7th October 2024, Skopje – Ministry of Finance is highly aware of the need for taking actions when managing climate changes, therefore an initiative for climate-relevant costs integration in forthcoming fiscal frameworks has been underway, Deputy Minister of Finance, Nikolche Jankulovski, announced during the panel discussion on the occasion of presentation of the Country Climate and Development Report and North Macedonia Climate – Public Finance Review organized by the World Bank Office in the country.
“The Ministry of Finance is profoundly aware of the enormous costs emerging when dealing with climate changes, especially in the context of decarbonization and the country’s resilience enhancement in future climate-related events. As many relevant analyses indicate, most of the costs will relate to the energy sector, a sector considered as essential to the transition process towards more sustainable economy and reduction of greenhouse gases’ emissions. As pointed out in today’s presentations, the cost of inaction, despite the significant investments, would be even higher. Recent climate disasters, such as the summer forest fires and floods, illustrate the urgency for taking actions”, Jankulovski highlighted.
As he explained, guidelines for Climate Budget Tagging – CBT, aimed at identifying, monitoring and managing public climate-related expenditures, have been developed within the Climate – Public Finance Review. According to the analyses, as he stated, this is a key step contributing towards transparency and accountability when allocating funds for mitigating climate-related issues.
“Despite CBT’s guidelines being developed, their implementation in practice is still in its very early stages. One of the World Bank’s recommendations is CBT’s alignment to the green taxonomy, with the aim of a clearer definition and categorization of climate-related costs and their incorporation in the fiscal processes at national and local level. For instance, the Albanian approach of climate change related issues’ integration in its national budget planning and development programs can also serve as a model for Macedonia,” Deputy Minister said.
CBT implementation requires a significant intersectoral coordination, in particular, among the Ministry of Environment and Physical Planning, the Ministry of Economy, the Ministry of Transport and Communications and other relevant institutions, which are to integrate climate goals in their strategies and budget programs.
Country Climate and Development Report and North Macedonia Climate – Public Finance Review were presented by the Country Manager for Kosovo and North Macedonia, Massimiliano Paolucci, Senior Economist, Sanja Madzarevic-Sujster, Senior Energy Specialist, Rhedon Begolli, and Senior Urban Economist at the World Bank, Megha Mukim.
Deputy Prime Minister and Minister of Environment and Physical Planning, Izet Mezhiti, Deputy Minister of Energy, Mining and Mineral Resources, Miroslav Labudovikj, UNDP Resident Representative to the country, Armen Grirgoryan, and President of the Economic Chamber of North Macedonia, Branko Azeski, were present at the event.
