The Coalition of Finance Ministers for Climate Action issued a statement reaffirming commitment to mainstream climate into fiscal, economic, and financial policies amid challenges posed by the COVID-19 pandemic.

The Fourth Ministerial Meeting of the Coalition of Finance Ministers for Climate Action convened virtually on 12 October, under the chairmanship of Chile’s Minister of Finance Ignacio Briones and Finland’s Minister of Finance Matti Vanhanen. The meeting was held on the sidelines of the 2020 Annual Meetings of the International Monetary Fund (IMF) and World Bank Group.

In the joint ministerial statement, the Coalition reaffirms its commitment to the 2019 Helsinki Principles, and notes efforts to address the needs of citizens and economies during the COVID-19 crisis and to ensure an inclusive, low-emission, resilient, and sustainable economic recovery while aligning policies to climate action. The ministers look forward to engaging in dialogue with partners and stakeholders to better understand the technical and political challenges to implementing the Helsinki Principles, and “stand ready” to contribute to “a successful COP 26 in 2021.”

Countries now have a chance to set themselves on a greener, smarter, and more equitable development path.

The ministers also strengthened the Coalition’s governance arrangements through a Charter to support members’ efforts to mainstream climate change in economic policies. They approved the Coalition’s first annual report, and welcomed three recent reports produced for the Coalition:

• ‘Ministries of Finance and Nationally Determined Contributions: Stepping Up for Climate Action’;
• ‘Long-Term Strategies for Climate Change: A Review of Country Cases’; and
• ‘Better Recovery, Better World: Resetting Climate Action in the Aftermath of the COVID-19 Pandemic.’

Addressing the ministers, Vanhanen signaled the Coalition’s readiness to support members in addressing climate change through economic policy measures. He said COVID-19 recovery efforts must be aligned with climate policy targets.

“Countries now have a chance to set themselves on a greener, smarter, and more equitable development path,” said World Bank Group President David Malpass. He highlighted opportunities to deliver the benefits of cleaner air and water, healthier oceans, more resilient cities, and more sustainable food and agriculture systems, as well as new jobs that are sustainable, inclusive, and equitable.

Highlighting climate change as “a profound threat to growth and prosperity,” IMF Managing Director Kristalina Georgieva called for a carbon price floor covering the majority of global emissions.

Coalition members and institutional partners delivered pre-recorded video statements on how the COVID-19 pandemic has impacted fiscal policies related to climate change.

Launched in April 2019, the Coalition of Finance Ministers for Climate Action brings together 52 developed and developing countries from all regions, jointly accounting for about 16% of global carbon dioxide (CO2) emissions and 30% of global gross domestic product (GDP). [Coalition of Finance Ministers for Climate Action Press Release] [Fourth Ministerial Meeting Website] [Remarks by World Bank Group President] [Remarks by IMF Managing Director]