Climate budget for municipalities and counties

“Endrava contributed with its strong professional foundation and dynamic working methods in the development of Bodø municipality’s first climate budget. Our team experienced Endrava as inspiring discussion partners, effective evaluators and skilled process leaders. ”

Eirik Eide Haugmo, Bodø municipality

Determine the scope

One of the first steps in a climate budget is to define the scope for emissions. Which emissions should the climate budget include, and thus, which emissions should be reduced?

Should the climate budget only include the municipality’s or county’s own activities? Or the emissions throughout the whole geographical area? Should only direct emissions be reduced, or also indirect emissions?

Endrava advises you on the advantages and disadvantages of different types of scopes, and what the different alternatives entail.

Overview of historical and expected emissions

The starting point for climate budgets is the historical emissions from the municipality or county. Endrava helps you find and understand the right emission statistics. Then, many choose to establish a projection of emissions (a reference path) for their climate budget, but this is not a requirement. A reference path shows what the future looks like if we continue with “business as usual”.

How will greenhouse gas emissions develop if no new measures or policies are initiated? A reference path is useful for knowing where measures are needed, and for calculating the effect of new measures.

Endrava can provide advice in connection with the calculation of the reference path, or develop a reference for you, based on historical emissions, expected development and adopted measures.

Set targets and emission limits

What are the municipality’s climate goals, and what must the road there look like? A measure of how much emissions are to be cut is an important part of the climate budget. The targets must be concrete and measurable.

It is also useful to break down long-term targets in annual emission limits. An emission limit indicates how large the maximum emissions can be per year.

Endrava helps you establish targets that find the right balance between being both ambitious and feasible, and define the associated emission limits.

Evaluate and select measures and policy instruments

Once you have set targets for emission cuts, the job starts with finding good measures and policy instruments to achieve the targets. How should emissions be cut? Here, it is important to find measures in the sectors with the largest emissions, whether it is road traffic or industry for example. Policy instruments that will ensure that the measures are actually implemented are also important to put in place.

When the effects of all the measures are added together, you get an emission path that shows how far you will go if the measures are implemented. This emission path clarifies how far it remains to reach the reduction targets, and whether even more measures are needed. Here it is important to avoid double counting the effect of measures.

Endrava has extensive experience and broad knowledge of climate measures, and can help you identify, prioritize and calculate the effect of reduction measures.

Make a plan for follow-up

Once the reference path, targets and measures are in place, the important job of ensuring that the measures are actually implemented follows. Therefore a good plan for follow-up is needed. Such a plan includes elements such as the budget allocations, responsibilities and good reporting routines. It is also useful to develop indicators for measuring progress.

Endrava helps to develop good indicators adapted to your climate budget, and provides advice on implementation in the organization to ensure anchoring and implementation.

Would you like to learn more?

Feel free to contact us for more information on how we can assist your organization with a climate budget.