About the Coalition

Finance Ministers hold the keys to accelerating climate action. They know most clearly the risks posed by climate change, and recognize how taking action could unlock trillions in investments and create millions of jobs through 2030.

The Coalition of Finance Ministers for Climate Action brings together fiscal and economic policymakers from over 90 countries in leading the global climate response and in securing a just transition towards low-carbon resilient development.

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The Helsinki Principles

The six Helsinki Principles guide the Coalition's commitment to #ClimateAction

Helsinki Principle 1: Align Policies with the Paris Agreement

Align our policies and practices with the Paris Agreement commitments
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Helsinki Principle 2: Share Experiences & Expertise

Share our experience and expertise with each other in order to provide mutual encouragement and promote collective understanding of policies and practices for climate action
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Helsinki Principle 3: Promote Carbon Pricing Measures

Work towards measures that result in effective carbon pricing
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Helsinki Principle 4: Mainstream Climate in Economic Policies

Take climate change into account in macroeconomic policy, fiscal planning, budgeting, public investment management, and procurement practices
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Helsinki Principle 5: Mobilize Climate Finance

Mobilize private sources of climate finance by facilitating investments and the development of a financial sector which supports climate mitigation and adaptation
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Helsinki Principle 6: Engage in NDC Development

Engage actively in the domestic preparation and implementation of Nationally Determined Contributions (NDCs) submitted under the Paris Agreement
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Workstream: Adaptation

Adapting to the risks of climate change to moderate potential damages or to benefit from opportunities
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Workstream: Green and Just Transition

Combining environmental sustainability with social justice must be considered in any effort to build a more sustainable future for everyone
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Workstream: Nature

Prioritizing nature-based solutions in budgeting decisions is imperative for the Ministries of Finance to mitigate environmental impact
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92

Member countries

43%

of global GHG emissions

69%

of Global GDP

Member Countries

 

The Secretariat

Partners

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Events

View recent and upcoming Coalition events, including workshops, webinars and meetings

July 17, 2024

Natural capital accounting: integrating nature into policy and investment…
July 16, 2024

CFMCA Regional Convening for Africa
July 11, 2024

Joint HP5-Nature workshop: Update on climate-related and nature-related…
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New thematic policy note Strengthening Finance Ministries’ capacity and engagement in the Nationally Determined Contributions (NDCs) published

August 07, 2024
Author
Coalition Secretariat

We open a series of thematic policy notes with a "Strengthening Finance Ministries’ capacity and engagement in the Nationally Determined Contributions (NDCs)" note prepared by NDC Partnership Support Unit under the leadership and guidance of Spain and Uganda as Country Leads and the Netherlands and Indonesia as Co-Chair of the Coalition, with contributions from the Grantham Research Institute on Climate Change and the Environment, and 2050 Pathways Platform.

Read more in our blog by Luma Ramos.

Strengthening Finance Ministries’ capacity and engagement in the Nationally Determined Contributions (NDCs) process

August 07, 2024
Author
Luma Ramos, World Bank

Finance Ministries play a crucial role in enhancing the ambition and implementation of Nationally Determined Contributions (NDCs), which are essential to achieving the Paris Agreement's goals of limiting global warming to 1.5°C and advancing sustainable development. NDCs outline each country's commitments to reduce greenhouse gas emissions, build resilience, and adapt to climate change impacts. These commitments are updated every five years.

However, progress toward the Paris Agreement goals has been limited. The first Global Stocktake released in 2023 revealed that current policies will result in higher emissions than projected by the NDCs, indicating an implementation gap. Additionally, the 2022 synthesis report on NDCs shows that even with full implementation, emissions in 2030 will be only 5.3% lower than in 2019, highlighting a significant ambition gap.

The upcoming 2025 NDC submission cycle is an unique opportunity for Finance Ministries to leverage their economic, regulatory, and fiscal policy role to enhance NDC ambition and implementation, as stated in a recent Joint Call for Action. This will ensure alignment with national and subnational development priorities, country platforms, sectoral strategies, and the goals of the Paris Agreement.

Well-designed NDCs not only enhance climate resilience but also improve livelihoods, eradicate poverty, eliminate hunger, and promote health and well-being. Despite their importance, previous research indicates that only a quarter of Coalition members are involved in all stages of NDC development and implementation. This technical note aims to address this gap and support Finance Ministries in their role.

Following the discussions held during the 11th Ministerial Meeting, the Coalition of Finance Ministers for Climate Action (the Coalition) is pleased to share its first in a series of three thematic policy notes. This technical note, written by the Coalition's HP1/6 workstream Co-Leads and the NDC Partnership, highlights key takeaways and strategies for Finance Ministries to bolster their engagement in NDC processes and available resources.

Key Takeaways:

  • Early Involvement for Enhanced NDCs:

Finance Ministries should be involved early in the NDC development process. Their central role in economic, fiscal, regulatory, and financial policies enables them to design ambitious and investment ready NDCs that align with national development priorities, investment plans and country platforms. 

  • Creating an Enabling Environment:

By building an environment conducive to public and private investments, Finance Ministries can enhance market certainty and continuity. This includes aligning budget cycles, regulatory incentives, and other public financial management processes with climate and sustainable development goals.

  • Tailoring to Country-Specific Circumstances:

Successful NDC implementation requires solutions tailored to each country's unique circumstances, capacities, and priorities. Finance Ministries can use various approaches and options to engage effectively, supported by mechanisms from the NDC Partnership and the Coalition of Finance Ministries for Climate Action.

To address some of the challenges Finance Ministries face, such as a lack of capacity and resources, the NDC Partnership and the Coalition are strengthening their support mechanisms. The NDC Partnership Global Call for NDCs 3.0 & LT-LEDS offers tailored, demand-driven support, leveraging the experience and resources of over countries and institutions. As of early 2024, the Partnership supported more than 100 developing member countries (~50 of which are members of the Coalition), with support deployed by over 160 implementing and development partners from the NDC Partnership network.

For more details, please refer to the full technical note.

Image credit: NDC Partnership

Application Process for the Co-Chair candidacy opened

August 05, 2024
Author
Coalition Secretariat

We are pleased to announce that the application process for the Co-Chair candidacy opens today, Monday, August 5 at 9 AM (EDT) and closes on Monday, August 26 at 5 PM (EDT). During this period, developing country and emerging economy member countries interested in running for the Co-Chair position should contact the Coalition Secretariat at coalitionsecretariat@financeministersforclimate.org to provide the required information.

Applications should be submitted in writing to the Secretariat by the deadline of August 26.

Press Release Issued for Africa Regional Meeting (Kampala, Uganda)

July 17, 2024
Author
Coalition Secretariat

photo

PRESS RELEASE

Kampala, 17 July, 2024

FINANCE MINISTRIES FROM ACROSS AFRICA ARE MEETING IN KAMPALA TO DRIVE CLIMATE ADAPTATION ACTION

Finance Ministries from 20 countries across the African continent are meeting in Kampala at the first African regional convening of the Coalition of Finance Ministers for Climate Action. Hosted by the Hon. Matia Kasaija Minister of Finance, Planning and Economic Development of Uganda, the two-day convening focuses on key actions Finance Ministries can take to drive climate adaptation action across the African continent.

Despite having contributed only 4% of global carbon emissions, Africa is hit hardest by the consequences of climate change. Taking effective adaptation and resilience measures that protect and prepare people, livelihoods, and communities is a critical challenge for African countries. Even if global warming is limited to 2°C, adaptation costs for Africa could rise to USD 35 billion per year.

Finance Ministries are key to managing these macroeconomic risks, accessing and mobilizing adaptation finance. By developing effective fiscal and economic policies, Ministries of Finance can enhance adaptive capacity and boost climate resilience, while seizing the development prospects offered by the transition to a low-carbon economy.

The discussions at this regional convening are centred around sustainable growth with the aim of promoting knowledge sharing and peer exchange among 20 African Ministries of Finance. Countries shared their experiences on developing green growth strategies, national adaptation planning, sustainable budgeting and financing tools for mitigation and adaptation.

Uganda’s Minister of Finance Hon. Matia Kasaija, who was represented by the Minister of State for General Duties Hon. Henry Musasizi said,

“Adaptation action offers a critical opportunity to protect people and boost sustainable growth. That is why I am pleased to host the first African regional convening of the Coalition of Finance Ministers for Climate Action here in Kampala.”

Participants also include Hon. Bockarie Kalokah, Minister of Finance of Sierra Leone and Hon. Amos Lugoloobi of Minister of State for Planning and Economic Development of Uganda.

The outcomes of the regional meeting will contribute towards the Coalition’s headline Climate Action Statement that will be presented at the World Bank/IMF Annual Meetings in October 2024.

The convening is supported by UNEP, the NDC Partnership, Enabel, UNDP and the World Bank, and co-organized by the African Development Bank and the African Union.

About the Coalition of Finance Ministers for Climate Action

The Coalition of Finance Ministers for Climate Action was created in 2019 and now has 92 members, including all the G7 countries, and 27 Institutional Partners. It brings together economic, fiscal and financial economic policymakers in leading the global climate response and in securing a just transition towards low-carbon resilient development.

Together, the Coalition accounts for 40% of global CO2 emissions and a substantial 70% of global GDP. All members of the Coalition have committed to the six foundational Helsinki Principles, which require national action on climate change, particularly through fiscal and financial policies. The Coalition is currently co-chaired by the Finance Ministers of the Netherlands and Indonesia, the initiators of this Call to Action. 

Contact for Details:

Sam Mugume Koojo, Ministry of Finance, Planning and Economic Development, Uganda, +256 77 23 29 013

Aoife Fleming, Co-Chair team of the Netherlands, Coalition of Finance Ministers for Climate Action, +31 6 29 63 93 17

Frank van Lerven, Secretariat Coalition of Finance Ministers for Climate Action, +44 79 20 88 63 65