André Küüsvek giving the keynote speech.

31 Mar 2023

NIB engages with Finance Ministers’ Coalition for Climate Action

Diving into the heart of the green transition, the Coalition of Finance Ministers for Climate Action hosted a seminar that explored the acceleration of the transformation, and the critical role Finance Ministries play in driving climate initiatives. As an institutional partner, NIB contributed to the event in Helsinki, showcasing our commitment to fostering a sustainable future. As part of the programme, around 100 participants – the “Sherpas” – visited the NIB headquarters in Helsinki also.

NIB President & CEO André Küüsvek addressed the Finance Ministers’ representatives and Coalition partners in his keynote speech on the role of the International Financial Institutions (IFIs) in transition financing.  

“The world is going through challenging times. I would call it nothing less than a ‘perfect storm’. On the one hand, we continue to be reminded of the escalating threat posed by climate change, extreme weather events, and alarming evidence of biodiversity loss. And on the other, Russia’s war in Ukraine brought new dark clouds over the free world. The war has triggered new supply-demand imbalances, record-high energy costs, leading to inflation, higher interest rates and financial market volatility,“ said André Küüsvek.

“However, this situation has also reminded us of the need to accelerate the green transition to low-carbon economies which also forms a strategy for better energy security.”

During his speech, André Küüsvek reminded that IFIs can take a long-term perspective, offer an anchor to catalyse private sector mobilisation and facilitate policy reforms conducive to a greener world. Collectively, IFIs invest billions each year in climate change mitigation and adaptation programmes, providing a collective green response that is fast and transformative.

“IFIs are tools through which policy priorities are turned into action. They should lead the way and push societies into the desired directions.”

NIB also contributed to the discussion under the title, “Greening of the Financial Systems: evolving reporting and disclosures” where NIB’s Head of Communications Jukka Ahonen acted as a moderator. The Chair of the IFRS Foundation Trustees, Erkki Liikanen, delivered a keynote highlighting the upcoming publication of the global benchmarks for climate standards by ISSB.

Global investment to achieve the Paris Agreement’s goals requires immediate action on climate policies. Of the Coalition’s Helsinki Principles, Principle 5 (to “Mobilize private sources of climate finance by facilitating investments and the development of a financial sector which supports climate mitigation and adaptation”) is most relevant for IFIs. These policies should be accompanied by financing flows to close the large financing gap globally.

In 2021, NIB became an institutional partner of the Coalition of Finance Ministers for Climate Action, bolstering the coalition’s efforts to develop and execute climate-focused policies. The Coalition now unites financial and economic decision-makers, spearheading the worldwide response to climate change and promoting equitable transitions towards low-emission, climate-resilient development. There are more than 80 member countries and 25 institutional partners in the Coalition. Read more here.

The meeting of the Sherpas in Helsinki will bid farewell to Finland’s co-chairmanship of the Coalition. NIB’s Board member Pekka Morén summed up his four-year journey with as a co-chair: “I am grateful to NIB for supporting the establishment of the Coalition. Both have their roots in Helsinki. The Coalition has become a relevant international actor, bringing together 110 Members and Partners globally. Collaboration is built on trust, friendship mutual support. Our job is now done.  We leave the co-chairship in high spirits. Future prospects for the Coalition are very good. Indonesia and the Netherlands will be a perfect duo to take the mission forward.”

Seminar day on 28 March. From left: NIB’s Finnish Board member and Special Representative of Finance Minister on Climate Action Pekka Morén, Tuuli Kaskinen (Climate Leadership Coalition), Jyrki Katainen (Sitra), and Erkki Liikanen (Chair of the IFRS Foundation).