Theme · Nature

Nature & Biodiversity

Recognizing the value of natural capital in economic and fiscal decisions and financing its protection and restoration.

14 action areas

Nature & Biodiversity

F1 · Reforming economic strategy through shaping national development and climate plans

F1a(iv) National Biodiversity Strategies and Action Plans (NBSAPs) Connecting national biodiversity priorities with economic planning, fiscal policy, and financing to sustain the natural assets that underpin economic activity. → F1c Shaping 21st century industrial and innovation strategies Contributing to industrial and innovation strategies that support low-carbon sectors, productivity, and employment. → F1d Developing investment strategies, including assessing investment needs Assessing climate investment needs, establishing priorities, and connecting investment plans with public and private sources of finance. → F1e Identifying and developing bankable projects and programs Supporting project preparation and investment pipelines that translate national priorities into projects ready for financing and implementation. →

F2 · Fiscal policy

F2a(i) Carbon taxes and pricing, subsidy reform, and frontiers in environmental taxation Designing carbon pricing, fossil fuel subsidy reforms, and new forms of environmental taxation. → F2b(ii) Managing the fiscal risks of cascading contingent liabilities Identifying and managing climate risks that create pressures on public finances to help protect fiscal stability and preserve budget flexibility. → F2c Using public financial management and the budget to drive transformation Using existing PFM systems and the budget cycle to integrate climate and nature priorities into medium-term fiscal strategies and expenditure frameworks, track spending, and inform future allocations. → F2d Greening public investment management Incorporating emissions reduction and climate resilience into the appraisal, selection, and management of public investment. → F2e Greening public procurement Using public procurement rules and purchasing decisions account for emissions, resilience, and costs over the life of goods, services, and infrastructure. →

F3 · Financing the transition

F3a(ii) Debt financing for investment in sustainable infrastructure Using sovereign borrowing, including green and other thematic bonds, to finance sustainable infrastructure within debt management strategies. → F3c(i) Using financial sector policy to mobilize private capital for the transition Working with regulators and financial institutions on climate risk, disclosure, and market frameworks that support investment in the transition. → F3c(ii) Using blended finance and risk sharing instruments Assessing financing arrangements, including blended finance, which share risks and combine public and private capital for climate investment. → F3e(i) Getting climate finance ready and leveraging MDB and DFI capital Preparing for and accessing climate finance from development finance institutions and multilateral development banks to link financing with national investment priorities. →

C1 · Leadership capability

C1a Strengthening the mandate of Ministries of Finance Connecting climate responsibilities with mandates for economic development, macroeconomic stability, and sound public finances. → C1b Developing organizational climate strategies Translating climate responsibilities into internal objectives and work programs. → C1c Formalizing governance structures & organizational set-up Assigning climate responsibilities and organizing internal coordination. → C1d Communicating on climate, the economy and public finances Explaining the economic and fiscal implications of climate action and communicating policy choices to different audiences. →

C2 · Coordination capability

C2a Coordinating climate action across government Supporting a whole-of-government approach to climate action by working with other ministries and levels of government to connect climate priorities with economic policy, budgets, and implementation. → C2b Engaging with external stakeholders Engaging businesses, financial institutions, civil society, and knowledge partners to understand economic impacts and strengthen the design and implementation of climate-related fiscal and economic reforms. →

C3 · Human and analytical capability

C3a Enhancing skills and expertise Building climate expertise through recruitment, training, peer learning, and collaboration with external specialists. → C3b Enhancing economic decision-making tools and data-driven analysis Using economic analysis to integrate climate into decision-making. →

Adaptation & Resilience

Managing climate risks to public finances and the economy while financing adaptation and resilience.

Energy Transition & Mitigation

Supporting emissions reductions and the energy transition through economic strategy, fiscal policy, and finance.

Just Transition

Addressing the effects of the transition on jobs, livelihoods, and households through fiscal policy and public investment.