About the project
Next Generation Budgets is a project led by Climate Group, in partnership with the Government of North Rhine Westphalia and funded by Stiftung Mercator.
Building on the unique insights provided by Finance Fit for Change, it aims to align public budgeting with climate neutrality goals and help unlock financing, building on and informed by technical training and international best practice.
Why are we working with states and regions on green budgeting?
Effective green finance holds the key to the transition to net zero by 2050 and a world of greater prosperity for all. How governments use climate finance is a statement of intent and can be a powerful tool to cut emissions and help communities adapt to a changing climate in a cost effective and equitable way.
One way to turn climate commitments into funded and measurable actions across subnational governments is to implement a green budget. However, climate is not always a key element in budgetary discussions. Although many states and regions have set 2050 climate neutrality goals, regional public spending and purchasing do not always deliver on climate action. Governance systems can slow down progress and subnational governments often lack the necessary space to learn and test how using budgetary systems can achieve climate targets and help unlock finance.
How we're driving change
We're building a trusted space for governments to develop a shared vision, learn from one another and identify the tools that will move them to action. Governments will identify and select top challenges and areas of interest they wish to focus on around green finance and external investor engagement
Green budgeting means using the tools of budgetary policymaking to help achieve environmental and climate goals. Next Generation Budgets’ technical training on green budgeting will comprise of 8-10 online modules led by our technical partner.
To help participants secure a ‘whole of government’ approach to mainstream climate action in key government ministries and agencies, all governments have set up internal Next Generation Budgets taskforces. This will ensure cross ministerial coordination throughout the project.
Creating trailblazers
Next Generation Budgets works with eleven states and regions from Europe and North America, each one with ambitious net zero emissions targets.
These governments will be Under2 Coalition trailblazers in mainstreaming green budgeting practices and in making their regions fit for climate investments. Together, they are working to develop green budgeting practices while supporting sustainable growth and prosperity.
Participating governments
Baden-Wurttemberg
Basque Country
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Catalonia
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Colorado
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Emilia Romagna
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Hawaii
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Lombardy
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Maryland
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North Rhine-Westphalia
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New York State
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Wales
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Project funder
Next Generation Budgets is funded by Stiftung Mercator, which also funded our Finance Fit for Change, Industry Transition Platform and Energy Transition Platform projects.
Stiftung Mercator is a private and independent foundation with extensive scientific expertise and practical project experience. Through its work, it strives for a society characterized by openness to the world, solidarity and equal opportunities.
