Coalition Co-Chairs’ Statement

As we convene at the Spring Meetings, we, the Co-Chairs of the Coalition of Finance Ministers for Climate Action, underscore a central message: the shift toward green and resilient economies is not only one of the defining challenges of our time, but also a major economic opportunity. It is giving rise to transition-related and resilience-enhancing economic opportunities: where mitigation and adaptation pathways can drive growth, strengthen fiscal stability, enhance energy security, and create more and better jobs in the near term. The opportunity is clear, and the time to act is now.

On the other hand, increased volatility in global energy markets has underscored energy security risks, with related price shocks hitting low-income, import-dependent countries the hardest, fuelling inflation, external imbalances, food insecurity, and rising debt. This provides a strong argument for investing in more diversified and clean energy systems.

These dynamics underscore a broader reality: climate change is a macro-critical threat to growth, fiscal stability, and poverty reduction. Even with only partial impacts captured in current economic models, it is projected to significantly reduce economic output in many countries by mid-century, if we do not act decisively now. Physical risks, including extreme weather events and slow-onset changes, are already damaging infrastructure, disrupting economic activity, and placing growing pressure on public finances. The transition also creates macro-fiscal risks, with substantial upfront investment needs, that can place pressure on public deficits, interest rates, and debt burdens. In addition, policy changes, technological shifts, and declining demand for fossil fuels may reduce revenues in carbon-intensive sectors, create stranded assets, and require new public spending to support affected workers, regions, and industries.

Many of the benefits of mitigation and adaptation accrue over the longer term, a dynamic often described as the “tragedy of the horizon.” This can reinforce the perception that climate policy involves significant near-term fiscal costs for more distant gains, alongside concerns about competitiveness, adjustment costs, and distributional impacts.

But the macroeconomic case has changed, with key tipping points now being crossed. Many net-zero investments generate net economic benefits, and evidence suggests that many mitigation and adaptation policies have costs lower than the value of the co-benefits they generate, meaning they can effectively pay for themselves over time. Well-designed climate policies can thus drive a whole-of-economy transformation, unlocking transition-related and resilience-enhancing economic opportunities.

In terms of transition-related opportunities, rapid technological progress and falling costs, especially in renewable energy, storage, and electric mobility, are transforming markets and investment flows. Costs have declined sharply, making renewables cheaper than fossil fuel alternatives in many markets, and private capital increasingly moving toward low-emission and resilient investments. Clean energy investment now significantly exceeds fossil fuel investment globally, reflecting a structural shift in capital allocation, while electric vehicles are reaching cost parity in major markets and are becoming an increasingly significant share of global car sales.

These transition opportunities are also central to jobs and inclusion. Renewable energy employment has expanded significantly, with solar accounting for a large share of new jobs. Per dollar invested, clean energy and energy efficiency generate more jobs and economic activity than fossil fuels. Without action, projected climate impacts are expected to result in substantial job losses across developing and global economies. By contrast, low-emission and resilience investments could generate or protect a large number of jobs globally by mid-century.

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Adaptation investment supports a range of important resilience-enhancing opportunities. Climate impacts will intensify, even with strong mitigation action. Investing in resilience across infrastructure, agriculture, ecosystems, and water systems reduces risks, protects growth, and strengthens fiscal stability. These investments deliver high returns and can significantly reduce projected economic losses, especially in highly exposed countries. They are also job-rich, with resilience investments expected to generate or protect additional and better-paid jobs across developing economies.

Much as there is this progress, we are cognizant that there are areas that need critical support. Scaling these opportunities requires a step change in investment. Public resources are limited, so most financing must come from the private sector – but unlocking this requires greater investment in enabling infrastructure, often driven by public spending, meaning countries must secure access to low-cost capital. Finance ministries have a central role to play by providing clear policy direction, strengthening fiscal and regulatory frameworks, improving public investment management, and deploying tools that crowd in private finance and reduce the cost of capital. We recognize that countries face different starting points and capacities, and that international and regional cooperation and support are essential to ensure a just and inclusive transition.

Through the Coalition, over 100 Finance Ministries are working together to advance these priorities. We are sharing practical experience, strengthening policy frameworks, and building capacity to integrate climate considerations into macroeconomic and financial decision-making. The Coalition is launching its new three-year Strategic Work Program, which sets out an ambitious agenda to support Finance Ministries in identifying, scaling, climate action as economic opportunities. Through our strong collaboration, we will continue to support Finance Ministries in turning ambition into effective implementation on the ground.

We are clear: climate action and economic prosperity go hand in hand. Therefore, by taking climate action that is economically sound and effective, we can support growth, strengthen resilience, and improve fiscal and macroeconomic outcomes. In doing so, we can ensure that climate action delivers tangible and durable benefits for people, especially the poor and vulnerable, measured in stronger livelihoods, more and better jobs, and more resilient communities and economies.

Read:

• 15th Ministerial Meeting Press Release

• Ministerial Summary

• Strategic Work Program 2026-2028

Coherent climate policy packages are essential to achieving climate and development objectives, with Ministries of Finance playing a key role in their design and implementation.

Ministries of Finance (MoFs) face increasingly complex questions about the direct and indirect implications of the green and resilient transition. Recent geopolitical developments in key energy-producing regions have added to volatility in global energy markets and reinforced concerns about energy security. At the same time, shifting towards low carbon economies offers transition and resilience enhancing economic opportunities to boost growth, create jobs, and enhance energy security. Building effective climate policy packages requires robust and credible answers—grounded in sound economic analysis—that clearly set out the risks and opportunities of different policy pathways. As governments seek to accelerate decarbonization while maintaining growth and fiscal stability, MoFs are uniquely positioned at the center of this challenge, shaping economic strategy, allocating public resources, and mobilizing finance at scale.

Against this backdrop, the Coalition of Finance Ministers for Climate Action recently published its report “How Ministries of Finance Can Support Coherent Climate Policy Packages”, highlighting how coordinated, multi-instrument approaches can deliver both climate and economic outcomes. To bring these insights into practice, the Coalition convened a public webinar bringing together senior officials from ministries of finance, international organizations, and research institutions. The discussion explored how coherent policy packages can drive investment, strengthen fiscal resilience, and support economic competitiveness, while underscoring the pivotal, yet still underutilized, role of finance ministries in climate action.

(Read the full report here.)

Event overview

The webinar focused on how Ministries of Finance can operationalize coherent climate policy packages under conditions of fiscal constraint and rising climate risk. Climate change was framed as a macroeconomic and fiscal challenge, with implications for public finances, economic stability, and long-term growth. Delivering effective outcomes was linked to aligning fiscal, regulatory, financial, and investment measures within a coherent policy framework, with Ministries of Finance playing a central role in managing trade-offs and ensuring consistency across government. Emphasis was placed on the use of analytical tools to inform policy design, support sequencing, and enable adjustment over time.

Keynote

Patrick Lenain (Council on Economic Policies), lead author of the report, highlighted that climate change remains insufficiently integrated into the core mandate of many Ministries of Finance, despite its material implications for fiscal sustainability and economic performance. He emphasized that Ministries of Finance already possess a broad set of policy levers and analytical tools, and that delays in engagement are often driven more by perceived constraints than by actual limitations.

He underscored that effective climate action depends on well-coordinated, multi-instrument policy packages rather than reliance on single measures. A pragmatic and iterative approach was emphasized, with policy development proceeding alongside ongoing evaluation and refinement. The importance of sequencing reforms and aligning climate and economic objectives was also highlighted.

Country Perspectives

Uganda

June Nyakahuma (Ministry of Finance, Planning and Economic Development, Uganda) highlighted the role of institutional and legal frameworks in supporting coherent climate policy, including the Climate Change Act. Coordination between the Ministry of Finance, the National Planning Authority, and the Ministry of Water and Environment enables the integration of climate considerations into planning and budgeting. Fiscal instruments, including fuel taxes and environmental levies, are used to support climate objectives. Analytical capacity is strengthened through collaboration with international organizations, while the Climate Finance Unit supports the development and management of climate finance frameworks.

Ecuador

Paula Suarez (Ministry of Economy and Finance, Ecuador) emphasized the need for a pragmatic, adaptive approach to climate policy in the context of fiscal constraints and structural economic conditions. The use of a diverse set of policy instruments, strengthened coordination within and across government, and attention to distributional impacts were identified as key elements in advancing reform. The importance of understanding private sector exposure to climate risks was highlighted, alongside the role of international support, including from the IMF and World Bank, in enabling major reforms such as fossil fuel subsidy reform.

Nigeria

Temitope Akinyemi (Ministry of Finance, Nigeria) highlighted the fiscal and economic implications of climate change, including impacts on agriculture, infrastructure, and energy systems. Climate-related disruptions increase pressure on public expenditure, while transition risks affect revenues from oil and gas. The Ministry of Finance plays a central role in coordinating climate-related investments and mobilizing finance, including through instruments such as green bonds and carbon finance mechanisms, supported by international partnerships.

Link to video.

Link to discussion overview.

Link to commentary.