Ministries of Finance play a unique role in designing more ambitious, credible, and investment ready Nationally Determined Contributions (NDCs) given their central role in countries’ economic, fiscal, and financial policies. Early involvement in the NDC development process at the national level is crucial to enhance the quality and ambition of NDCs in line with countries’ long-term development priorities and the Paris Agreement objectives and integrating NDCs with investment plans and country platforms. The upcoming 2025 NDC submission cycle presents an important opportunity for further engagement of Ministries of Finance.
Ministries of Finance are critical for enabling and accelerating implementation and financing of NDCs by building the enabling environment for public and private investments, enhancing market certainty and continuity, and aligning budget processes, regulatory incentives and fiscal policies with climate and sustainable development goals.
Tailoring solutions to country-specific circumstances, capacities, and priorities is central to success. This note summarizes approaches and options for Finance Ministries’ engagement in NDCs, building on examples from countries in different regions, and outlines support mechanisms available through the NDC Partnership and the Coalition of Finance Ministries for Climate Action to assist Ministries of Finance in this process.