To transition to net-zero emissions economies, the LAC region must mobilise substantial resources in a tight fiscal space. To do this, the region needs an effective financing strategy that involves the public and private sectors. This chapter analyses a sustainable fiscal policy that aims to invest more and better in the green transition, with a focus on the energy sector. It proposes ways in which the region can mobilise further resources, specifically through environmental taxes, innovative debt tools, and phasing out fossil fuel subsidies (without neglecting the most vulnerable). It stresses the need for sustainable financial strategies that channel public and private investment towards projects with greater environmental benefits. It focuses on the role of finance ministries and that of sub-national, national and international development finance institutions (DFIs) in helping mobilise resources for the green transition. It also suggests strategies to help the public sector mobilise private-sector investments towards sustainable projects. Finally, it looks at the importance of sustainable finance frameworks in developing and improving regulatory guidelines that facilitate private- and public-sector investments.