RFP/CFN/2604/23 Operationalize Climate Budget Tagging
In 2025, the Ministry of Finance, Planning and Economic Development (MoF) initiated climate-tagging through the Budget Call Circular (Annexure IV), requesting line ministries to classify their projects under adaptation, mitigation, and loss & damage. The MoF with the support of UNDP Sri Lanka, through the regionally initiated Climate Finance Network Project funded by the Climate Action for Resilient Asia (CARA) programme of the Government of the United Kingdom recently designed a comprehensive Climate Budget Tagging (CBT) system to align national public finance with the country’s climate policy commitments. Through this, the CBT typology, weighting system and coding approach was established guiding how climate-related expenditures are identified, classified, and reported across government.
To advance operationalisation, the next essential step is to integrate CBT design into the core public financial management (PFM) architecture. This assignment therefore focuses specifically on drafting and revising the National Planning Department (NPD) guidelines and National Budget Department (NBD) budget preparation guidelines, ensuring that climate tagging is systematically embedded into project appraisal, budget formulation, and submission processes
The development of robust CBT systems is critical for modern climate-responsive public finance management. By integrating the CBT methodology into NPD and NBD guidelines, Sri Lanka will establish the institutional mechanisms necessary for consistent ex-ante climate tagging, improved data quality, and regular climate budget reporting which are essential foundations for effective climate governance and financing
The overall objective of the assignment is to drafting and revising the National Planning Department (NPD) guidelines and National Budget Department (NBD) budget preparation guidelines, ensuring that climate tagging is systematically embedded into project appraisal, budget formulation, and submission processes.
UNDP Sri Lanka
Procurement Unit
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