How Ministries of Finance can support coherent climate policy packages
Authors: Patrick Lenain (Council on Economic Policies), Magd Shamashan, Luke Hatton, Priya Sahu, Mads Libergren (Danish Ministry of Finance), Nick Godfrey, Hannah Maier-Peveling and Hipólito Talbot Wright
This report provides Ministries of Finance with insights to support the design and implementation of policy packages for climate action that combine a set of fiscal and regulatory instruments. The report examines the gradual shift from stand-alone carbon pricing to multifaceted policy instruments and discusses the various climate policies that Ministries of Finance can deploy in coordination with line ministries to achieve progress on decarbonisation. It also outlines a structured approach to defining, assessing, implementing and evaluating policy packages that combine multiple instruments.
This report is a product of the Helsinki Principle 4 (HP4) workstream of the Coalition of Finance Ministers for Climate Action (CFMCA), which is being led by Denmark’s Ministry of Finance with support from the Grantham Research Institute.