Uganda’s Minister of State for Finance, Planning and Economic Development, Henry Musasizi, has called for investments in climate adaptation and resilience to be recognised in debt sustainability assessments, saying the approach could expand governments’ fiscal space and reduce the cost of capital.
Musasizi made the call while chairing the 16th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action in Bangkok, Thailand, on the sidelines of the 2026 World Bank–IMF Annual Meetings.
The coalition brings together 103 finance ministries working to integrate climate considerations into national economic and financial policies.
Musasizi said progress was being made towards incorporating the benefits of climate adaptation and resilience investments into debt sustainability analysis, with Zambia already replicating the approach and plans to extend it to other countries.
“For most countries, this is very important because it is intended to increase the fiscal space for investment and reduce the cost of capital, thus allowing the public sector to invest in private sector finance-enabling infrastructure,” Musasizi said.
The approach seeks to ensure that debt assessments account for the economic benefits of investments that protect communities, infrastructure and national economies from climate-related shocks.
Recognising these benefits could help governments justify investments that reduce future economic losses while maintaining responsible debt management.
Musasizi said governments must preserve macroeconomic stability and fiscal sustainability while protecting investments that strengthen resilience to future shocks, particularly amid the evolving global energy crisis.
The meeting focused on integrating climate considerations into mainstream economic and fiscal policymaking, including how governments allocate public resources and assess long-term development priorities.
Tomislav Ćorić, Croatia’s Deputy Prime Minister and Minister of Finance, said the growing adoption of green budgeting reflected a shift towards incorporating climate concerns into government decision-making.
“The evolution of green budgeting reflects a broader shift in how governments make decisions. Climate considerations are increasingly becoming part of mainstream economic and fiscal policymaking, helping us better align public resources with long-term resilience and sustainable growth,” Ćorić said.
World Bank Group Vice President for Planet Guangzhe Chen said governments needed to respond to immediate economic pressures without neglecting measures to protect their economies against future disruptions.
“At this Coalition, one message was clear: our response to today’s shocks must also build resilience for tomorrow,” Chen said.
The World Bank Group reaffirmed its commitment to helping finance ministries translate climate commitments into practical, country-led measures that protect development gains and strengthen economic resilience.
The coalition is also advancing capacity-building in climate adaptation, the green transition and economic resilience, while strengthening cooperation with central banks and financial supervisors to support the mobilisation of climate finance.
The discussions come as governments face the challenge of financing climate resilience and development priorities while managing public debt and responding to economic shocks.