The PEFA Framework aims at assessing and reporting on the strengths and challenges of public financial management (PFM) using quantitative indicators to measure performance. Since its launch in 2005, the PEFA framework has been used for 640 assessments in 152 countries and is widely recognized as the most commonly accepted PFM assessment tool.

The PEFA Secretariat has developed a set of supplementary indicators that builds on the PEFA framework to collect information on the extent to which a country’s public financial management system is climate responsive. The PEFA Climate Assessment informs on whether laws and regulations, institutions, systems, procedures and processes contribute to the implementation of climate change activities throughout the budget cycle, including the planning and design of budgetary policies considering climate, the budget allocations needed to implement them, the tracking of these allocations to ensure that policies are implemented as intended, and the monitoring and evaluation of the efficiency and effectiveness of policies, including their impacts on climate change.