At COP30, the Coalition of Finance Ministers for Climate Action showcased how finance ministries are driving the shift from climate pledges to implementation. Through high-level events and strategic dialogues, the Coalition emphasized the critical role of fiscal and economic policy in delivering Nationally Determined Contributions (NDCs), mobilizing $1.3 trillion annually for emerging markets, and integrating climate goals into macroeconomic and fiscal frameworks. Key discussions spotlighted innovative tools—such as green budgeting, carbon pricing, and risk management—and launched new initiatives to strengthen collaboration between finance ministries and central banks. These engagements reaffirm the Coalition’s commitment to enabling resilient and inclusive growth, and positioning finance ministries as leaders in the global climate transition.
The role of finance ministries in driving climate implementation and investment is gaining unprecedented attention. Recent important reports, including the COP30 Circle of Finance Ministers report and the Baku-to-Belém Roadmap, as well as the newly released Independent High-Level Expert Group (IHLEG) report on Climate Finance, all converge on one message: finance ministries are central to delivering climate commitments and enabling a just transition.
The role of finance ministries in implementing climate action reflects a fundamental shift in the global policy architecture. This is not limited to macro-fiscal management; it also encompasses the design of financial systems, the mobilization of private capital on a large scale, and the creation of enabling environments for sustainable economic growth. Adaptation finance, integration of climate risk into fiscal frameworks, and deployment of technology-driven solutions, including AI for modeling and analytics, are emerging as core priorities for the decade ahead.
The Coalition of Finance Ministers for Climate Action is well-positioned to help shape this transformation. Through structured dialogues, joint initiatives, and technical platforms, the Coalition supports its 100 member ministries in translating global commitments into actionable strategies. Our workstreams, focused on adaptation, NDC implementation, carbon pricing, climate finance, and mainstreaming climate considerations into economic policies, align directly with the priorities set out in the COP30 Circle Report, the Baku-to-Belém Roadmap, and the IHLEG Finance Report. By advancing taxonomy interoperability, enhancing capacity for climate-informed fiscal planning, and fostering mechanisms to attract private investment, the Coalition ensures that Finance Ministries are equipped to lead systemic change.
High-Level Event: "Implementing NDCs: How Finance Ministries Can Integrate Climate Goals into Economic Strategy" The Coalition's flagship event with Brazil’s Finance Ministry and the COP30 Presidency highlighted the pivotal role of Finance Ministries in delivering NDCs. The discussion underscored the growing importance of Finance Ministries in driving and accelerating climate action, with broad agreement that effective National Determined Contributions (NDCs) implementation hinges on strong macro-fiscal leadership.
Overall, the event confirmed that climate policy is now embedded in macroeconomic strategy, with Finance Ministries playing a critical role in turning commitments into investment pipelines, resilient budgets, and economy-wide transitions. Watch the event video and LinkedIn Post |
"Inside the Economic Engine Room: Ministries of Finance and Economic Analysis for Green and Resilient Transitions" At the Danish Pavilion, the Coalition of Finance Ministers for Climate Action hosted an interactive session exploring how finance ministries are embedding climate into fiscal frameworks and budget processes. Participants explored how MoFs—responsible for managing $30 trillion in public capital—are central to shaping a growth story grounded in optimism and resilience. The event highlighted practical solutions, including peer-to-peer learning, innovative modeling approaches, and new resources to support policy design. Professor Lord Nicholas Stern introduced his open-access book "The Growth Story of the 21st Century", underscoring the role of MoFs in unlocking investment through a range of policy instruments—from carbon pricing to fiscal incentives and market reforms. His message: multiple market failures demand multiple tools, and strong analytics are essential for unlocking investment and delivering sustainable growth.. Key highlights:
The Coalition reaffirmed its commitment to help countries strengthen domestic climate action and mobilize resources for the transition. |
| This report provides a systematic overview of analytical tools available to ministries of finance to help address the policy climate policy questions they face and integrate climate into their economic analysis. It serves as a reference for ministries of finance and their partners that want to explore how climate-related economic policy can be analyzed and diverse tools can be used to support climate-informed decision-making. It covers 23 tools grouped into four categories, clarifies their use cases, strengths, and limitations, and provides case studies of their deployment. It also maps tools to policy questions to help ministries of finance identify those most relevant to their needs and highlights cross-cutting analytical considerations. Through this overview, the following key messages emerge: (1) Different strategies can be used to integrate climate into analytical tools, (2) no single tool can answer all relevant questions, (3) tools can be linked or used in conjunction for more comprehensive analysis, and (4) continuous learning and development are crucial. |
The HP4 Capabilities Report provides an overview of strategies, options, and recommendations for how ministries of finance can practically enhance their analytical capabilities to drive green and resilient transitions. Among the report’s key messages are:
– Skills: Building analytical capabilities requires ensuring dedicated staffing resources with the right mix of skills for conducting or interpreting modeling and analysis are present in the ministry. – Collaboration: ministries of finance cannot address their capability gaps alone. They may require support from a broader analytical ecosystem, including line ministries and government agencies willing to share models, data, and experience; universities and research institutes with climate expertise; and technical assistance providers and the wider international community, which can help build expertise and improve access to tools and data. – Governance: Clear roles, responsibilities, and institutional structures are crucial for ensuring that climate-related economic modeling and analysis are effectively integrated into the ministry of finance’s decision-making. There is a strong demand for technical assistance providers to ramp up and reform existing offers and training provision to help ministries of finance develop and maintain internal capabilities. This will require working with universities, research institutions, and partners across government. |
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Launch of the Coalition of Finance Ministers and NGFS Joint Initiative: On the margins of COP30 in São Paulo, the Coalition of Finance Ministers for Climate Action and the Network for Greening the Financial System (NGFS) announced a new initiative to strengthen collaboration between finance ministries and central banks. The joint initiative aims to deepen cooperation between finance ministries and central banks on the macroeconomic dimensions of climate change and the transition to a low-carbon economy. Climate change and the low-carbon transition are reshaping macroeconomic and financial conditions in ways that directly affect both fiscal and monetary policy environments. In this context, regular and informal exchanges between finance ministries and central banks can support mutual learning, a clearer shared understanding, and well-informed economic planning, while fully respecting their distinct mandates. This initiative will bring together fiscal and monetary officials to share approaches and perspectives on how climate and nature-related developments are influencing macroeconomic conditions, inflation, debt sustainability, financial stability, investment needs, and growth prospects. It is designed to be voluntary, flexible, and non-binding, and grounded in practical experience. |
Video Summary
Read more about the Coalition's participation in the COP30 Side Events: https://www.financeministersforclimate.org/news/cop30-side-events-drivi…
Read more about the NFGS and the Coalition joint initiative: https://www.financeministersforclimate.org/news/ngfs-and-coalition-fina…
Read more about the launch of the country Platforms Hub: https://www.financeministersforclimate.org/node/1289
Access the Coalition's tools to navigate the key topics of COP 30: https://www.financeministersforclimate.org/news/coalition-resources-nav…