During the 31st UN Climate Change Conference (COP31), the Austrian Federal Ministry of Finance (BMF) and Climate Policy Initiative (CPI) have signed a Memorandum of Understanding (MoU) to strengthen cooperation and international knowledge exchange on climate finance. The partnership will support the Austrian Ministry of Finance in further integrating climate considerations into its core operations and mobilizing public and private finance for climate priorities.

The MoU sets out plans to explore opportunities to develop innovative approaches to aligning public and private financial flows with climate objectives. Areas of cooperation include for example developing and testing approaches to tracking climate finance, assessing climate-related fiscal risks, and strengthening green budgeting practices.

The partnership will also explore opportunities to advance financing for climate resilience and nature conservation. It will draw on international experience and foster knowledge exchange, including insights from the Coalition of Finance Ministers for Climate Action, where CPI co-leads the workstream on Adaptation and Resilience Finance.

Markus Marterbauer, Austrian Federal Minister of Finance, said:

“Climate change is arguably the greatest global challenge of our time, with numerous implications for our national budget. Increasingly aligning national budgets with this challenge while drawing on international experience is a matter of common sense. Austria has committed to achieving climate neutrality by 2040. The agreement we have now signed will enable us to use facts and data to implement the measures needed to achieve this goal more effectively from a fiscal policy perspective.”

Barbara Buchner, Chief Executive Officer of Climate Policy Initiative, said:

“Ministries of Finance have a central role to play in ensuring that climate risks are appropriately taken into account. This is essential to safeguard market stability and economic prosperity. Through this partnership, we look forward to combining Austria’s leadership and experience in public finance with CPI’s global expertise in climate finance. Together, we aim to develop practical solutions, support governments in managing climate risks, and mobilize investment. Our presence in Vienna provides a strong foundation for this cooperation and for aligning European policymaking with international efforts.”

The cooperation builds on CPI’s established presence in Vienna, which serves as its hub for continental Europe. Through this office, CPI connects its global expertise with European policymakers, financial institutions, the private sector, and other partners to advance effective climate finance solutions in Europe and internationally.