

How will including climatic change in the national budget framework contribute to Uganda’s development?
It will ensure that actions to combat climate change are prioritised and funded in the FY 2020/21 budget. Climate change has implications for our food security, the durability of our infrastructure as well as our health among many other effects.

Is there any other country in the East African region that has a climate change fund in their budget?
All countries in the region have climate change funding mainstreamed in their budgets and the only difference is the amount allocated and clarity of interventions. However, if you’re referring to fully fledged Funds (for example the Uganda Road Fund), then a good example is Kenya where five of its county governments (equivalent to our local governments), namely Garissa, Isiolo, Kitui, Makueni and Wajir are reported to have established County Climate Change Funds.