The Macroeconomics of Green and Resilient Transitions platform complements the Coalition’s main site, offering a practical gateway to policy-relevant tools and real-world examples.
The Coalition is dedicated to providing insightful news updates on global efforts and progress in archieving climate action goals
Climate Action Statement 2025 and Climate Action Map
Over 500 climate policies by finance ministries worldwide show the economic benefits of climate action. The latest edition of the Climate Action Statement, with data from nearly 70 countries, shows finance ministries are driving economic growth, competitiveness, and resilience through climate ambition.
How Ministries of Finance Can Build Capabilities for Economic Analysis and Modeling to Drive Green and Resilient Transitions
Capability is about more than having access to suitable tools and models. It is about being able to identify, use, and maintain suitable tools to answer relevant policy questions, communicating results (and limitations), and ensuring integration into decision-making processes.
By aligning economic tools with climate goals, Ireland’s Department of Finance is applying public finance rooted in budgets and taxes, and most importantly, in long-term resilience.
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 90 countries in leading the global climate response and in securing a just transition towards low-carbon resilient development.
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
Mobilize private sources of climate finance by facilitating investments and the development of a financial sector which supports climate mitigation and adaptation
Ministries of Finance play a central role in shaping economic, fiscal, and financial policy, and their active leadership is essential for driving climate action. To do so, they need to address challenging policy questions—such as how to finance green energy and resilience measures, manage distributional impacts, and support innovation in low-carbon technologies.
This report provides a systematic overview of analytical tools available to Ministries of Finance to help address these policy questions and integrate climate into their economic analysis. It serves as a reference for Ministries of Finance and their partners that want to explore how climate-related economic policy can be analyzed and diverse tools can be used to support climate-informed decision-making. For this, the report groups the available tools into four categories for readers to explore:
Climate-enhanced macroeconomic and sectoral models. These analyze macroeconomic, sectoral, and distributional impacts of aspects of climate change and green and resilient transitions, often building on existing models used by Ministries of Finance.
Physical climate and disaster risk models and approaches. These assess climate damages and risks, informing fiscal risk management and adaptation strategies.
Decision-making frameworks and other analytical tools. These include cost–benefit analysis and robust decision-making and can provide qualitative and quantitative insights that complement other approaches, particularly in contexts of uncertainty and risk.
Ex-post case studies and evaluations. These assess the impacts of implemented climate policies and past transitions, providing insights into effectiveness, challenges, and lessons learned.
The report covers 23 tools, clarifies their use cases, strengths, and limitations, and provides case studies of their deployment. It also maps tools to policy questions to help Ministries of Finance identify those most relevant to their needs and highlights cross-cutting analytical considerations.
Through this overview, the following key messages emerge:
Different strategies can be used to integrate climate into analytical tools. Ministries of Finance can integrate climate-related factors into their existing economicmodels and analytical approaches or use tools specifically designed to analyze climate impacts and policies.
No single tool can answer all relevant questions. Different policy questions require different tools that can capture different variables and perspectives. Multiple tools and sensitivity analyses can provide complementary insights and help assess the robustness of results.
Tools can be linked or used in conjunction for more comprehensive analysis. The boundaries between tools are not rigid, and they can be combined to leverage their respective strengths, enabling analysis that is both more encompassing and more detailed.
Continuous learning and development are crucial. Mainstreaming climate in the analysis and decision-making of Ministries of Finance is an evolving process, and peer learning and collaborating with analytical ecosystems are important parts of this.
Finance Ministers Step Up Climate Action Commitments at 14th Ministerial Meeting
At the 14th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action, Finance Ministers from across the world reaffirmed their commitment to integrating climate considerations into economic policy and fiscal planning.
Watch now what the Ministers of Finance shared about Climate Actions:
Uganda Minister Hon. Henry Ariganyira Musasizi
Croatia's Minister of Finance's speech on becoming the incoming co-chair
The Coalition of Finance Ministers for Climate Action has released today the third edition of its latest Climate Action Statement and the world’s most comprehensive finance ministry–led database of completed and ongoing climate policy actions.
Over 500 climate policies by finance ministries worldwide show the economic benefits of climate action
The latest edition of the Climate Action Statement, featuring data from nearly 70 countries, demonstrates that finance ministries are driving economic growth, competitiveness, and resilience through their climate ambitions.
Washington, DC, October 2025 — The Coalition of Finance Ministers for Climate Action has released today the third edition of its latest Climate Action Statement and the world’s most comprehensive finance ministry–led database of completed and ongoing climate policy actions.
With the Coalition’s 14th Ministerial Meeting underway during the IMF/World Bank Annual Meetings, this interactive database features over 500 climate policy actions from nearly 70 ministries of finance worldwide. The CAS 2025 highlights how ministries of finance are not only safeguarding macroeconomic stability and fiscal sustainability but also positioning themselves as leaders in seizing the opportunities of the transition to low-carbon, climate-resilient economies amid a rapidly evolving global landscape
Key highlights:
82% of the contributing Coalition ministries of finance are strengthening Institutional Frameworks and Governance: Finance ministries are enhancing coordination, transparency, and climate-related decision-making across government systems. Ministries of Finance reported 168 measures to strengthen institutional and governance structures.
66% are advancing Financial Instruments and Carbon Markets: Finance Ministries are scaling up green bonds, emissions trading systems, and blended finance to mobilize private capital for climate action. 87 measures are reported in this area, reflecting growing reliance on market-based and financial tools.
16% are enhancing Regulatory and Informational Tools: Finance ministries are expanding climate-related disclosures and taxonomies to improve transparency and guide green investment. 77 measures were reported in this area, reflecting growing use of data and reporting standards for climate finance.
15% are Integrating Climate Risks into Public Financial Management: Ministries are aligning fiscal frameworks and macroeconomic planning with climate objectives to strengthen fiscal stability. 70 measures were reported on climate-related public financial management reforms.
10% are tailoring Environmental Taxes and Fiscal Incentives: Ministries of Finance are introducing carbon taxes, phasing out harmful subsidies, and expanding clean energy incentives. 45 measures were reported on environmental taxation and subsidy reform.
“Finance ministries play a critical role in shaping the economic signals that guide the transition. By aligning fiscal and general financial policies with climate objectives, we can create clear, predictable frameworks that attract investment, support innovation, and ensure the transition strengthens —not destabilizes— our economies.” — Marko Primorac, Minister of Finance of Croatia and Deputy Prime Minister, Incoming Co-Chair of the Coalition of Finance Ministers for Climate Action.
“Climate action is central to both economic stability and development. The Climate Action Statement 2025 illustrates how finance ministries playing a more pertinent role in climate policies— aligning fiscal policy with climate priorities, fostering economic resilience, and working towards a more predictable environment for unlocking the investment needed to build sustainable and inclusive economies.” — Hon. Matia Kasaija, Minister of Finance, Planning and Economic Development of Uganda and Co-Chair of the Coalition of Finance Ministers for Climate Action
Climate policies are not the sole remit of Environmental Ministries. This initiative shows how Finance Ministries are transforming climate ambition into economic opportunity. From carbon pricing and green bonds to fiscal reforms and climate-informed budgeting, governments are rethinking how economies grow and compete. By harnessing the low-carbon transition, they are creating new jobs, boosting productivity, and enhancing energy and fiscal resilience—proving that climate action and economic prosperity are mutually beneficial.
October 2025 — The Coalition of Finance Ministers for Climate Action has released a major new report under its Helsinki Principle 4 (HP4) initiative, titled “How Ministries of Finance Can Build Capabilities for Economic Analysis and Modeling to Drive Green and Resilient Transitions.” This publication marks a significant step forward in supporting Ministries of Finance (MoFs) worldwide as they confront the urgent challenges and opportunities of the climate transition.
Throughout the Coalition of Finance Ministers for Climate Action’s Helsinki Principle 4 initiative ‘Economic Analysis for Green and Resilient Transitions’, a clear message emerges: MoFs are increasingly engaged, interested, and aware of the transition. They understand that delivering on their core mandates of macroeconomic stability, sustainable growth, and sound public finances now increasingly depends on their ability to account for the risks and opportunities of climate change and the green transition.
However, while awareness is high, many Ministries still lack the capacity to act, and few have an explicit mandate on climate action. According to the Coalition’s global survey of Ministries of Finance, only about one-third consider climate action a core economic issue central to their mission. At the same time, most remain at an early stage in developing the analytical tools, data systems, and institutional capacities needed to effectively support and steer green and resilient transitions.
But change is underway. A growing number of Ministries are applying economic analysis to the pressing climate- and transition-related challenges they face and are building their capacities to mainstream climate action into their core mandate and functions.
The HP4 Capabilities Report provides an overview of strategies, options, and recommendations for how Ministries of Finance can practically enhance their analytical capabilities to drive green and resilient transitions.
Among the report’s key messages are:
Capability is about more than having access to suitable tools and models. It is about being able to identify, use, and maintain suitable tools to answer relevant policy questions, communicating results (and limitations), and ensuring integration into decision-making processes.
Ministries of Finance have vastly different levels of analytical capabilities. These have a substantial impact on the type of analysis that could be most suitable and worth investing in, and the priorities and next steps for strengthening local capabilities. Approaches for building capabilities should be pragmatic and consider building on existing capabilities. It is better to ‘start simple’ than wait for more expertise to arrive.
Ministries of Finance can build or improve their capabilities over time to meet their needs. This typically requires:
Skills: Building analytical capabilities requires ensuring a few dedicated experts to develop the knowhow in-house with the right mix of skills for conducting or interpreting modeling and analysis are present in the MoF.
Collaboration: Ministries of Finance require support from a broader analytical ecosystem, including line ministries and governmimprovingncies to share models, data, and experience; universities and research institutes with climate expertise; and technical assistance providers and the wider international community, which can be critical for many in building expertise and improve access to tools and data.
Governance and Leadership: Clear roles, responsibilities, and institutional structures as well as accountability are crucial for ensuring that climate-related economic modeling and analysis are effectively integrated into the Ministry of Finance's decision-making. Policy-makers’ and management’s leadership and backing within governments and the MoF is crucial in making progress.
There is a strong demand for technical assistance providers to ramp up and reform existing offers and training provision to help MoFs develop and maintain their own internal capabilities. To do this, technical assistance providers can work closely together with universities, research institutions, and partners across government.
By aligning economic tools with climate goals, Ireland’s Department of Finance is applying public finance rooted in budgets and taxes, and most importantly, in long-term resilience.
Climate is rapidly changing. Ireland is committed to working at home and abroad to mitigate against the worst effects of climate change and prevent catastrophic levels of global warming. As part of its ongoing policy efforts, the country has introduced a range of initiatives aimed at securing a more resilient future.
Ireland’s newProgramme for Governmentreiterates the commitment to achieve an emissions reduction of 51% by 2030 relative to 2018 levels. In addition to international climate obligations under the Paris Agreement and the European Union legislative commitments, the domestic Climate Action and Low Carbon Development (Amendment) Act sets a statutory target of net zero emissions by 2050. It also enshrines the 2030 target in law and establishes a framework for five-year carbon budgets and associated sectoral emissions ceilings.
The Department of Finance at the centre of climate action
The Department of Finance’s currentStatement of Strategyincludes “Promoting environmentally sustainable economic progress” as one of its strategic goals. In July 2020, a dedicatedClimate Unitwas established within the Department, followed by the creation of aClimate Economy Groupin early 2022. This group plays a role in mainstreaming climate-related policy development across the Department and in building awareness and capacity on climate issues across the various policy areas, like tax, budget/fiscal, financial services, etc. Traditionally, the Department (along with its sister Department of Public Expenditure) would focus on carbon pricing and environmental taxation measures, the shadow price of carbon in public capital projects, and the EU emissions trading schemes and compliance architecture.This focus has widened in recent years.
Ireland’sClimate Action Plan 2025(the third statutory update to the plan and the fifth overall) sets out the measures and actions that will support the delivery of Ireland’s climate action ambition. It is the third Climate Action Plan to be prepared under the Climate Action and Low Carbon Act and the fifth overall.
Some Department of Finance actions include:
• Monitor, forecast, and review theCarbon Taxincreases as legislated in the 2020 Finance Act and other environment-related taxation reform.
• Expand the Department of Finance’sGreen Budgetingmethodology from a tax perspective to include all six EU Taxonomy for Sustainable Activities based on the EU Green Budgeting Reference Framework and the OECD Green Budgeting Framework.
• Explore tax and regulatory measures to support the adoption of energy audit recommendations and the installation of energy-efficient equipment.
Ireland’sCarbon Taxsets out a long-term trajectory of multiannual rate increases, aiming to reach a rate of €100 per tonne of CO2 in 2030. It operates on a “polluter pays” principle and applies to carbon dioxide emissions in the heat and transport sectors, covering fuels such as petrol, diesel, kerosene, gas oil, liquid petroleum gas, fuel oil, natural gas, and solid fuels. Since 2020, the Government has allocated additionalCarbon Taxrevenue into a Climate Action Fund. This fund supportsJust Transition measures, e.g. initiatives to prevent fuel poverty, socially progressive retrofitting and investment in green agricultural projects.
Budget 2025’sThe Use of Carbon Tax Fundspaper provides further details on this allocation.Green Budgetinganalysis is now a key part of the Budgetary framework and has been published annually since the firstGreen Budgetingpaper was released on Budget Day 2022. It provides an evidence base and reflects the link between how tax and tax expenditure measures can influence individual and business behaviours towards supporting climate and environmental goals. Overall, the analysis indicates a trend towards the budgetary process becoming more climate friendly withCarbon Tax playinga significant role in driving this shift. Latest analysis was published as part ofBudget 2025: Beyond GDP - Quality of Life Assessmentandgov.ie- Green Budgeting (www.gov.ie)
Carbon Princing Pathway to 100 euros per tonne
Ireland undertakes a range of activities to address the current global challenges affecting the mobilisation of private finance for sustainable investments. The Department of Finance published an“Ireland for Finance”strategy with activities detailed under five themes, one beingSustainable Finance, which raises awareness of the need to finance investments in the green transition.
Regarding funding, acting through theNational Treasury Management Agency, Ireland issuesIrish Sovereign Green Bonds, the proceeds from which are allocated against eligible green projects upon which the State is engaged and planning for the coming years.Over €11 billionof these bonds have been issued to date. Proceeds from these issuances areallocatedfor eligible green projects, which generate a positive environmental benefit.
To further support Ireland's transition to a sustainable and climate-resilient future, the Government introduced theInfrastructure, Climate and Nature Fund(ICNF) in Budget 2024. The ICNF will support environmental projects that reduce greenhouse gas emissions, improve water quality, and enhance biodiversity. By the end of 2025,€4 billionwill have been transferred to the ICNF. Additionally, theFuture Ireland Fund(FIF), also announced in Budget 2024, aims to ensure long-term fiscal sustainability by addressing future challenges such as an aging population, climate change, and digital transformation. Each year until 2035, the Government will contribute0.8% of GDPto the FIF.
By embedding climate considerations into core fiscal processes, from taxation to budgeting, sovereign debt issuance to long-term investment planning, Ireland is investing in future economic resilience. The country’s experience illustrates a broader lesson for governments everywhere: the green transition is a structural shift -and the sooner finance ministries embrace that reality, the better prepared their economies will be.
From 2 to 4 September 2025, senior officials from Ministries of Finance across Africa and Latin America gathered in Addis Ababa for a regional workshop on integrating climate change into economic and fiscal policy. The event was co-organized by the 2050 Pathways Platform, the French Development Agency (AFD), I4CE, Enabel, the Global Green Growth Institute (GGGI), and the Coalition of Finance Ministers for Climate Action.
The workshop provided a space for peer learning and strategic dialogue, enabling participants to exchange practical experiences, explore policy innovations, and identify opportunities for regional cooperation. Sessions addressed the integration of climate risks and opportunities into macroeconomic planning, budget processes, and public financial management systems.
A central theme of the workshop was the importance of South-South cooperation. Participants reflected on the success of the Latin American and Caribbean Platform of Finance Ministers for Climate Action and expressed strong support for the upcoming launch of the African Platform of Finance Ministers for Climate Action. These regional platforms are instrumental in aligning climate and economic agendas, fostering shared ownership, and amplifying the voice of the Global South in shaping climate finance frameworks.
Held a decade after the Paris Agreement, the workshop marks a pivotal moment in global climate cooperation. It signals a shift toward a more inclusive and proactive role for Ministries of Finance in the Global South—not only in implementing climate policies but in co-designing the financial architecture needed to support them.
The Coalition is proud to support these efforts and remains committed to advancing climate-smart economic policy through collaboration, capacity building, and regional leadership.
