Policy Discussion Panel: ‘What role(s) for Finance Ministries in Climate Action?’

14 March 2023, 4:00 pm–5:30 pm

Finance Ministries hold wide-ranging powers spanning economic strategy, investment, tax, spending, and financing policy and are uniquely positioned to drive the green transition. This Discussion Panel draws inspiration from the work of the Coalition of Finance Ministries for Climate Action and aims to discuss a number of key issues pertaining to the role(s) Finance Ministries play in driving climate action, focusing on the capabilities required to drive climate action.

This event is free.

Event Information

Open to: All | UCL staff | UCL students | UCL alumni
Availability: Yes
Cost: Free
Organiser: UCL Institute for Innovation and Public Purpose

iippcomms@ucl.ac.uk

Free events, will be running online and open to public, with Q&A.

Overview

As center-of-government bodies at the crux of coordinating economic, fiscal and financial policymaking, responsible for managing well over US$20 trillion in public spending globally, Ministries of Finance are crucial to a successful whole-of-government approach to climate action. The 80+ members of the Coalition of Finance Ministers for Climate Action have signed the Helsinki Principles, which define the roles Finance Ministries should play in the just transition to a low-carbon and climate resilient economy and acknowledge the wide range of policy levers that are under their purview.

Yet, too few Finance Ministries have expressed clear-cut policy commitments or formulated strategies in relation to climate targets. There are various challenges, including strengthening their technical and coordination capabilities, that Ministries need to address. Simultaneously, increasing climate-related shocks are amplifying fiscal and coordinating pressures. While Finance Ministries are indeed strategically positioned to drive the green structural transformation and steer required investments at an unprecedented scale, we would like to unpack a number of key issues that are essential to these roles. These include: What are the key capabilities MoF need to successfully implement climate policies? What is their role within a whole-of-government approach to climate action and how can coordination be strengthened? Do MoF need an explicit mandate to act on climate change and if so, what should it look like?

This Discussion Panel is co-organised by the UCL IIPP - in partnership with the Grantham Research Institute on Climate Change and the Environment (London School of Economics) - and builds on the forthcoming report for the Coalition of Finance Ministries for Climate Action titled ‘Strengthening the Role of Finance Ministries in driving climate action’ prepared by the Grantham Research Institute, and shaped by nearly 30 Ministries of Finance, over 30 experts and partners of the Coalition of Finance Ministers, and 40 consultation submissions from the private and third sectors.

Panel

Nick Godfrey: Senior Advisor and Senior Visiting Fellow, Grantham Research Institute on Climate Change and the Environment, The London School of Economics
Anika Heckwolf: Policy Analyst, Grantham Research Institute on Climate Change and the Environment, The London School of Economics
Pekka Moren: Head of International Financial Affairs, Ministry of Finance, Finland and Special Representative/ Sherpa to the Coalition of Finance Ministers for Climate Action
Carola Morena Valenzuela: Head of Financial and Foreign Affairs, Ministry of Finance, Chile
Thierry Watrin: Green Economy Advisor to the Minister of State of Rwanda, Ministry of Finance and Economic Planning, Rwanda

Chair

Dr Olga Mikheeva: Honorary Senior Research Fellow, UCL Institute for Innovation and Public Purpose

Contact

For more information about the IIPP Governing the Transition(s) Discussion Series and learn how to get involved, please contact IIPP Communications, iippcomms@ucl.ac.uk or Dr Olga Mikheeva, o.mikheeva@ucl.ac.uk.

About the Speakers

Dr Olga Mikheeva

Honorary Senior Research Fellow at UCL Institute for Innovation and Public Purpose (IIPP)

Olga is a Honorary Senior Research Fellow at UCL IIPP, working on financial governance of innovation and development, including financing policies and investments to support the green transition. Among her recent publications there is a study of historical roles played by Central Banks and Finance Ministries: Governing finance to support the net-zero transition: lessons from successful industrialisation (with J. Ryan-Collins); a study of fragmented global governance landscape in the context of just transitions: Mind the Gap, The Global Governance of Just Transitions (with P. Newell, F Daley and I. Peša, forthcoming); and a recent policy study about the coordination of investments in the EU, commissioned by the European Parliament’s ECON Committee: Steering Economic Governance in Europe, Lessons for Governing Recovery and Resilience Facility (with M. Mazzucato and M. Carreras). More about Dr Olga Mikheeva

Nick Godfrey

Senior Advisor and Senior Visiting Fellow at Grantham Research Institute on Climate Change and the Environment

Nick is a Senior Adviser for the Grantham Research Institute at LSE, helping to lead its work to support the Coalition for Finance Ministers for Climate Action, including supporting Professor Lord Stern and Amar Bhattacharya in their role as advisers to the Coalition’s Co-Chairs. Nick has over fifteen years’ experience across the public, private, and third sectors in leadership and management roles working at the nexus of international development and climate action. He has recognised global expertise in climate policy, economics, and finance, authoring ~20 peer reviewed reports on climate action and directing two flagship reports for the UN Secretary General to support COP24 and COP26.
Nick was previously a member of the Executive Team of the New Climate Economy, a major international initiative to examine how countries can achieve economic growth while dealing with climate risks led by a Global Commission of 26 former heads of state, finance Ministers, CEOs, and thought leaders. He has set-up and led a range of major initiatives in the economic development and climate space, including Guyana’s National Competitiveness Strategy, DFID’s Financial Education Fund, a Cross-Whitehall Review of the UK’s Avoided Deforestation Programme (REDD+), Atkins Future Proofing Cities, and New Climate Economy’s Africa and Cities programmes.

Anika Heckwolf

Policy Analyst at Grantham Research Institute on Climate Change and the Environment

Anika is a Policy Analyst working on climate action and international finance. She coordinates the Grantham Research Institute’s engagement with the Coalition for Finance Ministers for Climate Action.

Prior to joining the Grantham Research Institute, Anika worked for the environmental disclosure charity CDP. As Senior Policy Officer she researched and analysed corporate disclosure and climate policy, and supported CDP’s policy engagement with the UK Government and the UNFCCC. She previously also worked at Oxfam’s EU Advocacy Office in Brussel.

Pekka Morén

Special Representative of Finance Minister at Coalition of Finance Ministers for Climate Action

Pekka Morén is (since 2020) the Special Representative of Finance Minister on Climate Action, acting full time as a Co-Chair of the Coalition of Finance Ministers for Climate Action, and as the Ministers’ deputy (Sherpa). In this capacity, he is also entitled to serve as the Co-Chair of the Coalition at Ministerial level, where necessary, or act as Minister’s deputy at high-level events under the direct guidance of Minister. He also represents (since 2016) Finland at the Nordic Investment Bank as Member of the Board of Directors.

Previously, he acted as the Director on International Financial Affairs (2016-2020) and the Director in charge of Euro Area Stability (2011-2016) at the Finance Ministry. Prior to this, he was a Special Advisor on EU Financial Stability and Crisis Management issues, during the early stages of the international financial crisis (2008-2010). He served as Economist at the European Commission in Brussels, at the Secretariat of Economic and Financial Committee, Economic Policy Committee and Eurogroup between 2003 and 2008. Prior to this, he acted as the Director responsible for the Stability of the Financial Markets (2001-2003) at the Finance Ministry.

He holds a Master´s Degree (1995) in Social Sciences (Economics) at the University of Helsinki. He studied Economics at the University of Edinburgh in 1991-1992.

Thierry Watrin

Green Economy Advisor to the Minister of State of Rwanda at Ministry of Finance and Economic Planning, Rwanda

Thierry Watrin is the Green Economy and Climate Change Advisor to the Minister of State in Charge of Economic Planning, for the Ministry of Finance and Economic Planning of Rwanda. In this capacity, he contributes to the strategic development of a National Green Economy, specifically working on the transition to a decarbonized, sustainable, and socially responsible economy. With more than 10 years of experience across finance and energy, Thierry brings crosscutting perspectives to green economy and skills from high-level public and private sectors. Thierry holds Masters degrees in Central Engineering, Business and in Finance, along with an executive certificate in Renewable Energy Management from the University of St. Gallen Switzerland.

Carola Moreno Valenzuela

Head of Finance and International Affairs Unit at Ministry of Finance, Chile

Carola Moreno holds a Ph.D. in Economics from Boston University and a degree in Economics from University of Chile.

Previously, she was interim head of the International Relations Unit at the Central Bank and advisor to the Division Manager of Financial Policy at the issuing institute.

From 2017 to 2020, she worked as Chile's representative to the International Monetary Fund (IMF) and as an advisor to the Director of the Southern Cone Office for the IMF's Executive Board.