Government spending already flowing through national budgets could be redirected to support climate and biodiversity goals rather than undermine them, according to a growing push to reform the incentives that shape how public money is used. The argument, raised during Climate Week NYC, is that the money is already being spent — the question is whether it works for or against the planet.
The focus on incentive reform comes as attention turns to the possibilities at the upcoming COP17 and COP31 climate conferences, where governments will face pressure to ensure that public spending does not work against their own environmental targets. The core idea is straightforward: by changing the incentives that guide government expenditure, the same money can support people and economies without working against climate and biodiversity goals.
That framing places government spending at the center of the solution rather than treating it as a separate problem. Instead of calling for large new outlays, the approach asks whether existing budgets — from subsidies to procurement to infrastructure investment — are aligned with the outcomes governments say they want. When incentives are misaligned, public money can inadvertently fuel emissions, habitat loss, and other environmental harms. When they are reformed, the same funds can support jobs, growth, and ecological resilience.
The discussion took place against the backdrop of Climate Week NYC, an annual gathering that brings together governments, businesses, and civil society to advance climate action. The event serves as a staging ground for announcements and debates ahead of the formal UN climate negotiations. This year, the conversation has increasingly centered on how to make the money already being spent work better, rather than focusing solely on new commitments.
Proponents argue that reforming incentives is a practical route to progress because it does not necessarily require additional spending. By adjusting the rules and signals that determine where money goes, governments can steer investment toward cleaner energy, sustainable land use, and biodiversity protection. The approach also aims to ensure that the transition is fair, supporting people and economies rather than imposing costs on those least able to bear them.
The emphasis on COP17 and COP31 reflects the reality that international climate talks are a key venue for coordinating fiscal and environmental policy. At those summits, countries will review progress and consider new measures. If incentive reform gains traction, it could shape how governments design their next round of climate plans and how they report on the alignment of public spending with climate and biodiversity goals.
For now, the message is that government spending can be part of the solution. The challenge is to make the incentives that guide it consistent with the climate and biodiversity outcomes that governments have already promised. As Climate Week NYC draws attention to the possibilities, the coming COP meetings will test whether that principle translates into concrete changes in how public money is spent.
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