Coherent climate policy packages are essential to achieving climate and development objectives, with Ministries of Finance playing a key role in their design and implementation.
Ministries of Finance (MoFs) face increasingly complex questions about the direct and indirect implications of the green and resilient transition. Recent geopolitical developments in key energy-producing regions have added to volatility in global energy markets and reinforced concerns about energy security. At the same time, shifting towards low carbon economies offers transition and resilience enhancing economic opportunities to boost growth, create jobs, and enhance energy security. Building effective climate policy packages requires robust and credible answers—grounded in sound economic analysis—that clearly set out the risks and opportunities of different policy pathways. As governments seek to accelerate decarbonization while maintaining growth and fiscal stability, MoFs are uniquely positioned at the center of this challenge, shaping economic strategy, allocating public resources, and mobilizing finance at scale.
Against this backdrop, the Coalition of Finance Ministers for Climate Action recently published its report “How Ministries of Finance Can Support Coherent Climate Policy Packages”, highlighting how coordinated, multi-instrument approaches can deliver both climate and economic outcomes. To bring these insights into practice, the Coalition convened a public webinar bringing together senior officials from ministries of finance, international organizations, and research institutions. The discussion explored how coherent policy packages can drive investment, strengthen fiscal resilience, and support economic competitiveness, while underscoring the pivotal, yet still underutilized, role of finance ministries in climate action.
(Read the full report here.)
Event overview
The webinar focused on how Ministries of Finance can operationalize coherent climate policy packages under conditions of fiscal constraint and rising climate risk. Climate change was framed as a macroeconomic and fiscal challenge, with implications for public finances, economic stability, and long-term growth. Delivering effective outcomes was linked to aligning fiscal, regulatory, financial, and investment measures within a coherent policy framework, with Ministries of Finance playing a central role in managing trade-offs and ensuring consistency across government. Emphasis was placed on the use of analytical tools to inform policy design, support sequencing, and enable adjustment over time.
Keynote
Patrick Lenain (Council on Economic Policies), lead author of the report, highlighted that climate change remains insufficiently integrated into the core mandate of many Ministries of Finance, despite its material implications for fiscal sustainability and economic performance. He emphasized that Ministries of Finance already possess a broad set of policy levers and analytical tools, and that delays in engagement are often driven more by perceived constraints than by actual limitations.
He underscored that effective climate action depends on well-coordinated, multi-instrument policy packages rather than reliance on single measures. A pragmatic and iterative approach was emphasized, with policy development proceeding alongside ongoing evaluation and refinement. The importance of sequencing reforms and aligning climate and economic objectives was also highlighted.
Country Perspectives
Uganda
June Nyakahuma (Ministry of Finance, Planning and Economic Development, Uganda) highlighted the role of institutional and legal frameworks in supporting coherent climate policy, including the Climate Change Act. Coordination between the Ministry of Finance, the National Planning Authority, and the Ministry of Water and Environment enables the integration of climate considerations into planning and budgeting. Fiscal instruments, including fuel taxes and environmental levies, are used to support climate objectives. Analytical capacity is strengthened through collaboration with international organizations, while the Climate Finance Unit supports the development and management of climate finance frameworks.
Ecuador
Paula Suarez (Ministry of Economy and Finance, Ecuador) emphasized the need for a pragmatic, adaptive approach to climate policy in the context of fiscal constraints and structural economic conditions. The use of a diverse set of policy instruments, strengthened coordination within and across government, and attention to distributional impacts were identified as key elements in advancing reform. The importance of understanding private sector exposure to climate risks was highlighted, alongside the role of international support, including from the IMF and World Bank, in enabling major reforms such as fossil fuel subsidy reform.
Nigeria
Temitope Akinyemi (Ministry of Finance, Nigeria) highlighted the fiscal and economic implications of climate change, including impacts on agriculture, infrastructure, and energy systems. Climate-related disruptions increase pressure on public expenditure, while transition risks affect revenues from oil and gas. The Ministry of Finance plays a central role in coordinating climate-related investments and mobilizing finance, including through instruments such as green bonds and carbon finance mechanisms, supported by international partnerships.
Link to video.
Link to discussion overview.