Jakarta – Global finance leaders gather to issue a stark Call to Action, urging a stronger commitment from Finance Ministries worldwide in crafting and funding National Climate Plans, the Coalition of Finance Ministers for Climate Action said in a statement.
Coinciding with the fifth anniversary of the coalition, the statement stresses the pivotal role these ministries play in mobilizing the economic transformations required to counter climate threats effectively.
Indonesia’s Finance Minister and Co-Chair of the Coalition of Finance Ministers for Climate Action, Sri Mulyani Indrawati, highlighted a concerning gap: a large majority of coalition members’ finance ministries are not involved in developing their country’s climate strategies, known as Nationally Determined Contributions (NDCs). This meeting in Washington DC aims to rectify that, seeking to advance finance ministries’ involvement in NDC design and execution.
She said “Ministries of Finance have a critical role to play in ensuring that Nationally Determined Contributions (NDCs) incorporate a broad set of economic considerations and advance socioeconomic well-being. However, 73% of coalition Finance Ministries are not currently involved in the development of their country’s NDCs. Therefore, we have convened today in Washington DC for the 11th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action to advance the involvement of Ministries of Finance in the design and implementation of NDCs.”
Dan Jørgensen, Denmark’s Minister of Development Cooperation and Global Climate Policy, underscored the importance of NDCs in fortifying climate resilience, emphasizing that finance ministries’ engagement, coupled with support from entities like the NDC Partnership, is essential in devising ambitious and nationally aligned climate agendas.
Dutch Finance Minister Steven van Weyenberg and Rwanda’s Minister of Environment, Dr. Jeanne d’Arc Mujawamariya, jointly pressed for immediate action. They pointed to the critical findings of the 2023 Global Stocktake, highlighting that the world is trailing behind the Paris Agreement’s targets, underscoring an unprecedented urgency for collaborative climate action.
Nicolai Wammen, the Danish Finance Minister, called for finance ministers to spearhead the climate fight, noting the monumental investments and economic overhauls needed for a sustainable green transition.
This Call to Action, launched during the 11th Ministerial Meeting of the Coalition hosted by the World Bank and the IMF, is a response to the dire warnings of the 2023 Global Stocktake. It is a rallying cry for countries to seize the upcoming NDC submission in 2025 as a chance to alter the trajectory of the climate crisis significantly.
The Coalition of Finance Ministers for Climate Action, operational since 2019, represents a significant portion of global emissions and GDP. The members are pledged to the Helsinki Principles, emphasizing national climate action through fiscal policies. The Coalition of Finance Ministers for Climate Action, now encompassing 92 members, including the G7, and the NDC Partnership, a global alliance of over 200 members, are at the forefront of this global climate mobilization, promoting economic policies to foster a fair transition towards sustainable development.
Banner photo: The Coalition of Finance Ministers for Climate Action convened on Wednesday, April 17, 2024 during the World Bank and International Monetary Fund Spring Meetings in Washington, DC.
