Strengthening fiscal–monetary collaboration for a low-carbon, ecologically resilient transition 

CETEx hosts NGFS and CFMCA dialogue in São Paulo 
7 November 2025 | COP30 

Halting climate change and nature loss requires a fundamental shift in how global financial systems operate. As climate and nature shocks intensify and the low-carbon transition accelerates, macroeconomic and financial pressures are rising, particularly across emerging markets and developing economies. Addressing these challenges calls for closer cooperation between the institutions responsible for fiscal and monetary stability.

On 7 November, on the margins of COP30 in São Paulo, CETEx hosted senior representatives from the Network for Greening the Financial System (NGFS) and the Coalition of Finance Ministers for Climate Action (CFMCA) for a high-level dialogue on the macrofinancial dimensions of climate and nature-related risks. The session is part of a new joint NGFS–CFMCA initiative aimed at deepening collaboration between central banks and finance ministries on shared analytical, modelling, and policy priorities.

The dialogue brought together leaders from central banks, ministries of finance, international organisations, and research institutions. Participants highlighted how climate and nature-related risks are reshaping macroeconomic and financial conditions, and underscored the importance of strengthening fiscal-monetary collaboration in response.

Key insights from the discussion 

1. Aligning fiscal and monetary perspectives on climate- and nature- risks 

Participants underscored that climate change is creating new “super supply shocks”, pushing both fiscal and monetary authorities to rethink macroeconomic planning, inflation projections, and long-term sustainability assessments. Shared scenarios, assumptions, and data standards were highlighted as critical tools for improving coherence and comparability.  

2. A balanced policy mix is essential 

Speakers noted that policies such as carbon pricing, climate-related fiscal incentives, or green bond issuance have implications across central bank mandates, from inflation dynamics to reserve management. Enhanced dialogue helps ensure policy coordination without compromising institutional independence. 

3. Integrating climate and nature into macroeconomic frameworks 

Examples from Brazil and Indonesia illustrated the importance of embedding climate and nature considerations into national taxonomies, fiscal planning, and financial stability assessments. Shared objectives – including stabilising shocks and supporting sustainable investment – provide a strong foundation for cooperation.  

4. The need for accelerated international collaboration 

Participants called for both networks to act as platforms for collective learning, focusing on data harmonisation, transition risk analysis, and resource mobilisation strategies. The next phase of work will require deeper technical coordination and stronger links across institutions.  

As host of the São Paulo dialogue, CETEx provided a neutral platform for open, informal exchange among institutions that each hold distinct mandates but share common challenges. The quality of discussion underscored the value of this format and the need for continued cross-institutional collaboration.