## Federated States of Micronesia: Climate Change Policy Assessment

_IMF Staff Country Reports, September 6, 2019_

## Source details

**Canonical URL:** [Federated States of Micronesia: Climate Change Policy Assessment](https://www.imf.org/en/publications/cr/issues/2019/09/06/federated-states-of-micronesia-climate-change-policy-assessment-48665)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/09/06/federated-states-of-micronesia-climate-change-policy-assessment-48665/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/09/06/federated-states-of-micronesia-climate-change-policy-assessment-48665/index.json)
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## Bibliographic details
- Published: September 6, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513513669.002

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### Summary and scope
- The Climate Change Policy Assessment (CCPA) takes stock of the Federated States of Micronesia (FSM)’s climate response plans from the perspective of their macroeconomic and fiscal implications.
- CCPA explores the possible impact of climate change and natural disasters and the cost of FSM’s planned response.
- The report suggests macroeconomically relevant reforms that could strengthen the national strategy and identifies policy gaps and resource needs.

### Progress on mitigation
- FSM has made progress toward its Nationally Determined Contribution mitigation pledge by beginning to expand renewable power generation and improve its efficiency.
- The authorities plan to continue renewable expansion and encourage take-up of energy efficient building design and appliances.

### Adaptation, disaster risk, and financing needs
- Accelerating adaptation investments is paramount.
- Addressing critical capacity constraints and increasing grant financing are required to accelerate adaptation investments.
- It is recommended that FSM increase its capacity to address natural disaster risks following the expiry of Compact-related assistance in 2023.
- It is advised to improve climate data collection and use, including on:
  - the costs of high and low intensity disasters, and
  - disaster response expenditure.

### Macroeconomic and fiscal implications
- The assessment evaluates the macroeconomic and fiscal implications of climate change, natural disasters, and FSM’s planned responses.
- It identifies reforms that are macroeconomically relevant to strengthen the national strategy and identify policy gaps and resource needs.

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- **1fsmea2019002**
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_Source: https://www.imf.org/en/publications/cr/issues/2019/09/06/federated-states-of-micronesia-climate-change-policy-assessment-48665_