Climate Action Statement by the Coalition of Finance
Ministers for Climate Action
10th Ministerial Meeting, Marrakesh, 11 October 2023

We, the Coalition of Finance Ministers for Climate Action (the Coalition), recognize that Finance
Ministers and Ministries around the world must and can contribute to the transformative potential of
climate policies. We play a pivotal role in accelerating climate mitigation and adaptation action in
the public sector and setting the enabling conditions for the private sector to scale up investments in
climate and nature solutions.
As our Coalition continues to grow, now boasting over 90 Member countries and 26 Institutional
Partners, we are resolute in encouraging cross-country collaboration to achieve impact on the
ground. United in purpose to achieve meaningful and impactful climate action towards the Paris
Agreement goals, we stand firmly committed to a shared common objective of mainstreaming
climate considerations in the domains of Ministries of Finance (MoFs).
In practice, our Coalition brings together MoFs from various countries, irrespective of economic or
geographic distinctions, which through peer-to-peer learning and engaging in open collaborative
dialogues, strive to tackle common challenges, devise innovative solutions, and help to provide each
of us, supported by our Institutional Partners, with the necessary tools and capacity for undertaking
climate action through the instruments of MoFs.

In the upcoming year, we are collectively stepping up climate action. Many
Coalition members are committed1 to:
1. Spearheading climate action by building strategic policy roadmaps and coordinating activities
both within MoFs and across Ministries.
2. Greening the financial system and aligning financial flows with the Paris Agreement to better
manage risks and opportunities through disclosure, reporting, and risk assessment.
3. Designing innovative climate-related financial mechanisms to mobilize private and public finance
to bridge the green investment gap.
4. Advancing the implementation of carbon pricing mechanisms to curb emissions and incentivize
the transition towards low carbon technology, processes, and practices.
5. Greening public investments and current expenditures, whilst integrating climate risks into
macroeconomic modeling and budgetary forecasts and frameworks.

A Year in Perspective: Charting the Coalition’s Climate Progress
Over the past year, the Coalition has worked diligently to nurture cross-border learning and mutual
knowledge sharing that propels the adoption of tangible policy measures, as well as helping shape
the trajectory of the global climate dialogue. The Coalition launched a flagship guide offering
concrete steps for MoFs to strengthen their role in driving a just transition towards low carbon and
climate-resilient economies. This effort was accompanied by capacity building initiatives to strengthen
the capacity of our Ministries to realize sustainable climate action.

1

Note: Not all members commit to identical, or all actions outlined in this statement. For a detailed understanding of specific

actions by each member, please refer to the summary table.

1

Analysis by the Coalition revealed that MoFs play a critical role in driving progress toward private
sector net zero commitments. They have levers of influence – through soft and regulatory power –
that are effective in incentivizing private financial institutions. The Coalition’s stakeholder dialogues
assessed the financial ecosystem’s ability to provide adequate ‘transition finance’ for high carbonemitting industries to decarbonize, and the Coalition worked towards improving definitions of transition
activities, along with credible disclosure and reporting frameworks, and harmonization of taxonomies
to prevent greenwashing. Facilitated by the Coalition, members have investigated and shared
experiences on explicit carbon pricing mechanisms, laying out ways to advance and harmonize
cross-border mechanisms proposed across different jurisdictions. The Coalition significantly advanced
understanding of mainstreaming climate change in macroeconomic modeling, and elevated best
practices on green budgeting.
Moreover, the past year witnessed a heightened interest in understanding how to integrate
developments related to adaptation, nature, and a just and green transition, including the
socioeconomic implications of climate change policies, showing that MoFs face diverse and complex
challenges pertaining to climate action. It is these interactions we see reflected into policy actions
members are planning to undertake in the upcoming year.

Forging the Future: Anticipated Climate Actions for the Year Ahead
The Coalition’s efforts have paved the way for accelerated and amplified action by MoFs. In the
upcoming year, MoFs will spearhead climate action, with many MoFs poised to either significantly
shape and jointly implement Nationally Determined Contributions (NDCs) and Long-term Climate
Strategies (LTSs). In this spirit, many MoFs are advancing how they coordinate climate policy actions
within and between Ministries in overarching strategic frameworks and structures. MoFs are playing
an increasing role in this area by building comprehensive strategies to mobilize finance for the green
transition, coordinating policy roadmaps for sustainable development, while strengthening internal
climate-related capacities and capabilities.
In the year ahead, as part of efforts to green the financial system and align financial flows with the
objectives of the Paris Agreement, Coalition members will focus on better managing the financial
risks alongside opportunities of the low-carbon transition. Many of the Coalition’s members are taking
concrete policy actions to establish climate-related disclosures for the whole economy, develop
green and sustainable taxonomies, and conduct climate-related financial risk assessments. Often
facilitated by public-private committees, these discussions are charting the way for both mandatory
and voluntary implementation, ensuring transparency and adherence to global standards.
Moreover, in the coming year, as members look to bridge the green investment gap, the financial
playbook of many MoFs will increasingly feature climate-related financing mechanisms. This entails
promoting and developing green government loans and green, sustainability, and natural disaster
bonds; insurance products and credit guarantees, including deepening coordination with multilateral
development banks and developing innovative blended and concessional finance mechanisms
through public-private partnerships; and green subsidies and tax incentives.
To bolster green investments, next year will also focus on discouraging greenhouse gas emissions via
implementing carbon pricing. Recognizing the broad benefits, several MoFs are moving towards
implementing these measures, including by establishing broad consultations, to fast-track their
countries’ shift to low-carbon economies, using tools like carbon taxes, emissions trading systems,

2

or hybrid forms. The goal is to economically motivate markets for systemic change and reduced
emissions, whilst incentivizing the transition towards low carbon technologies, processes, and
practices. Due to concerns about equality and growth impacts, there remains a pressing need for
international collaboration and exchange on best policy practices tailored to diverse contexts, which
the Coalition is at the forefront of.
Mainstreaming climate change mitigation and adaptation policies in macroeconomic and fiscal
policy planning is essential to reduce the impacts of the climate crisis. This is why in the upcoming
year, many members will take further actions to green their budgeting, public investment
management and public procurement. Moreover, to inform policy decision-making and shape policy
outcomes, several members have already planned to incorporate climate risks and opportunities into
their macroeconomic models, analytical tools, and budgetary forecasts.

Stepping up Action to Increase the Coalition’s Impact
Recognizing the growing urgency of the climate crisis and the strong need for climate action
taken by MoFs, we are collaborating through the Coalition to change course. The Coalition will
continue its thorough work to support members in advancing these ambitious and impactful policy
measures geared towards low-carbon and climate-resilient economies. We will harness the power
of collaborative stakeholder dialogues across our diverse countries, increased assistance from
Institutional Partners, and the richness of peer-to-peer learning to develop concrete, innovative and
practical policy steps that drive climate action through MoFs.
Through our growing catalogue of capacity building initiatives, knowledge products, and concrete
demand-driven technical support made available to our members, we will work to amplify and
leverage the expertise of our partners to implement effective strategies and to deepen countries’
understanding and implementation of transformative policy actions.
The Coalition will increase its collective efforts to inform, support, and mobilize Finance Ministers and
Ministries to take an active, constructive, and leading role in mainstreaming climate action. We
will step up action both at the country level and in international fora, to increase the impact of our
unique Coalition. We encourage others to join this important mission.

K financeministersforclimate.org
C FinanceMinistersforClimate
3