The Coalition of Finance Ministers for Climate Action met today with the World Bank and the International Monetary Fund to advance efforts to align economic and financial decision-making with the goals of the Paris Agreement. The Chair of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) participated in the meeting as a key partner of the Coalition.
The meeting—one of the central events of Finance Day at COP26—was hosted by UK Chancellor Rishi Sunak, and brought together Finance Ministers committed to addressing climate change. In line with the Coalition Ministerial meeting on October 12, 2021, they recognized that their Ministries need to step up action to accelerate the decarbonization of their economies and ensure a just and orderly transition that is positive for jobs, growth, and competitiveness.
The Chairs of the Coalition and the NGFS released a Chairs' Joint COP26 Statement expressing support for the COP26 process and highlighting key areas where Ministries of Finance, Central Banks, and financial sector supervisors can help shift the trajectory towards net-zero. The Coalition also published a Press Release ( PDF | Word ).
Members shared perspectives on policy options developed in different contexts and regions, and how they can use the levers at their disposal to implement a systemic shift in their policies. To that end, they welcomed four reports:
- Mainstreaming Climate into Economic and Financial Policies, which highlights the deepening engagement of Finance Ministries on the climate change agenda.
- Strategies for Mainstreaming Climate Action in Ministries of Finance: Governance, Capacities, and Research Practices, which emphasizes key challenges and best practices in building capacity and mainstreaming climate, informed by the findings of two Member surveys.
- An Analysis of Sustainable Finance Roadmaps: Charting the Path to Financial System Transformation, which examines international experience and draws lessons to inform the design and implementation of effective sustainable finance roadmaps.
- Building Momentum for Strong Recovery and Sustainable Transformation, which assesses progress on recovery and emphasizes the need for sustainable investment, reinforced by policies and the effective use of all pools of finance, to accelerate a just transition and deliver on climate goals.
Members resolved to continue working together on aligning their economies with the goals of the Paris Agreement and developing common approaches, concepts, tools, and practices, through the Helsinki Principles. Looking ahead, as part of the Coalition and the NGFS’s objective to support the green transition and help reach net-zero targets, representatives recognized the need to facilitate adaptation and address climate risks in all their forms, including risks associated with biodiversity loss.
“Finance Ministries cannot ignore climate change, and no solution can be achieved without Finance Ministries. The Coalition is an invaluable forum for sharing knowledge and building our collective capacity to tackle this global issue together. I’m delighted that we, as a Coalition, are rising to the challenge,” said Chancellor Rishi Sunak, host of the CO26 Finance Day.
“Addressing climate change is increasingly about economic policy. This is why we are here in Glasgow” said Annika Saarikko, Finance Minister of Finland and Co-Chair of the Coalition of Finance Ministers for Climate Action.
“Climate action should not be rhetoric. It should be about action and making sure there is a just and affordable transition," said Sri Mulyani Indrawati, Finance Minister of Indonesia and Co-Chair of the Coalition of Finance Ministers for Climate Action.
“We, the members of the central banks and supervisors Network for Greening the Financial System, firmly believe that the contribution of the financial sector to the net zero transition would be greatly facilitated by clear, predictable and effective economic policies addressing climate change," said Frank Elderson, Member of the Executive Board of the European Central Bank and Chair of the Network for Greening the Financial System.
Coalition Members and Institutional Partners provide statements in support of COP26