The Coalition of Finance Ministers for Climate Action met on November 9 during the UNFCCC COP27 conference in Sharm el-Sheikh, Egypt. The meeting—one of the central events of Finance Day at COP27—brought together Finance Ministers, heads of international organizations, and other senior officials to discuss how finance ministries can help their countries adapt to the increasingly costly impacts of climate change.
Lead speakers at the event included Egyptian Finance Minister Mohamed Maait, Dutch Finance Minister Sigrid Kaag, World Bank President David Malpass, IMF Managing Director Kristalina Georgieva, UNDP Administrator Achim Steiner, World Resources Institute President Ani Dasgupta, and Grantham Research Institute Chairman Nicholas Stern. The meeting was opened by Suahasil Nazara, Vice Minister, Indonesia Ministry of Finance, and moderated by the Coalition Co-Chair Sherpas, Pekka Moren (Finland) and Masyita Crystallin (Indonesia).
Participants noted that climate change impacts will have a major effect on economic growth and public welfare over the long term, even if emissions reduction targets are reached—therefore making it critical to ramp up adaptation efforts. Speakers emphasized that finance ministries have a key role to play in boosting adaptation investments using the economic and fiscal policy levers at their disposal.
In this context, attendees stressed the vital importance of improving access to adaptation financing—particularly for low-income and climate-vulnerable countries—and discussed the role of multilateral development banks and the private sector in providing adaptation finance. The need to further develop national financial systems to mobilize public and private finance was also highlighted. Participants welcomed the public release of the report, Climate Change Adaptation and Role of the Coalition of Finance Ministers for Climate Action, which was prepared as a key input into the meeting.
Launch of Consultation Process on Role of Finance Ministers in Climate Action
In addition to the adaptation discussion, the meeting also marked the launch of a consultation process with stakeholders and partners on the role of finance ministries in climate action. The dialogue and consultation will feed into a forthcoming guide, Strengthening the Role of Ministries of Finance in Driving Climate Action, that is expected to be endorsed by Ministers in April 2023.
Above: Participants at the meeting of the Coalition of Finance Ministers for Climate Action at COP27
Felipe Larraín, Former Minister of Finance, Chile
Annika Saarikko, Minister of Finance, Finland