Public investment can be a powerful tool to address the challenges of climate change mitigation and adaptation, support the transition to low-carbon economies, and help countries meet the goals set out in the Paris Agreement. However, for this to happen effectively, it is necessary for public investment management processes to incorporate the climate perspective as part of planning, resource allocation, and project implementation tools. What are these tools and what has been learned about their implementation are the two questions that guide this work. The chapters present a range of useful management practices and tools for integrating climate action into investment management and pay particular attention to those that support the planning and resource allocation stages. In the planning stage, the following aspects were analyzed:
(i) the use of long-term climate strategies as guiding instruments for public investment;
(ii) the design and adoption of national green/climate finance strategies;
(iii) the use of investment taxonomies as tools for classifying economic activities and assets according to their contribution to the achievement of environmental objectives and their contribution to adaptation and mitigation;
(iv) the application of the social carbon price in the cost-benefit assessment of projects; and
(v) the integration of climate risks into public investment management. In the resource allocation stage, some outstanding practices of integrating climate action into public investment prioritization processes were analyzed.