Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697648098965.pdf (Bahamas)
June 2022 THE BAHAMAS CLIMATE SPENDING REPORT 2021—2022 THE GOVERNMENT OF THE BAHAMAS CONTENTS LIST OF ABBREVIATIONS AND ACRONYMS ......................................................................................................... 3 EXECUTIVE SUMMARY .................................................................................................................................................. 4 INTRODUCTION ............................................................................................................................................................... 4 A.
BACKGROUND .................................................................................................................................................... 7 B. TAGGING CLIMATE EXPENDITURE ............................................................................................................. 8 LEGAL AND POLICY FRAMEWORK FOR TAGGING CLIMATE EXPENDITURE ............................... 10 PURPOSE AND BENEFITS OF TAGGING ..................................................................................................... 11 TAGGING METHODOLOGY: BRIEF OVERVIEW ........................................................................................ 12 CLIMATE CHANGE AND DISASTER RISK EXPENDITURE ................................................................................ 16 A. OVERVIEW OF SPENDING ANALYSIS FINDINGS ................................................................................ 16 B.
LESSONS LEARNED ........................................................................................................................................ 27 ANNEXES ............................................................................................................................................................................ 1 ANNEX 1: THE BAHAMAS CLIMATE AND DISASTER BUDGET TAGGING METHODOLOGY FY 2021—2022 ................................................................................................................................................................ A1 Introduction .......................................................................................................................................................... A2 Objectives and Expected Benefits ................................................................................................................ A4 Scope of the Exercise ........................................................................................................................................ A4 Overall Process, Roles, and Responsibilities ............................................................................................. A5 Definition and Estimation of Climate and Disaster Expenditures ..................................................... A8 Application of Climate and Disaster Tagging ....................................................................................... A12 Quality Assurance and Review
 .................................................................................................................... A13 Reporting and Publication ........................................................................................................................... A14 Annex 1: Indicative List of Climate and Disaster Relevant Activities ............................................ A15 Annex 2: Climate and Disaster Tagging Spreadsheet Fields ........................................................... A21 Annex 3: Draft Validation Request Process ............................................................................................ A23 LIST OF TABLES Table 1: Bahamas FY 2021—2022 Tagging Methodology ........................................................................... 13 Table 2: Bahamas Future Tagging Methodology ............................................................................................. 14 1 | The Bahamas Climate Spending Report 2021—2022 Table 3: Overview of Climate and DRM Spending by Economic Segments in the Estimates 2021—2022 .................................................................................................................................................................... 17 Table 4: Detailed Analysis of Climate and DRM Spending by Economic Segments in the Estimates 2021—2022 ................................................................................................................................................ 18
18 Table A1: The Bahamas Chart of Accounts ......................................................................................................... A5 Table A2: Budget Tagging Steps, Responsibilities, and Timeline .............................................................. A6 Table A3: Definitions of tagging categories....................................................................................................... A9 Table A4: Application of tagging categories .................................................................................................. A10 Table A5: Relevance weight .................................................................................................................................. A12 Table A6: Tagging process in “Step 4.
Apply Tagging” .............................................................................. A13 Table A7: Sample Total Tagging Estimates for Ministry of Public Works ............................................ A24 Table A8: Sample Review Template for Ministry of Public Works .......................................................... A25 LIST OF FIGURES Figure 1: Steps for 2021 Climate and Disaster Exercise .................................................................................... 9 Figure 2: Working Group for Climate and Disaster Budgeting ................................................................... 15 Figure 3: The Chart of Accounts of the Bahamas ............................................................................................. 16 Figure 4: Economic Segments’ Contribution to Climate Relevant Spending in FY 2021—2022.... 25 Figure 5: Climate versus Disaster Expenditure in the Wages and Salaries Economic Segment, by MDA .................................................................................................................................................................................. 26 Figure A1.
Tagging Methodology Steps ............................................................................................................. A6 2 | The Bahamas Climate Spending Report 2021—2022 LIST OF ABBREVIATIONS AND ACRONYMS AAL CCA CCM CRA DEPP DRA DRM FY GBEs INDC MDAs MOF MSL N.E.C.
NEMA PFM PML SOEs UNFCCC WB WG Average Annual Loss Climate Change Adaptation Climate Change Mitigation Climate Relevant Allocation Department of Environmental Planning and Protection Disaster Relevant Allocation Disaster Risk Management Fiscal Year Government Business Enterprises Intended Nationally Determined Contribution Ministries, Departments, and Agencies Ministry of Finance Mean Sea Level Not Elsewhere Classified National Disaster Management Agency Public Financial Management Probable Maximum Loss State-Owned Enterprises United Nations Framework Convention on Climate Change The World Bank Working Group 3 | The Bahamas Climate Spending Report 2021—2022 EXECUTIVE SUMMARY This is the first Climate Spending Report for the Government of The Bahamas.
The Report presents and estimates expenditure for climate change and disaster risk management in the approved budget documentation for 2021—2022 (Estimates 2021—2022).
This Report will help the Government to understand the amount of expenditure it has allocated under both the recurrent and capital budgets to address climate change and how climate-relevant expenditure, when traceable in the budget, can not only improve climate policies of the future but also gauge the impact of targeted climate spending on climate resilience.

The Government is committed to strengthening its efforts toward climate transition and disaster resilience.
To achieve this, it decided it needed information on the nature, quantity, and quality of its expenditures related to climate change mitigation and adaptation and disaster risk management.

The Government endorsed the Climate and Disaster Budget Tagging Methodology 1 that allows it to better identify and manage these expenditures and activities for improved resilience.
Through climate and disaster tagging, the Government of The Bahamas expects to benefit in several ways, including:   Improved ability to account for, monitor, manage, prioritize, and report on climate-smart and disaster-resilient investment in line with the Government’s efforts to enhance public investment management under various public financial management reforms Improved understanding and management of spending on disasters by phase (before, during, or after) and by sector and program (e.g., which ministries are carrying the burden of disaster-related expenditures)  Improved access to and mobilization of climate finance.
In 2021—2022, the Government of The Bahamas intended to spend $72,184,093.92 or 2.3 percent of its total budget on climate change.

The projected spend on disaster risk management is lower compared to climate change and estimated at $54,391,665.68 or 1.7 percent of the total budget.

The Climate Spending Report used the General Finance Statistics (GFS) classification of economic segments to determine the amount of expenditure on climate change and disaster risk management.
1 The Methodology is presented in Annex 1.

4 | The Bahamas Climate Spending Report 2021—2022 Environmental Protection is the function of Government that includes both disaster and climate change management.

In the Estimates of Expenditure for 2021—2022, the Government provided summary budgets by functions of Government2.
Environmental Protection was allocated $108,909,435 from the Recurrent Budget and $9,150,000 from the Capital Budget or a total of $118,079,435 or approximately 3.7 percent of the total budget.

Environmental Protection expenditure is, however, more heavily directed at climate change as climate change events can precipitate or lead to natural disasters.

Climate change is a source of risk to fiscal sustainability in the Bahamas.
The Bahamas’ recent IMF Staff Report (May 2022)3 based on a recent Article IV Consultation identified risks that can disrupt the Bahamas’ macro-fiscal fundamentals and result in deviations from the baseline path.

“Natural disasters related to climate change negatively impact tourism activity, worsening fiscal and external balances and dampening medium-term outlook.”4.

Disaster and climate expenditure are, therefore, inextricably linked.
If Environmental Protection is disaggregated 60 percent climate change management and 40 percent disaster risk management, the allocations would be $70,835,661 and $47,231,774, respectively, or 2.2 percent and 1.5 percent of the total budget, respectively.
These higher-level ratios correspond with the ratios at the level of the economic segment – within 0.1 percent and 0.2 percent, respectively, and validate the approach in terms of the economic segments to which climate relevance and the weightings were assigned.

While the Government also has a program classification in place to better facilitate the tagging exercise, the presentation of program objectives in the budget documentation remains limited.
This has hampered the opportunities to use program information for climate and disaster tagging.

Going forward, the Government will rationalize the Chart of Accounts to ensure that there is a validation of climate spending at each level of the budget so that a program budget for climate change and disaster risk management would equate to the exact amount for the function Environmental Protection and discernible down to the economic segments.
This ensures that the budget achieves credibility and internal coherence or validation.

Over the medium term, fiscal policy will focus on, among other things, greater spending on resilience as part of a credible medium-term fiscal plan5.

This first tagging exercise, while not perfect, has provided both the Ministry of Finance and budgetary units with a better understanding of why climate change and disaster risk management expenditures are important for The Bahamas.
It has also revealed to respective agencies what can be done to help improve the country’s resilience to climate change and natural 2 See Government of the Bahamas.

2021.

Estimates of Revenue and Expenditure, FY 2021/22, Annexes 10 & 11 on pages 273 and 274.

3 International Monetary Fund.

2022.

The Bahamas.

2022 Article IV Consultation – Press Release; Staff Report; and Statement by the Executive Director for the Bahamas; Annex II.

Risk Assessment Matrix; p. 37.

4 IMF 2022: p. 37.

5 IMF 2022: p. 1.


5 | The Bahamas Climate Spending Report 2021—2022 hazards and how important it is for the expenditure to be traceable in the budget and linked to higher-level climate change policies as well as the eventual outcomes of the spend or the anticipated impact.

It is expected that budget submissions in subsequent fiscal years will increase climate change and DRM expenditures.

6 | The Bahamas Climate Spending Report 2021—2022 INTRODUCTION A.
BACKGROUND The Bahamas is a small island developing state located in the Atlantic Ocean.

It is highly exposed and vulnerable to climate change and natural hazards.

Sea-level rise associated with increasing temperatures due to climate change threatens The Bahamas’ low-lying islands.

Around 80 percent of The Bahamas is within one meter of mean sea level (MSL).
The concentration of socioeconomic activities and critical infrastructure in narrow coastal zones, the dependence on tourism, and the limited human and institutional capacity6 contribute to The Bahamas’ vulnerability to climate change.

This is highlighted in The Bahamas Intended Nationally Determined Contribution (INDC) document prepared under the United Nations Framework Convention on Climate Change (UNFCCC)7.
Extreme weather events, particularly hurricanes, are common in The Bahamas and can significantly impact economic growth and social development.
In addition to the severe impacts of Hurricane Dorian in 2019, which exceeded US$3.4 billion in economic losses for both the public and private sectors8, the country faces an average annual loss (AAL) from windstorms of US$850 million and a probable maximum loss (PML) for a 250-year event of US$20.5 billion – nearly 45 percent of the country’s capital stock (GAR159).

The Government has been pursuing an ambitious public financial management (PFM) reform program for almost a decade.
In 2016, the Government of The Bahamas signed a loan agreement with the Inter-American Development Bank (IDB) for a Public Financial Management and Performance Monitoring Reform (PFM/PMR) Project to increase efficiency in the allocation and use of resources and to produce actionable data for decision-making.
In 2021, as part of the World Bank’s COVID-19 Response and Recovery Development Policy Loan, the Government committed to strengthening policies, institutions, and investment for resilient, inclusive, and sustainable growth that would support The Bahamas’ fiscal management and debt sustainability 6 BEST Commission.

(2005).

National Capacity Needs Self-Assessment and NDP Secretariat.

(2016).

State of the National Report: Vision 2040 National Development Plan of The Bahamas.
7 The Government of The Bahamas Intended Nationally Determined Contribution (INDC) under the United Nations Framework Convention on Climate Change Communicated to the UNFCCC on November 17, 2015. https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/Bahamas/1/Bahamas%20INDC %20Submission.pdf 8 Inter-American Development Bank.

(2020).

Impact of Hurricane Dorian in The Bahamas: A View from the Sky.
9 https://www.preventionweb.net/english/hyogo/gar/2015/en/home/ 7 | The Bahamas Climate Spending Report 2021—2022 reform agenda.

Reforms supported included the strengthening of PFM to provide for clarity in roles and responsibilities, improve cash management, provide for enhanced reporting, and increase the effectiveness of the government’s fiscal policy.
It also included the adoption of a Climate and Disaster Budget Tagging Methodology for identifying and managing climate change mitigation and adaptation and disaster risk management activities.

Tagging of expenditure for climate change adaptation and mitigation that led to the production of the first Climate Spending Report complements the PFM reform efforts.

It supports The Bahamas’ objective of ensuring that climate and disaster resilience can be integrated into the PFM framework.
The introduction of the climate and disaster tagging exercise is expected to strengthen the country’s capacity to allocate, manage, and monitor public resources to address these threats to its economy and to its very existence in the future.
The tagging will assist The Bahamas in understanding, tracking and quantifying climate change and post-disaster related expenditures—for both severe and mild events— and consequently will help the government to make cost-effective and risk-based decisions on how to mitigate the impacts of climate change and develop and strengthen climate resilience using the main policy took at its disposal – the budget.
B. TAGGING CLIMATE EXPENDITURE The 2021 tagging exercise—tagging expenditure for climate change and disaster risk management—was led by the Ministry of Finance.

The exercise started in February 2021 in line with the start of the budget exercise for FY 2021—2022.

The first step involved the formalization and dissemination of the tagging methodology which can be found in Annex 1 of this report.
The draft methodology was developed jointly by the Ministry of Finance and the World Bank Group and tailored to the country’s needs.

The methodology and its supporting documents were included in the government’s call circular.

The circular informs the government and its agencies of the fiscal and macroeconomic framework to guide the submission of revenue and expenditure estimates from Ministries, Departments and Agencies (MDAs).
To assist with this process, a webinar was held for MDAs to become acclimated with the methodology and the specific requirements from each organization.

The 2021 climate and disaster tagging exercise involved a series of steps as outlined in Figure 1 below.

8 | The Bahamas Climate Spending Report 2021—2022 Figure 1: Steps for 2021 Climate and Disaster Exercise 1.

Set / confirm tagging criteria (Feb 2021) 2.

Circulate criteria (Feb 2021) 3.

Prepare and review budget submissions (Mar 2021) 4.
Apply tagging (Apr 2021) 5.

Consolidate tagging (Jun 2021) 6. Review and validate tagging 7.

Draft and finalize tagging report 8.

Publish tagging report (Jul-Oct 2021) (Nov 2021-May 2022 (June 2022) The MDAs were requested to prepare and review their budget submissions and apply the tagging methodology to climate change and disaster risk management expenditure.

Budget submissions were made; however, they did not include the level of detail necessary to inform the tagging exercise.
To address this issue, the team consisting of Ministry of Finance representatives, the World Bank representative and the National Consultant agreed that another training webinar would be held to educate the MDAs on:  The basics of climate change and disaster risk management (DRM)  Examples of climate change and DRM-related expenditures  Tagging methodology including how to fill out the spreadsheet Following the training webinars, MDAs were given an opportunity to work in small groups with the National Consultant and MOF representative to fill out the tagging spreadsheets for their Recurrent and Capital Expenditures, where relevant.
MDAs were then given additional time to prepare and send in the budget submissions with tagging completed.

For future tagging exercises, the tagging methodology will be shared early in the budget development process along with training sessions on climate adaptation, climate mitigation and disaster risk management.

This will facilitate MDAs being able to tag budget line items as they develop budget submissions for MOF.
The Working Group will facilitate training sessions for MDAs for future tagging exercises over the next two to three years as necessary.

This effort will be linked to the updating of the Chart of Accounts.

With the tagging submissions received, the team was able to consolidate the tagging results.
The team also hosted a validation webinar open to all MDAs to review the results of the tagging exercise and confirm the exercise accurately captured climate change and disaster-related expenditures by their respective organizations.

The information provided during the webinar was validated and additional tagging information was provided for some agencies.

With completion of the 2021 tagging exercise, the tagging report was developed.
9 | The Bahamas Climate Spending Report 2021—2022 For future tagging exercises, it is recommended that more detailed tagging be conducted with assignment of five (5) tags instead of just the two (2) which were done for the 2021— 2022 exercise.
These five (5) tags would be:  Climate change adaptation  Climate change mitigation  Disaster risk management and reduction  Disaster emergency response  Disaster recovery and reconstruction To support more detailed tagging, the Government will need to update the Chart of Accounts.
The Government has been provided with several options and intends to pursue the following:  Remove code 0136 – Climate Resilience Coastal Management and Infrastructure – from the Chart of Accounts and then amend the current code for Disaster Management (0106) and call it Disaster & Climate Risk Reduction.

COA code 0136 is only a capital program and has only been used by the Ministry of Public Works.
 Under the Disaster & Climate Risk Reduction program, 5 sub-programs will be introduced: 3 for Disaster Management and 2 for climate change resilience.

This will allow for tracking of expenditure and impact under disaster risk management and reduction, disaster emergency response, disaster recovery and reconstruction, climate mitigation and transition and climate adaptation.
LEGAL AND POLICY FRAMEWORK FOR TAGGING CLIMATE EXPENDITURE The legal and policy framework of the Government of the Bahamas facilitates tagging of climate expenditure.

The 2021 Public Finance Management Act provides for the control and management of public finances.

This includes reporting on public finances and the accountability of public entities and Government Business Enterprises (GBEs), formerly state-owned enterprises (SOEs).
The 2019 Environmental Planning and Protection (EPP) Act established the environmental legislative framework for The Bahamas and the Department of Environmental Planning and Protection (DEPP) to implement the Act.

The EPP Act covers a myriad of environmental issues.

Specifically on climate change, s3(1)(h) of the Act calls for the development of “a robust climate change regime that applies adaptation and mitigation technologies to address vulnerabilities”.
10 | The Bahamas Climate Spending Report 2021—2022 The 2008 Disaster Preparedness and Response Act established the National Emergency Management Agency (NEMA) as the agency responsible for disaster relief management.

It also provides guidance on the establishment of a national emergency operations center and shelters.

The Act outlines the disaster alert and emergency national system.

Section 34 of the Act speaks to the funding of NEMA to consist of monies provided by Parliament and by donations.
These Acts enable implementation of the government’s policies with respect to public finance reform, environmental, and disaster risk management.

They provide Central Government agencies with a legal mandate to action important issues, such as climate change (i.e., adaptation and mitigation) and disaster risk management (i.e., disaster risk reduction, disaster emergency response, and disaster recovery and reconstruction).
Tagging for climate change and disaster risk management support the government’s initiatives to increase transparency and accountability through reporting on public finances, addressing climate change by increasing the country’s resilience and proactively engaging in all aspects of disaster risk management.
PURPOSE AND BENEFITS OF TAGGING To enhance its efforts toward climate transition and disaster resilience, the Government of The Bahamas requires information on the nature, quantity, and quality of its expenditures related to climate change mitigation and adaptation and disaster risk management.

By implementing a Climate and Disaster Budget Tagging system, The Bahamas will be able to better identify and manage these expenditures and activities for improved resilience.
Through climate and disaster tagging, the Government of The Bahamas is expected to benefit in several ways including:   Improved ability to account for, monitor, manage, prioritize, and report on climate-smart and disaster-resilient investment in line with the Government’s efforts to enhance public investment management under various Public Financial Management reforms.
Improved understanding and management of spending on disasters by phase (before, during, or after) and by sector and program (e.g., which ministries are carrying the burden of disaster-related expenditures).

 Improved access to and mobilization of climate finance; and  Enhanced transparency and demonstration of its commitment to climate action and disaster reduction.
11 | The Bahamas Climate Spending Report 2021—2022 TAGGING METHODOLOGY: BRIEF OVERVIEW The Ministry of Finance leads budget preparation and will manage the climate and disaster tagging process.

This will include:  Ensuring that the annual budget call circular highlights the importance of climate and disaster-related proposals.
 Transitioning to program budgeting and detailed program descriptions and targets for each budget code to make it easier for independent validation of both climate and disaster-related expenditures.

 Reviewing climate and disaster-related expenditures proposed during budget preparation; and  Completing a review of the finalized budget approved by Parliament in June.
 Including an Annex in the annual budget on climate budgeting for previous fiscal years by function of government, head, program, spending unit, economic segment, and fund source.

The tagging exercise is applied to the expenditure budget during the preparation of the annual budget (Estimates of Revenue and Expenditure) and reviews prior year actual expenditures.
For the current exercise, MDAs were engaged to review budget estimates for 2021—2022 and were supported by the World Bank for review of estimates and actual expenditures for previous years.

Moving forward, any updates to a given year’s budget (such as supplemental budgets), which have not been reflected at the time of tagging, will be updated in the following year’s tagging exercise, along with all updates in Actual Expenditures.
For in-year monitoring, the Ministry of Finance can generate monthly or quarterly reports on the tagged expenditures.

To the extent possible, tagging took place at the most detailed level available in the Chart of Accounts, i.e., budget line-item level.

Table 1 provides more details on the 2021—2022 tagging exercise methodology.

Table 2 provides details on steps for future tagging exercises.
12 | The Bahamas Climate Spending Report 2021—2022 Table 1: Bahamas FY 2021—2022 Tagging Methodology Steps Responsibility / Detail Lead Ministry / Office Information to Review National and international policy documents and tagging practices MOF prepares with support from the World Bank and National Consultant MOF MDAs, MOF Budget proposals MOF, National Consultant MOF, National Consultant Budget proposals (e.g., form N3) Tagging Validation Email MDAs, MOF and National Consultant update Tagging Validation Response from MDAs MOF and National Consultant Draft 2021-22 Tagging Report MOF Data and Information to be included in FSR on climate change and disaster risk management.
1.

Set / confirm tagging criteria 2.

Circulate criteria 3.

Prepare and review budget submissions 4.

Apply tagging 5.

Consolidate tagging 6. Review and validate tagging 7.

Draft and finalize tagging report 8.
Publish tagging report MOF develops /updates annual Tagging Methodology Annual budget call circular communicates criteria to ministries MDAs prepare budget submissions and MOF notes relevant proposals MOF reviews budget proposals MOF and National Consultant consolidate tagging information and prepare validation presentation and spreadsheets MDAs give feedback on tagging, with MOF and National Consultant updating data MOF and National Consultant prepare a report on climate and disaster relevant expenditure Develop input report for the annual FSR 13 | The Bahamas Climate Spending Report 2021—2022 Table 2: Bahamas Future Tagging Methodology Steps Responsibility / Detail Lead Ministry / Office 1.
Set / confirm tagging criteria 2.

Circulate criteria 3.

Prepare budget submissions and apply tagging 4. Review budget submissions 5.

Consolidate tagging 6. Review and validate tagging 7.

Draft and finalize tagging report 8.
Publish tagging report MOF and Working Group (WG) update annual Tagging Methodology Annual budget call circular communicates criteria to ministries MDAs prepare budget submissions inclusive of tagging MOF reviews budget proposals MOF consolidates tagging information and prepare validation presentation and spreadsheets MDAs give feedback on tagging, with MOF and WG updating data MOF and WG prepare a report on climate and disaster relevant expenditure Develop input report for the annual FSR Information to Review National and international policy documents and tagging practices MOF MOF MDAs Budget proposals MOF MOF Budget proposals (e.g., form N3) Tagging Validation Email MDAs, MOF and WG Tagging Validation MOF and WG MOF Response from MDAs Draft annual Tagging Report Data and Information to be included in FSR on climate change and disaster risk management.
For future tagging exercises, a joint working group (WG) will be established to provide guidance on Steps 1, 6 and 7.
The recommended WG composition is:  Ministry of Finance (Chair)  Ministry of Environment & Natural Resources (MOENR)  Bahamas Department of Meteorology (BDM)  Sustainable Development Goals (SDG) Unit (Office of the Prime Minister) 14 | The Bahamas Climate Spending Report 2021—2022  National Emergency Management Agency (NEMA)  Ministry of Public Works (MOPW)  Ministry of Agriculture & Marine Resources (MAMR)  Ministry of Health (MOH) The Figure below presents the composition of the Working Group for Climate and Disaster Budgeting.
Figure 2: Working Group for Climate and Disaster Budgeting MOENR MAMR BDM MOF MOH SDG Unit (OPM) MOPW NEMA 15 | The Bahamas Climate Spending Report 2021—2022 CLIMATE CHANGE AND DISASTER RISK EXPENDITURE A. OVERVIEW OF SPENDING ANALYSIS FINDINGS The Climate Spending Report used the economic segment to determine the amount of expenditure on climate change and disaster risk management.
While the Government also has a program classification in place which would better facilitate the tagging exercise, the presentation of program objectives in the budget documentation remains limited.

This has hampered the opportunities to use program information for climate tagging.

The use of the economic segment was identified as more suitable for the determination of the climate spending.

The Chart of Accounts establishes the way the budget is organized.
Figure 3: The Chart of Accounts of the Bahamas Source: Ministry of Finance of the Bahamas, 2021.

Note: At the level of the line item, the expenditure would be described by a 23-digit code.

In 2021—2022, the Government estimated to spend $72,184,093.92 or 2.3 percent of the total budget on climate change.

The projected spend on disaster risk management is lower compared to climate change and estimated at $54,391,665.68 or 1.7 percent of the total budget.
Table 3 below presents an overview of climate and disaster risk management projected spending in fiscal year 2021—2022 using economic segments.

Table 4 gives a more detailed analysis of climate and DRM spending across all the economic segments.
16 | The Bahamas Climate Spending Report 2021—2022 Table 3: Overview of Climate and DRM Spending by Economic Segments in the Estimates 2021—2022 ECONOMIC SEGMENTS TOTAL CLIMATE RELEVANT ALLOCATION (CRA) DISASTER RELEVANT ALLOCATION (DRA) Item No RECURRENT 21110EE 21120EE 22111EE 22410EE 22510EE 22710EE 22810EE 24000EE 25000EE 2620EE 27200EE 28000EE 28200EE 28300EE CAPITAL 31100EE Title Wages & Salaries Allowances Domestic Travel & Subsistence Supplies & Materials Services Operational Expenses Special Financial Transactions Interest to Non- Residents (Public Debt) Subsidies Grants to International Organizations Social Assistance Benefits Other Payments Transfers N.E.C.10 Premiums, Fees & Claims Acquisition of Fixed Assets $ 60,474,762.60 $ 27,721,026.52 $ 32,753,736.08 $ 1,399,587.50 $ 699,793.75 $ 699,793.75 $ - $ - $ - $ 87,000.00 $ - $ 87,000.00 $ 6,125,296.00 $ 3,052,500.00 $ 3,072,796.00 $ 110,000.00 $ 110,000.00 $ - $ - $ - $ - $ 288,291.00 $ 288,291.00 $ - $ 5,200,000.00 $ 5,200,000.00 $ - $ 498,696.50 $ 119,187.25 $ 379,509.25 $ 3,650,000.00 $ - $ 3,650,000.00 $ 50,000.00 $ - $ 50,000.00 $ 42,590,184.00 $ 33,992,591.00 $ 8,597,593.00 $ 5,098,522.00 $ 1,000,704.40 $ 4,101,237.60 $ 1,000,000.00 $ - $ 1,000,000.00 TOTALS PERCENT OF TOTAL BUDGET $ 126,575,759.60 4.0% $ 72,184,093.92 2.3% $ 54,391,665.68 1.7% 10 N.E.C.
= not elsewhere classified.
17 | The Bahamas Climate Spending Report 2021—2022 Table 4: Detailed Analysis of Climate and DRM Spending by Economic Segments in the Estimates 2021—2022 ECONOMIC SEGMENTS TOTAL CRA DRA TAG WEIGHT Item No RECURRENT 21110EE 003 013 016 019 020 021 024 031 032 034 038 044 Title Wages & Salaries House of Assembly Ministry of Foreign Affairs Bahamas Information Services Department of Physical Planning Department of Lands & Surveys Ministry of Finance Department of Statistics Royal Bahamas Police Force Royal Bahamas Defense Force Department of Public Works Ministry of Education Department of Social Services 18 | The Bahamas Climate Spending Report 2021—2022 $ $ $ 60,474,762.60 $ 355,000.00 $ 2,011,072.60 27,721,026.52 $ 177,500.00 $ 1,005,536.30 32,753,736.08 $ 177,500.00 $ 1,005,536.30 CRA, DRA Allocate 50% each CRA, DRA Allocate 50% each $ 381,294.40 $ $ CRA, DRA Allocate 50% each 190,647.20 190,647.20 $ $ $ CRA, DRA Allocate 50% each 155,160.00 77,580.00 77,580.00 $ $ $ CRA, DRA Allocate 50% each 243,155.00 121,577.50 121,577.50 $ $ $ CRA, DRA Allocate 50% each 2,474,232.00 1,237,116.00 1,237,116.00 $ - $ $ - $ $ - $ CRA, DRA CRA, DRA Allocate 50% each Allocate 50% each 19,224,838.60 9,612,419.30 9,612,419.30 $ $ $ CRA, DRA Allocate 50% each 9,952,688.40 4,976,344.20 4,976,344.20 $ $ $ CRA, DRA Allocate 50% each 3,245,013.40 1,622,506.70 1,622,506.70 $ $ $ CRA, DRA Allocate 50% each 1,456,482.60 728,241.30 728,241.30 $ $ $ CRA, DRA Allocate 50% each 2,534,779.60 506,995.92 2,027,823.68 Department of Housing $ $ $
 CRA, DRA Allocate 50% each 240,940.00 120,470.00 120,470.00 Port Department $ $ $ CRA, DRA Allocate 50% each 045 053 055 056 057 058 060 065 066 072 075 21120EE Department of Meteorology Ministry of Agriculture & Marine Resources Department of Agriculture Department of Marine Resources Ministry of Health Department of Environmental Health Services Department of Public Health Ministry of the Environment & Housing Ministry of Disaster Preparedness, Management & Reconstruction Allowances 2112105 Risk & Hazard
 Allowance 2251320 Demolition of Dilapidated Buildings 19 | The Bahamas Climate Spending Report 2021—2022 546,558.80 273,279.40 273,279.40 $ $ $ CRA, DRA Allocate 50% each 435,134.20 217,567.10 217,567.10 $ $ $ CRA, DRA Allocate 50% each 680,106.60 340,053.30 340,053.30 $ $ $ CRA, DRA Allocate 50% each 869,929.60 434,964.80 434,964.80 $ $ $ CRA, DRA Allocate 50% each 454,757.20 227,378.60 227,378.60 $ $ $ CRA, DRA Allocate 50% each 1,551,319.60 775,659.80 $ $ 2,683,126.60 2,683,126.60 775,659.80 $ 0.00 CRA Allocate 100% $ 6,044,968.40 $ 0.00 $ 6.044,968.40 DRA Allocate 100% $ $ $ CRA, DRA Allocate 50% each 4,784,205.00 2,392,102.50 2,392,102.50 $ 150,000.00 $ 0.000 $ 1,399,587.50 $ 1,399,587.50 $ 699,793.75 $ 699,793.75 $ DRA Allocate 100% 150,000.00 $ 699,793.75 $ CRA, DRA Allocate 50% each 699,793.75 $ - $ - DRA Allocate 100% 22111EE 2211104 Domestic Travel & Subsistence Emergency Flights 22410EE Supplies & Materials 2241210 Vector Control 2241239 22510EE Contingencies - Various Depts Other Charges Services 2251348 Debris Management 2251321 2251325 2251335 22710EE Fumigation and Pest Control Maintenance - Fire Prevention/ Protection Equipment Sewerage Maintenance Contracts Operational Expenses $ - $ - $ - $ - $ DRA $ - $ $ - 87,000.00 Allocate 100% 87,000.00 $ 87,000.00 $ DRA Allocate 100% 87,000.00 $ - $ - DRA Allocate 100% $ $ $ 6,125,296.00 $ 3,052,500.00 $ 3,000,000.00 6,000,000.00 $ 7,436.00 $ 65,360.00 3,072,796.00 $ DRA Allocate 50% each 3,000,000.00 $
 DRA Allocate 100% 7,436.00 $ DRA Allocate 100% 65,360.00 $ $ CRA Allocate 100% 52,500.00 52,500.00 $ 110,000.00 $ - 2271020 Climate Change Policy $ $ CRA Allocate 100% 2271002 22810EE Ministry of Disaster Preparedness Management and Reconstruction Special Financial Transactions 20 | The Bahamas Climate Spending Report 2021—2022 110,000.00 110,000.00 $ - $ - DRA Allocate 100% $ - $ - $ - $ - Allocate 100% 2281178 2281150 2281154 24000EE 2411133 2411150 2411200 25000EE 2511205 2620EE 2621107 2621110 2621111
 Provision for Contingencies Energy Efficient Residential Lighting Programme Geographic Information Systems Project Interest to Non- Residents (Public Debt) US$ EEC Rural Energy (1991) 2000-2030 IDB 1170/OC-BH ($23.5M) Solid Waste Management Loan IADB 4978/OC-BH Reconstruction Resilience Subsidies Water and Sewerage Corporation Development Projects Grants to International Organizations Caribbean Agriculture Research and Development Caribbean Environmental Health Institute Caribbean Emergency Disaster Preparedness 21 | The Bahamas Climate Spending Report 2021—2022 $ - $ - DRA Allocate 100% $ - CRA Allocate 100% $ - $ - $ - DRA, CRA Allocate 50% to each 288,291.00 $ $ 288,291.00 $ - $ $ CRA Allocate 100% 3,579.00 3,579.00 $ - $ - CRA Allocate 100% $ $ CRA Allocate 100% 284,712.00 284,712.00 $ $ 5,200,000.00 5,200,000.00 $ $ 5,200,000.00 5,200,000.00 $ - CRA Allocate 100% 498,696.50 $ $ 119,187.25 $ 379,509.25 $ $ $ CRA, DRA Allocate 50% each 75,200.00 37,600.00 37,600.00 $ $ $ CRA Allocate 100% 16,880.00 16,880.00 0.00 $ $ $ DRA Allocate 100% 85,586.00 0.00 85,586.00 2621115 2621124 2621149 2621151 2621156 2621163 2621179 2621194 2621195 2621196 27200EE 2721113 28000EE 2821105 28200EE Caribbean Regional Fisheries Mechanism Commonwealth Agriculture Bureau World Health Organization World Meteorology Organization & Voluntary Cooperation Programme Food & Agriculture Organization (FAO) UN Environmental Programme (UNEP) Inter-American Institute on Agriculture Caribbean
 Epidemiology Centre (PAHO) Caribbean Food & Nutrition Institute Caribbean Public Health Agency Social Assistance Benefits Circumstance and Relief Emergency Desk Assistance Other Payments Compensation for Loss & Damages Transfers N.E.C.
22 | The Bahamas Climate Spending Report 2021—2022 $ $ $ CRA, DRA Allocate 50% each 43,050.50 21,525.25 21,525.25 $ $ $ CRA, DRA Allocate 50% each 3,160.00 1,580.00 1,580.00 $ 12,016.00 $ 0.00 $ DRA Allocate 100% 12,016.00 $ $ $ CRA, DRA Allocate 50% each 7,680.00 3,840.00 3,840.00 $ $ $ CRA, DRA Allocate 50% each 32,800.00 16,400.00 16,400.00 $ $ $ CRA Allocate 100% 12,800.00 12,800.00 0.00 $ $ $ CRA, DRA Allocate 50% each 9,364.00 4,682.00 4,682.00 $ $ 0.00 $ DRA Allocate 100% 98,280.00 98,280.00 $ $ $ CRA, DRA Allocate 50% each 7,760.00 3,880.00 3,880.00 $ $ 0.00 $ DRA Allocate 100% 94,120.00 $ 3,650,000.00 $ 3,650,000.00 $ 50,000.00 $ 50,000.00 94,120.00 3,650,000.00 $ - $ 3,650,000.00 - $ $ $ - $ 50,000.00 - 50,000.00 $ $ $ $ $ 42,590,184.00 33,992,591.00 8,597,593.00 DRA Allocate 100% DRA Allocate 100% 2822003 National Disaster Refund 2822007 2822013 2822060 2821238 2821624 2821420 28300EE 2831102 2831103 2831104 2831106 2831107 2831101 CAPITAL Energy Restoration & Renewable Energy National Disaster Recovery Project PHA RAND Dorian Reconstruction Salvation Army Emergency Centre Bahamas Agricultural Health and Food Safety Authority (BAHFSA) Bahamas Disaster Reconstruction Authority Premiums, Fees & Claims Ins Prem-Airpt, Aircrft & Carrier Insurance Premiums - Equipment/Buildings Caribbean Catastrophic Risk Insurance Facility Ins Premiums- Port/Docks/Vessel Insurance Premiums – Vehicles Insurance Premiums - Government Buildings/Structures/Assets 23 | The Bahamas Climate Spending Report 2021—2022 $ $ $ - - -
 $ $ $ DRA CRA Allocate 100% Allocate 100% 31,169,998.00 31,169,998.00 - $ 9,500,000.00 $ 1,900,000.00 $ 7,600,000.00 DRA Allocate 20%:80% $ - $ - $ - DRA Allocate 100% $ 75,000.00 - $ $ 75,000.00 DRA Allocate 100% $ $ $ CRA, DRA Allocate 50% each 100,800.00 50,400.00 50,400.00 $ 1,744,386.00 $ 872,193.00 $ CRA, DRA Allocate 50% each 872,193.00 $ $ $ 5,098,522.00 1,000,704.40 4,101,237.60 $ 105,000.00 $ 240,000.00 $ - 105,000.00 $ $ - 240,000.00 $ DRA Allocate 100% DRA Allocate 100% $ 3,878,522.00 $
 775,704.40 $ DRA Allocate 20%: 80% 3,102,817.60 $ $ 225,000.00 450,000.00 $ CRA, DRA Allocate 100% 225,000.00 $ 425,000.00 $ 3,420.00 $ - 425,000.00 $ DRA Allocate 100% $ - 3,420.00 $ DRA Allocate 100% 31100EE 3111304 3111308 3111309 3112225 3111379 5219016 5219020 5219042 5324022 5324026 Acquisition of Fixed Assets $ 1,000,000.00 $ - 1,000,000.00 $ Water & Sewerage Infrastructure New Lighting Infrastructure Hurricane Precautions Fire Prevention and Protection Construction of Green Houses IADB Contingent Loan for Natural Disaster Emergencies Climate Resilient Coastal Management & Infrastructure Programme Reconstruction with Resilience in the Energy Sector in the Bahamas US$ EEC Rural Energy Project (1991) 2000-2030 IDB 1170/OC-BH ($23.5M) Solid Waste Management $ - $ - $ - CRA Allocate 100% CRA Allocate 100% $ 1,000,000.00 $ DRA Allocate 100% 1,000,000.00 $ - DRA Allocate 100% CRA Allocate 100% $ - $ - DRA Allocate 100% $ - $ - $ - $ - $ - CRA Allocate 100% CRA Allocate 100% CRA Allocate 100% CRA Allocate 100% TOTALS BY ECONOMIC SEGMENT $ 126,575,759.60 $ 72,184,093.92 $ 54,391,665.68 24 | The Bahamas Climate Spending Report 2021—2022 Almost 50 percent (47.1 percent) of climate relevant spending was through the Transfers N.E.C.
economic segment (see Figure 4).

This was followed by Wages and Salaries (38.4 percent), Subsidies (7.2 percent), Services (4.2 percent) and Premiums, Fees and Claims (1.4 percent).

Wages and Salaries is prominent and reflects that fact that work on climate change should be reflected in climate expenditure.

For the heads used to derive climate expenditure, the majority would have been assigned low climate relevance (20 percent).
Once the ratio was derived, the climate and disaster allocations were then assigned 50 percent each for the most part.

Any entity with no climate or disaster relevance would not have been used to assign a weighting for any Wages and Salaries.

Of 57 heads, 34 were ‘no assigned relevance or weighting’.

The climate and disaster tagging for Wages and Salaries was applied to 23 or 40 percent of the Heads.
Figure 4: Economic Segments’ Contribution to Climate Relevant Spending in FY 2021— 2022 47% 1% 0% Wages & Salaries Allowances Domestic Travel & Subsistence Supplies & Materials 39% Services Operational Expenses Special Financial Transactions Interest to Non-Residents (Public Debt) Subsidies Grants to International Organizations Social Assistance Benefits 7% 0% 4% 0% 0% 0% 1% 1% 0% 0% 0% Other Payments Figure 5 gives an overview of the distribution of climate change and disaster risk management relevant spending in the economic segment Wages and Salaries by MDAs.
The following agencies share the highest projected climate spending based on the economic 25 | The Bahamas Climate Spending Report 2021—2022 segments of wages and salaries: Royal Bahamas Police Force, Royal Bahamas Defense Force, Department of Environmental Health Services, and Ministry of the Environment and Housing; and the following agencies share the highest projected disaster related spending based on the economic segments of wages and salaries: Royal Bahamas Police, Royal Bahamas Defense Force, Department of Public Health, Ministry of the Environment and Housing, Department of Social Services and Department of Public Works.
Figure 5: Climate versus Disaster Expenditure in the Wages and Salaries Economic Segment, by MDA 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Climate Expenditure Disaster Expenditure 26 | The Bahamas Climate Spending Report 2021—2022 B.

LESSONS LEARNED This first tagging exercise has provided MDAs with a better understanding of why climate change and DRM expenditures are important for The Bahamas.
It also revealed to respective agencies what can be done to help improve the country’s resilience to climate change and natural hazards.

It is expected that budget submissions in subsequent fiscal years will see an increase in climate change and DRM expenditures, not only for disaster response but also for other stages of the disaster risk management cycle.
Budgeting for the future can include expenditures on activities and programs such as:  LiDAR data collection – LiDAR stands for light detection and ranging.

LiDAR technology enables the development of high-resolution maps of land and marine environments.

These maps can be used for topography and bathymetry.

This type of data is important for modelling how storm surge and hurricanes can impact islands of The Bahamas.

LiDAR data currently only exists for the islands of Eleuthera and Grand Bahama.
It needs to be collected for all other major populated islands of The Bahamas to aid in proper planning and decision-making, particularly as it relates to land use planning.

 Storm surge mapping – In order to properly plan for responding to climate change and particularly hurricanes, we must understand how storm surge will impact the islands of The Bahamas.

A storm surge atlas including mapping capabilities has been developed for the islands of Eleuthera and Grand Bahama.
No mapping exists for the other islands, mainly due to the lack of LiDAR data for these islands.

 Flood risk mapping – Having accurate topographic surveys of the islands, showing elevations, enables urban and regional planners to advise on which areas are at high risk from flooding.
Flood risk maps need to be developed for each island, so the government can advise which areas need to be evacuated during disasters that can result in flooding and also which areas are not safe for building, particularly important infrastructure such as hospitals and roads.

 Urban planning – Access to LiDAR data, storm surge maps and flood risk maps facilitates proper urban planning.

This includes designation of No-Build Zones where it is not safe to build homes and other permanent structures.
It also enables designation of sensitive areas that should be developed using methodologies such as Low-Impact Development (LID).

 Transition to renewable energy (RE) technologies – The move away from fossil fuels as non-renewable energy sources to RE technologies will specifically target climate change mitigation through a reduction in greenhouse gas (GHG) emissions.

RE technologies may also enable a reduction in energy costs for The Bahamas.
 Improving climate resilience in buildings and infrastructure – As a part of adaptation to climate change, The Bahamas must improve the resilience of its buildings and 27 | The Bahamas Climate Spending Report 2021—2022 infrastructure to withstand extreme events, such as hurricanes.

Funding needs to be dedicated to determining locations on each island which are most resilient as well as building techniques and technologies that will improve climate resilience.
These may include underground utility infrastructure, higher foundations for buildings and structural designs to withstand Category 5 hurricane winds.

 Education and capacity building for climate change and DRM – In order to take action on climate change and DRM, our society must understand these concepts and how their actions can aid in improving the country’s resilience.
Education and capacity building needs to occur at every level, from children in school to the judiciary and executive branches of government.

Climate change and DRM needs to be an integral part of educational curricula at all levels (primary through tertiary) as well as targeted training for all sectors and education and outreach for the general public.

 Insurance programs for sectors – Some sectors within The Bahamas are particularly vulnerable to the effects of climate change and disasters.
These include farming and fishing where those working can lose everything in a single event.

Insurance programs that enable even partial replacement of equipment lost and damage sustained can go a long way to enabling these sectors to recover following a disaster.
The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Program (CCRIF SPC) has, through the COAST (Caribbean Oceans and Aquaculture Sustainability Facility) facility, provide livelihood protection in a few Caribbean countries, including Grenada and St Lucia.

Anguilla has, through CRRIF SPC, purchased insurance for its electricity provider, the Anguilla Electricity Company Limited (ANGLEC).

These are some of the expenditures that can be made to enhance climate resilience in the Bahamas.
28 | The Bahamas Climate Spending Report 2021—2022 ANNEXES ANNEX 1: THE BAHAMAS CLIMATE AND DISASTER BUDGET TAGGING METHODOLOGY FY 2021—2022 The Bahamas Climate and Disaster Budget Tagging Methodology FY 2021—2022 March 2021 INTRODUCTION The Bahamas is a small island developing state located in the Caribbean and consequently highly exposed and vulnerable to climate change and natural hazards.
Sea-level rise associated with increasing temperatures due to climate change threatens The Bahamas’ low-lying islands: some 80% of The Bahamas lies within one meter of mean sea level (MSL).
The concentration of socioeconomic activities and critical infrastructure in narrow coastal zones, the dependence on tourism, and the limited human and institutional capacity all contribute to The Bahamas’ vulnerability to climate change, as noted in The Bahamas Intended Nationally Determined Contribution (INDC) under the United Nations Framework Convention on Climate Change (UNFCCC).11 Extreme weather events, particularly hurricanes, are common and can significantly impact economic growth and social development.
In addition to the severe impacts of Hurricane Dorian in 2019, which exceeded US$3.4 billion in economic losses, the country faces an average annual loss from windstorms of US$850 million and a probable maximum loss (PML) for a 250-year event of US$20.5 billion – nearly 45% of the country’s capital stock (GAR1512).

To take on these challenges, The Bahamas has taken measures to increase climate and disaster resilience.
For example, it is supporting management of its terrestrial and maritime ecosystems by expanding protected areas and promoting improved natural resource management.
The 2015 Intended Nationally Determined Contribution under the Paris Agreement outlines adaptation options across ten priority sectors:  Agriculture, and fisheries  Tourism  Health livestock development  Energy  Forestry  Human settlement (inclusive of critical infrastructure)  Financial and insurance sectors;  Transportation; and  Coastal and marine resources  Water resources.
The Bahamas also supports the achievement of the United Nations’ Sustainable Development Goals and Sendai Framework for Disaster Risk Reduction 2015-2030, which outlines four priorities for action to improve the management of disaster risk: 11 The Government of The Bahamas Intended Nationally Determined Contribution (INDC) under the United Nations Framework Convention on Climate Change Communicated to the UNFCCC on November 17, 2015. https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/Bahamas/1/Bahamas%20INDC %20Submission.pdf 12 https://www.preventionweb.net/english/hyogo/gar/2015/en/home/ A2  Understanding disaster risk  Strengthening disaster risk governance to manage disaster risk  Investing in disaster reduction for resilience and  Enhancing disaster preparedness for effective response, and to "Build Back Better" in recovery, rehabilitation, and reconstruction.
The Bahamas’ National Development Plan Vision 2040 identifies the natural environment as a strategic priority.

It outlines strategic action for climate change with a view to position The Bahamas as a leader in researching and implementing climate change adaptation and mitigation measures and as an incubator of green technologies and disaster management.

Reflecting budgetary allocations for climate change is an output under the strategic action line.
The National Development Plan also defines the integration of disaster risk reduction into sustainable development policies and planning as a strategic action.

Even though The Bahamas’ contribution to total global greenhouse gas emissions is negligible, its economic activity is relatively high in emissions, due to the country’s geography (archipelago with dispersed rural population) and its services-based economy.
To meet the needs of its tourism industry, The Bahamas is becoming increasingly dependent on processed water, requiring fossil fuel intensive desalinization technologies (reverse osmosis).

The country is highly dependent on fossil fuel imports for energy and transportation.

In its 2013 National Energy Policy, The Bahamas set a target to reach a share of renewable energy (solar, ocean, wind) of 30% by 2030.
The 2014 Amendment to the Forestry Act establishes a permanent forest estate, strengthens forest management and is expected to reduce emissions from land degradation and deforestation.

In its 2015 INDC under the Paris Agreement, The Bahamas committed to an economy-wide greenhouse gas (GHG) emission reduction of 30% by 2030, compared to a business-as-usual scenario.
Climate and disaster tagging will be implemented in the context of The Bahamas’ various efforts to strengthen its capacity to allocate, manage, and monitor public resources.

This includes implementing the Public Financial Management & Performance Monitoring Reform (PFM/PMR) Project with the IDB13, adopting the Public Financial Management Bill, 2021 (PFM Bill)14, and continuing related support from the World Bank and CARTAC15.
The tagging will complement these efforts and support The Bahamas’ aim of ensuring that climate and disaster resilience can be integrated in PFM, following the destruction caused by Hurricane Dorian and the ongoing climate and disaster risk facing the country.

Understanding and quantifying post-disaster 13 https://www.bahamas.gov.bs/pfmpmr/ 14 The PFM Act was passed and enacted on July 1, 2021.
15 https://www.cartac.org/content/dam/CARTAC/AnnualReports/CARTAC_2020-Annual- Report%2010%20sm.pdf A3 expenditures—for both severe and mild events—will help the government to improve budgetary planning for disaster expenditures and to make cost-effective and risk-based decisions around appropriate financial instruments to address issues of financial protection.
OBJECTIVES AND EXPECTED BENEFITS To enhance its efforts toward climate transition and disaster resilience, the government requires information on the nature, quantity, and quality of its expenditures related to climate change mitigation and adaptation and disaster risk management (DRM).

By implementing a Climate and Disaster Budget Tagging system, The Bahamas will be able to better identify and manage these expenditures and activities for improved resilience.
Through climate and disaster tagging, the Government of The Bahamas is expected to make key gains including:   Improved ability to account for, monitor, manage, prioritize and report on climate-smart and disaster-resilient investment in line with the government’s efforts to enhance public investment management under various Public Financial Management reforms; Improved understanding and management of spending on disasters by phase (before, during, or after) and by sector and program (e.g., which ministries are carrying the burden of disaster-related expenditures);  Improved access to and mobilization of climate finance; and  Enhanced transparency and demonstration of its commitment to climate action and disaster reduction.
SCOPE OF THE EXERCISE The Ministry of Finance leads budget preparation and will manage the climate and disaster tagging process.

This will include ensuring that the annual budget call circular highlights the importance of climate and disaster-related proposals, reviewing climate and disaster-related expenditures proposed during budget preparation, and completing a review of the finalized budget approved by Parliament in July.
The annual tagging exercise will cover both current year budgeted expenditures, as well as review actual expenditures from previous years.

The tagging exercise is applied to the expenditure budget during the preparation of the annual budget (Estimates of Revenue and Expenditure) and also reviews prior year actual expenditures.
To that end, for the current exercise covered in this methodology, the methodology is expected to focus on the Budget Estimates for 2021/22 and develop estimated base line data for the Budget Estimates for 2020/21, 2019/20, 2018/19 and Actual Expenditures for 2019/20, 2018/19, and 2017/18.

For the current exercise, A4 Government agencies will be engaged to review budget estimates for 2021/22 and will be supported by the World Bank for review of estimates and actual expenditures for previous years.
Moving forward, any updates to a given year’s budget (such as supplemental budgets), which have not been reflected at the time of tagging, will be updated in the following year’s tagging exercise, along with all updates in Actual Expenditures.

For in-year monitoring, the Ministry of Finance can generate monthly or quarterly reports on the tagged expenditures.
To the extent possible, tagging will take place at the most detailed level available in the Chart of Accounts (COA): the economic segment or item level, as noted in the COA description below.

Any information developed during the 2021/2022 tagging process may be used to suggest potential improvements in the COA for future years.
Table A1: The Bahamas Chart of Accounts Source: Ministry of Finance (2020) OVERALL PROCESS, ROLES, AND RESPONSIBILITIES This section sets out the expected steps in the tagging process, as well as the key roles and responsibilities.

Figure A1 provides an overview of the tagging process and calendar, while Table A2 sets out the detailed roles and responsibilities.

A5 Figure A1.

Tagging Methodology Steps 1.

Set / confirm tagging criteria (Feb 2021) 2.

Circulate criteria (Feb 2021) 3.


Prepare and review budget submissions (Mar 2021) 4.

Apply tagging (Apr 2021) 5.

Consolidate tagging (Jun 2021) 6. Review and validate tagging (Jul 2021) 7.

Draft and finalize tagging report (Aug 2021) 8.

Publish tagging report (Sep 2021) Table A2: Budget Tagging Steps, Responsibilities, and Timeline Steps Responsibility / Detail Responsible Ministry / Office Information to Review 1.
Set / confirm tagging criteria MOF develops / updates annual Tagging Methodology16 MOF prepares 2.

Circulate criteria Annual budget call MOF National and international policy documents and tagging practices Timing in line with budget process February 2021 February 2021 3.

Prepare and review budget submissions 4.


Apply tagging circular communicates criteria to ministries Ministries prepare budget submissions and MOF notes relevant proposals MOF reviews budget proposals (Step-by-step process in Application of Climate and Disaster Tagging The disaster climate and tagging Line ministries, MOF Budget proposals March 2021 MOF Budget proposals (e.g., form N3) April 2021 16 In future years, guidance of the joint working group (WG) should be sought for this step.
A6 by process consists of four consecutive steps outlined in Error!

Not a self- valid bookmark reference.

below.

All assessments are based on available project documentation.

Where is documentation insufficient, additional information may be requested the Ministry of Finance from concerned the Currently, ministries.

yet tagging integrated the budgeting and financial management system.

It is therefore conducted separate manually.


A spreadsheet has been developed record climate and disaster relevant expenditure and support reporting (see Annex 2).

is not to in 5.

Consolidate tagging 6. Review and validate tagging 7.
Draft and finalize tagging report Table A6) MOF consolidates tagging information and prepares validation / review forms Ministries review / give feedback on tagging, with MOF updating data (as appropriate) and seeking guidance from WG MOF prepares a report on climate and disaster relevant expenditure, with guidance of WG MOF Tagging Validation Email June 2021 Line ministries, MOF updates, WG provides guidance Tagging Validation Response from Ministries July 2021 MOF prepares, WG provides guidance Draft 2021-22 Tagging Report August 2021 A7 8.
Publish tagging report Develop input report for the annual FSR (Nov 2021) MOF FSR development process September 2021 Climate and disasters are cross-cutting issues and the public finances assigned to them are channeled through multiple ministries.

The tagging process therefore requires the engagement of key national Ministries engaged in climate and disaster-related activities.
A joint working group (WG) coordinated by the Ministry of Finance and comprised of representatives from the Ministry of Environment and Housing, the Ministry of Disaster Preparedness, Management and Reconstruction, the Ministry of Public Works, the Ministry of Agriculture and Marine Resources, Office of the Prime Minister (Sustainable Development Goals Unit) and the Disaster Reconstruction Agency will:  Review and provide guidance on the tagging methodology for identifying climate and disaster-related expenditures in the budget proposals submitted by line ministries and agencies;  Provide feedback and guidance to MOF on any key issues that may arise during validation; and  Review and provide guidance on the annual tagging report / publication DEFINITION AND ESTIMATION OF CLIMATE AND DISASTER EXPENDITURES Climate change action is a cross-cutting theme and is rarely a separate sector or complete item in government financial management and reporting.
Public sector activities relevant to climate change adaptation and mitigation are typically shared across a number of ministries – including, for example, ministries with responsibility for agriculture, environment, transport and public works.

Similarly, disaster risk reduction and management are multisectoral and crosscutting.
Some expenditures are clearly noted and executed by a single entity, such as the Ministry of Disaster Preparedness, Management and Reconstruction, particularly for disaster emergency response and preparedness activities.

However, others may be more embedded in other wider expenditure categories, such as infrastructure items that increasingly integrate disaster resilience in their planning, design, construction, operation, and maintenance.
Climate and disaster-related expenditures – as defined in this methodology – are meant to cover all expenditures that play a role in (i) reducing greenhouse gas emissions and increasing resilience to climate change, and (ii) managing, reducing, responding to and recovering from disasters, respectively.
In some cases, the relevant expenditures may be explicitly identified as climate or disaster-related finance by concerned ministries and agencies, particularly in the case of high-profile capital investment projects advancing climate mitigation, adaptation, and disaster resilience.

These projects are also often supported with development A8 partner funds and lending operations, making identification easier.
Recurrent expenditures can also be tagged as climate and disaster relevant if they directly or indirectly contribute to the relevant categories as defined below.

Some examples may include improving maintenance of transport and other infrastructure as a cost-effective way to increase climate and disaster resilience.17 Definition Climate and disaster tagging involves identifying budget items based on an objective standard of climate and disaster relevance.
An item is tagged if it is relevant to climate change mitigation, climate change adaptation, disaster risk management and reduction, disaster response, or disaster recovery and reconstruction.

The following definitions are based on the OECD’s mitigation and adaptation markers18 and the UNDRR terminology19.

An indicative list of examples for each of the five categories is provided in Annex 1.20 Table A3: Definitions of tagging categories 17 Rozenberg, Julie; Fay, Marianne.

2019.
2019.

Beyond the Gap : How Countries Can Afford the Infrastructure They Need while Protecting the Planet.

Washington, DC: World Bank.

https://openknowledge.worldbank.org/handle/10986/31291 Hallegatte, Stephane; Rentschler, Jun; Rozenberg, Julie.

2019.

Lifelines: The Resilient Infrastructure Opportunity.

Washington, DC: World Bank.


https://openknowledge.worldbank.org/handle/10986/31805 18 https://www.oecd.org/dac/environment- development/Revised%20climate%20marker%20handbook_FINAL.pdf 19 https://www.undrr.org/terminology 20 Annex 1 draws on multiple sources, including: https://www.oecd.org/gov/risk/issues-paper.pdf and IDB’s “Climate Change Public Budget Tagging: Connections across Financial and Environmental Classification Systems” (http://dx.doi.org/10.18235/0003021).
A9 Climate-Related Tagging Climate Mitigation & Transition: an item should be tagged and classified as mitigation if it directly or indirectly contributes to stabilizing or reducing greenhouse gas emissions either by limiting anthropogenic emissions, or by protecting and enhancing greenhouse gas sinks and reservoirs, or by building capacity, strengthening policies and promoting research on climate change mitigation.
Climate Adaptation: an item should be tagged and classified as adaptation if it intends to reduce the vulnerability of human or natural systems to the current and expected impacts of climate change (e.g.

sea level rise), to increase their resilience and to enhance their adaptive capacity.
Disaster-Related Tagging Disaster Risk Management & Reduction: an item should be tagged and classified as disaster risk management and reduction if it aims at avoiding disaster risks, reducing vulnerability and exposure, and/or strengthening the knowledge and capacities of governments, communities and individuals to effectively anticipate, respond to and recover from the impacts of likely, imminent or current disasters.
Disaster Emergency Response: an item should be tagged and classified as response if it comprises actions taken directly before, during or immediately after a disaster in order to save lives, reduce health impacts, ensure public safety and meet the basic subsistence needs of the people affected.
Disaster Recovery & Reconstruction: an item should be tagged and classified as recovery and reconstruction if it contributes to restoring or improving livelihoods and health, resilient critical infrastructure, services, housing, and facilities required for the full functioning of a community affected by a disaster over the short, medium and long term.

Source: UNDRR, OECD A single item may address more than one of the categories defined above.
An item may be tagged for climate relevance, disaster relevance, or both, in line with the table below.

Under each heading (i.e.

column), an item may only be tagged for one category (i.e.

row).

If an item contributes to more than one category under climate or disaster, only the main category is taken into account.
In cases where an item is tagged under both headings, for example for both Climate Adaptation (1B) and Disaster Risk Management & Reduction (2B), the item expenditure will be double- counted and appear both under the total climate and the total disaster expenditure.
Another example of how such counting may occur across both Climate and Disaster Tagging exercises would be an item that is contributing to Disaster Recovery & Reconstruction (2D), while also improving either Climate Mitigation & Transition (1A) or Climate Adaptation (1B).

While the tagging system allows for reflecting multiple policy objectives (i.e., climate and disaster) of one item, this needs to be taken into account when aggregating data.
To avoid double-counting, aggregate figures for climate and disaster relevance should not be added up.

Instead, the overlap is to be presented separately (see diagram below).
Table A4: Application of tagging categories A10 Category 1 – Climate 1A – Climate Mitigation & Transition 1B – Climate Adaptation A – Mitigation / Transition B – Adaptation / Resilience 2 – Disaster N/A 2B – Disaster Risk Management & Reduction C – Emergenc y Response N/A 2C – Disaster Emergency Response N/A D – Recovery / Reconstructio n 2D – Disaster Recovery & Reconstruction Notes Only includes climate expenditures 1B and 2B would have some overlap, with some expenditures being counted in both 1B and 2B.
Only for immediate disaster response (defined by timing or activity) Only for medium to long- term post-disaster recovery and reconstruction (i.e., not response, defined by timing or activity) Notes 1A+1B = Total climate related expenditures No overlap / double- counting, as all climate tagged expenditures will either be classified as 1A (Mitigation) or 1B (Adaptation).
2B+2C+2D = Total disaster related expenditures No overlap / double- counting, as all disaster tagged expenditures will be classified as 2B (DRM), or 2C (Response), or 2C (Reconstruction) Estimation Estimation is necessary because budget items may include both relevant and unrelated expenditures.
Projects that are primarily intended to achieve climate or disaster objectives may include activities or deliver outputs and outcomes that are not climate-relevant, and, conversely, projects that are primarily intended to achieve a development objective may include activities or deliver outputs and outcomes that are climate-relevant.

Weighting based on a review of project objectives can generate an estimate of climate or disaster relevant expenditures by project, institution and sector.
While weighting is necessarily subjective, it does provide a closer approximation of the actual amount of climate or disaster relevant spending.

This is sufficient to assess alignment of resource allocations with climate policy objectives, monitor changes in allocations over time and link climate finance to climate-relevant activities.
A11 Projects that have been identified as climate or disaster relevant are weighted based on the understood extent of their contribution to climate or disaster management objectives.

A percentage weight is applied to the gross expenditure of the item according to its degree of relevance (high/medium/low).

The relevance weight of a certain type of expenditure can vary depending on where and in what circumstances the project is implemented (i.e., relevance can be higher in vulnerable areas).
The following table outlines the criteria for the application of different relevance weights.

Table A5: Relevance weight Relevance of Item High relevance Medium relevance Low relevance No relevance Criteria a) The main objective of the item is clearly related to climate change or disaster management; and b) The item has specific outcomes for at least one of the following: emission reduction, resilience building, disaster preparedness, response and/or recovery.
a) The item has secondary objectives/outcomes related to climate change or disaster; or b) The item includes a range of interlinked activities, of which at least some make a significant contribution to emission reduction, resilience building, disaster preparedness, response and/or recovery.
Items with indirect climate change and/or disaster management benefits Relevance weight applied 100% of the budget item budget is classified as climate change/disaster related 50% of the budget item is classified as climate change/disaster related 20% of the budget item is classified as climate change/disaster related 0% APPLICATION OF CLIMATE AND DISASTER TAGGING The climate and disaster tagging process consists of four consecutive steps outlined in Error!

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below.


All assessments are based on available project documentation.

Where documentation is insufficient, additional information may be requested by the Ministry of Finance from the concerned ministries.

Currently, tagging is not yet integrated in the budgeting and financial management system.

It is therefore conducted manually.

A separate spreadsheet has been developed to record climate and disaster relevant expenditure and support reporting (see Annex 2).
A12 Table A6: Tagging process in “Step 4.

Apply Tagging” 1: Assess whether an item is climate or disaster relevant or not.

Does the item have objectives, outcomes, or activities which are directly or indirectly relevant to climate change and/or disaster management?

Refer to Table 1 and Annex 1 for definitions and examples.

  If no: do not tag the item.

If yes: continue to 2.

2: Assess to which of the five tagging categories the item contributes and assign the relevant category.
An item can only be assigned to one category under climate and/or one category under disaster.

Refer to Table 2 for additional guidance.

   If the item is only climate-relevant: tag it as either mitigation or adaptation.

If the item is only disaster-relevant: tag it as either prevention and preparedness, response, or recovery and reconstruction.

If the item is equally relevant to both climate change and disaster: tag it for one category under climate and one category under disaster.
3: Assess the relevance of the item to climate action and/or disaster risk management.

Is the item of high, medium or low relevance for climate change and/or disaster management?

Refer to Table 3 for criteria.

   If the item is of high relevance, attribute a relevance weight of 100%.

If the item is of medium relevance, attribute a relevance weight of 50%.

If the item is of low relevance, attribute a relevance weight of 20%.
4: Determine the overall climate and/or disaster relevant expenditure of the item by multiplying its overall budget with its relevance weight.

Although in general tags and weights assigned to an item will be maintained over time, they can be revised if needed.

There are two possible scenarios: 1) The item was tagged erroneously, or under the wrong category, or with a wrong weight.

In this case, the tag and weight should be corrected both for the current year and previous years.
2) The item’s objective has been revised.

In this case, the tag and weight should be corrected only for the current year.

Any revisions should be explained in the annual tagging report, in particular if they have a significant impact on the overall amount of tagged expenditure.

QUALITY ASSURANCE AND REVIEW Ensuring the quality of the climate change and disaster expenditure data is a key part of the tagging process.
Having a documentary basis for the tagging decisions increases the transparency and credibility of the climate and disaster expenditures reported by the Government.

The relevance of tagged expenditures will therefore be reviewed and validated in “Step 6. Review and validate tagging” in Table A2.

The basis for the validation is a review form presenting the A13 tagged expenditures.

The reviewers can either confirm the assigned categories and weights or propose a different classification and weighting.
For the latter, a brief justification should be added in the form.

REPORTING AND PUBLICATION The tagged climate and disaster budget provides an indicative estimate of the public resources being directed to address climate change and to prepare for and respond to disasters.

It will thereby demonstrate The Bahamas’ commitment to climate action and disaster risk management, which can promote domestic and international resource mobilization.
The information from tagging also supports linking climate change and disaster management policies with planning and budgeting and can help in the identification of investment priorities.

MOF will produce publish information on climate and disaster expenditure in The Bahamas in two ways.

These reports will be prepared by MOF and presented to the WG for its input and guidance:  A Climate and Disaster Budget Report will be developed in line with Table A2.
The report will show the share of climate and disaster relevant expenditure in the overall budget and provide information on climate change and disaster budgets consolidated by ministry and broken down by category.

In line with the COA-level tagging, comparisons with previous year’s allocation and actual expenditure will also be included.

It is expected that this report and relevant data will be published on MOF’s website.
 An analytical summary of the Climate and Disaster Budget Report will be included in the annual Financial Strategy Report in November of each year, beginning in 2021.

The summary will show overall climate and disaster relevant expenditures and trends.

It may highlight specific climate or disaster expenditures and discuss priorities for the upcoming fiscal year.
A14 ANNEX 1: INDICATIVE LIST OF CLIMATE AND DISASTER RELEVANT ACTIVITIES Sector Agriculture and Marine Resources Program Climate resilient crop varieties Sustainable land management for climate change resilience Irrigation and water management infrastructure for agriculture Sustainable fisheries Financial safety nets for farmers Coastal ecosystem conservation and rehabilitation Erosion prevention and control Sample activities Seed distribution; promotion of alternative crops Promotion of SLM techniques such as no- tilling, cover crops, hedgerows, etc.
; agroforestry or agroecological systems Construction and maintenance of irrigation infrastructure Sustainable aquaculture; marine farms Agricultural and crop insurance schemes; weather-indexed insurance Protection of mangroves and coral reefs; establishment and maintenance of protected areas Protective infrastructure Meteorological information; early warning systems Implementation of early warning and information systems for hurricanes and floods Disaster Risk Management , Preparedness , Response, Recovery, and Reconstructio n Climate Tag Disaster Tag Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction A15 Sector Program National disaster risk management system Risk identification and communication Disaster-resilient Public Financial Management Disaster risk financing Disaster Emergency Preparedness Disaster emergency response measures Sample activities Legal and policy reform; coordination; capacity building Hazard Identification and Assessment, Risk/Hazard Mapping, Studies, maps, guidelines for disaster prevention; awareness raising, public education and communication activities Legal and policy reform; capacity building Disaster risk insurance premiums; front-end fees for disaster- contingent credit lines II.1 Development of Crisis Management Plans II.2 Early Warning Systems Development,
 Construction and Management II.3 Evacuation Planning and Management II.4 Emergency Supply Management II.5 Emergency Preparedness/Crisis Management Exercises Temporary shelters; distribution of emergency goods; emergency supplies, Assistance Packages to affected regions, households etc., Payments to NGO’s and other emergency Climate Adaptation Climate Tag Disaster Tag Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Climate Adaptation Climate Adaptation Climate Adaptation Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Climate Adaptation Disaster Emergency Response A16 Sector Program Disaster recovery measures Education and Research Climate change and disaster risk education Sample activities support agencies, Expenditure related to immediate response to public service disruption (energy and water supply, transport, etc.
), Search and rescue operations Reconstruction (general); economic recovery measures in affected areas; Rehabilitation of infrastructure; Indemnity payments from government to households; Indemnity payments from government to businesses Curriculum development and roll-out; teacher training Capacity building for climate change and disaster risk management Workshops, manuals, guidelines Research for climate change and disaster risk management Climate change and disaster risk knowledge management Climate science and hydrometeorological research; climate modelling; economic impact studies; risk and vulnerability assessments Elaboration of knowledge products; dissemination Climate Tag Disaster Tag Disaster Recovery & Reconstructi on Climate Mitigation & Transition Climate Adaptation Climate Mitigation & Transition Climate Adaptation Climate Adaptation Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Climate Mitigation & Transition Disaster Risk Managemen t & Reduction A17 Sector Program Sample activities Climate Tag Disaster Tag Energy Renewable energy sources Energy efficiency and demand management Adaptation of energy infrastructure Environment and Forestry Forest and ecosystem conservation Reforestation and forest regeneration Sustainable forest management Environmental impact management Waste management Health Prevention and control of vector- Construction and maintenance of wind, solar, hydro, biomass energy infrastructure Promotion of more efficient energy systems (e.g.
for cooling); awareness raising about energy conservation Works to protect critical energy infrastructure from climate change impacts and natural disasters Establishment and maintenance of protected areas; ecosystem rehabilitation; payment for ecosystem services Tree plantation; support to forest regeneration Development of forest management plans; capacity building for sustainable forest management Control of environmental impact; pollution control Awareness raising; waste management treatment plants; recycling infrastructure Awareness raising and education; vaccination Climate Adaptation Climate Mitigation & Transition Climate Mitigation & Transition Climate Adaptation Climate Adaptation Climate Adaptation Climate Mitigation & Transition Climate Adaptation Climate Adaptation Climate Mitigation & Transition Climate Adaptation Disaster Risk Managemen t & Reduction A18 Sector Program transmitted diseases Prevention and control of water- borne diseases Response to climate-related health emergencies Climate-resilient public health system Sample activities campaigns; mosquito control Awareness raising and education; vaccination campaigns Medical care for disaster-affected populations Climate Tag Disaster Tag Climate Adaptation Disaster Emergency Response Strategy development and implementation Climate Adaptation Infrastructure Climate and disaster resilient infrastructure Protective infrastructure Emergency infrastructure Energy efficient infrastructure Construction and maintenance of public infrastructure resistant to impacts of severe natural hazards (roads, bridges, schools, hospitals, etc.)
Construction and maintenance of drainage systems, dams, reservoirs, coastal protection and flood control measures Construction and maintenance of emergency shelters Construction and maintenance of energy efficient public buildings; promotion of energy- efficient housing and tourism infrastructure Land use planning Development and implementation of land use plans, including for tourism; zoning regulations; urban planning Climate Adaptation Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Disaster Risk Managemen t & Reduction Climate Adaptation Climate Adaptation Climate Mitigation & Transition Disaster Risk Managemen t & Reduction Climate Mitigation & Transition Climate Adaptation A19 Sector Program Climate and disaster resilient housing Transport Low-emission transport systems Sample activities Promotion and construction of flood and hurricane resistant housing Promotion of public transportation and slow mobility (bicycles, walking) Low-emission fuels Promotion of biofuels Low-emission vehicles Water Resources Integrated water resource management Sustainable watershed management Water supply and sanitation Water pollution prevention, monitoring and mitigation Water harvesting and storage Social Services Livelihoods and social protection Promotion of electric vehicles or natural gas- powered cars Governance platforms Elaboration and implementation of watershed management plans Construction and maintenance of water supply and sewerage schemes; desalination plants Construction and maintenance of water and wastewater treatment plants Construction and maintenance of water harvesting and storage infrastructure Livelihood diversification strategies; social safety nets; cash transfers Climate Adaptation Climate Tag Disaster Tag Disaster Risk Managemen t & Reduction Climate Mitigation & Transition Climate Mitigation & Transition Climate Mitigation & Transition Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Climate Adaptation Disaster Risk Managemen
 t & Reduction Disaster Risk Managemen t & Reduction A20 ANNEX 2: CLIMATE AND DISASTER TAGGING SPREADSHEET FIELDS Fields Budget Account Id Head Head Descrip Prog Spend Loc Item Fund Long Desc Climate relevance category Climate relevance weight Estimates 2021/22 - Climate relevant allocation Expected Values  Capital  Recurrent [23-digit code] Sample Value Recurrent 056-0100-0001-011-2271020-15 [3-digit ministry/department code] 56 [ministry/department description] MINISTRY OF AGRICULTURE & MARINE RESOURCES [4-digit program code] [4-digit unit/project/cost center code] [3-digit geographic / district code] 0100 0001 011 [7-digit economic segment / GFS item] 2271020 [2-digit fund code] [item description]  Climate Mitigation & Transition  Climate Adaptation  n/a  High (100%)  Medium (50%)  Low (20%)  n/a (0%) [weight x budget estimate or actual] 15 Climate Change Policy Climate Mitigation & Transition High $189,000 A21 Disaster relevance category  Disaster Risk Management & Disaster Risk Management & Reduction Disaster relevance weight Estimates 2021/22 - Disaster relevant allocation Reduction  Disaster Emergency Response  Disaster Recovery & Reconstruction  n/a  High (100%)  Medium (50%)  Low (20%)  n/a (0%) [weight x budget estimate or actual] High $189,000 A22 ANNEX 3: DRAFT VALIDATION REQUEST PROCESS Under “Step 6. Review and validate tagging”, MOF will communicate to line ministries and/or budgetary units (i) their total tagging estimate for that
 ministry / budgetary unit (see Table A7), (ii) any key questions for confirmation or input, and (iii) detailed COA-based tagging table for their review (see A23 Table A8).
Table A7: Sample Total Tagging Estimates for Ministry of Public Works CLIMATE CHANGE Actual 2017/18 - Climate relevant allocation Actual 2018/19 (01- 09) - Climate relevant allocation Budget 2018/19 - Climate relevant allocation Estimates 2019/20 - Climate relevant allocation Estimates 2020/21 - Climate relevant allocation Estimates 2021/22 - Climate relevant allocation 14,342,586 31,896,550 27,070,883 25,275,055 26,481,555 24,184,617 DISASTER RISK MANAGEMENT Actual 2017/18 - Disaster relevant allocation Actual 2018/19 (01- 09) - Disaster relevant allocation Budget 2018/19 - Disaster relevant allocation Estimates 2019/20 - Disaster relevant allocation Estimates 2020/21 - Disaster relevant allocation Estimates 2021/22 - Disaster relevant allocation 31,902,015 14,351,473 27,077,782 25,291,055 26,499,555 24,205,617 A24 Table A8: Sample Review Template for Ministry of Public Works Budget Account ID Ministry/ public entity Description Climate relevance category and weight Adaptation, low Validation of climate category and weight to be filled in by reviewer Adaptation, low to be filled in by reviewer Recurrent 033-0100- 0001-011- 2251319- 15 Ministry of Public Works Recurrent 033-0100- 0001-011- 2511205- 15 Ministry of Public Works Maintenance Family Islands Main Road Water & Sewerage Development Corporation Capital Capital 033-0100- 0001-011- 3111309- 15 033-0100- 0001-011- 3111307- 15 Ministry of Public Works Hurricane Precautions Adaptation, high to be filled in by reviewer Ministry of Public Works Road Repairs
 and Maintenance Adaptation, low to be filled in by reviewer [table continues] Validation of disaster category and weight to be filled in by reviewer to be filled in by reviewer to be filled in by reviewer to be filled in by reviewer Disaster relevance category and weight Disaster Risk Management and Reduction, low Disaster Risk Management and Reduction, low Disaster Risk Management and Reduction, high Disaster Risk Management and Reduction, low A25