Uganda’s Finance Minister, Henry Musasizi, has called for climate adaptation and resilience investments to be incorporated into debt sustainability assessments to help countries expand fiscal space, lower borrowing costs and protect their economies against future shocks.
Musasizi made the call on Wednesday while chairing the 16th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action in Bangkok, Thailand, on the sidelines of the ongoing 2026 World Bank-IMF Annual Meetings.
The meeting brought together finance ministers and other stakeholders to discuss ways of integrating climate considerations into economic and fiscal policies.
The Coalition brings together 103 finance ministries working to incorporate climate action into their domestic operations and economic planning.
Minister Musasizi said efforts to account for the economic benefits of climate adaptation and resilience investments in debt sustainability analysis were progressing well, with Uganda’s approach already being replicated in Zambia and plans to extend it to other countries.
He said recognising the benefits of such investments in debt assessments could create more room for governments to finance development projects while maintaining responsible debt management.
“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,” Minister Musasizi said.
The proposed approach seeks to ensure that governments account for the long-term economic benefits of investments that protect communities, infrastructure and national economies from climate-related shocks.
Minister Musasizi said governments should maintain macroeconomic stability and fiscal sustainability while safeguarding investments that strengthen resilience, particularly amid the evolving global energy crisis.
The meeting also highlighted the growing need to integrate climate considerations into mainstream economic planning, budgeting and public finance management.
Tomislav Ćorić, Croatia’s Deputy Prime Minister and Minister of Finance, said the growing adoption of green budgeting reflected a shift towards incorporating climate considerations 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 countries should use their responses to immediate economic shocks to prepare for future challenges.
“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 supporting finance ministries in translating climate ambitions into practical, country-led initiatives that protect development gains and build resilient economies.
The Coalition continues to promote capacity-building in climate adaptation, the green transition and economic resilience. It is also strengthening cooperation with central banks and financial supervisors to mobilise climate finance.
