Climate Resilience

While we continue to work to reduce carbon emissions, the increasing frequency of more extreme weather like hurricanes, droughts, and floods is affecting people across the world.

For many developing countries, economic prospects will be significantly threatened without effective adaptation to climate change, and many small island states are particularly vulnerable. In some countries, disaster-related economic losses have exceeded 200 percent of GDP—for example when Hurricane Maria struck Dominica in 2017.

Analysis of appropriate adaptation policies must be inherently local and customized to the evolving climate impact on specific regions or sectors, including resilience-building strategies to help prepare for and rebound from disasters.

It is clear, nonetheless, that developing country governments can face very large adaptation costs: importantly, the need for growth-enhancing scaled up infrastructure provides an opportunity for climate-resilient, low-carbon infrastructure spending.

To be successful, the management of this spending, and of financial assistance for it, should be undertaken within a medium-term financial framework consistent with available resources, macro-stability, and debt sustainability.

Back to Top

Climate Change Policy Assessments

The CCPA is a joint IMF-World Bank assessment introduced on a pilot basis in 2017 and provides an overarching assessment of countries’ climate strategies—as articulated in their Nationally Determined Contributions (NDCs) and other government documents. CCPAs are intended to help countries build coherent macro-frameworks for responding to climate change, which could improve prospects for attracting external finance and put future revisions to NDCs on a sound footing.


Back to Top

Macroeconomic Resilience

Building Resilience in Developing Countries Vulnerable to Large Natural Disasters (2019)

Policy Trade-Offs in Building Resilience to Natural Disasters (2019)

Macro-fiscal Implications of Climate Change: The Case of Djibouti (2018)

The Economic Impact of Natural Disasters in Pacific Island Countries: Adaptation and Preparedness (2018)

Self-insurance Against Natural Disasters: The Use of Pension Funds in Pacific Island Countries (2018)

Public investment in the face of natural disasters: a model application to Solomon Islands (2018)

Policy Trade-Offs in Building Resilience to Natural Disasters (2018)

The Effect of Weather Shocks on Economic Activity: How Can Low-Income Countries Cope? (in World Economic Outlook, 2017)

Staff Guidance Note on the Fund’s Engagement with Small Developing States (2017)

Building Resilience to Natural Disasters: An Application to Small Developing States(2017)

Enhancing Resilience to Climate and Natural Disasters in Seychelles (2017)

The Macro-Fiscal Aftermath of Weather-Related Disasters: Do Loss Dimensions Matter? (2017)

Small States’ Resilience Building to Natural Disasters and Climate Change—Role for the IMF (2016)

Is the Glass Half Empty or Half Full? Issues in Managing Water Challenges and Policy Instruments (2016)

Enhancing Resilience to Natural Disasters in Sub-Saharan Africa (in Sub-Saharan Africa Regional Economic Outlook, 2016)

Macroeconomic Developments and Selected Issues in Small Developing States (2015)

Strengthening Fiscal Frameworks and Improving the Spending Mix in Small States (2015)

Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in Small States of the Pacific (2015)

Back to Top


<img src=

The Next Phase of the Crisis: Further Action Needed for a Resilient Recovery

July 15, 2020

When the Group of Twenty industrialized and emerging market economies (G-20) finance ministers and central bank governors last met in April, the world was in the midst of the Great Lockdown forced by the outbreak of COVID-19. As they meet virtually this week, many countries are gradually reopening, even as the pandemic remains with us. Clearly, we have entered a new phase of the crisis—one that will require further policy agility and action to secure a durable and shared recovery.

Read more


Equity Investors Must Pay More Attention to Climate Change Physical Risk

MAY 29, 2020

The damage from the 2011 floods in Thailand amounted to around 10 percent of Thailand’s GDP, not even considering all the indirect costs through a loss in economic activity in the country and abroad. By some estimates, the total costs of the 2018 wildfires in California were up to $350 billion, or 1.7 percent of U.S. GDP. Every year, climatic disasters cause human suffering as well as large economic and ecological damage. Over the past decade, direct damages of such disasters are estimated to add up to around US$ 1.3 trillion (or around 0.2% of world GDP on average, per year).

Read more


Top 6 Blogs on Climate Change

DECEMBER 11, 2019

Actions speak louder than words. The longer we wait to act on climate change, the greater the loss of life and damage to the world economy. Faced with the ongoing existential threat posed by changes to our climate, the United Nations conference known as COP25 is happening in Madrid, Spain.  Policymakers with ambition and vision can choose what to do and how to do it, right now, globally and at home.

Read more

Back to Top


Managing Director Georgieva’s Closing Remarks EU Environment Ministers Videoconference (July 13, 2020)

Introductory Remarks DMD Zhang—Virtual High-Level Dialogue of the Carbon Pricing Leadership Coalition (CPLC) (June 22, 2020)

DMD Zhang Opening Remarks— COVID-19: Opportunities for a Green Recovery  (May 22, 2020)

A Delicate Moment for the Global Economy: Three Priority Areas for Action, by Christine Lagarde, Managing Director (April 2019)

Stress-Testing for the Transition to a Low-Carbon Economyby Tobias Adrian, Financial Counsellor (April 2019) 

Opening Remarks by Christine Lagarde at the 2018 High Leve Conference on Building Resilience to Disasters and Climate Change (November 2018)

Keynote Address at Secretary-General’s High-Level Meeting on Financing the 2030 Agenda for Sustainable Development, by Christine Lagarde, Managing Director (September 2018)

Adapting to Climate Change: Pricing Right, Taxing Smart, and Acting Now, by Tao Zhang, Deputy Managing Director (January 2018)

2017 High Level Caribbean Forum: Unleashing Growth and Strengthening Resilience, by Christine Lagarde, Managing Director (November 2017)

Global and Regional Challenges to Caribbean Economic Development—2016 High Level Caribbean Forum on Shifting Tides: Challenges and Opportunities, by Tao Zhang, Deputy Managing Director (November 2016)

The Caribbean Response to the Withdrawal of Correspondent Banking, by Tao Zhang, Deputy Managing Director (October 2016)

Statement by IMF Managing Director Christine Lagarde on the Catastrophic Containment and Relief Trust (February 2015)