Empowering Ministries of Finance to Drive Low Carbon and Climate Resilient Development is an information note published by the NDC Partnership in September 2025. It focuses on the central role of Ministries of Finance in integrating climate action into economic and fiscal policies, and in strengthening countries’ ability to finance and implement NDCs and Long-Term Low Emissions Development Strategies.
Key insights:
The note explains that climate change is no longer only an environmental issue. It is now a direct risk to economic growth, productivity, public finances, and national development agendas.
It emphasizes that Ministries of Finance have a critical role in managing climate-related risks, guiding public spending, mobilizing investment, and linking climate policies with economic and social priorities.
NDCs and LT-LEDS are presented as important tools that can help Ministries of Finance assess the financial and economic implications of climate action, including both risks and opportunities.
The note calls on Ministries of Finance to lead a whole-of-government approach by coordinating across ministries, the private sector, financial institutions, and international partners.
It highlights the importance of climate investment planning, mobilizing public and private finance, addressing institutional and regulatory barriers, and using financial instruments such as taxes, subsidies, bonds, credit guarantees, insurance tools, and debt-for-nature swaps.
The note explains how the NDC Partnership supports Ministries of Finance through technical assistance, embedded economic and finance advisors, and the Partnership Action Fund when country requests are not met by partners.
It also notes that the NDC Partnership has already provided tailored support to more than 50 Ministries of Finance and around 20 central banks, covering areas such as fiscal impact assessments, climate budgeting, public investment management, climate finance mobilization, NDC investment plans, and capacity building.
Main message: Effective climate action requires strong leadership from Ministries of Finance, because low-carbon and climate-resilient development depends on integrating climate priorities into financial planning, national budgets, investment decisions, and economic policy.
