Overview

Mainstreaming climate change mitigation and adaptation policies in macro-fiscal and other relevant policy planning, budgeting, public investment management and public procurement is essential to avert the effects of climate change. Some countries have made progress in these areas, building on robust, evidence-based planning and financial management systems. Members are encouraged to share their experience and contribute to the development of tools that can be applied in other countries, including those with more limited capacity.

Key actions and deliverables under Helsinki Principle 4 include:

• Developing tools to address knowledge and expertise gaps in macroeconomic forecasting and fiscal planning for climate change impacts, as well as disaster risk management, among others.
• Preparing toolkits and guides on whole of government approaches that integrate climate in the policy and budget process, such as green budgeting where appropriate, green procurement and climate-informed public investment management.
• Supporting macroeconomic and fiscal assessments of adaptation, resilience and mitigation policies, including NDCs.

Country Lead

	Denmark

Member Countries: Austria, Bangladesh, Canada, Chile, Finland, France, Greece, Honduras, Indonesia, Ireland, Italy, Luxembourg, Mexico, Portugal, Rwanda, Seychelles, Sierra Leone, Slovakia, Spain, Sweden, Uganda

Actively Engaged Partners

• European Commission
• LSE/Grantham Research Institute
• International Monetary Fund
• Network for Greening the Financial System
• OECD
• United Nations Development Program
• UNEP
• World Bank Group
• World Resources Institute

Priority policy areas within the workstream for 2024-2025

• Integrate climate into the macroeconomic modelling tools and approaches and develop better answers to the policy challenges faced by Ministries of Finance in assessing the economic and fiscal implications of climate change.
• Identify current gaps and opportunities in green budgeting to catalyze climate action, including other cross-cutting issues such as disaster risk management and disaster risk financing.

2025 Publications:

A Global Survey of Finance Ministries: The pressing policy questions Ministries of Finance face in driving green and resilient transitions and their use of analytical tools to address them. 59 members responded (almost a third of all MoFs), and 15 participated in semi-structured interviews-  here.

Global Compendium of Practice – Summary Report of Economic Analysis and Modeling Tools to Assist Ministries of Finance in Driving Green and Resilient Transitions. Summarizes 130 contributions from 70 institutions, capturing existing and frontier economic analysis in action. It includes 10 model types and more than 30 specific models in use - here

Thematic Report: How Finance Ministries Can Assess the Fiscal Challenges and Opportunities from Green and Resilient Transitions. Available analytical tools and emerging good practices, focusing on the ways in which climate-related issues can affect public finances and how MoFs can assess the impacts using existing data, analytical tools and approaches - here.