The Green Fiscal Policy Network is a joint partnership between UN Environment (UNEP), the International Monetary Fund (IMF) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) launched in 2011. The Network aims to facilitate knowledge sharing and dialogue on green fiscal policy reforms.

International Institute for Sustainable Development (IISD) and the German Agency for International Cooperation (GIZ) (on behalf of the German Ministry for Economic Cooperation and Development) have undertaken a rapid review of INDCs to highlight the countries that are using these tools as part of their INDCs, catalogue the different tools that countries are referencing in their INDCs, identify the frequency of their use and identify trends in how countries are planning to use fiscal instruments to support achievement of INDCs.

This paper describes the opportunities and costs associated with the development of monitoring approaches for national climate change public finance. It describes a leading example of climate change budget tracking, summarises five tools that can support climate change financial monitoring, and identifies key enabling conditions for its effective application. The opportunity to apply these tools in non-Annex I countries is briefly described, along with a closer look at Costa Rica as a country with strong potential for effective tracking.