The investment imperative and the critical role of Ministries of Finance
A contribution from the Independent High-Level Expert Group on Climate Finance (IHLEG) to the ‘Compendium of Practice’ published by the Coalition of Finance Ministers for Climate Action with support from the Grantham Research Institute.
Abstract
Closing the gap in investment needed to align with the Paris Agreement will avert massive future costs and unlock economic transformation, delivering substantial long-term savings and widespread co-benefits.
A successful shift to a low-carbon, resilient, and inclusive economy hinges on the ability of Ministries of Finance to drive strategic public investment, create incentives to attract private capital, and coordinate across sectors. To avoid far greater costs down the line, they must frontload investment, ensure national budgets reflect climate priorities, and embed just transition measures into financial planning.
Independent High-Level Expert Group on Climate Finance (2025), The investment imperative and the critical role of Ministries of Finance, Contribution to ‘Compendium of Practice from a Global Community of Ministries of Finance and Leading Organizations’, Coalition of Finance Ministers for Climate Action.