Key performance indicators for climate and nature outcomes in debt management in West Africa
Key performance indicators (KPIs) are to support debt management for the achievement of climate and nature outcomes. These KPIs are important for creditors to measure and monitor policy commitments and climate and nature outcomes and processes and debtors to be held accountable to these commitments by national stakeholders and creditors.
KPIs need to be based on certain criteria, including contributing to pro-poor growth and use of existing data, systems and capacities. In the case of climate, KPIs could be based on targets under Nationally Determined Commitments and for nature commitments under the National Biodiversity Strategies and Action Plans and related strategies under agriculture, fisheries and other sectors.
A KPI framework is based on a theory of change with indicators, baselines, targets, means of verification and assumptions and cost of inputs. The following are the suggested steps in developing the KPI framework for the debt transaction:
- Initial desk review of country policies, commitments and strategies, and consultations with debtor government and civil society
- Initial development of a theory of change for KPIs
- Engagement with government stakeholders to verify activities and policy commitments and outcome indicators – ensuring that the activities and indicators are showing additionality and relevance
- Refinement and development of indicators, baselines, targets, means of verification and assumptions with national actors, and ensuring continued alignment with criteria
- Hold validation with government (finance, environment, fisheries, agriculture and so on), civil society, private sector and partners
- Share KPIs with creditors for discussion, review and agreement