The Ministry is committed to good practice in managing the climate finance portfolio, including setting up an assurance plan, terms of reference, reporting mechanisms and clear management responsibilities.
The Ministry uses these four approaches to ensure the NZ$1.3 billion in climate finance will effectively deliver a portfolio of activities that realise the outcomes in the guiding strategy in the period 2022 to 2025:
- Using the Ministry’s existing processes to oversee and report on the effectiveness of Aotearoa New Zealand’s International Development Cooperation (IDC) programme.
- Implementing a comprehensive assurance programme with a significant emphasis of independent assurance activities. This programme is designed to constantly improve practices and offer valuable insights on how the portfolio is operating in line with established good practices and standards.
- Establishing a programme for outcome monitoring and performance dashboard reporting, utilising a Monitoring, Evaluation, Research and Learning (MERL) framework. This will provide insight into how the portfolio is performing in relation to the outcomes and goals in the guiding strategy.
- Enhancing communication and stakeholder engagement within the climate portfolio, to increase public access to information and visibility of progress and performance.
The climate finance commitment and its portfolio of investments is delivered through the International Development Cooperation (IDC) programme, using the Ministry’s existing processes, checks and balances. These ensure robust administration and good development practice, such as set out in the International Cooperation for Effective Sustainable Development (ICESD) policy.
The processes for accounting for financial spend and for consistent reporting are well established. The accuracy of expenditure is verified through annual audit processes conducted by the Ministry.
The climate portfolio provides regular reports to a range of stakeholders and organisations such as The Treasury (reporting on the Climate Emergency Response Fund and Green Bonds), the OECD Development Assistance Committee, and United Nations agencies. Other reporting ensuring effective oversight and transparency includes quarterly reporting to Ministers, six-monthly reports to Cabinet and monthly internal reports to governance and steering groups.
In December 2022, the Climate Portfolio Steering Group approved a Climate Portfolio Assurance Plan. This outlines assurance activities running through to 2026, including evaluation and assessment of final benefits.
Independent assurance reviews will be carried out by KPMG, and this will include assurance analysis and advice to improve performance, promote good practice, enhance stakeholder trust and confidence in the work of the climate portfolio.
Outcome monitoring and performance
So we can accurately report the difference our support for climate action makes, the Ministry has set up monitoring and evaluation processes that will give us a ‘portfolio view’ of how we progressing towards the outcomes and impact of the funded activities.
This will also be valuable input to decision-making about future investment.
The monitoring and performance framework includes:
- Headline indicators
- Logic diagrams for significant and strategic investments
- Portfolio performance dashboard
- Monitoring, evaluation, research and learning (MERL) work plan.
As part of our performance tracking, the Ministry publishes evaluations of its International Development Cooperation activities, including activities in the climate portfolio. The Ministry also intends to publish a regularly updated ‘climate portfolio performance dashboard’.