The IMF and Climate Change

Climate change presents a major threat to long-term growth and prosperity, and it has a direct impact on the economic wellbeing of all countries.

The IMF has a role to play in helping its members address those challenges of climate change for which fiscal and macroeconomic policies are an important component of the appropriate policy response.

The Fund publishes research on economic implications of climate change and provides policy advice to our membership to help them capture the opportunities of low-carbon, resilient growth.

Our Policy Guidance Relates to:

1. Mitigation:including advice on measures to contain and reduce emissions through policies—such as increasing carbon taxes, reducing fuel subsidies and improving regulation—and providing tools to help countries achieve their Nationally Determined Contributions.

2. Adaptation:including guidance on building financial and institutional resilience to natural disasters and extreme weather events, and infrastructure investments to cope with rising sea levels and other warming-related phenomena.

3. Transition to a low-carbon economy: including updates to financial sector regulation to cover climate risks and exposure to “brown” assets, as well as measures to help countries diversify economies away from carbon intensive industries while mitigating the social impact on affected communities.



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Finding the Right Policy Mix to Safeguard our Climate

Unaddressed, climate change will entail a potentially catastrophic human and economic toll, but it’s not too late to change course.

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Focus Areas

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In Depth

World Economic Outlook (October 2020)

Chapter 3: Mitigating Climate Change: Growth and Distribution Friendly Strategies.

Regional Economic Outlook Sub-Saharan Africa (April 2020)

Chapter 2: Adapting to Climate Change in Sub-Saharan Africa. 


Global Financial Stability Report (May 2020)

Chapter 5 looks at the impact of climate change physical risk on global equity valuations to assess this threat. 

fm-oct19-c1Fiscal Monitor (October 2019)

This edition focuses on the design of fiscal policies for climate mitigation.


Country Reports

The CCPA is a joint IMF-World Bank assessment and provides an overarching assessment of countries’ climate strategies.