Staff Climate Notes

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Staff Climate Notes

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IMF Publications

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• Fintech Applications for Boosting Climate Finance
  • Published: December 9, 2024
  • Summary: Climate fintech—the intersection between climate change, financial services, and digital technologies—is playing an important role in attracting more investment into climate finance by leveraging innovative technologies, thereby addressing some financing barriers.
• Unlocking Adaptation Finance in Emerging Market and Developing Economies
  • Published: November 19, 2024
  • Summary: Mitigation and decarbonization efforts are falling short of the 1.5°C goal, making adaptation critical. Developing economies are affected the most, despite having contributed the least to the problem.
• Harnessing Renewables in Sub-Saharan Africa: Barriers, Reforms, and Economic Prospects
  • Published: October 8, 2024
  • Summary: Sub-Saharan Africa needs to significantly accelerate its electricity generation. While hydropower is prominent in some countries, solar and wind power generation has lagged other world regions, even though sub-Saharan Africa has some of the most favorable conditions.
• Policies to Foster Green FDI: Best Practices for Emerging Market and Developing Economies
  • Published: October 8, 2024
  • Summary: Meeting COP28 goals requires a substantial increase in clean energy investment by 2030, including in emerging market and developing economies (EMDEs).
• Sleepwalking to the Cliff Edge? A Wake-up Call for Global Climate Action
  • Published: October 8, 2024
  • Summary: Urgent action to cut greenhouse gas (GHG) emissions is needed now. Early next year, all countries will set new emissions targets for 2035 while revising their 2030 targets. Global GHGs must be cut by 25 and 50 percent below 2019 levels by 2030 to limit global warming to 2°C and 1.5°C respectively.
• Destination Net Zero: The Urgent Need for a Global Carbon Tax on Aviation and Shipping
  • Published: October 1, 2024
  • Summary: The need to decarbonize international aviation and maritime has long been overlooked. The two sectors account for a small but rapidly growing share of global CO2 emissions, and could rise to as much as 15 to 40 percent by 2040. Pricing these emissions could help global climate policy in two ways.
• Embedded in Nature: Nature-Related Economic and Financial Risks and Policy Considerations
  • Published: October 1, 2024
  • Summary: The economy is embedded in, and dependent on, nature. Yet economic activity is degrading nature at an unprecedented pace. Interacting with climate change, nature loss and transformation generates significant threats to the global economy and financial system.
• Key Challenges Faced by Fossil Fuel Exporters during the Energy Transition
  • Published: March 26, 2024
  • Summary: The global energy transition is affecting fossil fuel exporters from multiple angles. It is adding to longstanding uncertainties on relative movements of fossil fuel demand and supply—which impact fossil fuel-related exports, fiscal flows, investment and subsequently external and fiscal accounts, ec
• Energy Transition and Geoeconomic Fragmentation: Implications for Climate Scenario Design
  • Published: November 16, 2023
  • Summary: The transition to a low-carbon economy, which is needed to mitigate climate change and meet the Paris Agreement temperature goals, has been affected by the supply chain and energy supply disruptions that originated during the COVID-19 pandemic, the Russian invasion of Ukraine, and the subsequent ene
• Is the Paris Agreement Working? A Stocktake of Global Climate Mitigation
  • Published: November 14, 2023
  • Summary: Urgent and aggressive action to cut greenhouse gas emissions this decade is needed. As countries take stock of the Paris Agreement, this Note provides IMF staff’s annual assessment of global climate mitigation policy.
• Climate Challenges in Fragile and Conflict-Affected States
  • Published: August 24, 2023
  • Summary: Fragile and conflict-affected states (FCS) already face higher temperatures than other countries and will be more exposed to extreme heat and weather events going forward.
• Getting on Track to Net Zero: Accelerating a Global Just Transition in This Decade
  • Published: October 31, 2022
  • Summary: To contain global warming to between 2°C and 1.5°C, global greenhouse gas emissions must be cut 25 to 50 percent below 2019 levels by 2030. Even if fully achieved, current country pledges would cut global emissions by just 11 percent.
• Climate Change and Select Financial Instruments:An Overview of Opportunities and Challenges for Sub-Saharan Africa
  • Published: October 28, 2022
  • Summary: Sub-Saharan Africa (SSA) is the region in the world most vulnerable to climate change despite its cumulatively emitting the least amount of greenhouse gases.
• How to Cut Methane Emissions
  • Published: October 28, 2022
  • Summary: Limiting global warming to 1.5 to 2°C above preindustrial levels requires rapid cuts in greenhouse gas emissions. This includes methane, which has an outsized impact on temperatures. To date, 125 countries have pledged to cut global methane emissions by 30 percent by 2030.
• Mobilizing Private Climate Financing in Emerging Market and Developing Economies
  • Published: July 26, 2022
  • Summary: Global investment to achieve the Paris Agreement’s temperature and adaptation goals requires immediate actions—first and foremost—on climate policies.
• Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design
  • Published: July 14, 2022
  • Summary: Carbon pricing should be a central element of climate mitigation strategies, helping countries transition to ‘net zero’ greenhouse gas emissions over the next three decades.
• Approaches to Climate Risk Analysis in FSAPs
  • Published: July 12, 2022
  • Summary: Climate change presents risks and opportunities for the real economies and financial sectors of the IMF’s global membership. Understanding the risks is key to prepare for a successful transition to a lower carbon global economy.
• Sovereign Climate Debt Instruments: An Overview of the Green and Catastrophe Bond Markets
  • Published: June 29, 2022
  • Summary: Financial markets will play a catalytic role in financing the adaptation and mitigation to climate change. Catastrophe and green bonds in the private sector have become the most prominent innovations in the field of sustainable finance in the last fifteen years.
• Macro-Fiscal Implications of Adaptation to Climate Change
  • Published: March 16, 2022
  • Summary: Adaptation to climate change is an integral part of sustainable development and a necessity for advanced and developing economies alike. How can adaptation be planned for and mainstreamed into fiscal policy?
• Planning and Mainstreaming Adaptation to Climate Change in Fiscal Policy
  • Published: March 16, 2022
  • Summary: This Staff Climate Note is part of a series of three Notes (IMF Staff Climate Note 2022/001, 2022/002, and 2022/003) that discuss fiscal policies for climate change adaptation.
• Economic Principles for Integrating Adaptation to Climate Change into Fiscal Policy
  • Published: March 10, 2022
  • Summary: Adaptation to climate change is a necessity for advanced and developing economies alike. Policymakers face the challenge of facilitating this transition.
• Not Yet on Track to Net Zero: The Urgent Need for Greater Ambition and Policy Action to Achieve Paris Temperature Goals
  • Published: October 29, 2021
  • Summary: Achieving the Paris Agreement’s temperature goals requires cutting global CO2 emissions 25 to 50 percent this decade, followed by a rapid transition to net zero emissions. The world is currently not yet on track so there is an urgent need to narrow gaps in climate mitigation ambition and policy.
• Carbon Pricing: What Role for Border Carbon Adjustments?
  • Published: September 24, 2021
  • Summary: This Climate Note discusses the rationale, design, and impacts of border carbon adjustments (BCAs), charges on embodied carbon in imports potentially matched by rebates for embodied carbon in exports.
• Strengthening the Climate Information Architecture
  • Published: September 1, 2021
  • Summary: Strengthening the climate information architecture is paramount to promote transparency and global comparability of data and thus improve market confidence, safeguard financial stability, and foster sustainable finance.
• Climate-Sensitive Management of Public Finances—"Green PFM”
  • Published: August 10, 2021
  • Summary: Public financial management (PFM) consists of all the government’s institutional arrangements in place to facilitate the implementation of fiscal policies.
• Proposal for an International Carbon Price Floor Among Large Emitters
  • Published: June 15, 2021
  • Summary: Countries are increasingly committing to midcentury ‘net-zero’ emissions targets under the Paris Agreement, but limiting global warming to 1.5 to 2°C requires cutting emissions by a quarter to a half in this decade.