Shaping Uganda’s Climate Resilient Future: Bridging Fiscal Policy and Environmental Sustainability

Shaping Uganda’s Climate Resilient Future: Bridging Fiscal Policy and Environmental Sustainability

Climate change poses a significant threat to global well-being, particularly impacting vulnerable sectors like agriculture in Developing Countries such as Uganda. Despite international pledges by developed countries who pollute the most, financing for climate adaptation and mitigation falls short, leading to heavy reliance on borrowing by Developing Countries to finance climate action. This borrowing, comprising the majority of climate financing, raises concerns about escalating debt burdens.

To address this challenge, Uganda must prioritize bolstering domestic revenue mobilization through fiscal policy. Recognizing this urgency, SEATINI Uganda in collaboration with Oxfam, Pan African Climate Justice Alliance and the Ministry of Finance, Planning and Economic Development convened a dialogue on 28th March 2024 to explore the nexus between climate change and fiscal policy. The dialogue aimed to foster understanding, share experiences, and forge commitments towards effective fiscal interventions for climate resilience. By harnessing fiscal tools and enhancing domestic resource mobilization, Uganda endeavors to chart a sustainable path towards climate adaptation and mitigation, safeguarding its people and environment for generations to come.

Ms. Jane Nalunga, the Executive Director of SEATINI Uganda makes her opening remarks at the dialogue.

Ms. Jane Nalunga, the Executive Director of SEATINI Uganda, emphasized the urgency of climate action. “Climate change is more than just a catchphrase,” she argues, “it is the defining issue of our time.” Ms. Nalunga highlighted the real-world consequences of climate change, citing floods and droughts that are impacting economies worldwide.

She underscored that the government recognizes the inherent funding challenges and has committed to mobilize domestic resources to finance Nationally Determined Contributions (NDCs) to tackle the climate crisis.

“As a country, we have committed to the Nationally Determined Contributions,” Ms. Nalunga said, “but the implementation of NDCs requires resources.” She urged for a shift from promises to action, while also raising concerns about Uganda’s preparedness for potential trade disruptions as wealthier nations pursue stricter environmental policies.

Dr. Sam Koojo Mugume, the Acting Asst. Commissioner, Macroeconomic Policy Department, Ministry of Finance Planning and Economic Development makes remarks at the dialogue.

Dr. Sam Koojo Mugume, the Acting Asst. Commissioner, Macroeconomic Policy Department, Ministry of Finance Planning and Economic Development, underscored the importance of fiscal policy in addressing climate change. “Amidst the adverse effects of climate change, fiscal policy serves as a powerful tool,” he stated. “By integrating climate considerations into budget processes, we can ensure that investments are linked to future climate risks.”

Mr. Charles Mwangi, Head of Programmes at the Pan-African Climate Justice Alliance provided insights into the global context of climate change. “Even if Africa were to limit its emissions by 100%, it would only reduce global emissions by 3%,” he explained. “We have seen that all the financing trickling in for climate is loans, and there is a long period between when you apply for it and when we receive a response.”

Mr. Aaron Werikhe, Senior Climate Finance Officer at the Ministry of Finance Planning and Economic Development makes a presentation at the dialogue

Mr. Aaron Werikhe, Senior Climate Finance Officer at the Ministry of Finance Planning and Economic Development, emphasized the challenges of financing climate-related disasters. “We have a Contingency Fund for climate-related disasters, but we cannot accurately quantify the severity of these disasters,” he noted.

Hon. Biyika Lawrence Songa, the Chairperson of the Climate Change Committee in the Parliament of Uganda, makes remarks on behalf of the committee.

Hon. Biyika Lawrence Songa, the Chairperson of the Climate Change Committee in the Parliament of Uganda, emphasized the need for multi-stakeholder collaboration. “The challenges surrounding climate finance certification persist, underscoring the need for thorough analysis and collaboration among stakeholders,” he said. This was further re-echoed by Mr. Anthony Wolimbwa, the Coordinator of Climate Action Network Uganda (CAN-U), during a panel discussion on leveraging partnerships in addressing climate change. “As we strive for climate justice and decolonization in our approach, partnerships become paramount,” he remarked.

Ms. Driciru Juliet, a Tax Justice Campaigner from Arua, shared her experiences as a farmer affected by climate change. “As a farmer, I have seen firsthand how climate change disrupts our lives, particularly through droughts and dry spells that ruin our crops,” she lamented.

Ms. Titorach Favour, an Environmental Officer from Nebbi District, highlighted the role of local governments in revenue collection and environmental conservation. “Local governments play a crucial role in revenue collection, yet only a meager 3.8% is directed towards environmental conservation,” she pointed out.

Ms. Sophie Nampewo Njuba, Acting Governance and Accountability Manager at Oxfam in Uganda making closing remarks on behalf of the organizing partners.

Ms. Sophie Nampewo Njuba, Acting Governance and Accountability Manager at Oxfam in Uganda, expressed gratitude towards SEATINI Uganda for organizing the dialogue. “A big thank you to our partner SEATINI UGANDA for their invaluable role in bringing together stakeholders to address critical issues like climate change and fiscal policy,” she said.

Over the years, SEATINI Uganda has been steadfast in its commitment to advocating for the prudent utilization of public resources through its Financing For Development programs. These initiatives aim not only to uplift the most marginalized communities out of poverty but also to ensure the provision of essential social services to all citizens. Through its tireless efforts, SEATINI Uganda strives to foster inclusive economic growth and social development, creating a more equitable and prosperous society for people and planet.