Ministries of Finance are playing an important role in the inter-ministerial coordination to update or communicate the Nationally Determined Contribution, which can be updated at any time, but the Paris Agreement currently assumes a 5-year cycle, with each new submission expected to be more ambitious than the previous one. Responsibility for NDC development and implementation can vary widely across countries, but mostly fall under environment ministries. In practice, Ministries of Finance have traditionally been less directly involved in these activities.
The efforts under Helsinki Principle 6 build on the work programs of all other Helsinki Principles, and aim to help Members improve their ability to evaluate the macro-fiscal impacts of NDCs and long-term climate strategies, and provide effective guidance to the NDC development process.
Key actions under Helsinki Principle 6 include:
- Identifying a list of economic-fiscal guidelines and requirements that Finance Ministries could issue to sector ministries and agencies for the NDC development process in future, as well as increasing the awareness of tools, resources, and support available to assess the macro-fiscal impacts of NDC and Long Term Strategy implementation.
- Providing opportunities for peer exchange informed by related institutions on good practices and instruments that Members can use to support other Ministries in the NDC implementation and validation process.
- Facilitating access to networks for information, resource sharing, and visibility of success stories.
- Ministries of Finance and Nationally Determined Contributions - Stepping Up for Climate Action (July 2020)
- Inter-American Development Bank
- NDC Partnership
- World Bank Group