I Background & Context W ith strong com m itm ent and leadership, the Governm ent of the Philippines (GoP) continuously im plem ents its clim ate reform agenda. This includes the adoption of the country’s roadmap to address climate change (CC) by adopting the National Climate Change Action Plan (NCCAP), and institutionalize the Climate Change Commission (CCC) to lead the Philippines’ climate response. To complement this, the GoP also mobilized domestic financing to strengthen the delivery of its climate response. The Department of Budget and Management (DBM) and the Climate Change Commission jointly developed and implemented a climate budgeting system, with technical assistance from the World Bank, to strengthen the planning, execution, and financing framework for the government’s climate response. The system for tagging, analyzing, and reporting on climate budget allocation, which started in 2014, has produced baseline information and results that may pave the way to enable better government reporting on the scope and focus of its climate response. In 2015, the second year of im plem entation, the Clim ate Budgeting System serves as a strategic step to scale up and sustain the Philippines’ transform ative clim ate agenda. The second year focused on strengthening the quality of the climate budget and preparing for its institutionalization. These improvements in climate budget planning, tracking, monitoring, and reporting are key for assessing the Government’s overall progress in achieving the commitments made in its climate policies and strategic plans, as well as for making informed decisions on adjustments to programs and strengthening coordination efforts at the national and local levels.   This docum ent provides an overview of the 2016 National Clim ate Budget, as reflected in the budget approved in the FY2016 General Appropriations Act (GAA), and provides a com parison with the 2015 clim ate budget. It summarizes the total amount of national government financing directed towards attaining climate change adaptation and mitigation objectives and outcomes, as detailed in the government’s NCCAP strategic priorities. Building on the previous year’s pilot effort, this document aims to provide a better idea of how tagged projects contribute to the Government’s climate response. 1