Madrid (NVI): A grouping of 51 countries has launched an action plan aimed at accelerating their nation’s transition to low carbon and climate-resilient economies.
The Santiago Action Plan was launched at the ongoing UN Climate Change Conference, COP25 in Madrid by the Coalition of Finance Ministers for Climate Action.
The Coalition is co-led by Finland and Chile and comprises 51 countries covering 30 percent of global GDP.
It was launched in April 2019 with members endorsing six principles – known as the “Helsinki Principles” – that promote national climate action, especially through carbon pricing, macro-fiscal policy, public budgeting, and financial sector initiatives.
The countries that have endorsed the Helsinki Principles and the Santiago Action Plan are: Argentina, Austria, Bangladesh, Canada, Chile, Colombia, Costa Rica, Côte d’Ivoire, Cyprus, Denmark, Dominican Republic, Ecuador, Equatorial Guinea, Ethiopia, Finland, Fiji, France, Germany, Ghana, Greece, Guatemala, Iceland, Indonesia, Ireland, Italy, Jamaica, Kenya, Latvia, Lithuania, Luxembourg, Madagascar, Maldives, Marshall Islands, Mexico, Monaco, Netherlands, New Zealand, Nigeria, Norway, Paraguay, Philippines, Poland, Portugal, Spain, Sri Lanka, Sweden, Switzerland, Tonga, Uganda, the United Kingdom and Uruguay.
The Santiago Action Plan details how progress will be made on each of the Helsinki Principles.
Under the Plan and keeping in mind individual national contexts, Finance Ministers have agreed to work toward actions that include sharing of knowledge related to the design of new and more effective carbon pricing initiatives, while recognizing the need for comprehensive approaches to supporting people and communities as these are implemented.
The action plan also involves building of expertise and capacities in Finance Ministries and strengthening competencies for integrating climate into economic policy making.
Examining the fiscal costs of climate adaptation and supporting global efforts on transparency and the disclosure of climate-related financial risks, including by identifying the climate risks to financial stability and ways to manage them also form part of the plan.
It also includes support to ambitious nationally-determined contributions.
Recognizing that climate-smart development must account for immediate needs – such as better jobs, improved social protection programs, and strong institutions and policies that sustain livelihoods – the Santiago Action Plan places strong emphasis on ensuring a just transition, putting people and communities at the center of national decarbonization strategies.
“At the World Bank we see increasing recognition around the world that action on climate change is good for communities, business and growth,” said Axel van Trotsenburg, Managing Director, Operations, World Bank. “Finance Ministers have the policy levers to push public and private finance towards low-carbon, climate-resilient growth, and networks like this Coalition have an important role in sharing experience and ideas that work.”
“The Fund has been working on climate change which is one of the greatest existential challenges of our time,” said Tao Zhang, Deputy Managing Director of the International Monetary Fund. “We look forward to working with the Coalition of Finance Ministers for Climate Action to galvanize climate efforts at this pivotal moment.”
