The Association of Chartered Certified Accountants is encouraging the public sector to adopt green budgeting to achieve their environmental goals and fulfill their commitments against climate change.
In a report,
"Action to address the climate crisis requires change across the entire public sector," said John Lelliott, chair of ACCA's global forum for sustainability, in a statement. "Climate considerations must be central to public sector organizations' decision-making processes. The budget cycle is at the heart of the way organizations implement their objectives."
The report argues that green budgeting supports progress toward national and international climate goals, promotes environmentally responsive policy making, fosters transparency on public spending and facilitates planning and reporting for green bonds. According to the toolkit, creating the political will, building on existing processes and adopting green budgeting across various government levels are essential for a successful transition.
The document also recommends going through five steps when adopting a green budget. Finance professionals must develop a baseline, prioritize spending with the most impact, categorize and monitor spending, then ensure external review before continuing to experiment. These steps also highlight green budget tagging, which relates to identifying climate-related expenditures and evaluation approaches, including activities such as environmental impact assessments and environmental cost-benefit analyses.
"Accountancy and finance professionals in the public sector will be essential to this task," said Mark Johnson, ACCA senior subject manager for the public sector, in a press release. "They can provide leadership and expertise to put climate action in the mainstream of every public sector organization. It's a great opportunity for public sector accountants to step forward and make a real difference."
