The Coalition of Finance Ministers for Climate Action is a group of fifty-two finance ministers engaged in efforts to address climate change through economic and financial policies according to the Helsinki Principles. Peer learning and knowledge exchange plays a strong part in the Coalition’s success.
As part of the core mandate of Ministries of Finance (MOFs), which is the design and implementation of sound macro-economic policies and public finances, the economic and social impacts of climate change are becoming increasingly relevant for the wellbeing of our societies. This report is a first step in the Coalition’s work to support its Member Countries to design their Nationally Determined Contributions (NDCs) by strengthening the Finance Ministries’ involvement in the preparatory process. This work is closely related to the Helsinki Principle 1 on aligning policies and practices with the Paris Agreement commitments and Principle 2 on sharing experience and expertise in order to provide mutual encouragement and promote a collective understanding of policies and practices for climate action.
Countries are expected to update or communicate their NDC targets by the end of 2020 (as per the UNFCCC Decision 1/CP.21 paragraph 23 and paragraph 24).
In this context, the economic policy tools of climate change are also being developed. In line with this, the involvement of Finance Ministries in the NDC process is still evolving in most countries. This report approaches the topic through experiences from Member Countries, drawing from practical challenges and ways to overcome them.
The report will provide a useful overview to the Coalition members and Institutional Partners working on NDC updates. It will also provide the basis for future work priorities of the Coalition in all areas of the Helsinki Principles as well as promote horizontal efforts nationally and globally.