Fostering fiscal policy for climate change in Latin America and the Caribbean

State of implementation/results

Regarding the country projects as of today, thirteen ministries of finance have developed climate change actions plans and an additional three are well advanced in the design stage.

Some of the main topics covered in the approved and planned country projects are: integration of the fiscal dimension in the design of a long-term climate strategies and NDCs; macro-fiscal climate-related risks; green budgeting; public investment management for resiliency and decarbonization; “green procurement” systems, and assessment and reform of tax policy.

Country projects are complemented by regional initiatives. To date, seven regional initiatives have started their implementation stage, and one more is in the approval process.

One of the regional initiatives in the implementation stage is the Regional Climate Change Platform of Economy and Finance Ministries, which was launched in August 2022. Around 21 countries of LAC participate in the Platform activities. Three working groups have been created to work on debt management and green financing, fiscal incentives, and public expenditure.

During its first two years of operation, the Platform has positioned itself as a forum of specialized regional knowledge, facilitating the exchange of experiences and creating strategic alliances with international entities. Some achievements so far:

• Publication of five tailored knowledge and training products and eight more are in the design stage


• The region's finance ministries have adopted and consolidated a sustainable financing regional vision


• Creation of a website, a quarterly newsletter, and an internal web community for Platform members.


• Creation of innovative tools, such as recorded master classes


• Strengthened partnerships with relevant stakeholders, such as the United Nations Framework Convention on Climate Change, the Pacific Alliance, the Coalition of Finance Ministers for Climate Action, the Latin American and Caribbean Results-Based Budgeting Network and the Network of National Public Investment Systems of Latin America and the Caribbean, expanding opportunities for collaboration and mutual learning.


• Implementation of a follow-up mechanism to monitor the use of the products derived from Platform and the implementation of green fiscal policies. 85% of the countries that responded to the follow-up mechanism (a total of 13 countries) consider that the Platform's inputs have enabled them to make progress in designing and implementing various sustainable fiscal and public finance policies.

Through one regional project, this Fund is providing direct support to four countries on the design and implementation of NDC and long-term strategies The specific objectives of this line of work involves:

(i) supporting the design of long-term climate strategies;

(ii) facilitating the engagement of stakeholders at the national, sectoral and local levels;

(iii) supporting capacity building for the implementation of long-term climate strategies;

(iv) contributing to incorporating climate risks and impacts into the economic and fiscal policy of countries at the local and national levels based on their needs; and

(v) enabling a regional exchange that assesses and communicates the technical feasibility and socioeconomic benefits of decarbonization and adaptation in LAC.

Ongoing work spans from developing carbon-neutral transition strategies and climate vulnerability assessments for Mexico City and Oaxaca State, to supporting Guatemala's new NDC and Climate Change Action Plan design and sectoral climate action plans for health and infrastructure.

We are assisting Ecuador with updating their National Climate Change Strategy and territorial implementation tools, while providing Brazil with specialized economic modeling to assess climate impacts for their 2050 strategy and AdaptaBrasil platform.

Latest Update:
12/2025

Further links

• Blog - How will we finance climate action in Latin America and the Caribbean?