Accounting for Climate Risks in Costing the Sustainable Development Goals

IMF Working Papers, March 8, 2024

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Canonical URL: Accounting for Climate Risks in Costing the Sustainable Development Goals

Authors: Rimjhim Aggarwal, Piergiorgio M Carapella, Tewodaj Mogues, Julieth C Pico-Mejia
Published: March 8, 2024
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9798400264061.001

The paper evaluates the additional spending needed to meet core targets of selected Sustainable Development Goals (SDGs) while accounting for the associated cost to address climate risks.
The SDGs under study are those related to human and physical capital development.
An additional 3.8 percent of global GDP, or US$3.4 trillion, of public and private spending will be required by 2030 to achieve a strong performance in the selected SDGs while addressing associated climate risks.
This includes an increase of 0.4 percent of global GDP (US$358 billion) compared to estimates that do not account for mitigation and adaptation needs within these sectors.

Additional spending required by 2030: 3.8 percent of global GDP.
Additional spending required by 2030 in dollar terms: US$3.4 trillion.
Incremental increase relative to estimates that exclude climate needs: 0.4 percent of global GDP (US$358 billion).

Low-Income Developing Countries (LIDCs) and Sub-Saharan Africa (SSA) experience the highest climate-related cost augmentation relative to GDP.
Emerging Market Economies (EMEs), driven by large Asian emerging economies, bear the largest climate-related cost in absolute terms.

Subject areas: Climate change; Development; Environment; Health; Infrastructure; National accounts; Natural disasters; Sustainable Development Goals (SDG).
Keywords included in the study: Climate change, Education, Electricity, Expenditure, expenditure Needs, Global, Health, Infrastructure, Natural disasters, road infrastructure, Roads., sanitation infrastructure Improvement, Spending, Sustainable Development Goals, Sustainable Development Goals (SDG), wash infrastructure improvement, Water and sanitation, water infrastructure Improvement.