Uganda
Uganda's wealth of nature
Uganda’s fertile soils, regular rainfall and significant natural resources make it a country of great economic potential. Strong growth since the year 2000, largely centred around exports, agricultural products and tourism, has driven Uganda’s development, with particular successes in combatting AIDS, education and healthcare.
This growth has had considerable environmental impact – the rate of forest cover loss in Uganda stands at 2.6% annually, one of the highest in the world – but there are encouraging signs of a new, greener approach to economic management.1 Uganda’s Green Growth Development Strategy (UGGDS, 2017) sets out a holistic vision of inclusive, sustainable and low carbon development, with good institutional mapping, clear targets and a detailed sectoral plan.2 Their national ambitions have been informed by detailed environmental accounts which show that half of the country’s wealth is in natural capital.
Green financial policy is a weak spot, and both clean energy and decarbonisation targets lack concrete measures to achieve them. Newly discovered oil reserves have attracted an influx of overseas cash, which will require strong governance and institutions to manage well.
In general, Uganda's response to COVID has been relatively conventional, although with a reasonable focus on social inclusion thanks to measures to support household incomes through tax deferrals, green jobs, and credit for small businesses, particularly those employing women and young people. In general, the stimulus supports business as usual activities, lacking meaningful consideration of a green recovery and alignment with the more ambitious structural transition set out in the 2017 UGGDS.
Serious challenges remain for Uganda around governance and transparency. In 2016, Uganda’s public sector was ranked 151st out of 176 countries for corruption, costing the country around US$286 million every year.3 Corruption at this scale exerts a significant drag on development. Consistent economic growth since the mid-1990s helped to cut the overall rate of extreme poverty from 56% in 1992 to 20% in 2014, but since then poverty has begun to tick up again.4
But overall, Uganda’s green economy policies are relatively strong, at least on paper. Uganda's challenge is to meet its ambitious targets with strong implementation. Citizens and civil society groups have a crucial role in ensuring the government strengthens its institutions, tackles corruption and delivers on its commitments - making sure that well-intentioned green policies achieve their fullest social and environmental impact.
Policy Scores
Last updated 1 May 2023
Green COVID-19 Recovery
Uganda has issued more than USD$0.4 billion in fiscal stimulus or 1% of GDP in response to the COVID-19 pandemic, according to the IMFs latest estimate. In June 2020, following a series of relief packages directed at healthcare, the Ugandan government released an Economic Stimulus and Growth Strategy allocating funds from the 2020/21 National Budget to support struggling households and businesses. The economic package aimed to "stimulate the economy to safeguard livelihoods, jobs, businesses and industrial recovery". Measures were targeted at supporting household incomes and businesses through tax deferrals, increased government spending and provision of access to credit for SMEs. Green initiatives are relatively few and shallow, with pledges to invest in a small number of solar powered irrigation/water supply schemes (but no broader consideration of renewables in relation to energy or transport sectors) and a generic commitment to enforce existing environmental protection legislation. There is some support for green jobs and inclusivity, as the package announces additional seed capital to support women and youth small scale enterprises, as well as the expansion of the government's public works programme - though it's unclear which industries and sectors the funds will prioritise at present.
Overall, economic stimulus supports business-as-usual activities, lacking meaningful consideration of a green recovery and alignment with the more ambitious structural transition set out in Uganda's Green Growth Development Strategy. Looking ahead, there is plenty of scope to increase ambition, with over half of the countrys wealth dependent on natural capital. Ugandas recently launched Third National Development Plan (2021-2025), which aims to promote "sustainable industrialisation for inclusive growth, employment and sustainable wealth creation", is perhaps an indication of greener intent - albeit with proposed green measures set alongside the continued development of petroleum.
Uganda has issued more than USD$0.4 billion in fiscal stimulus or 1% of GDP in response to the COVID-19 pandemic, according to the IMFs latest estimate. In June 2020, following a series of relief packages directed at healthcare, the Ugandan government released an Economic Stimulus and Growth Strategy allocating funds from the 2020/21 National Budget to support struggling households and businesses. The economic package aimed to "stimulate the economy to safeguard livelihoods, jobs, businesses and industrial recovery". Measures were targeted at supporting household incomes and businesses through tax deferrals, increased government spending and provision of access to credit for SMEs. Green initiatives are relatively few and shallow, with pledges to invest in a small number of solar powered irrigation/water supply schemes (but no broader consideration of renewables in relation to energy or transport sectors) and a generic commitment to enforce existing environmental protection legislation. There is some support for green jobs and inclusivity, as the package announces additional seed capital to support women and youth small scale enterprises, as well as the expansion of the government's public works programme - though it's unclear which industries and sectors the funds will prioritise at present.
Overall, economic stimulus supports business-as-usual activities, lacking meaningful consideration of a green recovery and alignment with the more ambitious structural transition set out in Uganda's Green Growth Development Strategy. Looking ahead, there is plenty of scope to increase ambition, with over half of the countrys wealth dependent on natural capital. Ugandas recently launched Third National Development Plan (2021-2025), which aims to promote "sustainable industrialisation for inclusive growth, employment and sustainable wealth creation", is perhaps an indication of greener intent - albeit with proposed green measures set alongside the continued development of petroleum.
Governance
National green economy plan
Uganda's Vision 2040 aspires for the country to reach upper middle income country status by the end of the plan period, achieved through strengthening existing economic opportunities in oil and gas, tourism, minerals, ICT business, water resources, industrialisation and agriculture. While the plan is embedded in an overaching economic (rather than sustainability) framework, it does affirm "Ugandan's desire for a green economy and clean environment in the context of poverty eradication and the sustainable use of natural resources". Areas of focus for planning include waste management, air and water pollution reduction, conservation and restoration, tree planting and green agriculture. Uganda's Third National Development Plan lists 'Climate Change, Natural Resources and Waste Management' as one of its 18 core programmes.
The Uganda Green Growth Development Strategy 2017-2031 lays out a clear and relatively comprehensive sustainability plan, including implementation roadmaps to 2020 and 2030, data collection for 34 key indicators, an outline budget targeting USD 1.8 billion/year (although heavily reliant on international funding), and a clear division of responsibility between government departments.
Uganda's Vision 2040 aspires for the country to reach upper middle income country status by the end of the plan period, achieved through strengthening existing economic opportunities in oil and gas, tourism, minerals, ICT business, water resources, industrialisation and agriculture. While the plan is embedded in an overaching economic (rather than sustainability) framework, it does affirm "Ugandan's desire for a green economy and clean environment in the context of poverty eradication and the sustainable use of natural resources". Areas of focus for planning include waste management, air and water pollution reduction, conservation and restoration, tree planting and green agriculture. Uganda's Third National Development Plan lists 'Climate Change, Natural Resources and Waste Management' as one of its 18 core programmes.
The Uganda Green Growth Development Strategy 2017-2031 lays out a clear and relatively comprehensive sustainability plan, including implementation roadmaps to 2020 and 2030, data collection for 34 key indicators, an outline budget targeting USD 1.8 billion/year (although heavily reliant on international funding), and a clear division of responsibility between government departments.
Inclusive governance
The Uganda Green Growth Development Strategy (UGGDS) was developed through a collaborative process of workshops, retreats and outreach, led by a National Task Force. Gender inclusion has been a key focus for policy outcomes, though less evident in the policy development process. Though new approaches to governance are emerging, as typified in UGGDS, widespread corruption remains a serious problem at all levels of the Ugandan government and public sector. Transparency and accountability are low; NGOs are subject to heavy restrictions and burdensome regulation; and freedom of assembly is severely limited.
The Uganda Green Growth Development Strategy (UGGDS) was developed through a collaborative process of workshops, retreats and outreach, led by a National Task Force. Gender inclusion has been a key focus for policy outcomes, though less evident in the policy development process. Though new approaches to governance are emerging, as typified in UGGDS, widespread corruption remains a serious problem at all levels of the Ugandan government and public sector. Transparency and accountability are low; NGOs are subject to heavy restrictions and burdensome regulation; and freedom of assembly is severely limited.
SDG business strategy
Uganda's Third National Development Plan (NDPIII) has been prepared in alignment with the SDGs, and the private sector is recognised as a key strategic partner for implementing them - but it does not contain specific programmes to foster business engagement with the SDGs. More detailed NDPIII implementation plans are expected to be forthcoming, and funding has been allocated to the SDGs Secretariat to develop SDG advocacy and Information communication materials. The Uganda Bureau of Statistics (UBOS) in collaboration with the Ministries of Finance and Planning and the National Planning Authority are also developing a comprehensive business reporting tool to measure compliance with the SDGs.
Uganda's Third National Development Plan (NDPIII) has been prepared in alignment with the SDGs, and the private sector is recognised as a key strategic partner for implementing them - but it does not contain specific programmes to foster business engagement with the SDGs. More detailed NDPIII implementation plans are expected to be forthcoming, and funding has been allocated to the SDGs Secretariat to develop SDG advocacy and Information communication materials. The Uganda Bureau of Statistics (UBOS) in collaboration with the Ministries of Finance and Planning and the National Planning Authority are also developing a comprehensive business reporting tool to measure compliance with the SDGs.
Wealth accounting
The national statistics agency, with support from UN Statistics, maintains a detailed and regularly updated series of environmental accounts under the National Environment Management Plan which includes natural capital accounts. Manpower surveys have been held since 1988 and contribute towards government understanding of human capital.
As part of the World Bank initiative on Wealth Accounting and the Valuation of Ecosystem Services (WAVES), the Ministry of Finance Planning and Economic Development (MOPFED) produced a report calculating adjusted macroeconomic indicators for Net National Income and Savings, which aim to give a more holistic picture of growth compared to GDP. Indicators were compiled using a range of information, including estimates of national wealth (taking into account natural capital, produced capital, human capital, and financial assets), to assess whether growth has come at the cost of asset depletion. For the wealth calculations, MOFPED combined Ugandan data sources for the natural capital component with the World Bank's country estimates of Comprehensive Wealth. The report states that MOPFED will continue calculating these indicators annually, and intends to be able to measure national wealth using solely Ugandan data in future.
The national statistics agency, with support from UN Statistics, maintains a detailed and regularly updated series of environmental accounts under the National Environment Management Plan which includes natural capital accounts. Manpower surveys have been held since 1988 and contribute towards government understanding of human capital.
As part of the World Bank initiative on Wealth Accounting and the Valuation of Ecosystem Services (WAVES), the Ministry of Finance Planning and Economic Development (MOPFED) produced a report calculating adjusted macroeconomic indicators for Net National Income and Savings, which aim to give a more holistic picture of growth compared to GDP. Indicators were compiled using a range of information, including estimates of national wealth (taking into account natural capital, produced capital, human capital, and financial assets), to assess whether growth has come at the cost of asset depletion. For the wealth calculations, MOFPED combined Ugandan data sources for the natural capital component with the World Bank's country estimates of Comprehensive Wealth. The report states that MOPFED will continue calculating these indicators annually, and intends to be able to measure national wealth using solely Ugandan data in future.
Finance
Green finance plan
The National Financial Inclusion Strategy 2017-2022 aims to ensure timely, affordable, and adequate financial services to all citizens in the economy. It includes policies towards micro-credit infrastructure and digital commerce, but only limited acknowledgement of sustainability issues. On-going discussions between Ministries to create a Green Growth Financing Vehicle, but no concrete commitments yet.
The National Financial Inclusion Strategy 2017-2022 aims to ensure timely, affordable, and adequate financial services to all citizens in the economy. It includes policies towards micro-credit infrastructure and digital commerce, but only limited acknowledgement of sustainability issues. On-going discussions between Ministries to create a Green Growth Financing Vehicle, but no concrete commitments yet.
Green fiscal & monetary policy
A Public Expenditure Review on Green Growth is currently underway at the National Planning Authority, aimed at ensuring compliance between planned and actual expenditure on sustainability, and annual budgets are assessed for compliance to the National Development Plan. All government bodies down to the local level have been directed by the Ministry of Finance to produce budgets for environment, biodiversity and climate change.
A Public Expenditure Review on Green Growth is currently underway at the National Planning Authority, aimed at ensuring compliance between planned and actual expenditure on sustainability, and annual budgets are assessed for compliance to the National Development Plan. All government bodies down to the local level have been directed by the Ministry of Finance to produce budgets for environment, biodiversity and climate change.
Safe & accountable banks
The Bank of Uganda conducts micro-stress tests that are aimed at assessing the resilience of the banking sector to systemic risks. The tests assess credit and liquidity risk at present, with no social or environmental components. The Institute of Certified Public Accountants has developed a sustainability reporting framework, including environmental risk assessment, for financial organisations, but these are voluntary.
The Bank of Uganda conducts micro-stress tests that are aimed at assessing the resilience of the banking sector to systemic risks. The tests assess credit and liquidity risk at present, with no social or environmental components. The Institute of Certified Public Accountants has developed a sustainability reporting framework, including environmental risk assessment, for financial organisations, but these are voluntary.
Pricing carbon
Uganda does not currently have an explicit carbon tax or a CO2 emissions trading system. However, it does collect energy taxes in the form of an excise duty on fuels and gas (excluding the power sector).
There have been some initial policy discussions and private sector initiatives, and the National Environment Management Authority has proposed a carbon tax to fund reforestation, but no official commitments or project announcements as yet. Some regional pilot projects for using carbon credits to conserve forests and incentivise waste composting.
According to the latest NDC, Uganda intends to curb GHG emissions by 24.7% by 2030 relative to its business-as-usual scenario, conditional on international finance. Despite enshrining this target into law under a newly approved 2021 Climate Change Act, the Uganda government is yet to set out its NDC-aligned long term emissions reduction strategy. Section 9 of the Act mentions the possible future development of regulations regarding participation in climate change mechanisms such as emissions trading schemes. Elsewhere, the Global Carbon Markets Programme (which is based in Uganda), is currently receiving international funding support to develop proposals for carbon-pricing instruments to support NDC implementation in the country.
Uganda does not currently have an explicit carbon tax or a CO2 emissions trading system. However, it does collect energy taxes in the form of an excise duty on fuels and gas (excluding the power sector).
There have been some initial policy discussions and private sector initiatives, and the National Environment Management Authority has proposed a carbon tax to fund reforestation, but no official commitments or project announcements as yet. Some regional pilot projects for using carbon credits to conserve forests and incentivise waste composting.
According to the latest NDC, Uganda intends to curb GHG emissions by 24.7% by 2030 relative to its business-as-usual scenario, conditional on international finance. Despite enshrining this target into law under a newly approved 2021 Climate Change Act, the Uganda government is yet to set out its NDC-aligned long term emissions reduction strategy. Section 9 of the Act mentions the possible future development of regulations regarding participation in climate change mechanisms such as emissions trading schemes. Elsewhere, the Global Carbon Markets Programme (which is based in Uganda), is currently receiving international funding support to develop proposals for carbon-pricing instruments to support NDC implementation in the country.
Sectors
Green sectoral policy plan
The Uganda Green Growth Development Strategy provides strong strategic direction for sectors towards green growth, and mandates a multi-sectoral implementation body to pool ministries, local and city governments, and public sector bodies across five focus areas of agriculture, natural capital, cities, transport and energy. The tripartite structure involving sectoral groups, planning ministry, and civil society groups is a new innovation. Ministry of Trade and the Uganda Cleaner Production Center are developing a Green Manufacturing Strategy.
The Uganda Green Growth Development Strategy provides strong strategic direction for sectors towards green growth, and mandates a multi-sectoral implementation body to pool ministries, local and city governments, and public sector bodies across five focus areas of agriculture, natural capital, cities, transport and energy. The tripartite structure involving sectoral groups, planning ministry, and civil society groups is a new innovation. Ministry of Trade and the Uganda Cleaner Production Center are developing a Green Manufacturing Strategy.
Small business support
National policy for SMEs includes innovation support, capacity building, access to finance and new legal formalisation. A certification scheme for green social enterprises, designed to support equity, inclusiveness and environmentally friendly businesses for sustainable development has been approved. A core component of the national Green Jobs Programme launched in 2020 is planned support for 300,000 Jua-kalis to green their business models and practices through provision of green technologies, business start-up tool kits, training, green enterprise certification and accreditation.
National policy for SMEs includes innovation support, capacity building, access to finance and new legal formalisation. A certification scheme for green social enterprises, designed to support equity, inclusiveness and environmentally friendly businesses for sustainable development has been approved. A core component of the national Green Jobs Programme launched in 2020 is planned support for 300,000 Jua-kalis to green their business models and practices through provision of green technologies, business start-up tool kits, training, green enterprise certification and accreditation.
Carbon budgeting
Uganda's latest decarbonisation target is a 24.7% reduction in emissions by 2030 compared to BAU, conditional on international finance. The Ugandan government approved a national Climate Change Act in 2021, enshrining the country's Paris Agreement commitments into law. The Act mandates the creation of a Framework Strategy on Climate Change, as well as a National Climate Action Plan - but these are yet to be published, with the Act having only come into force in January 2022. No evidence of any discussion or proposals to develop carbon budget mechanisms at this stage.
Uganda's latest decarbonisation target is a 24.7% reduction in emissions by 2030 compared to BAU, conditional on international finance. The Ugandan government approved a national Climate Change Act in 2021, enshrining the country's Paris Agreement commitments into law. The Act mandates the creation of a Framework Strategy on Climate Change, as well as a National Climate Action Plan - but these are yet to be published, with the Act having only come into force in January 2022. No evidence of any discussion or proposals to develop carbon budget mechanisms at this stage.
Clean energy policy
Sustainable energy is a key element of the Uganda Green Growth Development Strategy, with clear targets, institutional responsibilities and implementation tools. Ambition is high; with large hydropower facilities already well established and new ones under construction, Uganda is now seeking to expand into solar and geothermal energy. However, 2017 targets for RE market share were missed, and recent discoveries of oil may distract from clean energy priorities, including replacing high carbon energy sources for transportation and buildings.
Sustainable energy is a key element of the Uganda Green Growth Development Strategy, with clear targets, institutional responsibilities and implementation tools. Ambition is high; with large hydropower facilities already well established and new ones under construction, Uganda is now seeking to expand into solar and geothermal energy. However, 2017 targets for RE market share were missed, and recent discoveries of oil may distract from clean energy priorities, including replacing high carbon energy sources for transportation and buildings.
People
Green jobs
During 2020 Ugandas Ministry of Gender, Labour and Social Development launched a nationwide Green Jobs Programme, aiming to restore ecosystems, improve natural resource efficiency, and minimise waste and pollution. Targeting women and youth, the programme adopts four innovative components, including: support for informal businesses (or 'Jua-kalis'), opportunities for workplace-based training and apprenticeships, establishing industrial business shelters in urban centres with common-user facilities and access to mastercrafts people, and creation of green incubation centres (known as the Songhai Model) which aim to enhance the technical and organisational capacity of poor communities so they can produce food more efficiently and sustainably.
The programme targets the greening of the informal sector through provision of green technologies and new accreditation opportunities, alongside the creation of new green jobs through support and guidance for green startups. Citizens are supported to access new livelihoods through opportunities for workplace-based training and apprenticeships, provision of communal workplace facilities and tools, and capacity support for farming communities across 30 Songhai sites across Uganda. In total, the ministry aims to re-skill 500,000 unemployed workers and support 500,000 Jua-kalis to adopt green technologies and practices.
During 2020 Ugandas Ministry of Gender, Labour and Social Development launched a nationwide Green Jobs Programme, aiming to restore ecosystems, improve natural resource efficiency, and minimise waste and pollution. Targeting women and youth, the programme adopts four innovative components, including: support for informal businesses (or 'Jua-kalis'), opportunities for workplace-based training and apprenticeships, establishing industrial business shelters in urban centres with common-user facilities and access to mastercrafts people, and creation of green incubation centres (known as the Songhai Model) which aim to enhance the technical and organisational capacity of poor communities so they can produce food more efficiently and sustainably.
The programme targets the greening of the informal sector through provision of green technologies and new accreditation opportunities, alongside the creation of new green jobs through support and guidance for green startups. Citizens are supported to access new livelihoods through opportunities for workplace-based training and apprenticeships, provision of communal workplace facilities and tools, and capacity support for farming communities across 30 Songhai sites across Uganda. In total, the ministry aims to re-skill 500,000 unemployed workers and support 500,000 Jua-kalis to adopt green technologies and practices.
Pro-poor policy
A key principle of the Green Growth Development Strategy is social inclusiveness, and it articulates clear interventions aimed at reducing inequality in gender, incomes etc. There is cross-cutting inclusion of environmental risks in the poverty reduction strategy, and a core component of the Ministry of Gender, Labour and Social Developments national Green Jobs Programme is poverty alleviation and inclusion. The programme plans to establish 30 nationwide green incubation centres providing technical and organisational capacity support specifically to the poorest agricultural communities to enable the development of sustainable farming practices while ensuring food security.
A key principle of the Green Growth Development Strategy is social inclusiveness, and it articulates clear interventions aimed at reducing inequality in gender, incomes etc. There is cross-cutting inclusion of environmental risks in the poverty reduction strategy, and a core component of the Ministry of Gender, Labour and Social Developments national Green Jobs Programme is poverty alleviation and inclusion. The programme plans to establish 30 nationwide green incubation centres providing technical and organisational capacity support specifically to the poorest agricultural communities to enable the development of sustainable farming practices while ensuring food security.
Participatory policymaking
Ongoing monitoring of government policies assessing gender inclusiveness, equal opportunities and budget compliance led by the National Planning Authority (NPA). The Equal Opportunities Act created a commission to monitor and evaluate laws to ensure equality of impact and affirmative action in favour of marginalised groups. Wider policy consultation processes are less clear, and overall public sector transparency is extremely low with discrimination against some marginalised groups especially sexual minorities both legal and common.
Ongoing monitoring of government policies assessing gender inclusiveness, equal opportunities and budget compliance led by the National Planning Authority (NPA). The Equal Opportunities Act created a commission to monitor and evaluate laws to ensure equality of impact and affirmative action in favour of marginalised groups. Wider policy consultation processes are less clear, and overall public sector transparency is extremely low with discrimination against some marginalised groups especially sexual minorities both legal and common.
Innovative social protection
Ugandas National Social Protection Policy was launched in March 2016, and the country is in the early stages of building a social protection system with support from international partners. For example, the Expanding Social Protection Management Unit is currently in the process of rolling out Senior Citizen Grants nationwide as part of its Social Empowerment Grants programme.
No mention of new social models or of innovative social policies in green plans, and the majority of pilot schemes are conducted by NGOs, for example local trials of universal basic income. Some pilots administered by the Ministry of Labour supporting young unemployed people and the elderly, but these yet to be expanded beyond regional level.
Ugandas National Social Protection Policy was launched in March 2016, and the country is in the early stages of building a social protection system with support from international partners. For example, the Expanding Social Protection Management Unit is currently in the process of rolling out Senior Citizen Grants nationwide as part of its Social Empowerment Grants programme.
No mention of new social models or of innovative social policies in green plans, and the majority of pilot schemes are conducted by NGOs, for example local trials of universal basic income. Some pilots administered by the Ministry of Labour supporting young unemployed people and the elderly, but these yet to be expanded beyond regional level.
Nature
Ocean & land conservation
National Development Plan and sectoral development plans both integrate SDGs, including Goals 14 & 15, and the Ministry of Finance has produced a detailed readiness review for the 2030 Agenda. Concrete targets on water pollution, ecosystem management and restoration, reforestation, sustainable forestry, and research and development.
National Development Plan and sectoral development plans both integrate SDGs, including Goals 14 & 15, and the Ministry of Finance has produced a detailed readiness review for the 2030 Agenda. Concrete targets on water pollution, ecosystem management and restoration, reforestation, sustainable forestry, and research and development.
Natural capital accounts
Uganda is not new to natural capital accounting, having undertaken feasibility studies into the introduction of environmental accounts as early as 2003, and in 2017 publishing the world's first pilot species diversity accounts. Uganda is a signatory to the 2012 Gaborone Declaration for Sustainability in Africa, indicating its commitment to a new model of development which considers natural capital as central to economic decision making.
Uganda launched a National Capital Accounting Programme in 2018 to develop a set of accounts aligned to the System of Environmental Economic Accounting, with support from the World Bank-led Wealth Accounting and the Valuation of Ecosystem Services Partnership (WAVES). Uganda's Bureau of Statistics has since launched a National Plan for Advancing Environmental Economic Accounting setting out a timeline for future developments, and published land and water accounts as its first accounting priorities. An account for 'wood assets and forest resources' was launched in November 2020. Other internationally-funded programmes have supported the development of initial ecosystems accounts (spanning wildlife tourism, fisheries and land degradation). Further energy and minerals accounts look to be in the pipeline.
Uganda is not new to natural capital accounting, having undertaken feasibility studies into the introduction of environmental accounts as early as 2003, and in 2017 publishing the world's first pilot species diversity accounts. Uganda is a signatory to the 2012 Gaborone Declaration for Sustainability in Africa, indicating its commitment to a new model of development which considers natural capital as central to economic decision making.
Uganda launched a National Capital Accounting Programme in 2018 to develop a set of accounts aligned to the System of Environmental Economic Accounting, with support from the World Bank-led Wealth Accounting and the Valuation of Ecosystem Services Partnership (WAVES). Uganda's Bureau of Statistics has since launched a National Plan for Advancing Environmental Economic Accounting setting out a timeline for future developments, and published land and water accounts as its first accounting priorities. An account for 'wood assets and forest resources' was launched in November 2020. Other internationally-funded programmes have supported the development of initial ecosystems accounts (spanning wildlife tourism, fisheries and land degradation). Further energy and minerals accounts look to be in the pipeline.
Natural capital committee
As part of the Wealth Accounting and the Valuation of Ecosystem Services (WAVES) programme, Uganda's 'Water and Environment Sector Working Group' (WESWG) was granted the role of a Natural Capital Accounting Steering Committee. While not an independent body, the WESWG provides some policy and technical guidance on natural capital and includes representatives ranging from government to development partners to academia and NGOs. The group's input is integrated at the technical level by a cross-departmental Technical Working Group led by the Ministry of Finance, Planning and Economic Development and comprising representatives from other WAVES lead agencies. In addition, the agencies that advise and manage natural capital programmes chiefly, the Uganda Bureau of Statistics and the National Planning Authority are (in theory) semi-autonomous from the government.
As part of the Wealth Accounting and the Valuation of Ecosystem Services (WAVES) programme, Uganda's 'Water and Environment Sector Working Group' (WESWG) was granted the role of a Natural Capital Accounting Steering Committee. While not an independent body, the WESWG provides some policy and technical guidance on natural capital and includes representatives ranging from government to development partners to academia and NGOs. The group's input is integrated at the technical level by a cross-departmental Technical Working Group led by the Ministry of Finance, Planning and Economic Development and comprising representatives from other WAVES lead agencies. In addition, the agencies that advise and manage natural capital programmes chiefly, the Uganda Bureau of Statistics and the National Planning Authority are (in theory) semi-autonomous from the government.
Nature-based fiscal reform
Few taxes in place. However, several initiatives such as feed-in tariffs to encourage off-grid renewable energy, and the 2019 National Environment Act sets out a commitment to the polluter pay principle, user pay principle and precautionary principle and for the use of fiscal and tax instruments to preserve the environment and natural resources, although not through an explicitly natural capital framing.
Few taxes in place. However, several initiatives such as feed-in tariffs to encourage off-grid renewable energy, and the 2019 National Environment Act sets out a commitment to the polluter pay principle, user pay principle and precautionary principle and for the use of fiscal and tax instruments to preserve the environment and natural resources, although not through an explicitly natural capital framing.
References
- World Bank, [Ugandan government steps up efforts to mitigate climate change](https://www.worldbank.org/en/news/feature/2019/05/31/ugandan-government-steps-up-efforts-to-mitigate-and-adapt-to-climate-change)
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Ugandan Government, [Uganda Green Growth Development Strategy 2017](https://www.undp.org/content/dam/LECB/docs/pubs-reports/undp-ndc-sp-uganda-ggds-green-growth-dev-strategy-20171204.pdf)
- Transparency International, [Country Profile: Uganda](https://www.transparency.org/country/UGA); US State Department, [Uganda Human Rights Report](https://2009-2017.state.gov/documents/organization/204390.pdf)
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IFAD, [Rural Poverty in Uganda](https://web.archive.org/web/20150924033202/http://www.ifad.org/operations/projects/regions/Pf/factsheets/uganda.pdf); World Bank, [Country Overview: Uganda](https://www.worldbank.org/en/country/uganda/overview)