## cpimaea

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### Foreword — macro-critical importance and purpose
- Resilient and green infrastructure "is macro-critical because it underpins long-term economic stability, inclusive growth, and climate sustainability."
- Climate change undermines fiscal and debt sustainability through "more frequent and severe natural disasters, rising adaptation costs, and potential disruptions to infrastructure services."
- The Climate-Public Investment Management Assessment (C-PIMA):
  - Diagnostic framework complementing the core Public Investment Management Assessment (PIMA) by focusing on integration of climate considerations into public investment systems.
  - Goal: help governments identify improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.
  - Addresses both mitigation and adaptation as "core" elements of climate-aware public investment.

### Framework and methodology
- Organized around five PIM institutions (pillars) and 15 dimensions:
  - (1) planning,
  - (2) coordination across government,
  - (3) project appraisal and selection,
  - (4) budgeting and portfolio management,
  - (5) risk management.
- Assessment approach:
  - Each institution is analyzed along three dimensions; dimensions are scored "fully met," "partially met," or "not met."
  - The average of the three dimensions produces a score for the institution.
  - Scores presented for institutional design; effectiveness discussion included where information permits.
  - "A formal scoring system on institutional effectiveness will be developed in the future consistent with the approach to incorporating effectiveness into the PIMA."
- Cross-cutting enabling factors assessed: legal and regulatory framework, information systems, public sector staff capacity.

### Key findings and constraints
- Practical constraints commonly impede climate alignment of PIM systems: "Governments may lack the tools, processes, or data needed to integrate climate risks into project planning, appraisal, budgeting, and oversight."
- Thorough understanding of a country’s overall PIM system is usually necessary; preference for conducting PIMA and C-PIMA jointly or as a sequenced two-part exercise, unless a recent PIMA exists or the PIM system is well documented.
- The C-PIMA provides a sequenced and prioritized action plan to support implementation of green and resilient infrastructure.

### Deployment and comparative context (preserve exact figures)
- PIMA background: PIMA evaluates infrastructure governance using 15 key institutional features across planning, allocation, and implementation.
- PIMAs carried out in "103 countries as of August 2025."
- C-PIMA deployment:
  - "Since its launch in 2020, the C-PIMA has been deployed in more than 60 countries."
  - "The C-PIMA has been deployed in 63 countries as of August 2025, providing early lessons on its efficacy."
- IMF research highlight: on average, countries lose "one-third" of resources spent on public investment to inefficiencies in their PIM institutions (Schwartz and others 2020).

### Key statistics and investment needs (from Box B3.1.1 / Stern 2021)
- Global needs and current investment levels (selected figures preserved exactly):
  - Energy (incl. energy efficiency in buildings):
    - Current Investment p.a. ($ trillion): 1.9
    - Gross Investment p.a., 2021–30 ($ trillion): 2.8–3.3
    - Increase: 0.9–1.4
  - Transport:
    - Current Investment p.a. ($ trillion): 1.3
    - Gross Investment p.a., 2021–30 ($ trillion): 2.7
    - Increase: 1.4
  - Water and sanitation:
    - Current Investment p.a. ($ trillion): 0.6
    - Gross Investment p.a., 2021–30 ($ trillion): 0.9
    - Increase: 0.3
  - Telecoms and digital:
    - Current Investment p.a. ($ trillion): 0.7
    - Gross Investment p.a., 2021–30 ($ trillion): 1.0
    - Increase: 0.3
  - TOTAL (rounded to nearest 0.5):
    - Current Investment p.a. ($ trillion): 4.5
    - Gross Investment p.a., 2021–30 ($ trillion): 7.5 – 8
    - Increase: 3–3.5
  - Adaptation and Resilience (developing countries):
    - Current Investment p.a. ($ trillion): 0.02
    - Gross Investment p.a., 2021–30 ($ trillion): >0.1–0.3
    - Increase: >0.1–0.3
- Aggregate statement: "Global infrastructure investment needs to be scaled up and sustained by $3 to $3.8 trillion (2–3 percent of GDP per annum) over the present decade to deliver a robust, sustainable, and green recovery."
- Country-level estimate highlighted: low-income developing countries (LIDCs) would need to spend about 4.5 percent of annual gross domestic product (GDP) on average by 2030 to meet combined targets (Fay and Rozenberg 2019).
- Disaster and damage cost figures:
  - Natural disasters cost about $18 billion a year in low- and middle-income countries through direct damages on infrastructure assets.
  - Natural disasters impose $391 to $647 billion of economic cost a year through service disruption (World Bank 2019).

### C-PIMA institutions and dimensions (structure preserved)
- C1. Climate-aware planning
  - 1a: National and sectoral public investment planning
  - 1b: Spatial planning - land use regulations and building codes
  - 1c: Centralized guidance and support for planning
- C2. Coordination between entities
  - 2a: Coordination across central government
  - 2b: Coordination with sub-national governments
  - 2c: Coordination with and oversight of public corporations
- C3. Project appraisal & selection
  - 3a: Project appraisal with climate change
  - 3b: PPP framework and allocation of climate risks
  - 3c: Project selection with climate change
- C4. Budgeting & portfolio management
  - 4a: Tagging of climate-related public investment expenditures
  - 4b: Ex post reviews of climate outcomes
  - 4c: Asset management and maintenance with climate change
- C5. Risk management
  - 5a: National disaster risk management strategy
  - 5b: Ex ante financing mechanisms to manage climate risks
  - 5c: Fiscal risk analysis with climate change

### Assessment approach and scoring guidance (selected highlights)
- Dimensions are assessed on institutional design with three possible scores: Not Met, Partially Met, Fully Met.
- Examples of scoring guidance preserved exactly:
  - C.1.a:
    - Not Met: strategies/plans not consistent with NDCs or other overarching climate change strategies.
    - Partially Met: consistent for some sectors.
    - Fully Met: consistent for most sectors.
  - C.3.a (appraisal methodology):
    - Not Met: appraisal does not require climate-related analysis.
    - Partially Met: requires climate-related analysis per a standard methodology.
    - Fully Met: requires standard methodology and appraisal summaries are published or externally reviewed.
  - C.4.b (ex post reviews/audits):
    - Not Met: "No ex post reviews or audits are conducted on the climate change mitigation and adaptation outcomes of public investments."
    - Partially Met: "Ex post reviews or audits are conducted for selected major public investments in either climate change mitigation or adaptation outcomes."
    - Fully Met: "Ex post reviews or audits are conducted and published for selected major public investments in both climate change mitigation and adaptation outcomes."

### Cross-cutting enablers: legal framework, information systems, staff capacity
- Legal framework:
  - Assess primary laws, secondary laws (regulations), technical guidelines; identify substantive gaps and overlaps relevant to climate-PIM.
- Information systems:
  - Need to capture climate-related project and asset-level data; interface GHG MRV systems with PIM databases; GIS mapping and multihazard maps are important.
  - Budgeting implications: tagging climate-related expenditures may require IFMIS coding changes or use of existing project/program classifications.
- Staff capacity:
  - Skills shortages in climate-resilient design, shadow carbon pricing, adaptation assessments.
  - Environment ministries often hold mitigation/adaptation technical expertise; MOF/Planning typically lack dedicated climate units — minimum recommendation: designated qualified focal points.
  - Leverage universities, research institutions, and development partners for capacity-building.

### Policy recommendations and implementation priorities (preserved examples)
- Integrate climate objectives across the PIM cycle:
  - Planning: Align national and sectoral plans and investment portfolios to climate objectives; incorporate spatial planning and construction requirements.
  - Coordination: Ensure coordination across layers of government, state-owned enterprises, and PPPs.
  - Appraisal and selection: Include climate-related analysis of mitigation and adaptation impacts in project appraisal and selection.
  - Budgeting and portfolio management: Budget for green investment and maintenance through annual budgets and medium-term fiscal frameworks; incorporate asset management and ex post audit with climate objectives.
  - Fiscal risk management: Incorporate climate-related fiscal risks into fiscal risk analyses and fiscal risk management strategies.
- Strengthen cross-cutting enablers:
  - Legal and regulatory frameworks should formally embed climate considerations where appropriate.
  - Information systems should support climate-related data for planning, appraisal, budgeting, and risk analysis.
  - Staff capacity development is critical to implement climate-aware PIM processes and methodologies.
- Sequence of assessments:
  - Prefer joint or sequenced PIMA and C-PIMA exercises to build on a solid understanding of existing PIM institutions.

### Country practice examples and operational guidance (selected excerpts)
- Jamaica C-PIMA Action Plan (selected reform areas and actions preserved):
  1. Improve the climate-informed medium-term fiscal and budget framework (Dimension: C5)
     - "Integrate disaster risks to public infrastructure assets and other climate-related risks in fiscal risk analysis." — Implementation years: 2023, 2024, 2025, 2026. Responsible: MOFPS.
     - "Finalize and approve the National Natural Disaster Risk Financing Policy to inform the selection of the most cost-effective financing mechanisms." — Implementation year: 2023. Responsible: MOFPS.
  2. Strengthen climate strategic guidance for capital budgeting (Dimensions: C1, C2)
     - "Develop centralized guidance on how to integrate climate change perspectives into sector-specific public investment planning." — 2023, 2024. Responsible: PIOJ, MEGJC.
     - "Revise the legislation on land use and physical planning to integrate a climate change perspective." — 2024, 2025. Responsible: NAPA.
  3. Revise framework for private and public participation in climate-smart infrastructure (Dimensions: C2, C3)
     - "Finalize and approve the revised public–private partnership (PPP) policy, including climate change requirements..." — 2023. Responsible: MOFPS, DBJ.
  4. Develop climate project appraisal and selection methodologies (Dimension: C3)
     - "Develop a standardized methodology for climate change analysis in project appraisal." — 2023. Responsible: MOFPS.
  5. Enhance transparency on green and resilient investment projects (Dimensions: C4, Cross-cutting)
     - "Gradually introduce green budgeting identifying and tracking climate-related expenditures..." — 2023, 2024, 2025, 2026. Responsible: MOFPS, LMs.
     - "Include the climate tags in the coding structure of the financial management information system (FMIS)." — 2023, 2024. Responsible: MOFPS.
  6. Introduce ex post evaluation arrangements (Dimension: C4)
     - "Develop a methodology and requirements for ex post reviews of climate-relevant infrastructure projects..." — 2023. Responsible: MOFPS, PIJO.
     - "Include in the auditor general’s (AG) work plan at least two climate change audits of a major public investment project each year." — 2024. Responsible: AG.
  7. Develop climate-smart asset register and fund maintenance (Dimension: C4)
     - "Develop a centralized register of infrastructure assets—indicating the values and condition of the assets including climate-related information..." — 2023, 2024, 2025. Responsible: MOFPS, LMs.
  8. Ensure legal framework and staff capacity support reforms (Cross-cutting)
     - "Revise the Financial Administration and Audit Act (FAA) to include climate change requirements throughout the project cycle." — 2023. Responsible: MOFPS.
     - "Develop a Climate Change Law to clarify, roles, responsibilities, and coordination." — 2023. Responsible: MEGJC, MOFPS.

### Technology, mapping, and data use (Box 4.15 examples)
- Technology applications for hazard risk mapping — preserved country examples and figures:
  - Jamaica: Jamaica Systematic Risk Assessment Tool (J-SRAT) — geospatial analysis platform for hotspots and risk screening.
  - Cook Islands: LiDAR mapping study "up to 35 meters in depth across all 15 islands."
  - Costa Rica: public-access disaster and hazard maps operated by the "Commision Nacional de Emergencias."
  - Grenada: Disaster Resilience Strategy 2022 and National Hazard Mitigation Plan 2006 support comprehensive hazard mapping.
- Key implication: synthesized geospatial data enables prioritization of resilient capital investment and direct risk screening for public infrastructure projects.

### Fiscal risk disclosure and mitigation (selected example)
- Fiscal risk analysis design scores:
  - Not met: no legal requirement to conduct/publish fiscal risk analysis or climate-related risks not analyzed.
  - Partially met: required to conduct/publish qualitative assessment of climate-related risks over the medium term.
  - Fully met: required to conduct/publish quantitative assessment of climate-related risks over the medium term and include mitigation measures plus qualitative longer-term assessment.
- Costa Rica example (Box 4.18):
  - Fiscal estimate: The 2023–28 Medium-Term Fiscal Framework (MTFF) estimates the fiscal cost of three analyzed elements related to decarbonizing transport at 2.4 percent of GDP in present value terms.

### Appendix and operational tools
- Appendix I: selected questionnaire items C.1–C.3 (verbatim scoring options and questions preserved).
- Appendix II: guidance on thresholds, scope, definition of major projects, relationship between C-PIMA and PIMA, and application at subnational level (example: India state-level applications).
- Appendix III: templates for C-PIMA reports and recommended report organization (Executive Summary; Public Investment Context; PIM Institutions; Appendices).

*Source: Foreword, Part 1, Part 2, Boxes, Appendices, and Section 3 excerpts from C-PIMA Handbook (cpimaea).*

### Foreword                                                                                                                

### Foreword

### Macro-critical importance of green and resilient infrastructure
- Resilient and green infrastructure "is macro-critical because it underpins long-term economic stability, inclusive growth, and climate sustainability."
- Climate change undermines fiscal and debt sustainability through "more frequent and severe natural disasters, rising adaptation costs, and potential disruptions to infrastructure services."
- Accelerating investment in low-carbon infrastructure is essential for transitioning to a sustainable growth path and for reducing fiscal and macroeconomic risks.

### Purpose and scope of the C-PIMA
- The Climate-Public Investment Management Assessment (C-PIMA) is a diagnostic framework that complements the core Public Investment Management Assessment (PIMA) by focusing on how climate considerations are integrated into public investment systems.
- The C-PIMA’s goal: help governments identify potential improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.
- The C-PIMA addresses both mitigation and adaptation as "core" elements of climate-aware public investment.

### Framework and methodology
- The C-PIMA is organized around five institutions (pillars) of PIM that are key for climate-aware infrastructure:
  - (1) planning,
  - (2) coordination across government,
  - (3) project appraisal and selection,
  - (4) budgeting and portfolio management,
  - (5) risk management.
- The module assesses these five institutions and analyzes each institution along three dimensions, reflecting the PIMA structure.
- The C-PIMA follows the PIMA approach to institutional design and effectiveness assessment:
  - Dimensions receive one of three possible scores: "fully met," "partially met," or "not met."
  - The average of the three dimensions produces a score for the institution.
  - Scores are presented for institutional design in all countries; discussion of effectiveness can be included where information permits.
  - "A formal scoring system on institutional effectiveness will be developed in the future consistent with the approach to incorporating effectiveness into the PIMA."
- Cross-cutting enabling factors assessed (as in the PIMA): legal and regulatory framework, information systems, and public sector staff capacity.

### Key findings and operational guidance from the handbook
- Practical constraints often prevent countries from aligning PIM systems with climate goals: "Governments may lack the tools, processes, or data needed to integrate climate risks into project planning, appraisal, budgeting, and oversight."
- A thorough understanding of a country’s overall PIM system is usually necessary to conduct a C-PIMA effectively; preference exists for conducting the PIMA and the C-PIMA jointly or as a sequenced two-part exercise, unless a recent PIMA exists or the PIM system is well documented.
- The C-PIMA provides a sequenced and prioritized action plan to support implementation of green and resilient infrastructure.
- The handbook structure:
  - Part 1: introduction, overview of C-PIMA, role within climate-responsive PFM tools, and explanation of climate impacts on public infrastructure and public investment’s role.
  - Part 2: detailed description of the C-PIMA framework and the five institutions and 15 dimensions, plus guidance on cross-cutting issues (legal framework, information systems, staff capacity).
  - Appendices: C-PIMA questionnaire; general issues in assessments; templates for C-PIMA reports; glossary.

### Deployment, uptake, and comparative context
- The PIMA framework background:
  - PIMA evaluates infrastructure governance using 15 key institutional features across the three phases of the public investment cycle: planning, allocation, and implementation.
  - PIMAs have been carried out in "103 countries as of August 2025."
- C-PIMA deployment:
  - "Since its launch in 2020, the C-PIMA has been deployed in more than 60 countries."
  - "The C-PIMA has been deployed in 63 countries as of August 2025, providing early lessons on its efficacy."
- IMF research cited: on average, countries lose "one-third" of resources spent on public investment to inefficiencies in their PIM institutions (Schwartz and others 2020), underscoring the fiscal benefits of improving PIM while pursuing climate goals.

### Implementation priorities and policy recommendations
- Integrate climate objectives across the PIM cycle:
  - Planning: Align national and sectoral plans and investment portfolios to climate objectives; incorporate spatial planning and construction requirements.
  - Coordination: Ensure coordination across layers of government, state-owned enterprises, and PPPs to integrate green considerations.
  - Appraisal and selection: Include climate-related analysis of mitigation and adaptation impacts in project appraisal and selection.
  - Budgeting and portfolio management: Budget for green investment and maintenance through annual budgets and medium-term fiscal frameworks; incorporate asset management and ex post audit with climate objectives.
  - Fiscal risk management: Incorporate climate-related fiscal risks—such as those from natural disasters—into fiscal risk analyses and fiscal risk management strategies.
- Strengthen cross-cutting enablers:
  - Legal and regulatory frameworks should formally embed climate considerations into PIM where appropriate.
  - Information systems need to support climate-related data for planning, appraisal, budgeting, and risk analysis.
  - Staff capacity development is critical to implement climate-aware PIM processes and methodologies.
- Sequence assessments appropriately:
  - Prefer joint or sequenced PIMA and C-PIMA exercises to ensure the climate module builds on a solid understanding of existing PIM institutions, unless a recent PIMA exists or the PIM system is well documented.

*Source: Foreword and Executive Summary, C-PIMA Handbook (IMF).*

### PART 1: Climate–PIMA Overview 3

### PART 1: Climate–PIMA Overview 3

### Recommendations and Roadmap
- The C-PIMA presents recommendations to improve climate-aware institutions, taking into account the country’s circumstances and capacity, as a roadmap of reform priorities.

### C-PIMA within Climate-Responsive Public Financial Management
- The development of an institutional framework for climate-responsive public investment is an important component of Climate-Responsive Public Financial Management.
- The C-PIMA is complementary to other existing green PFM and macroeconomic diagnostic tools.
- The IMF’s green PFM framework extends beyond public investment to integrate an environment and/or climate-friendly perspective in all public expenditures as well as revenues and financing, and considers the institutions and processes that support fiscal strategy and the budget process.
- Green PFM emphasizes combining various entry points within, across, and beyond the budget cycle; it follows planning, allocation, execution, and control and incorporates the PIM cycle assessed in the C-PIMA.

Key elements illustrated in the green PFM view:
- Green-respon­sive macro-fiscal framework and long-term fiscal sustainability analysis
- Green impact assessments and cost-benefit analyses
- Tracking green expenditure, green spending reviews, classifying and tagging green expenditure, green budget circular
- Green-respon­sive program budgeting, green objectives and targets, green performance monitoring
- Budget preparation, budget execution and accounting, control and audit, fiscal transparency, legal framework
- Coordination with state-owned enterprises, subnational governments, and public participation at all stages of the budget and PIM cycles
- Climate watchdogs, ex post green audits, parliamentary oversight, green planning and reporting documents

### Synergies with Other Climate–PFM and Macroeconomic Tools (Box 2.1)
- PEFA Climate (Climate-Responsive Public Financial Management Framework): supplementary indicators building on PEFA; Indicator CRPFM 5 assesses PIM climate responsiveness in four dimensions: the regulatory framework, project selection, project appraisal, and reporting. Other relevant indicators include alignment of the budget with climate change strategies, tracking climate-related expenditure, the budget circular, climate-responsive nonfinancial asset management, climate-related liabilities including fiscal risks, climate-responsive fiscal decentralization framework, climate-related performance information, and evaluation.
- World Bank Reference Guide for Climate-Smart Public Investment: embeds climate change in the Bank’s eight core stages of PIM, from concept development through appraisal, selection, implementation, operation, and evaluation.
- IMF Fiscal Transparency Code (FTC): Principle 3.2.1 on budget contingencies and Principle 3.2.7 on environmental risks parallel C-PIMA institution 5 on risk management; overlaps between C-PIMA coordination and FTC fiscal coordination; coverage and integrity of fiscal reporting in FTC Pillar I and institution C4 in C-PIMA; Pillar II transparency of investment projects and institution C4.
- World Bank Climate Change Public Expenditure and Institutional Review Sourcebook 2014 (CCPEIR): tools for public expenditure policy and management challenges from climate change.
- World Bank Climate Change Institutional Assessment (CCIA): five pillars—organization, planning, public finance, subnational governments and state-owned enterprises, accountability.
- Climate Policy Diagnostic (CPD): in-depth analysis of mitigation and adaptation strategies and supporting institutional/legal frameworks; complements C-PIMA and Green PFM; provides detailed recommendations with potential timelines and priorities; has shaped Resilience and Sustainability Facility programs in Tanzania, Moldova, Cabo Verde, and Kenya.
- IMF’s Climate Change Indicators Dashboard: includes data useful to monitor impact of public investment on climate change and other climate-related fiscal policy indicators.

### Climate Change and Public Investment: Overview
- Climate change and public investment interact bidirectionally: climate change and natural disasters cause direct damage to infrastructure and disrupt services, imposing billions of dollars of economic cost a year; investments made today determine future GHG emissions and resilience.

A. Climate Change Impact on Public Infrastructure
- Natural disasters claim tens of thousands of lives every year, displace millions of people, and cause significant economic losses (CRED-UNDRR 2020).
- Most natural disaster events are climate related and/or exacerbated by climate change, with floods and storms being the most impactful.
- The occurrence of extreme weather, extreme temperature, floods, and droughts has increased sharply over the past decades (Figure 3.1).
- Natural disasters cost about $18 billion a year in low- and middle-income countries through direct damages on infrastructure assets and impose $391 to $647 billion of economic cost a year through service disruption (World Bank 2019).
- Climate-related damage to infrastructure will have a significant impact on vulnerable populations and increase inequalities.
- Damages impose large and variable costs on public finances: disasters disrupt the economy and require government funds for reconstruction; they disproportionately affect the poor and vulnerable; macroeconomic effects of climate change could result in a loss of government revenues and trigger greater spending on climate mitigation and adaptation.
- Infrastructure that is not climate resilient will require additional routine and emergency maintenance over its lifespan and could lead governments to reallocate resources from other productive capital to adaptation capital.
- Investing in retrofitting traditional technologies to adapt to climate change is usually more costly than the initial cost of ensuring climate-resilient infrastructure (Gonguet and others 2021).
- Constructing new public infrastructure that is high GHG emitting may result in a loss of value over the life of the asset as carbon prices impact the value of infrastructure.

B. Role of Public Investment in Addressing Climate Change
- Attaining the SDGs while getting on track to achieve Paris Agreement goals requires significant infrastructure investment.
- It has been estimated that low-income developing countries (LIDCs) would need to spend about 4.5 percent of annual gross domestic product (GDP) on average by 2030 to meet their combined targets, through public and private investment (Fay and Rozenberg 2019).
- The need for infrastructure investments in low-carbon and climate-resilient projects will vary by region, country, and sector; island economies are particularly vulnerable.
- Energy-related and water resources management are major parts of the SDG infrastructure agenda and will require additional, transition-focused, investments (Figure 3.2).
- Global annual infrastructure investment will have to accelerate to address historic underinvestment and to transform systems toward a net-zero emissions and climate-resilient economy.
- The respective shares of public and private sectors will depend on government policies and private sector development; low-income and emerging market economies will generally rely more on the state for infrastructure needs.
- Climate-responsive investment is an important enabler for sustainable development (IMF 2021c).
- Green and resilient public investment can stimulate private sector investment, promote economic growth, support employment, and address climate change.
- The multiplier of green investment projects is higher than those associated with fossil fuel energy investment if benefits and costs, including impact on climate and environment, are taken fully into account (Batini and others 2021).
- Given constraints on fiscal space, green and resilient investments require strong enabling PIM institutions to ensure value for money and avoid waste and corruption.

Box 3.1. The Cost of Green and Resilient Infrastructure
- Global infrastructure investment needs to be scaled up and sustained by $3 to $3.8 trillion (2–3 percent of GDP per annum) over the present decade to deliver a robust, sustainable, and green recovery.
- Table B3.1.1 (based on Stern 2021) provides pre-2021 annual investment levels and estimated gross annual investment requirements during 2021–30, by type and sector.

Selected figures from Table B3.1.1:
- Energy (incl. energy efficiency in buildings):
  - Current Investment p.a. ($ trillion): 1.9
  - Gross Investment p.a., 2021–30 ($ trillion): 2.8–3.3
  - Increase: 0.9–1.4
- Transport:
  - Current Investment p.a. ($ trillion): 1.3
  - Gross Investment p.a., 2021–30 ($ trillion): 2.7
  - Increase: 1.4
- Water and sanitation:
  - Current Investment p.a. ($ trillion): 0.6
  - Gross Investment p.a., 2021–30 ($ trillion): 0.9
  - Increase: 0.3
- Telecoms and digital:
  - Current Investment p.a. ($ trillion): 0.7
  - Gross Investment p.a., 2021–30 ($ trillion): 1.0
  - Increase: 0.3
- TOTAL (rounded to nearest 0.5):
  - Current Investment p.a. ($ trillion): 4.5
  - Gross Investment p.a., 2021–30 ($ trillion): 7.5 – 8
  - Increase: 3–3.5
- Adaptation and Resilience:
  - Adaptation and resilience in developing countries:
    - Current Investment p.a. ($ trillion): 0.02
    - Gross Investment p.a., 2021–30 ($ trillion): >0.1–0.3
    - Increase: >0.1–0.3
  - TOTAL:
    - Current Investment p.a. ($ trillion): 0.02
    - Gross Investment p.a., 2021–30 ($ trillion): >0.1–0.3
    - Increase: >0.1–0.3
- The actual pre-2021 annual global investment is estimated at $4.5 trillion in energy, transport, water and sanitation, and telecom and digital infrastructures, while gross annual investment opportunities in these sectors to support a sustainable recovery and green transformation are estimated at $7.5 to $8 trillion on average in the same period.
- The need for investment increase across these opportunities in physical infrastructure is estimated at $3 to $3.8 trillion per annum on average.
- Key investment areas include clean electricity generation, storage, and networks; energy efficiency in buildings and industry; electric vehicle charging infrastructure; green hydrogen; investment to decarbonize heavy transport (aviation and shipping) and industry; a decline in fossil fuel investment; investment in light rail; enhancing road infrastructure, airports, and ports, including investments to ensure climate resilience; urban and rural water services to support climate resilience and adaptation; and investment to scale up data centers globally.
- An estimated $0.1 to $0.3 trillion increase in investment per year is required in developing countries to support adaptation and resilience.

### C-PIMA Detailed Design: Institutions and Dimensions
- The C-PIMA assesses five institutions (15 dimensions total) used for planning, allocating, and implementing infrastructure investment:
  - C1. Climate-aware planning
    - 1a: National and sectoral public investment planning
    - 1b: Spatial planning - land use regulations and building codes
    - 1c: Centralized guidance and support for planning
  - C2. Coordination between entities
    - 2a: Coordination across central government
    - 2b: Coordination with sub-national governments
    - 2c: Coordination with and oversight of public corporations
  - C3. Project appraisal & selection
    - 3a: Project appraisal with climate change
    - 3b: PPP framework and allocation of climate risks
    - 3c: Project selection with climate change
  - C4. Budgeting & portfolio management
    - 4a: Tagging of climate-related public investment expenditures
    - 4b: Ex post reviews of climate outcomes
    - 4c: Asset management and maintenance with climate change
  - C5. Risk management
    - 5a: National disaster risk management strategy
    - 5b: Ex ante financing mechanisms to manage climate risks
    - 5c: Fiscal risk analysis with climate change

A. C1: Climate-Aware Planning — Is Public Investment Planned from a Climate Change Perspective?
- Climate-aware planning assesses the extent to which public investment plans consider adaptation and mitigation.
- The C-PIMA’s Dimension C.1.a asks whether national and sectoral public investment strategies and plans are consistent with NDC or other overarching climate change strategy on mitigation and adaptation.
- Climate-aware planning in this context refers specifically to the planning of public investment and covers both mitigation and adaptation as included in the NDC, domestic legal commitments, or overall climate strategy.
- Around 60 countries have adopted domestic climate change framework laws that establish long-term climate change objectives; nearly half include a target to achieve net-zero emissions by 2060 or earlier. Such laws often enshrine commitments made at the international level through countries’ NDCs, though national laws may be more ambitious than NDCs.
- Assessing this dimension often involves considering many strategy and planning documents covering different periods and statuses.

Box 4.1. Climate Change Mitigation and Adaptation (definitions and guidance)
- Climate change mitigation: actions to limit magnitude and/or rate of long-term climate change; generally involves reductions in human-caused GHG emissions, increasing carbon sinks (for example, reforestation), or use of carbon capture and storage; mitigation impacts can be quantified through ex ante estimations of net GHG emissions relative to a baseline scenario.
- Mitigation can entail new technologies and renewable energy, making older equipment or buildings more energy efficient, or changing management practices or consumer behavior.
- Climate change adaptation: process of adjustment to actual or expected climate conditions and effects to moderate harm or exploit beneficial opportunities (IPCC 2021); applies particularly to adverse impacts of changes in variation or extremes of climate conditions rather than average conditions.
- Adaptation actions: incremental adaptation (e.g., retrofitting infrastructure to higher standards) or transformational adaptation (e.g., relocating an infrastructure asset).
- Maladaptation: an action that may lead to increased risk of adverse climate-related outcomes, increased vulnerability to climate change, or diminished welfare now or in the future (IPCC 2021).
- Some public investments may contribute to both mitigation and adaptation (e.g., distributed solar power systems that reduce GHG emissions and are less vulnerable to natural disasters); others may promote one objective but harm the other (e.g., water desalination promotes adaptation but is energy intensive).

*Source: IMF staff.*

### PART 2: Climate–PIMA Practitioners’ Guide 11

### PART 2: Climate–PIMA Practitioners’ Guide 11

### C.1.a Consistency of national and sectoral public investment strategies and plans with NDCs and overarching climate strategies
- Core assessment focus:
  - Whether the quantum and time path of mitigation and adaptation commitments in current planning documents are consistent with NDC commitments or other overarching climate strategies.
  - Whether key planning documents are consistent with each other.
- Questionnaire response options (as presented):
  - Not Met: National and sectoral public investment strategies and plans are not consistent with NDCs or other overarching climate change strategies.
  - Partially Met: National and sectoral public investment strategies and plans are consistent with NDCs or other overarching climate change strategies for some sectors.
  - Fully Met: National and sectoral public investment strategies and plans are consistent with NDCs or other overarching climate change strategies for most sectors.
- Meaning of key terms:
  - Strategies: Set out direction and high-level ambition for future policies and public investment.
  - Plan: Describes how strategic goals and objectives are to be achieved; must include discussion of public investment and role of major projects for this dimension.
  - National: Produced by central government and includes all types of projects regardless of location within national boundaries.
  - Sectoral: May be subset of a national plan or defined by a line ministry; includes sectors such as transport, energy, telecommunications, water, waste management, agriculture, natural resources, forestry, and fishing.
  - Consistent with: Implementation of current public investment strategies and plans can be expected to result in outcomes that contribute positively to achieving mitigation and adaptation objectives and targets, with time-bound targets consistent between documents.
- Specific diagnostic questions:
  - What does the country’s NDC contain on mitigation and adaptation objectives, targets, and expected outcomes? Are there additional commitments in domestic law? Are there legal requirements to publish strategies or national adaptation plans?
  - Is there a national public investment strategy or sectoral public investment strategies, and what do they contain regarding public investment and coverage of the public sector (central government, general government, and public corporations [PCs])?
  - Do plans incorporate climate objectives, targets, expected impacts of investments on the climate, and exposure of infrastructure to climate-related disasters and transition risks?
  - Are there sector or subsector investment strategies in key climate-related sectors (e.g., transport, energy) that incorporate climate-related public investments?
  - Are there independent assessments of consistency of public investment strategies and plans with the NDC or other overarching strategies?
- Scoring guidance:
  - Not met: Strategies and plans do not include discussion of the role of public investment in meeting mitigation and adaptation goals and do not describe green and resilient projects or planned green and resilient investments.
  - Partially met: Strategies and plans include description of planned green and resilient investments for some sectors; qualifies when planned green and resilient infrastructure is identified in less than half of sectors referred to in national climate strategies (e.g., NDC, NAP).
  - Fully met: Strategies and plans include description of planned green and resilient investments for some sectors; qualifies when planned green and resilient infrastructure is identified in more than half of sectors referred to in national climate strategies (e.g., NDC, NAP).
- Important documents to consult:
  - NDCs under the Paris Agreement, domestic climate change laws, National Communication Report on Climate Change: identify adaptation and mitigation commitments, objectives, targets, expected outcomes.
  - National strategies or development plans, including public investment plans: assess impact of planned public sector investment on adaptation and mitigation and consistency with climate objectives.
  - Sectoral and subsectoral plans and strategies: assess planned public sector investment impact and consistency with climate objectives.
  - Independent assessments of consistency of public investment strategies and plans with NDCs or other overarching strategies: draw on as available.
- Case example — Cambodia (Box 4.2):
  - Cambodia’s updated NDC, released in December 2020, targets a 42 percent reduction in greenhouse gas emissions by 2030 compared to a business-as-usual scenario, covering energy, forestry, agriculture, and waste management.
  - National long-term planning frameworks—Rectangular Strategy (2018–30) and National Strategic Development Plan (2019–23)—identify climate change as a cross-cutting issue and guide public investment toward climate adaptation and mitigation.
  - The Cambodia Climate Change Strategic Plan (initiated 2013) led more than 10 line ministries to adopt 14 Climate Change Action Plans (CCAPs) outlining strategic priorities and major climate-relevant projects; some ministries have integrated climate considerations into sector strategies and performance indicators.
  - Source indicated: Cambodia PIMA Update and C-PIMA 2023.

### C.1.b Regulations on spatial and urban planning, and construction addressing climate-related risks and impacts on public investment
- Dimension purpose:
  - Assess whether central or subnational government regulations mitigate exposure to climate-related risks and disasters through spatial planning and construction regulations (e.g., building codes) that influence location and design of public investments.
- Questionnaire response options (as presented):
  - Not Met: Central government and/or subnational government regulations on spatial and urban planning, and construction do not address climate-related risks and impacts on public investment.
  - Partially Met: Central government and/or subnational government regulations on spatial and urban planning, or construction (through building codes) address climate-related risks and impacts on public investment.
  - Fully Met: Central government and/or subnational government regulations on spatial and urban planning, and construction (through building codes) address climate-related risks and impacts on public investment.
- Meaning of key terms:
  - Regulation: Formal written statement in law, rule, or code issued by a public authority intended to constrain conduct.
  - Spatial and urban plans: Coordination of practices and policies affecting spatial organization at scales from local to national (e.g., town plans, city master plans, coastal plans).
  - Central government: Entities included in the budgetary central government plus units funded by extra-budgetary funds and nonmarket nonprofit institutions controlled by central government (does not include PCs).
  - Subnational governments: State, regional, provincial, municipal, or local governments including EBEs and nonmarket nonprofit institutions controlled and financed mainly by them.
  - Address climate-related risks: Regulation or plan imposes substantive restriction on public investment intended to reduce exposure or vulnerability of assets to climate-related disasters.
- Specific diagnostic questions:
  - Are there climate-related regulations on spatial and urban planning that apply across the country? Are there national or subnational regulations requiring public sector entities to implement land-use regulations and/or building codes addressing climate concerns? Are they consistent and coherent?
  - Are there climate-related requirements in codes applicable to buildings and other structures (roads, bridges, power plants, dams)? Are they consistent and coherent?
  - Are there location-specific restrictions or conditions on construction in areas exposed to climate effects (floodplains, landslide-prone areas, low-lying coastal areas)?
- Scoring guidance:
  - Not met: No published central or subnational regulations addressing climate-related risks and impacts on public investment.
  - Partially met: Regulations are in place for territories where more than half the population lives or where more than half of public investment takes place, but only for spatial/urban planning or construction.
  - Fully met: Regulations on spatial and urban planning and construction that address climate-related risks are in place for territories where more than half the population lives or where more than half of public investment takes place.
- Important documents to consult:
  - Central and subnational regulations on spatial and urban planning: assess geographic coverage and consistency.
  - Central and subnational codes applicable to buildings and other structures: assess geographic coverage and consistency.
- Case example — Nepal (Box 4.3):
  - Land Use Policy and National Urban Development Strategy explicitly address climate risks to public infrastructure; National Building Codes (NBCs) include elements addressing climate-induced disaster risks.
  - Land Use Policy considers climate impacts on land use plans, restricts infrastructure development in disaster-prone areas, seeks to ensure green spaces and control industrial zones, and promotes forest conservation.
  - National Urban Development Strategy commits to internalization of climate resilience and sustainability in urban land use and infrastructure.
  - NBCs incorporate impacts of natural hazards (e.g., earthquakes) and climate-induced disaster risks (e.g., floods and landslides), including site selection, construction materials, and architectural design requirements.
  - NBCs and Land Use Policy apply nationwide; NBCs have been updated but scope could be enhanced to address mitigation (energy efficiency in public buildings) and strengthen compliance/enforcement by municipalities.
  - Sources cited in figure: Nepal Land Use Policy (2015), National Urban Development Strategy (2017), National Building Codes (2020), Risk-Sensitive Land Use Plan Kathmandu Metropolitan City, Nepal (2010).

### C.1.c Centralized guidance/support for preparation and costing of climate-aware public investment strategies
- Dimension purpose:
  - Assess whether central government ministries, departments, agencies, SNGs, and PCs are provided with written guidance and support to incorporate climate change considerations into investment planning and costing (covering mitigation and adaptation).
- Questionnaire response options (as presented):
  - Not Met: There is no centralized guidance/support for public sector entities on the preparation and costing of climate-aware public investment strategies.
  - Partially Met: There is centralized guidance/support for public sector entities on the preparation of climate-aware public investment strategies.
  - Fully Met: There is centralized guidance/support for public sector entities on the preparation and costing of climate-aware public investment strategies.
- Meaning of key terms:
  - Public sector entities: Central government MDAs, SNGs, and PCs.
  - Centralized guidance: Written guidelines (circular, manual, or guide) issued by a central agency (Ministry of Finance or Planning or similar) or a sector ministry (e.g., MoEnv, Ministry of Transport or Energy, disaster management agency) containing instructions on planning and costing public investment from climate adaptation and mitigation perspective.
  - Support: Assistance beyond written guidelines (briefings, seminars, workshops, help desk).
  - Scope confined to national and sectoral investment planning covering guidance issued by central government agencies to all central government entities and all parts of the public sector (including SNGs and PCs).
- Specific diagnostic questions:
  - Is there written guidance from central or relevant agencies to MDAs on technical issues in climate-aware investment planning and costing covering both mitigation and adaptation?
  - Is there written guidance from central agencies to SNGs and/or PCs on technical issues in climate-aware investment planning and costing covering both mitigation and adaptation?
  - Is there detailed guidance on preparation and content of sectoral and subsectoral investment plans from the perspective of climate change (costing, prioritization, sequencing)? Does guidance cover location-specific analysis of hazards, asset exposures, and asset resilience?
  - Is relevant information and data consolidated and shared across the public sector (location-specific climate projections, incidence of climate-related disasters, historical damages, costs of repair and reconstruction)?
  - Is there support for MDAs, SNGs, and/or PCs through workshops, standardized templates, a central help desk, or other technical/financial support? Which agencies provide guidance/support for adaptation and mitigation?
- Scoring guidance:
  - Not met: No central guidance or support to develop climate-aware public investment strategies.
  - Partially met: Guidance or support exists for public sector entities responsible for less than half of sectors referred to in national climate strategies (e.g., NDC, NAP).
  - Fully met: Guidance or support exists on how to prepare and cost climate-aware public investment strategies and applies to public sector entities responsible for more than half of sectors referred to in national climate strategies (e.g., NDC, NAP).

*Source: PART 2: Climate–PIMA Practitioners’ Guide (excerpts from cpimaea - PART 2: Climate–PIMA Practitioners’ Guide 11–18).*

### Box 4.4 describes Ugandan strategic guidance to ministries and agencies on the development of climate

### Box 4.4. Centralized Guidelines in Uganda

### Overview
- The 2014 guidelines on the integration of climate change in sector plans and budgets provide extensive strategic guidance to ministries and agencies on the development of climate strategies and public investment projects.
- The guidelines outline climate change management’s roles and responsibilities of various government entities and describe other climate change stakeholders’ roles, including developing partners and the private sector.
- The guidance covers inclusion of impact and vulnerability assessments throughout the development of sectoral strategies at national, local, and community levels, across formulation, financing, implementation, and evaluation stages.

### Key steps for integrating climate change in sectors
- The key steps of integrating climate change in sector consist of:
  - (1) assessing the climate change impact of the sector,
  - (2) identifying and analyzing the mitigation and adaptation options,
  - (3) identifying and costing the programs and actions for climate interventions,
  - (4) designing and implementing a plan for mainstreaming climate change in the different sectors,
  - (5) monitoring the implementation process, and
  - (6) evaluating the performance and assess results.

### Sector-specific guidance and tools
- Some sectors, including agriculture, have developed more detailed sector guidelines to provide practical, step-by-step guidance for all agricultural sector stakeholders including local governments, on how to mainstream climate change adaptation and mitigation in their planning and decision-making processes.
- The 2018 specific agricultural sector guidelines also provide a tool for climate-smart adaptation screening of agriculture sector policies and plans.

*Sources: Uganda 2014 Guidelines on integration of climate change in sector plans and budgets, and Uganda 2018 Guidelines for mainstreaming climate change adaptation and mitigation in agricultural sector policies and plans.*

### Box 4.7 describes the comprehensive oversight of PC climate-related infrastructure investments in Mauritius.

### Box 4.7. Regulatory and Oversight Framework in Mauritius

### Strategic planning and budget framework
- The strategic planning and budget framework in Mauritius facilitates coordination and decision making on climate change-related projects across the public sector.
- These planning documents apply to all central government, subnational government, and public corporations, including PPPs and externally financed projects.
- Major infrastructure projects are included in both sectoral strategies and the Public Sector Investment Program (PSIP).
- Public corporations’ investment projects contribute to achieving national climate change-related goals, particularly in the energy, water, and transport sectors.
- The tender announcement from MARENA in the figure below (in source) illustrates the close collaboration between public corporations and government agencies in pursuing climate-related initiatives.
- Source cited in box: Capital Projects Process Manual, MOF 2017, https://www.marena.org/

### Public corporations and governance
- The main public corporations in Mauritius include:
  - Central Electricity Board
  - MARENA (Renewable Energy)
  - Central Water Authority
  - Wastewater Management Authority
  - Airport of Mauritius
  - Mauritius Port Authority
  - Roads Authority
  - Mauritius Shipping Corporation
- These corporations are owned by the Government of Mauritius with senior personnel from line ministries serving as board members, and they operate as state monopolies.
- They coordinate closely with the respective line ministries.

### C.3: Project Appraisal and Selection — context
- A climate focus during the project appraisal and selection phases of the PIM cycle is key to ensure that climate-resilient and low-carbon projects are developed and selected.
- The institution assesses whether appraisal and selection of public investment projects are conducted using appropriate and adequate climate-related analysis and methodologies, and whether the framework for PPPs explicitly addresses climate-related challenges.
- The inclusion of climate-related elements weighs them together with economic, fiscal, social, and other environmental factors in the overall appraisal and selection process.
- Box 4.8 (United Kingdom) and Box 4.9 (Multilateral Development Bank Practices) provide comparative arrangements and best-practice examples referenced in the handbook.

### Dimension C.3.a — Standard methodology for climate-related appraisal
Findings and explanations:
- This dimension assesses whether the possible impacts of projects on GHG emissions, and the exposure of projects to physical and transition risks from climate change including damage from climate-related disasters, are identified and analyzed in the project preparation stage before projects are included in a PIP or pipeline of projects, or when selected for funding in the budget.
- Relevant methods for this type of assessment include, for instance, climate risk screening, GHG accounting, and the use of social cost of carbon and quantification of climate-related risks in the project economic analysis.
- The standard methodology for Environmental Impact Assessments (EIAs) of infrastructure projects does not incorporate a project’s impact on GHG emissions. EIAs typically consider local environmental impacts, such as air and water quality, flora and fauna, habitats, visual impacts, noise, and more.
- Traditional EIAs do not incorporate global impacts such as GHG emissions, although some countries have recently amended their EIA regulations to include GHG emissions.
- EIAs do not consider the reverse direction of impact—the project’s exposure to climate-related disasters.
- A C-PIMA does not consider the level of carbon pricing in the economy (e.g., the level of taxes on carbon or the prices set by an emissions trading scheme [ETS]). A C-PIMA does include an assessment of whether the government uses a shadow carbon price in conducting cost-benefit analysis of major infrastructure projects.
- A shadow carbon price is an institutional arrangement within government for conducting project appraisal to ensure that the negative externalities related to GHG emissions are incorporated in cost-benefit analysis of public investment projects.
- Fiscal and regulatory policies such as a carbon tax or an ETS are outside the scope of PFM and of the C-PIMA.

Questionnaire (scoring options preserved):
- Not Met
  - The appraisal of major infrastructure projects does not require climate-related analysis to be conducted according to a standard methodology.
- Partially Met
  - The appraisal of major infrastructure projects requires climate-related analysis to be conducted according to a standard methodology.
- Fully Met
  - The appraisal of major infrastructure projects requires climate-related analysis to be conducted according to a standard methodology, and a summary of appraisals is published or subject to independent external review.

Meaning of key terms (exact definitions preserved):
- Climate-related appraisal analysis
  - Technical details relating to:
    - Climate change adaptation, for example, hazard analysis, risk mapping and screening, loss and damage estimation, vulnerability analysis, use of risk scenarios, dealing with climate uncertainty in project design, for example, through climate-robust physical design features, delaying full implementation until better information is available, by implementing in stages, by doing “no regrets” elements first,8 or through the use of real options.9
    - Climate change mitigation, for example, estimation of business-as-usual GHG emissions and gross and net GHG impacts of alternative technologies; estimation of marginal abatement cost curves; use of parameters such as the social cost of carbon, shadow price of carbon, and appropriate long-term discount rates.
  - Footnotes preserved in source: 8 No-regrets elements refer to project components that are likely to generate net benefits under a wide range of future climate scenarios. 9 Real options with respect to public investment refer to the opportunity to delay full implementation of an adaptation measure until better information is available to enable resolution of uncertainty about climate impacts, for example, building a seawall with a stronger than necessary foundation now to enable the height to be raised in future should sea level rise be higher than anticipated.
- Standard methodology
  - One or more methodologies that should be used for specified purposes, as officially directed in legislation, regulations, and guidelines from a responsible government unit. At a minimum, the standard appraisal methodology for climate-related analysis should cover both screening and project appraisal. Appraisal methodologies may vary based on the sector or size of the project.
- Major projects
  - See Appendix II.
- Summary of appraisals
  - A summary of the appraisal of each individual major project or two or several project appraisals (as opposed to a single combined summary of all appraisals).
- Independent external review
  - A review of an appraisal methodology and results conducted by an external party that has no connection to or involvement in the original appraisal, hired to provide impartial advice, and thus more likely to objectively apply a standard set of rules or criteria.

Specific questions to assess C.3.a (preserved wording):
- Is there a standard methodology for appraisal in government that includes climate-related elements? Is it a requirement to apply the standard methodology?
- Does a standard methodology contain technical details on climate change adaptation?
- Does a standard methodology contain technical details for climate change mitigation?
- Does a standard methodology contain information on relevant data sources, for example, climate data and projections, hazard data, historical damage to infrastructure, GHG emission factors, and life cycle costs for climate-relevant technologies?
- Is there guidance on appraising climate-related investment projects on a proportional basis? For instance, threshold project size(s) above which more detailed climate appraisal should be conducted.
- Is it mandatory that major climate-related investment projects are appraised both for their impacts on the climate and for potential climate change impacts on the projects as relevant?
- Is there central support for the application of climate-sensitive project appraisal?
- Are the project appraisals (or summaries of appraisals) of major climate-related projects—including the key climate-related details—published on either a routine or ad hoc basis, or if not are they at least publicly available on request?
- Are the project appraisals of major climate-related projects—including the key climate-related details—subject to independent external review?
- What are the practices of development partners in a country with respect to the conduct of project appraisals? (Box 4.9). This is not relevant to the scoring of this dimension but is part of the context in which national appraisal takes place.

Scoring guidance (preserved):
- A not met score indicates that there is no procedural, regulatory, or legal requirement for climate-related appraisal of major climate-related projects.
- For a partially met score, there will be a procedural, regulatory, or legal requirement for project appraisal of major climate-related projects and the appraisal methodology provides clear guidance on how to appraise projects from a climate change perspective.
- A fully met score means that, in addition to the requirements for partially met, the appraisal results are required either to be published or subject to independent external review. Publication should, as a minimum, include a description of the overall project, key issues, conclusions stemming from the analysis, assumptions made in the analysis, and any recommendations for modifying the project proposal. If appraisal results are made subject to external review, it is expected that the external reviewers are qualified for the task and will have access to full information about the project and the appraisal that has been done.
- Note on consistency: when scoring C-PIMA C.3.a, if there has been a previous or simultaneous PIMA, it is important to ensure consistency with PIMA 4.a and 4.b. PIMA 4.b refers to a standard methodology for project appraisal, and PIMA 4.a refers to selected results of appraisals being published or undergoing independent external review.

Important documents (uses preserved):
- Project appraisal requirements, guidelines, cost-benefit analysis manual, or similar documents issued by the central government, e.g., the Ministry of Finance or Planning or a relevant sector ministry
  - To what extent do these cover climate-related elements?
- Published project appraisals or appraisal summaries of climate-related projects
  - Is publication required? How extensive is the publication of relevant appraisals or summaries?

### Dimension C.3.b — PPPs and long-term contracts
Findings and explanations:
- PPPs and other long-term infrastructure contracts commit the government over the term of the contract, typically 20 to 30 years.
- Risks from climate change—either exposures to climate-related disasters, mitigation risks such as the lock-in of high-emitting infrastructure, or both—are likely to arise at some point during the term of the contract.
- It is important that careful analysis of climate-related risks is integrated into PPP project appraisal, selection, procurement, and contract management procedures.

Questionnaire (scoring options preserved):
- Not Met
  - The referred framework does not include explicit consideration of climate change for risk allocation or contract management.
- Partially Met
  - The referred framework includes explicit consideration of climate change with respect to how risks are allocated between the parties in infrastructure contracts.
- Fully Met
  - The referred framework includes explicit consideration of climate change with respect to how risks are allocated between the parties in infrastructure contracts, and contract managers in government departments and agencies are mandated to address climate-related challenges.

Meaning of key terms:
- PPPs
  - Long-term arrangements where the private sector supplies infrastructure assets and services that have been traditionally provided or financed by the government. PPPs typically comprise a long-term contract between a private party and a government entity for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance.
- Framework for managing PPPs
  - Includes provisions in laws and regulations, as well as detailed guidance material issued by responsible authorities.

Specific questions to assess C.3.b (preserved wording):
- Does the framework for the management of longer-term public investment projects such as PPPs explicitly recognize that long-term contracts expose the government to risks and uncertainty in the face of climate change in comparison to standard public investment?
- Is climate change risk analysis an explicitly required component in comparing a proposed PPP against a public sector comparator project?
- Does the framework for PPPs (including any manuals or guidelines) contain explicit guidance on the allocation of risks between the PPP operator and government that are influenced by projected and possible climate change?
- Is the exposure of PPP assets to future climate change an explicit element in the design of PPPs? For instance, in requirements for risk allocation, in construction, service delivery, asset handover, in assessing possible contractual restrictions on future policy change?
- Are procedures in place to ensure that critical aspects identified in the project preparation phase are then included in the preparation of the tender documents and, as well, inform the performance indicators in the contract management phase?
- Is there a requirement for responsible officials to formally indicate that potential climate change impacts have been incorporated in the analysis at project appraisal, selection, procurement, and the design of contract management procedures?

Scoring guidance (preserved):
- A not met score on this dimension indicates that there is no reference to climate change in the PPP framework.
- A partially met score requires that the PPP framework contains some discussion of the implications of climate-related disasters for the design of PPPs. This might include a discussion of force majeure risks and how they should be allocated between the government and the partner.
- A fully met score requires that the PPP framework contains at least one formal requirement for PPP contract managers in government departments and agencies to address climate-related challenges. This could include:
  - A formal requirement (e.g., in a regulation or central agency circular) that rigorous climate change risk analysis be presented to decision makers in justifying a proposed PPP project in comparison to standard public investment
  - A requirement that all PPP contracts contain mandatory insurance against force majeure risks including risks from climate-related disasters

Important documents (uses preserved):
- PPP law and/or procurement regulations relating to long-term contracts
  - Do they include any explicit references to climate change considerations?
- Guidance material on the design of PPP projects issued by central agencies or relevant sector ministries
  - Is there any discussion of how to design PPP projects to reduce the exposure of infrastructure assets and services to climate-related risks in the context of long-term contracts? Is exposure to climate change–related risks an element in comparing a PPP against a public sector comparator?

*Source: Box 4.7, "Regulatory and Oversight Framework in Mauritius," in the C-PIMA Practitioners’ Guide (excerpt provided).*

### Box 4.10 describes Jamaica’s PPP legal framework and manual, which enable climate-related analysis in PPP

### Box 4.10. PPP Framework in Jamaica

### Overview and recent reforms
- Jamaica has utilized public-private partnership (PPP) arrangements extensively since 2011.
- In 2023, the authorities amended the Policy and Institutional Framework for the PPP Policy Program to integrate climate-related analysis in PPP project appraisal, selection, procurement, and contract management procedures.
- In 2023, the authorities also revised the PPP Standard Operating Procedure Manual to reflect these requirements.

### Purpose and users of the manual
- The manual operationalizes the policy and defines processes and procedures to integrate climate considerations in the four critical PPP project phases:
  - Project identification
  - Business case
  - Transaction
  - Contract management
- The manual includes useful templates for each PPP project phase.
- Intended users include the government entity in charge of PPPs—the Development Bank of Jamaica (DBJ)—as well as enterprises, financial institutions, and development organizations interested in PPP management.

### Guidance by project phase (Embedding Climate Resilience)
- Embedding Climate Resilience at the PPP Project Identification Stage:
  - Assessments and guidance help DBJ/GoJ PPP teams ensure projects align with GoJ development goals and objectives.
  - Guidance helps project teams consider, at a high level, how climate risks can impact the potential project.
- Embedding Climate Resilience at the PPP Business Case Stage:
  - Guidance helps project teams integrate climate resilience considerations into technical, financial, economic, and environmental analyses used to determine viability and suitability for PPP delivery.
- Embedding Climate Resilience at the PPP Transaction Stage:
  - Guidance assists DBJ PPP teams/enterprise teams in integrating climate resilience considerations into contract design, bidder qualification, tendering, and bid evaluation.
- Embedding Climate Resilience at the PPP Contract Management Stage:
  - Decision support tools assist governments and project planners in tracking climate-related agreements established during the Transaction Stage and in managing unforeseen climate-related risks over the life of the PPP.

### Relevance to project selection criteria (Dimension C.3.c)
- Dimension C.3.c assesses whether climate-related elements are explicitly included among the list of decision criteria used by the government at the project selection gateway (budget or other financing decisions).
- The manual’s integration of climate considerations across PPP phases supports inclusion of climate-related elements in project appraisal, selection, procurement, and contract management — aligning PPP practice with the expectations of Dimension C.3.c that selection criteria include consistency with government climate change mitigation objectives and appropriate design to mitigate exposure and vulnerability to climate risks.

*Source: 2023 Policy and Institutional Framework for the Public-Private Partnership (PPP) Policy Program and the 2023 PPP Standard Operating Procedure Manual; IADB, 2020, Climate Resilient Public Private Partnerships: A toolkit for Decision Makers.*

### Box 4.12 describes Bangladesh’s climate budget reporting.

### Box 4.12: Bangladesh’s climate budget reporting

### Context
- The source states: "Box 4.12 describes Bangladesh’s climate budget reporting."
- The surrounding text is from the C-PIMA Handbook, Part 2: Climate–PIMA Practitioners’ Guide, and includes institutional guidance on ex post reviews/audits (Dimension C.4.b), asset management (Dimension C.4.c), and disaster risk management (Dimension C.5.a).

### Dimension C.4.b — Ex post reviews or audits of climate mitigation and adaptation outcomes of public investments
- Definition: Ex post reviews or audits are exercises conducted after the completion of the construction stage of a project and during the service delivery phase. Their purpose is to compare climate mitigation or adaptation outcomes of investment projects against the anticipated outcomes in approved planning and project documents. Reviews may be ad hoc or part of a systematic process and include reviews by government entities and performance audits by the Supreme Audit Institution.
- Questionnaire options (three-box format, verbatim):
  - Not Met — "No ex post reviews or audits are conducted on the climate change mitigation and adaptation outcomes of public investments."
  - Partially Met — "Ex post reviews or audits are conducted for selected major public investments in either climate change mitigation or adaptation outcomes."
  - Fully Met — "Ex post reviews or audits are conducted and published for selected major public investments in both climate change mitigation and adaptation outcomes."
- Related PIMA institutions: 13.c, 14.c
- Meaning of key term:
  - Published — "Information that is made readily accessible to the general public in a proactive and inexpensive way. Modes of communication that constitute publication include printed documents prepared by the government and open-access government websites."
- Specific questions to assess institutional design (verbatim):
  - "Is there a formal requirement to review the actual climate-related impacts of public investments or projects (for example, GHG impacts, adaptation components)?"
  - "Does the review requirement cover all central government public investments no matter how they are financed?"
  - "What review mechanisms are required? For instance, post project review by the implementing agency, evaluation by specialized staff, sector review, and performance audit by the Supreme Audit Institution."
  - "Is there a requirement or policy on the publication of reviews and performance audits? If they are not published, are they publicly available on request? For instance, through the application of a Freedom of Information Law."
  - "Is there a requirement that completed projects are monitored for possible adjustment needs in response to climate change? For instance, where projects include an embedded real option, is there a requirement that those projects be monitored to assess whether and when the government should exercise the option?"
- Scoring interpretation (verbatim):
  - "This dimension should assess whether there is a requirement for ex post reviews or audits to be conducted and published. Whether reviews or audits are conducted and published in practice is an issue of effectiveness that does not influence the institutional design score."
  - "A not met score indicates that there is no legal requirement for ex post reviews of the climate-related impacts of public investments and the legal mandate of the Supreme Audit Institution does not include audit of climate-related elements."
  - "A partially met score indicates that there is a legal requirement or mandate to undertake either an ex post review or an external audit of a climate-related public investment project. The ex post review or external audit should cover either climate change adaptation or mitigation outcomes of the project."
  - "A fully met score indicates that there is a legal requirement or mandate to undertake either an ex post review or an external audit of a climate-related public investment project and mandates that the results be published. The ex post review or external audit should cover both climate change adaptation and mitigation outcomes of the project."
- Important documents (use questions verbatim):
  - "Legal and regulatory framework for public investment management and the Supreme Audit Institution (SAI)" — "Are there requirements in the legal and regulatory framework for climate-related post project reviews and SAI audits?"
  - "Project reviews and evaluation reports" — "Does any review or report contain information at the project level on the impacts of the project on GHGs, or on changes in the exposure to or actual damage to infrastructure from climate-related disasters?"
  - "Audit reports" — "Does any report contain information at the project level on the impacts of the project on GHGs, or on the exposure to or actual damage to infrastructure from climate-related disasters?"

### Example box cross-references in the handbook (for context)
- Box 4.13 describes Tamil Nadu’s audit process and procedures for climate-related investment programs (full text in source).
- Box 4.14 describes the United Kingdom’s incremental approach to a climate-resilient asset registry (full text in source).

### Dimension C.4.c — Asset management policies and practices addressing climate-related risks (summary of assessment approach)
- Focus: whether government asset management policies, maintenance methodologies, and asset registers incorporate climate-related risks and information.
- Questionnaire options (three-box format, verbatim):
  - Not Met — "Neither the government’s asset management policies and practices nor methodologies for estimating the maintenance needs of climate change-exposed infrastructure assets address climate-related risks."
  - Partially Met — "Methodologies prepared by the government for estimating the maintenance needs of some climate change-exposed infrastructure assets address climate-related risks."
  - Fully Met — "Methodologies prepared by the government for estimating the maintenance needs and associated costs of most climate change-exposed infrastructure assets address climate-related risks, and government asset registers include climate-related information on these assets."
- Related PIMA institutions: 9.a, 9.b, 9.c, 15.a, 15.b
- Key definitions (verbatim):
  - Asset register — "A record of the fixed assets a government entity owns that contains each asset details such as date of purchase, cost, specification, physical condition, depreciation, and potentially other climate change-related information such as energy efficiency rating or damage to or impairment of assets due to climate-related disasters or loss of value due to climate change transition risks."
  - Methodology for estimating maintenance needs — "Refers to a formal procedure involving an assessment of the physical requirements to maintain infrastructure asset performance and the associated cost of performing the maintenance, for example, a highway requires resealing every x years, at a budgeted cost of y percent of asset cost."
- Specific assessment questions (verbatim excerpts):
  - "Do the methodologies used to estimate routine maintenance needs and maintenance costs for climate change-exposed infrastructure assets incorporate explicit consideration of the exposure of assets to increased maintenance needs due to climate change..."
  - "Are the climate-related maintenance methodologies published?"
  - "Do the methodologies used to determine the need for major improvements to climate change-exposed infrastructure assets incorporate explicit consideration of the exposure..."
  - "Are there requirements for asset registers (or other records) to contain information either on the exposure of public infrastructure assets and networks to climate change or to actual damage to or impairment of assets due to the impacts of climate change? Are asset registers required to be regularly updated?"
  - "Are asset registers (or other records) required to contain information on the contribution to the emission and capture of GHGs of relevant assets?"
  - "Is there a requirement that climate change transition risks to the value of relevant assets are recorded in asset registers?"
  - "Is there a requirement that the government publishes a balance sheet that incorporates changes in infrastructure asset values due to climate-related impairments?"
- Scoring interpretation (verbatim excerpts):
  - "A not met score implies that there are either no government asset management policies and practices and methodologies for assessing maintenance needs, or those documents do not provide guidelines on how to assess the maintenance needs of climate change-exposed infrastructure assets."
  - "A partially met score indicates that there are methodologies for assessing maintenance needs for some climate change-exposed infrastructure assets. For a partially met score, the methodologies should apply to 25 percent or more of the sectors referred to in NDC and NAP or equivalent strategies and plans."
  - "A fully met score implies that there are methodologies for assessing maintenance needs for some climate change-exposed infrastructure assets. For a fully met score, the methodologies should apply to 50 percent or more of the sectors referred to in NDC and NAP or equivalent strategies and plans. The government asset registers should also include climate-related information on these assets for 50 percent or more of the sectors referred to in NDC and NAP or equivalent strategies and plans."
- Important documents (use questions verbatim):
  - "Legal and regulatory framework for public asset management" — "Are there requirements for asset registers to record climate-related information on assets?"
  - "Relevant sector ministry documents/methodologies for estimating maintenance costs" — "Is exposure to climate-related risks referred to as a factor in setting norms for maintenance or for estimating maintenance budgets?"
  - "Ministry of Finance guidelines or circulars on budgeting for maintenance" — "Is exposure to climate-related risks referred to as a factor in setting maintenance budgets in relevant sectors?"

### Dimension C.5.a — National Disaster Risk Management Strategy and projected climate impacts on infrastructure
- Purpose: assesses whether the government publishes a National Disaster Risk Management Strategy (NDRMS) that incorporates projected climate change impacts on public infrastructure assets and networks.
- Key contextual points (verbatim/paraphrase from source):
  - "This dimension assesses governments’ readiness to manage disaster-related risks to existing and new public infrastructure. This covers a range of elements from location-specific data on hazards and asset exposures to arrangements for rebuilding infrastructure after a disaster."
  - "122 countries now have a National Disaster Risk Management Strategy."
- Table excerpt: Types of climate-related disasters (verbatim)
  - Sudden impact disasters — "Tropical storms, floods, landslides, wildfires, and heatwaves."
  - Slow-onset (chronic) disasters — "Sea level rise, droughts, desertification, deforestation, and pest infestation."
  - Compound disasters — "Typhoon following earthquake; combination of sea level rise and storm surges; industrial accident triggered by a disaster; epidemic disease following a disaster."
- Questionnaire options (three-box format, verbatim):
  - Not Met — "Either there is no published National Disaster Risk Management Strategy, or the strategy does not identify the key climate-related risks to public infrastructure assets and networks."
  - Partially Met — "The government publishes a National Disaster Risk Management Strategy that identifies the key climate-related risks to public infrastructure assets and networks in terms of hazards, exposure, and vulnerability."
  - Fully Met — "The government publishes a National Disaster Risk Management Strategy that identifies and analyses the key climate-related risks to public infrastructure assets and networks in terms of hazards, exposure, and vulnerability, and includes the government’s plans to mitigate and respond to these risks."
- Relation to fiscal transparency: "Note that Principle 3.2.7 in the IMF Fiscal Transparency Code (FTC), on environmental risks, assesses whether government’s potential fiscal exposure to natural disasters is analyzed, disclosed, and managed, and published country Fiscal Transparency Evaluations have information on this."
- Definition highlights (verbatim):
  - Hazard — "The type of climate-related disaster that could damage an infrastructure asset, for example, typhoon, coastal flooding, landslip, torrential rain."
  - Exposure — "Location-specific assessment of the potential for disasters to impact on an infrastructure asset."
  - Vulnerability — "How vulnerable or resilient the asset is to damage or service impairment from the hazards to which it is exposed."
  - Disaster — "A serious disruption of the functioning of a community or a society involving widespread human, material, economic, or environmental losses and impacts, which exceeds the ability of the affected community or society to cope using its own resources (UNISDR)."
  - Compound disaster — "Where one disaster may precipitate another, either by directly causing it or by severely impairing the resilience and response to the second event, for example, tropical storm triggering technological accident or epidemic."
- Example data table excerpt (verbatim labels and some entries preserved as in source):
  - Table 4.2. Exposure of Infrastructure Assets to Coastal Flooding in the United Kingdom
    - Infrastructure Asset at 1:75 or Greater Risk of Coastal Flooding (present day) — columns: England | Northern Ireland | Scotland | Wales | Total (UK wide)
    - Water sites (no.) — 3 | 1 | 10 | 8 | 22
    - Sewage treatment works (no.) — 53 | 0 | 20 | 18 | 91
    - Power stations (no.) — 3 | 4 | 10 | 3 | 5
    - Electricity substations (no.) — 2 | 30 | 47 | 34
    - Rail length (km) — 1142 | 0 | 653 | 125 | 11
    - Rail stations (no.) — 535 | 122 | 5
    - Landfill sites — 0 | 0 | 0 | 0 | 0
    - Source: Technical Report of the Third UK Climate Change Risk Assessment (CCRA3), Chapter 4.
- Specific assessment questions (verbatim excerpts):
  - "Is there a legal requirement for government to publish an NDRMS or equivalent document? Is the strategy published?"
  - "What is the strategy required to cover with respect to public investment? For instance, improving understanding of risks to public infrastructure assets and networks from climate-related disasters; building data on the level of exposure of public infrastructure to disasters and the level of vulnerability to damage; strengthening disaster risk governance; investing in climate-related disaster risk reduction (e.g., higher infrastructure construction standards, early warning systems); enhancing disaster preparedness for effective responses to climate-related disasters, for example, operational frameworks for 'Building Back Better' after a disaster."
  - "Does the strategy assess the potential economic and social impacts of climate-related damage to public infrastructure? Is the strategy required to include plans to mitigate these impacts?"
  - "Are government-provided insurance/support mechanisms (explicit schemes such as flood insurance or implicit coverage such as post disaster relief) potentially encouraging new building or rebuilding of private assets in high-risk areas that then generate demand for public infrastructure services in those areas?"
  - "Are there procedures to speed up public investment procurement in response to climate-induced disasters? Are the procedures appropriate? Do they include ex ante and ex post safeguards?"
- Scoring interpretation (verbatim excerpts):
  - "A not met score implies that the national disaster risk management strategy is absent or the climate-related risks to infrastructure have not been identified and analyzed in the strategy."
  - "A partially met score indicates that the government has issued a national disaster risk management strategy. This should identify hazards, exposure, and vulnerability of infrastructure assets and networks."
  - "For a fully met score, a national disaster risk management strategy is published and it identifies and analyses the hazards, exposure, and vulnerability of infrastructure assets and networks. The strategy also includes mitigation measures to decrease the risk posed by natural disasters to critical infrastructure and plans to respond to these risks."
- Important documents (use question verbatim):
  - "National Disaster Risk Management Strategy (NDRMS) or similar national strategy document" — "To what extent does the NDRMS identify and analyze the key climate-related risks to public infrastructure assets and networks in terms of hazards, exposure, and vulnerability? Does it include government plans to mitigate and respond to these risks?"
  - "Does it cover post disaster reconstruction of infrastructure?"

*Source: cpimaea - Box 4.12 describes Bangladesh’s climate budget reporting (C-PIMA Handbook, Part 2).*

### Box 4.15 describes several countries’ use of technology in climate-related hazard risk mapping.

### Box 4.15. Using Technology to Improve Climate-Related Hazard Risk Mapping

### Purpose and data needs
- Accurate geophysical information on the location, nature, and frequency of climate-related hazards is required for an effective response.
- Generating such information requires synthesis of:
  - accurate geophysical maps;
  - precise data on the location of current and planned infrastructure, housing, buildings, and other structures;
  - detailed data on past, present, and predicted future incidence of hazards;
  - data on other environmental factors;
  - information on the location, size, and nature of past climate-related natural disasters.
- Technology can support the synthesis through:
  - sophisticated satellite imaging techniques;
  - mapping programs that bring multiple datasets together.

### Country experiences (technology applications)
- Jamaica
  - The Planning Institute of Jamaica (PIOJ) is developing the Jamaica Systematic Risk Assessment Tool (J-SRAT) as a geospatial analysis platform.
  - J-SRAT identifies hotspots of climate vulnerability across critical infrastructure to help prioritize planning of resilient capital investment.
  - Functional improvements underway include use of spatial “event sets” of hurricanes and flooding, and enhanced analysis of adaptation options.
  - J-SRAT will contribute directly to risk screening for public infrastructure projects.
- Cook Islands
  - Infrastructure Cook Islands (ICI) commissioned a study using “light detection and ranging” (LiDAR) approaches to map land and marine areas up to 35 meters in depth across all 15 islands.
  - Outputs will generate accurate 3D information on the earth’s surface and objects such as buildings, trees, other ground cover, and stores of underground water.
  - Uses of the imaging include:
    - planning: map the current landscape more accurately;
    - environmental protection: improve understanding of existing land use and land use change over time;
    - transport: clarify understanding of optimal transport paths;
    - emergency management: identify areas and assets most at risk to natural disaster and severe weather impact.
- Costa Rica
  - The “Commision Nacional de Emergencias” operates public-access disaster and hazard maps covering hurricanes, fires, emergency callouts, and earthquakes.
  - This activity is part of the commission’s role under the National Law on Emergencies and Risk Prevention to coordinate state institutions active in disaster preparedness and response.
- Grenada
  - The government publishes a national disaster risk management and response strategy and conducts analyses of key climate-related risks to public infrastructure assets.
  - The Disaster Resilience Strategy 2022 (DRS) consolidates disaster risk management strategies and presents comprehensive responses and risk mitigation plans.
  - The DRS builds on the National Hazard Mitigation Plan 2006 (NHMP), which undertook a detailed analysis and hazard mapping of climate-related disaster risks (such as floods, landslides, storm surges, and coastal erosion) and their impacts on infrastructure (roads, ports, energy and water supply infrastructure, government buildings, schools, and hospitals).

### Key implications for public infrastructure risk management
- Synthesized geospatial data enables prioritization of resilient capital investment and direct risk screening for public infrastructure projects.
- High-resolution imaging (e.g., LiDAR) provides multi-use datasets that inform planning, environmental protection, transport optimization, and emergency management.
- Publicly available hazard maps support coordination of preparedness and response across state institutions.

### Representative statistics and references from adjacent boxes
- Cook Islands LiDAR mapping: up to 35 meters depth across all 15 islands.
- Grenada documents referenced: Disaster Resilience Strategy 2022 (DRS 2022) and National Hazard Mitigation Plan 2006 (NHMP 2006).

*Source: Box 4.15, C-PIMA Practitioners’ Guide (excerpt).*

### PART 2: Climate–PIMA Practitioners’ Guide 55

### PART 2: Climate–PIMA Practitioners’ Guide 55

### Institutional design for fiscal risk analysis of climate impacts on public investment
- Assessment focus: whether the government is required to conduct and publish a fiscal risk analysis that covers climate-related risks to public infrastructure assets.
- Scoring interpretation:
  - Not met: no legal requirement to conduct and publish a fiscal risk analysis or climate-related risks to public infrastructure assets are not required to be analyzed.
  - Partially met: government required to conduct and publish a fiscal risk analysis that incorporates a qualitative assessment of climate-related risks to public infrastructure assets over the medium term.
  - Fully met: government required to conduct and publish a fiscal risk analysis that incorporates a quantitative assessment of climate-related risks to public infrastructure assets over the medium term; analysis should include measures to mitigate these risks and a qualitative assessment of risks that may arise over the long term.

### Important documents to review for fiscal risk disclosure and mitigation
- Public finance and budget laws and regulations
  - Do they refer to the conduct and publication of details of fiscal risks, including climate-related fiscal risks?
- Fiscal Strategy Report, fiscal risk statement, Long-Term Fiscal Statement
  - Do these documents discuss climate-related fiscal risks relating to public infrastructure in qualitative terms, in quantitative terms?
  - Do they discuss policies to mitigate these risks?
- Strategic plans of main climate-exposed sector ministries
  - Do these documents discuss climate-related fiscal risks relating to public infrastructure in qualitative terms, or in quantitative terms?
  - Do they discuss policies to mitigate these risks?

### Box 4.18 — Fiscal Risk Analysis in Costa Rica (summary)
- Context: Costa Rica’s plan to decarbonize its transportation sector could generate fiscal risks despite long-term economic and environmental benefits.
- Quantified fiscal risks considered:
  1. Potential cost for the central government of implementing electric public transportation means (subsidies to service operator to maintain minimum expected profitability).
  2. Change in fuel tax revenues due to increased importation of electric or environmentally friendly vehicles (decrease in fossil fuel demand → direct impact on revenue).
  3. Change in revenue from other taxes due to increased importation of electric or environmentally friendly vehicles.
- Fiscal estimate: The 2023–28 Medium-Term Fiscal Framework (MTFF) estimates the fiscal cost of the three analyzed elements at 2.4 percent of GDP in present value terms.
- Additional analysis: The MTFF presents some scenario analysis.
- Source cited in text: 2023–2028 Medium Term Fiscal Framework.

### Cross-cutting issues for climate-sensitive PIM
- Overview: C-PIMA assesses three cross-cutting issues—legal framework, information systems, and staff capacity—aligned with PIMA assessments.

A. Legal Framework
- Typical legal hierarchy to assess: primary laws, secondary laws (regulations), technical guidelines and methodological documents.
- Suggested assessment elements:
  - Identify substantive gaps relating to climate change and PIM.
  - Identify inconsistencies between new climate-related instruments and existing PIM/PFM laws.
  - Identify overlapping competencies or lack of clarity over roles of different entities relevant to climate-related PIM.

B. Information Systems
- Purpose: capture relevant climate-related project and asset-level data; link or integrate with government financial management information systems.
- Key issues and opportunities:
  - Multiple IT systems can cause fragmentation and lack of information sharing; interfaces and data exchange are necessary.
  - Potential value of interfacing national GHG MRV systems (typically MoEnv) with PIM databases maintained by Ministry of Planning or MOF; PIM databases should increasingly contain emissions impacts of new public investment projects.
  - GIS mapping tools are important for managing exposure and vulnerability of public infrastructure to climate hazards; multihazard maps integrated with infrastructure location facilitate risk analysis and risk-reduction actions.
  - Investing in freely accessible natural hazard and climate change data yields returns:
    - Investments in risk data and models (hydrological models, flood hazard maps, digital elevation models, infrastructure inventories) improve resilience.
    - Public access to online hazard data can reduce private investment in hazard-prone areas, reducing economic losses and government implicit exposure.
  - Budgeting systems: consider whether identifying and reporting climate-related public investment spending requires new budget codes and IFMIS capacity; where feasible, use existing program and project classifications to generate additional reports.

C. Staff Capacity
- Dimensions: individual skills, staff numbers, centralized guidance/support, training, institutional capacity, and interministerial coordination.
- Observations:
  - Adaptation assessments are data heavy; many countries lack required functionalities (e.g., climate-resilient design, shadow carbon pricing in project appraisal).
  - Skilled personnel in climate-sensitive PIM are scarce and in demand across public and private sectors.
  - Environment ministries (MoEnv) typically have most relevant climate mitigation/adaptation capacity and often house climate change directorates responsible for NDCs, MRV platforms, and National Adaptation Plan monitoring.
  - Opportunities exist to leverage MoEnv expertise to support Planning Ministry/MOF at stages such as project appraisal and selection.
  - Governments may leverage capacity in universities, research institutions, and development partners to transfer skills (example noted: Tamil Nadu’s Center for Climate Change and Disaster Management at Anna University).
  - Central fiscal agencies (MOF/Planning) typically lack dedicated climate units or staff with climate policy expertise; minimal requirement is designated qualified focal points for climate-sensitive PIM.
  - Emerging institutional approaches: larger ministries may create dedicated climate units; smaller ministries may adopt focal point coordination roles (Coalition of Finance Ministers for Climate Action 2023).

### Appendix I: Climate–PIMA Questionnaire — Selected items (C.1–C.3)
- C.1 Climate-Aware Planning: Is Public Investment Planned from a Climate Change Perspective?
  - C.1.a Are national and sectoral public investment strategies and plans consistent with NDC or other overarching climate change strategy on mitigation and adaptation?
    - Not Met: strategies and plans are not consistent with NDC or other overarching climate change strategy.
    - Partially Met: consistent with NDC or strategy for some sectors.
    - Fully Met: consistent with NDC or strategy for most sectors.
  - C.1.b Do central government and/or subnational government regulations on spatial and urban planning, and construction address climate-related risks and impacts on public investment?
    - Not Met: regulations do not address climate-related risks and impacts.
    - Partially Met: spatial planning or building codes address climate-related risks and impacts.
    - Fully Met: spatial planning and construction (building codes) address climate-related risks and impacts.
  - C.1.c Is there centralized guidance/support for public sector entities on the preparation and costing of climate-aware public investment strategies?
    - Not Met: no centralized guidance/support.
    - Partially Met: centralized guidance/support exists for preparation.
    - Fully Met: centralized guidance/support exists for preparation and costing.

- C.2 Coordination between Entities: Is There Effective Coordination of Climate Change–Related Public Investment across the Public Sector?
  - C.2.a Is public investment coordinated across central government from a climate change perspective?
    - Not Met: not coordinated.
    - Partially Met: coordinated across budgetary central government.
    - Fully Met: coordinated across all central government, including externally financed projects, PPPs, and extra-budgetary entities.
  - C.2.b Is capital spending of SNGs coordinated with the central government from a climate change perspective?
    - Not Met: SNG capital spending not coordinated.
    - Partially Met: central government issues guidance and information on major SNG climate-related projects is shared and published alongside central projects.
    - Fully Met: guidance issued, SNG project information shared and published, and there are formal discussions between central government and SNGs on climate-related investments.
  - C.2.c Does the regulatory and oversight framework for public corporations ensure that their climate-related investments are consistent with national climate policies and guidelines?
    - Not Met: framework does not promote consistency.
    - Partially Met: framework promotes consistency.
    - Fully Met: framework requires consistency.

- C.3 Do Project Appraisal and Selection Include Climate-Related Analysis and Criteria?
  - C.3.a Does the appraisal of major infrastructure projects require climate-related analysis to be conducted according to a standard methodology?
    - Not Met: appraisal does not require climate-related analysis by standard methodology.
    - Partially Met: appraisal requires climate-related analysis by standard methodology.
    - Fully Met: appraisal requires climate-related analysis by standard methodology, and a summary of appraisals is published or subject to independent external review.
  - C.3.b Does the framework for managing longer-term contracts, such as PPPs, explicitly address climate-related challenges?
    - Not Met: framework does not include explicit consideration of climate change for risk allocation or contract management.
    - Partially Met: framework includes explicit consideration of climate change with respect to risk allocation between parties.
    - Fully Met: framework includes explicit consideration and contract managers in government departments and agencies are mandated to address climate-related challenges.
  - C.3.c Are climate-related elements included among the criteria required by the government for the selection of infrastructure projects?
    - Not Met: no explicit selection criteria or climate-related elements are not included.
    - Partially Met: climate-related elements are included among criteria for selection of all major budget-funded projects, and criteria are published.
    - Fully Met: climate-related elements included among criteria for all major projects, including externally financed projects, extra-budgetary entities, and PPPs, and the criteria are published.

*Source: PART 2: Climate–PIMA Practitioners’ Guide (excerpt).*

### Appendix I 63

### Appendix I 63

### C4. Budgeting and Portfolio Management: Is Climate-Related Investment Spending Subject to Active Management and Oversight?

- C.4.a — Are planned climate-related public investment expenditures, sources of financing, outputs and outcomes identified in the budget and related documents, monitored, and reported?
  - Not Met: Planned climate-related public investment expenditures are not identified in the budget and related documents.
  - Partially Met: Some planned climate-related public investment expenditures are identified in the budget and related documents, including projects funded externally, by extra-budgetary entities, and PPPs.
  - Fully Met: Most planned climate-related public investment expenditures, sources of financing, and outputs and outcomes are identified in the budget and related documents, including projects funded externally, by extra-budgetary entities, and PPPs, and expenditure on these projects is monitored and reported.

- C.4.b — Are ex post reviews or audits conducted of the climate change mitigation and adaptation outcomes of public investments?
  - Not Met: No ex post reviews or audits are conducted of the climate change mitigation and adaptation outcomes of public investments.
  - Partially Met: Ex post reviews or audits are conducted for selected major public investments of either the climate change mitigation or adaptation outcomes.
  - Fully Met: Ex post reviews or audits are conducted and published for selected major public investments of both the climate change mitigation and adaptation outcomes.

- C.4.c — Do the government’s asset management policies and practices, including the maintenance of assets, address climate-related risks?
  - Not Met: Neither the government’s asset management policies and practices nor methodologies for estimating the maintenance needs of climate change-exposed infrastructure assets address climate-related risks.
  - Partially Met: Methodologies prepared by the government for estimating the maintenance needs of some climate change-exposed infrastructure assets address climate-related risks.
  - Fully Met: Methodologies prepared by the government for estimating the maintenance needs and associated costs of most climate change-exposed infrastructure assets address climate-related risks, and government asset registers include climate-related information of these assets.

### C5. Risk Management: Are Fiscal Risks Related to the Impact of Climate Change on Infrastructure Incorporated in Budgets and Fiscal Risk Analysis and Managed According to a Plan?

- C.5.a — Does the government publish a national disaster risk management strategy that incorporates the projected impact of climate change on public infrastructure assets and networks?
  - Not Met: Either there is no published national disaster risk management strategy or the strategy does not identify the key climate-related risks to public infrastructure assets and networks.
  - Partially Met: The government publishes a national disaster risk management strategy that identifies the key climate-related risks to public infrastructure assets and networks in terms of hazards, exposure, and vulnerability.
  - Fully Met: The government publishes a national disaster risk management strategy that identifies and analyzes the key climate-related risks to public infrastructure assets and networks in terms of hazards, exposure, and vulnerability, and includes the government’s plans to mitigate and respond to these risks.

- C.5.b — Has the government put in place ex ante financing mechanisms to manage the exposure of the stock of public infrastructure to climate-related risks?
  - Not Met: The government has not put in place any ex ante financing mechanisms to manage the exposure of the stock of public infrastructure to climate-related risks.
  - Partially Met: There is an annual contingency appropriation in the budget or other financing mechanisms that is available to meet the costs of climate-related damages to public infrastructure.
  - Fully Met: There is an annual contingency appropriation in the budget and other financing mechanisms that are available to meet the costs of climate-related damages to public infrastructure.

- C.5.c — Does the government conduct and publish a fiscal risk analysis that incorporates climate-related risks to public infrastructure assets?
  - Not Met: The government does not conduct a fiscal risk analysis that incorporates climate-related risks to public infrastructure assets.
  - Partially Met: The government conducts and publishes a fiscal risk analysis that incorporates a qualitative assessment of climate-related risks to public infrastructure assets over the medium term.
  - Fully Met: The government conducts and publishes a fiscal risk analysis that incorporates a quantitative assessment of climate-related risks to public infrastructure assets over the medium term and policies to mitigate these risks, and a qualitative assessment of the risks that may arise over the long term.

### Appendix II: General Issues in Assessing C-PIMA Institutions

- Purpose and scope
  - C-PIMA assesses the formal PIM system (policies, strategies, legislation, regulations) to determine whether institutional design aligns with international good practices.
  - Institutional design assessment describes potential effects if the framework is fully applied; scores are based on current legal frameworks and formal strategies and policies.
  - Design scores should be based on literal interpretation of criteria (e.g., existence of law/regulation/policy approved by parliament receives full credit even if adherence varies).

- Thresholds and legal basis
  - Institutional design thresholds focus on the legal basis for provisions, including laws, regulations, strategies, policies, ministerial regulations, and guidelines (examples: guidelines for climate-related project appraisal, the Budget Call Circular, EIA requirements).

- Effectiveness versus design
  - Effectiveness of institutions (how well systems work in practice) is not formally scored at this stage; the 15-dimension scores are based solely on institutional design.
  - Where information exists, the assessment may discuss effectiveness (e.g., noted nonproduction of a required strategy or partial enforcement of regulations).

- Scope of assessment
  - C-PIMA focuses on investments by the central government sector; Institution C2 covers coordination with other levels of government and oversight of PCs.
  - Assessment can be expanded to SNGs or PCs where they are major contributors; any scope expansion must be clearly specified.
  - The C-PIMA framework can be applied to a subnational government with adaptations (planning documents scoped to subnational territory).

- Box AII.1 — C-PIMA Applied at the State Level in India (examples)
  - Central government sets objectives and strategies through the NDC; states/unions were asked to prepare SAPCCs.
  - Tamil Nadu and Odisha have developed strategies and policies for adaptation and GHG mitigation.
  - Data availability at state level includes public infrastructure quality, incidence of disaster impacts, and climate projections.
  - Cross-state rankings on climate metrics are available (examples listed: emissions intensity of gross state domestic product; current renewable energy compared to potential; energy efficiency of industrial output; growth in forest cover).
  - Sources cited: India – State of Odisha PIMA/C-PIMA 2024; India – State of Tamil Nadu PIMA/C-PIMA 2023.

- Definition of major projects
  - Use national (or regional) definition; verify reasonableness and consistency with practices.
  - Common approaches:
    - Threshold by total project costs (example threshold cited: 10 million local currency units).
    - Complexity/high risk projects defined as major even below cost threshold.
    - Politically prioritized projects may be defined as major.
    - Externally financed projects or PPPs sometimes defined as major regardless of cost.
  - Typical country experience:
    - Number of major projects under preparation and implementation often ranges from 30 to 100.
    - Their share of the total investment budget will often be in the range of 50 to 75 percent.

- Relationship between C-PIMA and PIMA
  - Many intersections exist; some C-PIMA indicators relate closely to PIMA dimensions, others do not (notably risk management dimensions).
  - C-PIMA dimension scores should be consistent with related PIMA dimension scores; differences must be justified by specific criteria differences.
  - Preference for conducting PIMA and C-PIMA jointly or sequentially; C-PIMA can be standalone when PIM is well documented.

- C-PIMA focus versus fiscal/climate policy
  - C-PIMA is confined to PFM issues (design of institutional arrangements for planning, budgeting, implementing climate-related public investment and managing climate-related fiscal risks).
  - C-PIMA does not assess the ambition of a country’s NDC or the level of carbon pricing (carbon tax, ETS) as fiscal policy.
  - C-PIMA does assess government use of a shadow carbon price in conducting cost-benefit analysis of major infrastructure projects (institutional arrangement for incorporating GHG externalities in project appraisal).

- Table AII.1 — Relationships between C-PIMA and PIMA Dimensions (mapping)
  - C.1.a ↔ 2.a, 2.b
  - C.1.b ↔ No counterpart
  - C.1.c ↔ No counterpart
  - C.2.a ↔ 7.a, 7.b, 7.c, 3.c
  - C.2.b ↔ 3.a
  - C.2.c ↔ 5.c, 2.a
  - C.3.a ↔ 4.a, 4.b, 4.c
  - C.3.b ↔ 5.b
  - C.3.c ↔ 10.a, 10.b, 10.c
  - C.4.a ↔ 6.a, 6.c, 7.b, 7.c
  - C.4.b ↔ 13.c, 14.c
  - C.4.c ↔ 9.a, 9.b, 9.c, 15.a, 15.b
  - C.5.a ↔ No counterpart
  - C.5.b ↔ No counterpart
  - C.5.c ↔ No counterpart

### Appendix III: Templates for C-PIMA Reports (excerpt)

- Common organization of a combined PIMA and C-PIMA report (Box AIII.1.)
  - Executive Summary (include C-PIMA findings and recommendations and the C-PIMA flower chart)
  - Section 1. Public Investment Context
    - Trends in Total Public Investment
    - Composition
    - Impact
    - Efficiency
  - Section 2. Public Investment Management Institutions
    - Overall Assessment
    - PIMA Institutional Analyses

*Source: cpimaea - Appendix I 63 (from cpimaea - Appendix I 63, cpimaea.pdf)*

### Section 3. Climate Change Public Investment Management Assessment

### Section 3. Climate Change Public Investment Management Assessment

### Climate Change and Public Infrastructure
- Emphasizes the interaction between climate-related hazards and public infrastructure assets, noting that hazards include "tropical cyclones, tornadoes, drought, heavy rain episodes causing floods or landslides, high winds, fires, and temperature extremes."
- Highlights vulnerability and exposure distinctions:
  - Exposure: "the exposure of a highway to damage from flooding." Exposure alone is not sufficient for risk.
  - Vulnerability: "the characteristics and circumstances of a public investment asset that make it susceptible to the damaging effects of a hazard."
- Notes resilience definition relevant for public investment: "the ability of an asset or network exposed to hazards to resist, absorb, accommodate to, and recover from the effects of a hazard in a timely and efficient manner."

### The Climate Change PIMA Framework
- The C-PIMA module comprises 15 dimensions within the broader PIMA questionnaire (the PIMA questionnaire has 45 dimensions).
- Framework scope and focus points:
  - Integration of climate change objectives and strategies into public investment planning.
  - Treatment of both adaptation and mitigation in project appraisal and selection.
  - Consideration of transition risks and stranded assets in public asset management.
  - Cross-cutting legal, institutional, and capacity issues that support climate-aware public investment management.

### Detailed Assessment and Recommendations
- The C-PIMA report structure (common organization) includes:
  - Executive Summary
  - Section 1. Climate Change Context (Climate Change and Public Infrastructure; Climate Change Objectives and Strategies)
  - Section 2. Climate Change Public Investment Management Assessment (The Climate Change PIMA Framework; Detailed Assessment and Recommendations; Cross-Cutting Issues)
  - Appendices (C-PIMA Questionnaire; Detailed C-PIMA Scores)
- Key recommended reform areas (as exemplified by the Jamaica C-PIMA Action Plan):
  1. Improve the climate-informed medium-term fiscal and budget framework to guide budget preparation. (Dimension: C5)
     - Actions:
       - "Integrate disaster risks to public infrastructure assets and other climate-related risks in fiscal risk analysis." — Implementation years: 2023, 2024, 2025, 2026. Responsible: MOFPS. TA Needs: X.
       - "Finalize and approve the National Natural Disaster Risk Financing Policy to inform the selection of the most cost-effective financing mechanisms." — Implementation year: 2023. Responsible: MOFPS.
  2. Strengthen the climate change strategic guidance of planning for capital budgeting. (Dimensions: C1, C2)
     - Actions:
       - "Develop centralized guidance on how to integrate climate change perspectives into sector-specific public investment planning." — 2023, 2024. Responsible: PIOJ, MEGJC. TA Needs: X.
       - "Integrate national climate objectives and climate-related major capital projects in sectoral plans as they are updated." — 2023, 2024, 2025, 2026. Responsible: PIOJ, LMs.
       - "Revise the legislation on land use and physical planning to integrate a climate change perspective." — 2024, 2025. Responsible: NAPA. TA Needs: X.
       - "Introduce climate change’s capital investment–related aspects in cross public sector coordination." — 2023, 2024, 2025, 2026. Responsible: PIOJ, MEGJC, MOFPS, LMs.
  3. Revise the framework for private and public bodies’ participation in climate-smart infrastructure. (Dimensions: C2, C3)
     - Actions:
       - "Finalize and approve the revised public–private partnership (PPP) policy, including climate change requirements into PPP arrangements from project design to contract management." — 2023. Responsible: MOFPS, DBJ.
       - "Revise the PPP Standard Operating Procedure Manual to reflect these requirements." — 2023. Responsible: MOFPS, DBJ.
       - "Integrate national climate objectives when developing a new overarching regulatory framework for public corporations." — 2023, 2024. Responsible: MOFPS. TA Needs: X.
  4. Develop climate change project appraisal and selection methodologies and apply them consistently to all projects, regardless of financing source. (Dimension: C3)
     - Actions:
       - "Develop a standardized methodology for climate change analysis in project appraisal." — 2023. Responsible: MOFPS. TA Needs: X.
       - "Establish a transparent process, with clearly defined and published selection criteria, including climate change criteria, for the selection of projects for implementation." — 2023. Responsible: PIOJ. TA Needs: X.
  5. Enhance transparency on green and resilient investment projects in budget documentation. (Dimensions: C4, Cross-cutting)
     - Actions:
       - "Gradually introduce green budgeting identifying and tracking climate-related expenditures with the Ministry of Finance and Public Service (MOFPS) quality review." — 2023, 2024, 2025, 2026. Responsible: MOFPS, LMs. TA Needs: X.
       - "Include the climate tags in the coding structure of the financial management information system (FMIS)." — 2023, 2024. Responsible: MOFPS.
       - "Interface the FMIS with the Public Investment Management Information System (PIMIS)." — 2023. Responsible: MOFPS.
  6. Introduce climate change arrangements for the ex post evaluation of investment projects. (Dimension: C4)
     - Actions:
       - "Develop a methodology and requirements for ex post reviews of climate-relevant infrastructure projects with respect to adaptation and mitigation." — 2023. Responsible: MOFPS, PIJO. TA Needs: X.
       - "Conduct ex post reviews on climate outcomes of a selected number of major projects completed every year according to the new methodology." — 2024, 2025. Responsible: MOFPS, LMs.
       - "Develop a methodology to conduct climate change audit of green and resilient infrastructure." — 2023. Responsible: AG. TA Needs: X.
       - "Include in the auditor general’s (AG) work plan at least two climate change audits of a major public investment project each year." — 2024. Responsible: AG.
  7. Develop a climate-smart assets register and ensure adequate funding for maintenance of assets. (Dimension: C4)
     - Actions:
       - "Develop a centralized register of infrastructure assets—indicating the values and condition of the assets including climate-related information—and ensure that is updated on a regular basis to support determination of appropriate maintenance levels." — 2023, 2024, 2025. Responsible: MOFPS, LMs. TA Needs: X.
       - "Develop a standardized methodology for estimating current and capital maintenance needs including climate-related risks." — 2023. Responsible: MOFPS, LMs. TA Needs: X.
  8. Ensure that the legal framework and staff capacity are supportive of climate change PIM reforms. (Cross-cutting)
     - Actions:
       - "Revise the Financial Administration and Audit Act (FAA) to include climate change requirements throughout the project cycle." — 2023. Responsible: MOFPS. TA Needs: X.
       - "Develop a Climate Change Law to clarify, roles, responsibilities, and coordination." — 2023. Responsible: MEGJC, MOFPS. TA Needs: X.
       - "Strengthen the Planning Institute of Jamaica (PIOJ) to provide more guidance on climate-aware planning and preparation of public investment plans and projects from a climate change perspective." — 2023, 2024. Responsible: PIOJ. TA Needs: X.
       - "Enhance the capacities of the PIAB in the MOFPS to provide support to MDAs in project appraisal, including for climate analysis for project appraisal." — 2023, 2024. Responsible: MOFPS. TA Needs: X.
       - "Enhance the capacities of the Development Bank of Jamaica (DBJ) and the Public Enterprise Division in MOFPS to develop and supervise climate-smart PPP arrangements." — 2023, 2024. Responsible: MOFPS, DBJ. TA Needs: X.
       - "Strengthen staff capacity on mainstreaming climate change into public investment management across the central government and municipal corporations." — 2023, 2024, 2025, 2026. Responsible: LMs. TA Needs: X.

### Cross-Cutting Issues (summary)
- C-PIMA assessments should embed analysis of cross-cutting issues—including legal frameworks, institutional roles, capacity building, fiscal risk management, and transparency—within each relevant cross-cutting issue section of the assessment.
- Emphasizes the need to revise legislation (e.g., FAA, land use laws) and to develop overarching climate-related laws and policies (e.g., Climate Change Law; National Natural Disaster Risk Financing Policy).

### Glossary (selected terms and exact definitions preserved)
- Adaptation: "Climate change adaptation refers to actions to reduce vulnerability to the effects of climate change."
- Assets: "Any economic resource controlled by an entity as a result of past transactions or events and from which the economic owner may obtain future economic benefits over a period of time."
- Exposure: "Risks arising from interactions between physical public investment assets and climate-related events and disasters, for example, the exposure of a highway to damage from flooding."
- Fiscal risks: "Potential shocks to government revenues, expenditures, assets, or liabilities that may cause fiscal outcomes to depart from expectations or forecasts."
- Greenhouse gas (GHG) emissions: "A GHG is a gas that absorbs and emits radiant energy within the thermal infrared range. There are six GHGs covered by the UN Framework Convention on Climate Change and its Kyoto Protocol: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride."
- Maladaptation: "With respect to public investment, an action that may lead to increased risk of adverse climate-related outcomes, increased vulnerability to climate change, or diminished welfare, now or in the future (IPCC)..."
- Mitigation: "Climate change mitigation refers to actions to limit the magnitude and/or rate of long-term climate change."
- Outputs and outcomes: Outputs = "the goods or services produced by government agencies"; Outcomes = "the effects on social, economic, or other indicators arising from the delivery of outputs..."
- Parametric insurance: "A type of insurance contract that insures a policyholder against the occurrence of a specific event by paying a set amount based on the magnitude of the event..."
- PPP: "A long-term contract between a public and a private entity... C-PIMA assessments should treat any long-term concession... as a PPP (see GFSM 2014)."
- Resilience: "The ability of an asset or network exposed to hazards to resist, absorb, accommodate to, and recover from the effects of a hazard in a timely and efficient manner..."
- Stranded assets: "Assets that have suffered from unanticipated or premature write-downs, devaluations, or conversion to liabilities, due to factors associated with climate change..."
- Transition risks: "The financial risks government bears as owner of non-financial assets which could result from the process of adjustment toward a lower-carbon economy..."

*Source: Section 3. Climate Change Public Investment Management Assessment, C-PIMA Handbook (selected content and Jamaica C-PIMA Action Plan example).*

### REFERENCES

### REFERENCES

### Cited works and guidance
- Allen, R., M. Betley, C. Renteria, and A. Singh. 2020. “Integrating Infrastructure Planning and Budgeting.” In Well Spent: How Strong Infrastructure Governance Can End Waste in Public Investment, edited by Schwartz, G., M. Fouad, T. Hansen, and G. Verdier. Washington, DC: International Monetary Fund.
- Aydin Sakrak, O., B. Battersby, F. Gonguet, C. P. Wendling, J. Charaoui, and M. Petrie. 2022. “How to Make the Management of Public Finances Climate-Sensitive–’Green PFM.’” IMF How-To Note No 2022/006, International Monetary Fund, Washington, DC.
- Batini, N., M. di Serio, M. Fragetta, G. Melina, and A. Waldron. 2021. “Building Back Better: How Big Are Green Spending Multipliers.” IMF Working Paper 2021/087, International Monetary Fund, Washington, DC.
- Coalition of Finance Ministers for Climate Action. 2023. “Strengthening the Role of Ministries of Finance in Driving Climate Action: A Framework and Guide for Ministers and Ministries of Finance.” The Grantham Research Institute on Climate Change and the Environment. United Kingdom.
- Global Commission on Adaptation. 2019. “Adapt Now: A Global Call for Leadership on Climate Resilience.” September. https://gca.org/reports/adapt-now-a-global-call-for-leadership-on-climate-resilience/
- Gonguet, F., C. Wendling, O. Aydin, and B. Battersby. 2021. “Climate-Sensitive Management of Public Finances—’Green PFM.’” IMF Staff Climate Note 2021/002, International Monetary Fund, Washington, DC.
- IMF. 2018b. Fiscal Transparency Handbook, Chapter 4, Pillar III: Fiscal Risk Analysis and Management, p. 95. Washington, DC.
- IMF 2021c. G20 Note on Environmentally Sustainable Investment for the Recovery. Washington, DC, April.
- IMF. 2022. PIMA Handbook: Public Investment Management Assessment, 1st edition. Washington, DC: International Monetary Fund.
- IPCC. 2021. “Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change.” Cambridge University Press, Cambridge, United Kingdom.
- Liu, M., and M. C. Huang. 2014. “Compound Disasters and Compounding Processes: Implications for Disaster Risk Management.” Input Paper in 2015 Global Assessment Report on Disaster Risk Reduction. UNISDR, Geneva.
- Public Expenditure and Financial Accountability. 2024. “Climate Responsive Public Financial Management (PEFA Climate).” May.
- Rozenberg, J., and M. Fay. 2019. Beyond the Gap: How Countries Can Afford the Infrastructure They Need while Protecting the Planet. Sustainable Infrastructure. Washington, DC: World Bank.
- Schwartz, G., M. Fouad, T. Hansen, and G. Verdier (eds.). 2020. Well Spent: How Strong Infrastructure Governance Can End Waste in Public Investment. Washington, DC: International Monetary Fund.
- Setzer, J., and C. Higham. 2023. Global Trends in Climate Change Litigation: 2023 Snapshot. London: Grantham Research Institute on Climate Change and the Environment and Centre for Climate Change Economics and Policy, London School of Economics and Political Science.
- Stern, N. 2021. “G7 Leadership for Sustainable, Resilient and Inclusive Economic Recovery and Growth: An Independent Report Requested by the UK Prime Minister for the G7.” London School of Economics. June.
- UNEP. https://www.unep.org/topics/climate-action/mitigation
- van Loenhout, J., McClean, D., and others. 2020. “The Human Cost of Disasters: An Overview of the Last 20 years (2000-2019).” Centre for Research on the Epidemiology of Disasters.
- World Bank. 2019. Lifelines: The Resilient Infrastructure Opportunity. Washington, DC: World Bank.

### Index highlights (selected topics and cross-references)
- Climate-PIMA (C-PIMA)
  - framework of, 4, 4f
  - overview of, 3–5
  - developed as extension of PIMA in 2021
  - conducted in more than 50 countries worldwide as of October 2024
  - scope, design, institutions, questionnaire, and reports referenced throughout (see entries: C-PIMA institutions; questionnaire; reports, templates for)
- Major thematic areas and location pointers in the handbook
  - Climate-aware planning: pages and entries 11–21; national and sectoral public investment strategies: 12–15; NDC and public investment strategies: 12–15
  - Project appraisal and selection: 29–38; climate-related appraisal analysis: 29–38; Multilateral Development Bank climate-sensitive appraisal practices: 33b
  - Budgeting, asset registers, and audits: budgeting and portfolio management, 39–47; asset register defined, 46; audits, 43–44 (case: Tamil Nadu, India, 44b–45b)
  - Coordination across central government and subnational governments: 21–29; subnational coordination cases: 24–26; capital spending coordination: 24–26, 26b, 26f
  - Risk management and fiscal analysis: Risk management, 48–57; fiscal risk analysis, 54, 55–57 (Costa Rica case: 57b–58b); ex ante financing mechanisms, 51–53
  - Cross-cutting issues: legal framework, 58, 58t; information systems, 59; staff capacity, 59–60
- Tools and modalities referenced
  - Climate Change Indicators Dashboard, 7b
  - Green PFM framework, 5, 5f
  - Fiscal Transparency Code (FTC), 6b, 49, 52
  - Green Book / Five-case model / Infrastructure and Projects Authority references: 32b, 33f
  - Geohazard mapping and LiDAR: technology to improve hazard risk mapping, 50b–51b; national examples: Cook Islands, Jamaica, Grenada, Costa Rica

### Handbook purpose, scope, and use
- Purpose
  - To help governments identify potential improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.
- Scope and audience
  - The C-PIMA Handbook outlines the importance of green resilient infrastructure investment for sustainable development and provides a detailed description of the C-PIMA framework, including five institutions and 15 dimensions, with country practice examples.
  - Aimed at participants in C-PIMA assessments and practitioners with a practical interest in public investment management and climate change.
- Applications and practical utility
  - Provides practical guidance to country authorities and development practitioners on how country systems incorporate climate considerations into public investment management and how they can be improved.

*C-PIMA Handbook, 1st Edition*

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_Source: https://www.imf.org/-/media/files/publications/books/2025/english/cpimaea.pdf_