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 90 countries in leading the global climate response and in securing a just transition towards low-carbon resilient development.Learn More
The Helsinki Principles
The six Helsinki Principles guide the Coalition's commitment to #ClimateAction
Helsinki Principle 1: Align Policies with the Paris Agreement
Helsinki Principle 2: Share Experiences & Expertise
Helsinki Principle 3: Promote Carbon Pricing Measures
Helsinki Principle 4: Mainstream Climate in Economic Policies
Helsinki Principle 5: Mobilize Climate Finance
Helsinki Principle 6: Engage in NDC Development
of global carbon emissions
of Global GDP
View recent and upcoming Coalition events, including workshops, webinars and meetings
Finance Ministries actions to implement the Global Biodiversity Framework and halt and reverse nature loss
Please note: this blog has been cross-posted on the WBG website.
During COP15 of the Convention on Biological Diversity (CBD), in December 2022 in Montreal, a message was clear: Ministries of Finance play a critical role in achieving commitments set out in the Kunming-Montreal Global Biodiversity Framework (GBF).
As a parallel to the 1.5 degree goal set out in the Paris Agreement, the GBF hinges on a vision to “live in harmony with nature by 2050”. To achieve this, the GBF sets a mission to halt and reverse biodiversity loss by 2030, underpinned by 23 action-oriented targets. These cover protecting 30 percent of land and sea, restoring 30 percent of degraded habitats, restoring ecosystem functions and services, ensuring just and equitable access and benefit-sharing to all people. The GBF also calls for aligning financial flows to support this vision and mobilizing resources for implementation.
The GBF does not only focus on nature conservation or restoration - it aims to address the causes of nature loss throughout all of the economic activities. This means the GBF targets are being directly relevant to “green financing” as well as all other “non-green” activities, in particular key productive sectors in need of transition such as agriculture, forestry, extractive industries, and infrastructure. Domestic implementation of the GBF is through national biodiversity strategies and action plans (NBSAPs) that all parties to the CBD have committed to updating by COP16 in 2024.
What do GBF targets mean for the Ministries of Finance?
A high-level roadmap for aligning financial flows with the GBF, released in July, provides a plan of action for the financial industry. The roadmap draws upon various publications and other guidance from financial sector initiatives and coalitions, including the reports on Climate- and Nature-related Financial Risks by the Coalition of Finance Ministers for Climate Action (Coalition). The following table highlights those actions particularly relevant for the Ministries of Finance.
Aligning financial sector flows with the GBF: Actions relevant to the Ministries of Finance
Source: Adapted from High-level Roadmap for Aligning Financial Flows with the Kunming-Montreal Global Biodiversity Framework, published by UNEP FI and partners on 13 July.
Coalition members are working towards meeting the GBF targets.
In Chile, the establishment of a Natural Capital Committee consisting of representatives from various government bodies – including the MoF - offers policy advice by measuring and preserving the country's natural capital, making it a central consideration in public policy and decision-making. The MoF will be reviewing its financial strategy for climate change, along with the development of a financial strategy for biodiversity, which will be merged as the next step. Additionally, Chile intends to identify nature-based investment solutions through Biodiversity, Ecosystems, and Landscape Assessment (BELA) initiative.
In France, the MoF is actively working on mainstreaming biodiversity through green budgeting. The MoF is evaluating with the Ministry of Environment the environmental impact of state budget expenditures, including biodiversity. The Energy and Climate Law enacted in 2019 encourages nature-related risk disclosure in the private sector. The country also aims to reduce harmful incentives by 2030, and with an independent report estimated estimating nearly $10 billion in harmful incentives in 2022.
In Mexico, the federal budget is aligned with the SDGs and includes 18 programs linked to SDG 14 (Conserve and sustainably use the oceans, seas, and marine resources) and 17 programs linked to SDG 15 (Life on Land). In March 2023 the MoF published Mexican Sustainable Taxonomy, which includes objectives on climate change mitigation and adaptation, and gender equality, and it is on track to include biodiversity as its objective as well. In addition, the MoF participated in the GBF Fund negotiations and is working with other line ministries on updating the National Biodiversity Strategy to incorporate the GBF’s targets.
In Uganda, the The Ministry of Finance, Planning and Economic Development (MoFPED) is integrating biodiversity in long-term public sector strategies. The MoFPED also fiscally decentralizes funding for biodiversity policy goals: for example, allowing Uganda Wildlife Authority, an agency responsible for managing important biodiversity areas - to deploy revenues as they come in based on the urgency of actions. The MoFPED, in cooperation with other ministries, is working on implementing a budget tagging tool, to allocate funds specifically for nature and biodiversity-related initiatives. Additionally, to inform policy makers an ecosystem services account in addition to other natural capital accounts have been prepared. The MoFPED is also working with Bank of Uganda and development partners to mobilize private sector resources for nature, and work is underway to establish nature-related disclosure requirements.
In the UK, significant progress has been made in natural capital accounting, especially to inform spending reviews and fiscal events. The UK’s supplementary Green Book guidance on “’Enabling a Natural Capital Approach’ to Policy and Decision-Making" provides guidance on evaluating and monetising natural capital impacts. The UK has set a goal to mobilise £500 million of private finance per year into nature’s recovery in England by 2027. The UK has also launched: the Green Financing Programme, launched in 2021, has raised £29 billion to support projects with clear climate and environmental benefits; The Big Nature Impact Fund, launched at COP 27, combines £30 million public and private investment to finance high-integrity nature projects, such as carbon sequestration. The UK also supports the Taskforce on Nature-Related Financial Disclosures (TNFD) and looks forward to the upcoming publication of their framework.
While there is still work to do, the high-level roadmap and the experiences of implementing it as presented by the six countries, offer the insights into the practical steps necessary for the aligning the financial sector flows with the GBF. What is clear is that an environmentally sustainable future will require increasing MoF involvement - and understanding of its role is a first important step for achieving global biodiversity goals.
Members of the Coalition of Finance Ministers for Climate Action endorsed the extension for Indonesia as the Coalitions Co-Chair.
Members thanked Minister Sri Mulyani for her willingness to carry the Coalition for one more year.
The extension is a second one and thus the last one for Indonesia. According to the Co-Chair selection process this means that Indonesia's will hold the Co-Chair position until April 2025.
Marrakech, 11 October 2023 – In a significant move underlining the commitment of the world’s leading fiscal and economic policy makers to address the pressing issue of climate change, the Coalition of Finance Ministers for Climate Action unveiled its first-ever Climate Action Statement (CAS).
Boasting over 90 member countries and 26 institutional partners, the Coalition’s CAS spotlights the concerted climate actions planned by Ministries of Finance over the upcoming year. Featuring over 170 climate-focused measures, the CAS is not just a declaration of intent but a compilation of tangible actions. These actions encompass a broad spectrum, from strategic planning and coordination, macro-economic policies, green financing, to carbon pricing and disclosure, taxonomy building and reporting mechanisms.
"Our role as finance ministers is pivotal in shaping the global response to climate change. This statement shows not only our ongoing commitment but also the concrete steps we have already undertaken. The momentum is palpable, and we are undoubtedly stepping up our efforts," said Co-Chair of the Coalition, Deputy Prime Minister and Minister of Finance from the Netherlands, Sigrid Kaag.
Complementing her colleague’s remarks, Co-Chair and Finance Minister for Indonesia, Sri Mulyani Indrawati stated: “The Climate Action Statement signifies not only our recognition of the climate crisis but also our commitment to practical, tangible actions. It reflects our collective determination to safeguard our planet's future, ensuring that economic growth goes hand in hand with environmental responsibility.”
The preparation of the Climate Action Statement was a collaborative endeavor, with significant engagement from many members. "We extend our gratitude to all the colleagues who worked diligently to make this a reality. Your engagement was thorough, constructive, and reflective of our shared ambition," said the Co-Chairs. Under the joint leadership of Indonesia and the Netherlands, the Coalition is increasingly focused on impact and action on the ground, following through on the Coalition’s ministerial discussions.
Recognizing this, the Coalition has decided to publish the Climate Action Statement annually. "Every year during our annual meetings, we will revisit our actions, reflect on our learnings, and use those insights to shape even bolder policies," announced the Co-Chairs.
The role of the Coalition is to support, enable, and empower Finance Ministers and Ministries in accelerating worldwide climate action. By fostering an environment of peer-to-peer learning and open dialogues, the Coalition is striving to tackle shared climate challenges and develop innovative solutions, supported by its expanding network of Institutional Partners.
The Coalition is not just envisioning a sustainable future; it's laying down the practical groundwork for achieving it through its growing catalogue of capacity building initiatives, knowledge products, and concrete demand-driven technical support made available to its members. The Coalition will work to amplify and leverage the expertise of partners to implement effective strategies and to deepen countries’ understanding and implementation of transformative climate policy actions.
The Coalition was proud to present the flagship guide at the Austrian Ministry of Finance on Monday the 18th of September 2023, as part of their Forum Finanz event series. We learned that the Austrian Ministry of Finance, alongside other departments, has coordinated and taken a number of important actions to mainstream climate change into their operations. These actions include:
- Austria has targeted net zero by 2040, one decade before the rest of the EU.
- No new coal investments.
- 100% renewable energy by 2030.
- Further implementing the pricing of CO2 emissions within the framework of the national ETS, conducted in gradual manner, whilst preparing for the implementation of EU ETS 2, an ongoing process of interdepartmental cooperation will be intensified.
- Expanding the green Budget screening methodology to the regional and sub- national levels through spending review and integrating greenhouse gas estimates in the green budgeting framework.
- Eco-Social Tax Reform 2022- aims at strengthening social inclusion and combating climate change, thus contributing to expected annual greenhouse gas emission savings of 2.6 million tons by 2030 compared to the baseline-scenario. To reach such objectives, the reform introduces a national CO2 price on fossil energy sources(starting at € 30 in 2022 and to be gradually lifted to € 55 in 2025, followed by market-based price formation from 2026 onwards), and a tax relief worth of € 18 billion by 2025 for people and businesses, comprising i.a. lower personal and corporate income tax rates, a higher “Family Bonus Plus” and relief measures for low-income households. A “Regional Climate Bonus” serves to mitigate the impact of carbon pricing on individuals.
- Financial sector reform – by expanding “Green Financial literacy”, strengthening of green project financing, issuing of green bonds and securities and measurement and monitoring of climate-friendly financial flows.
- Implementing recovery and resilience plan, which includes a spending reviews analysis of the subsidies and incentives with climate and energy policy.
Director General Harald Waiglein, Directorate of Economic Policy and Financial Markets at the Austrian Ministry of Finance opened the proceedings, before handing over to Coalition-Sherpa for Austria, Elisabeth Vitzthum to chair the event.
Pekka Morén, special representative for the Ministry of Finance of Finland and country champion of the Coalition’s Helsinki Principle 2 workstream, then introduced the flagship guide. Technical experts and lead Institutional Partner in producing the flagship guide, Nick Godfrey and Anika Heckwolf from the LSE Grantham Institute, gave a technical presentation of the framework offered in the guide, before Pekka Morén linked the guide to the next steps of capacity building by the Coalition (slides of the presentation are available here).
A panel discussion then followed. Director General Harald Waiglein, Anika Heckwolf, and Pekka Morén, were joined by Fabio Rumler, Head of the Department of International Economics at Oesterreichische Nationalbank and Frank van Lerven, Coordinator at the Coalition’s Secretariat and lead of C3As debt sustainability hub.