Manual for climate budgets as a governance tool

A climate budget is a governance tool to achieve GHG reductions and other climate targets adopted. The climate budget presents measures to reduce emissions and the estimated effect of these measures, and assigns responsibility for their implementation.

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  • 2.2 Draw up measures and calculate their effects

2.2 Draw up measures and calculate their effects

1. Map the biggest emissions sectors and sources within the selected system boundaries
• Use the Norwegian Environment Agency’s GHG inventory at municipal level for an overview of the direct emissions.

2. Draw up a baseline showing the trend if no new measures are taken.

3. Draw up an emissions limit showing the emissions targets in the period up to the target year, and thus the level of emissions reductions required in the A&EP period to achieve the target in the target year.

4. Calculate the effect of the measures proposed in the climate budget.
• Use the Norwegian Environment Agency’s methodology and calculation templates to calculate emissions reductions.
• Be transparent: State all assumptions and conditions.
• Describe the uncertainty inherent in the calculation.

5. Develop result indicators against which those responsible for measures will report. Indicators can also be developed to assess the emissions trend.

6. Aggregate the effects of the measures and analyse the results.
• Prepare a measure trajectory showing the total effect of all the measures in the climate budget
• What is the trend in the measure trajectory relative to the emissions limit?
• Is more stringent action needed? Within which areas in the municipality and the business community are new
climate measures needed?

Tips for municipalities starting work on their first climate budget:
You do not need to develop a baseline to prepare a climate budget. The climate budget can be presented graphically using graphs for historical emissions, baselines, emissions limits (target trajectory) and measure trajectories. A simpler option is to present the results numerically in tables.