## Republic of Palau: Selected Issues

_IMF Staff Country Reports, December 21, 2023_

## Source details

**Canonical URL:** [Republic of Palau: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/12/21/republic-of-palau-selected-issues-542641)

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## Bibliographic details
- Published: December 21, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400261022.002

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### Climate change adaptation and planning
- Adaptation can be very effective at reducing the cost of sea-level rise, but it requires careful planning and a balanced mix of protection and planned retreat.
- To be effective and efficient, adaptation to climate change must be an integral part of development planning.
- With many competing needs, the government must carefully allocate resources across all possible uses, including adaptation to climate change, while considering the distributional effects of its programs.

### Mitigation targets and renewable energy
- Palau’s conditional mitigation targets are ambitious.
- Palau can continue to drive investments toward renewable infrastructure and explore complementary policies.
- With the introduction of a new solar farm, Palau is expected to increase its renewable generation share to 20 percent in the near future.

### Carbon pricing and economic implications
- Carbon pricing can play a role in reducing emissions, raising revenues, and driving the transition.
- Palau’s effective carbon price on diesel and gasoline are high compared to other island economies.
- With Palau’s reliance on imported goods and tourism, the global mitigation agenda may affect Palau’s economy.

### Cross-cutting policy considerations
- Integrate adaptation into broader development planning to ensure cost-effectiveness and efficiency.
- Balance protection and planned retreat strategies when addressing sea-level rise risks.
- Carefully allocate limited government resources across competing priorities, accounting for distributional effects.
- Promote renewable infrastructure investments and complementary policies to meet ambitious mitigation targets.
- Consider carbon pricing as a tool for emissions reduction and revenue generation, while assessing economic impacts given Palau’s exposure to imports and tourism.

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## Content in this bundle

- **Republic of Palau: Selected Issues; IMF Country Report No. 23/431; November 13, 2023**
  - [Republic of Palau: Selected Issues; IMF Country Report No. 23/431; November 13, 2023 (Markdown version)](/-/media/files/publications/cr/2023/english/1plwea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of Palau: Selected Issues; IMF Country Report No. 23/431; November 13, 2023 (PDF)](/-/media/files/publications/cr/2023/english/1plwea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/12/21/republic-of-palau-selected-issues-542641_