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Climate Change and Environment
Climate Budget Tagging and Finance Tracking
Classification rules, tagging and expenditure reviews that show what national and county budgets spend on climate adaptation, mitigation and disaster risk.
- Sector
- Climate Change and Environment
- Typical timeline
- 12 to 20 weeks
- Delivery
- Onsite or virtual
- Deliverables
- 5
The problem
The Climate Change Act, 2016 requires public entities to integrate climate action into their plans and budgets, and the National Policy on Climate Finance, 2018 commits government to track and report climate finance. The National Treasury has added a climate code to the budget classification in its financial management system and, with UNDRR support, a budget tagging system for disaster risk reduction and climate adaptation. A tag is only as good as its application: ministries, departments, agencies and counties need consistent rules on what counts, how much of a mixed programme to count and who checks the result.
The stakes are rising. County climate change fund laws commit counties to at least 1.5 per cent of their development budgets for climate action, the Green Climate Fund no-objection procedure issued in February 2026 tests proposals against national priorities, and the Second NDC separates what Kenya will finance domestically from what depends on international support. Credible tagged data underpins each of these claims.
Policy anchors
- Climate Change Act, 2016
- National Policy on Climate Finance, 2018
- Financing Locally-Led Climate Action (FLLoCA) Programme
- Disaster Risk Financing Strategy 2026-2030
How we work
Diagnostic
We map how the entity currently classifies, tags and reports climate and disaster spending, using budget and expenditure data, programme documents and interviews with planning and finance officers.
Tagging rules
We draft a classification guide that applies the Treasury climate code and the disaster risk and adaptation tags to the entity's programmes. It sets clear tests for principal and significant climate relevance and weighting rules for mixed programmes.
Baseline tagging
We tag past budgets and actual expenditure to establish a baseline, separating allocations from spending and exchequer from donor funds.
Analysis and reporting
We analyse spending against the NCCAP 2023-2027 priorities, county climate action plans and FLLoCA conditions, and prepare a climate budget statement suitable for publication.
Institutionalisation
We train planning, budget and internal audit staff, and propose the circulars, templates and review steps needed for tagging to continue without external support.
- Climate and disaster risk budget tagging guide tailored to the entity
- Tagged baseline of budgets and expenditure for up to three financial years
- Climate public expenditure review with findings and recommendations
- Draft climate budget statement for the next budget cycle
- Training materials and a quality review checklist for planning and finance officers
The National Treasury, ministries, departments and agencies, county treasuries and the development partners that finance climate and disaster programmes.
Questions clients ask
Is budget tagging the same as a climate public expenditure review?
No. Tagging classifies each budget line as it is prepared and executed, while a review analyses tagged data over several years to test whether spending matches policy priorities. We usually do both, because the review shows whether the tags work.
Can counties tag their budgets while national systems are still developing?
Yes. Counties can apply the national climate code and the adaptation and disaster risk tags to their own programme budgets now, using a county guide consistent with Treasury classification. This also strengthens evidence of the county's own climate spending for FLLoCA assessments and other funders.
What public finance experience do you bring?
Our work includes a 2021 County Fiscal Devolution Review and Revenue Mobilisation Strategy for Machakos County Government, a 2023 National Economic Analysis of Devolution Outcomes for the Ministry of Devolution and ASALs, and a 2025 Economic Analysis of Devolved Health Financing and Service Delivery for the National Syndemic Diseases Control Council. We bring the same discipline with budget and expenditure data to climate spending.