About the Coalition

Finance Ministers hold the keys to accelerating climate action. They know most clearly the risks posed by climate change, and recognize how taking action could unlock trillions in investments and create millions of jobs through 2030.

The Coalition of Finance Ministers for Climate Action brings together fiscal and economic policymakers from over 75 countries in leading the global climate response and in securing a just transition towards low-carbon resilient development.

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The Helsinki Principles

The six Helsinki Principles guide the Coalition's commitment to #ClimateAction

Helsinki Principle 1: Align Policies with the Paris Agreement

Align our policies and practices with the Paris Agreement commitments
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Helsinki Principle 2: Share Experiences & Expertise

Share our experience and expertise with each other in order to provide mutual encouragement and promote collective understanding of policies and practices for climate action
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Helsinki Principle 3: Promote Carbon Pricing Measures

Work towards measures that result in effective carbon pricing
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Helsinki Principle 4: Mainstream Climate in Economic Policies

Take climate change into account in macroeconomic policy, fiscal planning, budgeting, public investment management, and procurement practices
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Helsinki Principle 5: Mobilize Climate Finance

Mobilize private sources of climate finance by facilitating investments and the development of a financial sector which supports climate mitigation and adaptation
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Helsinki Principle 6: Engage in NDC Development

Engage actively in the domestic preparation and implementation of Nationally Determined Contributions (NDCs) submitted under the Paris Agreement
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80

Member countries

40%

of global carbon emissions

66%

of Global GDP

Member Countries

 

The Secretariat

Partners

Events

View recent and upcoming Coalition events, including workshops, webinars and meetings

HP6 Publishes Report on MoFs and NDCs: Raising Ambition and Accelerating Climate Action

November 30, 2022

 

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View/download the report

The Helsinki Principle 6 workstream has published its second report for the Coalition, Ministries of Finance and Nationally Determined Contributions: Raising Ambition and Accelerating Climate Action. This report follows the first HP6 paper released in 2020, Ministries of Finance and Nationally Determined Contributions: Stepping Up for Climate Action.

The report details the status of work towards Helsinki Principle 6—supporting the active engagement of Ministries of Finance in the development, update, and implementation of NDCs submitted under the Paris Agreement. The paper further explores the enhanced engagement of Ministers of Finance in NDC formulation, and examines how they can best contribute to successful outcomes aligned with the Paris Agreement through leadership and coordination with other sectors.

 

 

HP5 Publishes Report on Supporting Private Sector Net Zero Targets

November 17, 2022

 

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View/download the report

The private finance sector is critical to supporting net zero-aligned change in the real economy, contributing to meeting the global climate goals that governments and many financial institutions have committed to, and reducing climate change-related risks. As of mid-2022, 547 private financial institutions with holdings of USD 129 trillion—a sum equal to nearly 32 percent of global financial assets—have made commitments to reach net zero emissions by 2050.

Nonetheless, there are several gaps: private financial institutions representing the remaining 68 percent of global financial assets have yet to commit to net zero by 2050; many of those who have committed have yet to set interim, short-term targets; and targets that have been set vary significantly in their credibility.

Ministries of Finance are well-positioned to support the private sector on this path. They can help create an enabling environment to encourage adherence to net zero targets, support the implementation of those targets, and establish tools to help determine the credibility of commitments.

The Helsinki Principle 5 Workstream has produced a report discussing various soft and regulatory power methods to improve the understanding of commitments, progress, risks, and opportunities domestically, which can also be used to set expectations for best practices internationally. The potential government actions outlined in the report function as both an incentive and as guidelines to encourage private financial institutions to consider climate action and climate-friendly investments. This enables finance ministries to evaluate progress towards climate goals, support sustainable economic development, and monitor climate-related risks.

This research was led by the Climate Policy Initiative (CPI) network, under the direction of the Coalition.

 

 

Coalition and WMO Co-Host COP27 Panel Discussion on Climate Data Gaps

November 10, 2022

 

The Coalition of Finance Ministers for Climate Action and the World Meteorological Organization (WMO) co-hosted a panel discussion on "Science Day" at COP27 titled Closing the Weather and Climate Data Gap for Effective Economic Decision-Making.

Weather and climate data is essential for both finance ministries and the climate-science community to model the future, assess physical risks, and formulate climate strategies and policies. Yet serious data gaps exist, which severely affects the quality of weather and climate prediction globally and undermines the effectiveness of climate-related decision making. To address this long-standing problem, a new financing approach has been developed and a newly created financing mechanism will be presented at this event: the Systematic Observations Financing Facility (SOFF).

The event brought the finance ministry and climate-science communities together for the first time at a COP to discuss the urgency of closing the weather and climate data gaps and how Ministers of Finance can support this endeavor, as well as how climate data can be used by finance ministries to create more effective economic policies.

Above: Video recording of the event

 

 

Launch of Consultation Process on the Role of Finance Ministers in Climate Action

November 09, 2022

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The Coalition has launched a consultation process to obtain feedback on the draft of a forthcoming landmark report: Strengthening the Role of Ministries of Finance in Driving Climate Action.

Recognizing the need to continue to transform the role of Ministries of Finance, the report sets out a practical framework for finance ministries to galvanize action and drive investment in the zero-carbon, climate-resilient future by mainstreaming climate action into their core functions and capabilities. This is part of a collaborative effort involving more than 30 contributors, including Coalition member countries, an expert advisory group, institutional partners, and other experts. 

The Coalition aims to publish the report in April 2023.

The report will be released in three formats. The consultation drafts of each of these is below:

  1. Summary for Ministers and Policymakers (7 pages)
  2. Synthesis Report (approx. 50 pages)
  3. Full Report (approx. 200 pages) - coming in late November

The Coalition is seeking feedback from the following three groups:

  • Ministries of Finance (Members and Non-Members of the Coalition)
  • Organizations who support finance ministries directly or indirectly
  • Civil society organizations and research institutes

We request that feedback is provided via this webform. Alternatively, feedback can be emailed to coalitionsecretariat@financeministersforclimate.org.

The consultation period will run from November 9, 2022, until January 20, 2023.

 

 

Coalition Meets During COP27

November 09, 2022

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The Coalition of Finance Ministers for Climate Action met on November 9 during the UNFCCC COP27 conference in Sharm el-Sheikh, Egypt. The meeting—one of the central events of Finance Day at COP27—brought together Finance Ministers, heads of international organizations, and other senior officials to discuss how finance ministries can help their countries adapt to the increasingly costly impacts of climate change.

Lead speakers at the event included Egyptian Finance Minister Mohamed Maait, Dutch Finance Minister Sigrid Kaag, World Bank President David Malpass, IMF Managing Director Kristalina Georgieva, UNDP Administrator Achim Steiner, World Resources Institute President Ani Dasgupta, and Grantham Research Institute Chairman Nicholas Stern. The meeting was opened by Suahasil Nazara, Vice Minister, Indonesia Ministry of Finance, and moderated by the Coalition Co-Chair Sherpas, Pekka Moren (Finland) and Masyita Crystallin (Indonesia).

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Adaptation Discussion

Participants noted that climate change impacts will have a major effect on economic growth and public welfare over the long term, even if emissions reduction targets are reached—therefore making it critical to ramp up adaptation efforts. Speakers emphasized that finance ministries have a key role to play in boosting adaptation investments using the economic and fiscal policy levers at their disposal.

In this context, attendees stressed the vital importance of improving access to adaptation financing—particularly for low-income and climate-vulnerable countries—and discussed the role of multilateral development banks and the private sector in providing adaptation finance. The need to further develop national financial systems to mobilize public and private finance was also highlighted. Participants welcomed the public release of the report, Climate Change Adaptation and Role of the Coalition of Finance Ministers for Climate Action, which was prepared as a key input into the meeting.

Launch of Consultation Process on Role of Finance Ministers in Climate Action

In addition to the adaptation discussion, the meeting also marked the launch of a consultation process with stakeholders and partners on the role of finance ministries in climate action. The dialogue and consultation will feed into a forthcoming guide, Strengthening the Role of Ministries of Finance in Driving Climate Action, that is expected to be endorsed by Ministers in April 2023.

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Above: Participants at the meeting of the Coalition of Finance Ministers for Climate Action at COP27

Video Statements

Felipe Larraín, Former Minister of Finance, Chile

 

Annika Saarikko, Minister of Finance, Finland