Climate Finance Strategies: Analysis of International Experiences

Countries use climate finance strategies to assess fiscal needs and guide public and private finances to achieve mitigation goals and meet adaptation challenges. They make it possible to identify the barriers to financing for these purposes and mechanisms to overcome them, such as counter incentives, insufficient regulation, lack of concrete investment objectives, misalignment of visions, and information asymmetries with respect to the classification of sustainable activities. In recent years, there has been an increase in the development of these strategies, and 75 percent of Latin American and Caribbean countries already have or are developing one. During the first half of 2023, the Regional Climate Change Platform of Ministries of Economy and Finance analyzed cases from 16 countries within and outside the region to identify best practices in the design and implementation of these strategies. This document provides information, policy recommendations, and lessons learned in the region to help improve their effectiveness going forward.