Methodology for the Identification and Quantification of Green Budget Expenditure Actions and Their Environmental Impact

The overall objective of the project was to develop criteria for the identification and quantification of revenue and expenditure actions, as well as their environmental impacts, within the framework of the implementation of a Green Budget in Mexico.

The main activities of the project included the development of an international comparative analysis on the implementation of Green Budgets, drawing on the approaches and elements developed by the Organisation for Economic Co-operation and Development (OECD); the identification of overlaps and duplications among policies, instruments and actions at the federal, state and municipal levels related to environmental objectives and public revenue and expenditure policies; and the assessment of the environmental effects associated with these measures.

The project also developed a methodology for the implementation of the Green Budget in Mexico, building on the methodology used for the integration of the Climate Change Activities Taxonomy (TA-CC). This methodology incorporated the analysis of revenue and expenditure measures – both tax and non-tax – as well as indicators linked to environmental objectives and impact metrics expressed in environmental units, such as the reduction or increase of greenhouse gas emissions.