The Climate Public Expenditure and Institutional Review (CPEIR): a methodology to review climate policy, institutions and expenditure

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Issue date: August 2012

This paper describes a new methodology that aims to inform the development of the national response to climate change: the climate public expenditure and institutional review (CPEIR). The CPEIR examines the linkages between the three spheres of: national climate change policy; the institutional structures through which policy is channelled; and the resource allocation processes whereby public funding is made available for the implementation of relevant projects, programmes and policies. The paper first outlines the analytical framework of this methodology. It draws on the experience of a substantial body of work that has examined the effectiveness of public expenditure through the use of several analytical tools. This leads to a description of the core elements of the CPEIR: namely the analysis of climate change policy, institutions and public expenditure. The tasks associated with carrying out a CPEIR are then outlined, from the necessary preparatory work that is required before the CPEIR can be undertaken, through the implementation of the component analysis (highlighting some of the key questions that this analysis aims to address), to how the findings of the review can be followed up to enhance national systems. Annexes contain complementary information, including sample terms of reference to implement a CPEIR as well as a note on the challenge of ensuring methodological consistency between CPEIRs.