Climate Change
The IMF and Climate Change
Climate change presents a major threat to long-term growth and prosperity, and has a direct impact on the economic wellbeing of all countries. The IMF has an important role to play in helping its members institute fiscal and macroeconomic policies to help address these climate-related challenges. We are mainstreaming climate-related risks and opportunities into our macroeconomic and financial policy advice. Climate considerations are now embedded in our bilateral and multilateral surveillance, capacity development, and lending. We also collaborate with other organizations on climate issues.
Through our analytical work we have examined policy issues such as an international carbon price floor, the transition to a green economy, border carbon adjustments, scaling up private climate finance in emerging market and developing economies, strengthening climate information architecture, fiscal policies to support adaptation, and green public investment and public financial management.
The 2025 Review of The Short-Term Liquidity Line
The Short-term Liquidity Line (SLL), introduced in 2020, was designed as a revolving liquidity backstop for countries with very strong economic fundamentals and institutional policy frameworks. It aims to address short-term, moderate balance of payments needs arising from capital flow volatility, helping to prevent emerging liquidity pressures from escalating into broader macroeconomic or financial instability. However, uptake has been limited, with only one arrangement for Chile in 2022, which was canceled shortly thereafter in favor of a Flexible Credit Line (FCL).
Jordan: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Modification of Performance Criteria, and First Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Jordan
Jordan’s economy continues to show resilience despite persistent headwinds from regional conflicts and global economic uncertainty. Thanks to the authorities’ pursuit of sound economic policies and reforms, aided by strong international support, Jordan’s economic activity continues to recover, inflation remains low, and reserve buffers are strong. Nonetheless, structural challenges, including in the labor market and public utility companies, persist, and the public debt burden remains elevated.
The Chair’s Summing Up Independent Evaluation Office—IMF Advice on Fiscal Policy Executive Board Meeting December 4, 2025
The Executive Board discussed the Independent Evaluation Office’s review of IMF fiscal policy advice from 2008 to 2023. Directors welcomed the evaluation and noted the Fund’s progress in adapting its guidance to changing global conditions. The discussion highlighted the evolution from a narrow focus on debt sustainability toward a more integrated approach that balances fiscal sustainability, output stabilization, and long-term growth. Directors acknowledged improvements in analytical tools, including debt sustainability frameworks and fiscal risk assessments, while emphasizing the need for clearer articulation of fiscal stance and better integration of long-term spending priorities. The Board reaffirmed its commitment to transparency and consistency in providing candid, country-specific advice to help members navigate fiscal challenges.
Papua New Guinea: Fifth Reviews Under the Extended Arrangement Under the Extended Fund Facility and the Arrangement Under the Extended Credit Facility, Request for a Waiver of Nonobservance of Performance Criterion, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea
Papua New Guinea (PNG) is a fragile state with acute development needs, unstable social and political environment, and limited capacity. In the past decade, it faced multiple shocks, including natural disasters, that adversely affected growth, contributed to a sharp increase in public debt, and led to significant shortages of foreign exchange. To rebuild policy buffers and address the country’s long-standing structural challenges, the authorities have steadily implemented a multipronged reform agenda with extensive support from the IMF and other development partners.
Somalia: Fourth Review Under the Extended Credit Facility Arrangement and Request for Augmentation of Access-Press Release; Staff Report; and Statement by the Executive Director for Somalia
Economic activity remained resilient in 2025. However, the outlook is shadowed by the deepening impact of foreign aid cuts and high uncertainty. These are exacerbated by the challenging domestic security situation and political tensions, as well as climate shocks.
Statement by the Managing Director on the Independent Evaluation Office Report on IMF Advice on Fiscal Policy Executive Board Meeting December 4, 2025
The Managing Director welcomes the Independent Evaluation Office’s assessment of IMF fiscal policy advice over the past 15 years. The evaluation highlights the Fund’s evolution from a narrow focus on debt sustainability to a more balanced framework that integrates output stabilization, fiscal sustainability, and long-term growth objectives.
IMF Staff Completes 2025 Article IV Consultation Mission to Angola
An IMF team lead by Ms. Mika Saito held Angola’s 2025 Article IV consultation discussions during December 1-16. Angola’s economic growth slowed in 2025 largely due to lower oil prices, production, and moderate growth in non-oil sector activity. Real GDP growth is projected at 1.9 percent, a decline from 4.4 percent in 2024
IMF Executive Board Concludes the Second Review Under the Policy Coordination Instrument for the Republic of Serbia
The Executive Board of the International Monetary Fund (IMF) concluded the Second Review under the Policy Coordination Instrument (PCI) for the Republic of Serbia. The authorities have consented to the publication of the Staff Report prepared for the review.
IMF Executive Board Concludes The 2025 Review of the Short-Term Liquidity Line
The Executive Board of the International Monetary Fund (IMF) has formally completed its review of the Short-Term Liquidity Line (SLL) on December 17th. The Review concluded that the SLL will terminate in April 2027, at the end of the seven-year period following its establishment, in line with the original design of the instrument.
IMF Executive Board Completes the First and Second Reviews of Sierra Leone’s Arrangement Under the Extended Credit Facility
The Executive Board of the International Monetary Fund (IMF) today completed the first and second reviews of Sierra Leone’s arrangement under the Extended Credit Facility (ECF). The completion of the reviews enables the immediate disbursement of SDR 58.3 million (about US$79.8 million), bringing total disbursements under the ECF arrangement to SDR 93.3 million (about US$127.8 million).
IMF Staff Concludes Visit to Georgia
An International Monetary Fund (IMF) team led by Mr. Alejandro Hajdenberg held meetings in Tbilisi during December 10-16, 2025, to discuss recent economic and financial developments and progress on reform priorities. At the end of the visit, Mr. Hajdenberg issued the following statement:
IMF Executive Board Concludes 2025 Article IV Consultation with the Philippines
On November 24, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation with the Philippines.
The 2025 Review of The Short-Term Liquidity Line
The Short-term Liquidity Line (SLL), introduced in 2020, was designed as a revolving liquidity backstop for countries with very strong economic fundamentals and institutional policy frameworks. It aims to address short-term, moderate balance of payments needs arising from capital flow volatility, helping to prevent emerging liquidity pressures from escalating into broader macroeconomic or financial instability. However, uptake has been limited, with only one arrangement for Chile in 2022, which was canceled shortly thereafter in favor of a Flexible Credit Line (FCL).
Jordan: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Modification of Performance Criteria, and First Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Jordan
Jordan’s economy continues to show resilience despite persistent headwinds from regional conflicts and global economic uncertainty. Thanks to the authorities’ pursuit of sound economic policies and reforms, aided by strong international support, Jordan’s economic activity continues to recover, inflation remains low, and reserve buffers are strong. Nonetheless, structural challenges, including in the labor market and public utility companies, persist, and the public debt burden remains elevated.
The Chair’s Summing Up Independent Evaluation Office—IMF Advice on Fiscal Policy Executive Board Meeting December 4, 2025
The Executive Board discussed the Independent Evaluation Office’s review of IMF fiscal policy advice from 2008 to 2023. Directors welcomed the evaluation and noted the Fund’s progress in adapting its guidance to changing global conditions. The discussion highlighted the evolution from a narrow focus on debt sustainability toward a more integrated approach that balances fiscal sustainability, output stabilization, and long-term growth. Directors acknowledged improvements in analytical tools, including debt sustainability frameworks and fiscal risk assessments, while emphasizing the need for clearer articulation of fiscal stance and better integration of long-term spending priorities. The Board reaffirmed its commitment to transparency and consistency in providing candid, country-specific advice to help members navigate fiscal challenges.
Papua New Guinea: Fifth Reviews Under the Extended Arrangement Under the Extended Fund Facility and the Arrangement Under the Extended Credit Facility, Request for a Waiver of Nonobservance of Performance Criterion, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea
Papua New Guinea (PNG) is a fragile state with acute development needs, unstable social and political environment, and limited capacity. In the past decade, it faced multiple shocks, including natural disasters, that adversely affected growth, contributed to a sharp increase in public debt, and led to significant shortages of foreign exchange. To rebuild policy buffers and address the country’s long-standing structural challenges, the authorities have steadily implemented a multipronged reform agenda with extensive support from the IMF and other development partners.
Somalia: Fourth Review Under the Extended Credit Facility Arrangement and Request for Augmentation of Access-Press Release; Staff Report; and Statement by the Executive Director for Somalia
Economic activity remained resilient in 2025. However, the outlook is shadowed by the deepening impact of foreign aid cuts and high uncertainty. These are exacerbated by the challenging domestic security situation and political tensions, as well as climate shocks.
Statement by the Managing Director on the Independent Evaluation Office Report on IMF Advice on Fiscal Policy Executive Board Meeting December 4, 2025
The Managing Director welcomes the Independent Evaluation Office’s assessment of IMF fiscal policy advice over the past 15 years. The evaluation highlights the Fund’s evolution from a narrow focus on debt sustainability to a more balanced framework that integrates output stabilization, fiscal sustainability, and long-term growth objectives.
IMF Staff Completes 2025 Article IV Consultation Mission to Angola
An IMF team lead by Ms. Mika Saito held Angola’s 2025 Article IV consultation discussions during December 1-16. Angola’s economic growth slowed in 2025 largely due to lower oil prices, production, and moderate growth in non-oil sector activity. Real GDP growth is projected at 1.9 percent, a decline from 4.4 percent in 2024
IMF Executive Board Concludes the Second Review Under the Policy Coordination Instrument for the Republic of Serbia
The Executive Board of the International Monetary Fund (IMF) concluded the Second Review under the Policy Coordination Instrument (PCI) for the Republic of Serbia. The authorities have consented to the publication of the Staff Report prepared for the review.
IMF Executive Board Concludes The 2025 Review of the Short-Term Liquidity Line
The Executive Board of the International Monetary Fund (IMF) has formally completed its review of the Short-Term Liquidity Line (SLL) on December 17th. The Review concluded that the SLL will terminate in April 2027, at the end of the seven-year period following its establishment, in line with the original design of the instrument.
IMF Executive Board Completes the First and Second Reviews of Sierra Leone’s Arrangement Under the Extended Credit Facility
The Executive Board of the International Monetary Fund (IMF) today completed the first and second reviews of Sierra Leone’s arrangement under the Extended Credit Facility (ECF). The completion of the reviews enables the immediate disbursement of SDR 58.3 million (about US$79.8 million), bringing total disbursements under the ECF arrangement to SDR 93.3 million (about US$127.8 million).
IMF Staff Concludes Visit to Georgia
An International Monetary Fund (IMF) team led by Mr. Alejandro Hajdenberg held meetings in Tbilisi during December 10-16, 2025, to discuss recent economic and financial developments and progress on reform priorities. At the end of the visit, Mr. Hajdenberg issued the following statement:
IMF Executive Board Concludes 2025 Article IV Consultation with the Philippines
On November 24, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation with the Philippines.
The IMF’s approach to climate change is guided by its Climate Change Strategy, which sets out how the institution will integrate climate-related macroeconomic and financial risks into its core activities, including surveillance, lending, and capacity development.
Surveillance
Article IV consultations will cover macro-critical issues related to climate change. These include macroeconomic policies to adapt to and build resilience to climate change; challenges presented by a global transition to low-carbon energy; and domestic policy challenges that arise in the context of achieving countries’ own mitigation goals as well as countries’ contributions to the global mitigation effort.
Financial Stability Assessment Program (FSAP)
FSAPs are paying increasing attention to climate risk analysis for the financial system. Recent FSAPs have looked at the implications of transition risk in Norway, South Africa, Chile, Colombia and the UK, and physical risk in the Philippines. Where relevant, climate risk considerations are also being embedded in FSAP reviews of financial supervision and regulation.
Capacity Development
The IMF provides capacity development to member countries vulnerable to climate change and natural disasters.
- The Climate Policy Assessment Tool (CPAT) helps policymakers to assess, design, and implement climate mitigation policies for over 200 countries.
- The climate-module of Public Investment Management Assessments (C-PIMA) tool helps governments identify potential improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.
- The Climate Policy Diagnostics (CPD) provides countries with an in-depth analysis of their climate policies, focusing on mitigation and adaptation strategies, and addresses the necessary institutional and legal frameworks to support these policies.
- The Macroeconomics of Climate Change course and other regional workshops help build knowledge at Finance Ministries and Central Banks.
Policy Advice
Adaptation
Guidance on building financial and institutional resilience to natural disasters and extreme weather events.
Mitigation
Advice on measures to contain and reduce emissions through policies and tools to help countries achieve their mitigation goals.
Data
The IMF's Climate Change Indicators Dashboard provides a platform for disseminating climate change data for macroeconomic and financial stability analysis.
Lending
The IMF’s Resilience and Sustainability Trust (RST) helps low-income and vulnerable middle-income countries build resilience to external shocks and ensure sustainable growth, contributing to their longer-term balance of payments stability. It complements the IMF’s existing lending toolkit by providing longer-term, affordable financing to address longer-term challenges, including climate change and pandemic preparedness.
COP29: Bridging the Adaptation Financing Gap: Challenges and Potential Solutions
Panelists discuss how to enhance partnerships and cooperation to scale up adaptation financing for EMDEs and explore the role various stakeholders play in n attracting private capital for adaptation investments.
COP29: The Pioneering Role of IMF’s Resilience and Sustainability Trust (RST) in Climate Action
Panelists discuss how specific countries benefited from the Resilience and Sustainability Trust (RST) and the lessons learned in the process.
COP29 Event – Unlocking Financing for the Green Transition in Emerging and Developing Economies
Delivering on global climate goals requires a shift to renewable energy and other green technologies. The main challenge for developing economies is securing funding for this transition. With limited fiscal space and low financial development, foreign direct investment (FDI) and official lending are crucial.