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.
Republic of Marshall Islands: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Authorities of the Republic of Marshall Islands
As a small, fragile, and remote island state, the Republic of the Marshall Islands faces several vulnerabilities and challenges, including high exposure to climate-related shocks and persistent labor emigration. Near-term growth is projected to accelerate amid expansionary fiscal policy. Growth is expected to moderate over the medium term, constrained by structural challenges and inflation to remain above its historical average. The government is pursuing an ambitious reform agenda. The recent renewal of the Compact of Free Association (Compact) with the United States offers a window of opportunity to enhance fiscal prudence and press ahead with such reforms.
Understanding Stablecoins
Stablecoins, a type of crypto asset, have seen significant growth and attention recently. This paper provides a comprehensive overview of stablecoins. It discusses market developments, use cases, potential benefits, associated risks, and the evolving international regulatory landscape. Stablecoin issuance has doubled over the past two years, driven by their use in crypto trades. The future demand for stablecoins could arise from other use cases supported by enabling legal and regulatory frameworks. Stablecoins are part of the broader interest in asset tokenization. Stablecoins offer several potential benefits. Through tokenization, they could increase efficiency in payments through increased competition. Stablecoins also carry significant risks related to macro-financial stability, operational efficiency, financial integrity, and legal certainty. Stablecoins may contribute to currency substitution, increase capital flow volatility. These risks could be more pronounced in countries experiencing high inflation, weaker institutions, or diminished confidence in the domestic monetary framework. The regulatory landscape for stablecoins is evolving. The International Monetary Fund (IMF), the Financial Stability Board (FSB) have issued comprehensive policy recommendations. Many authorities have started implementing international standards, although a fragmented landscape persists. As stablecoins operate globally, this also increases the potential for conflicts between domestic policies, making international cooperation even more essential. The IMF continues to closely monitor developments, offering analysis, guidance, and policy advice to member countries on crypto assets, including stablecoins. As stablecoins continue to integrate into the global financial system, policymakers, regulators, and industry stakeholders need to collaborate and ensure that the potential benefits of stablecoins materialize while addressing increasing risks. This collaborative approach will help create a more resilient and inclusive financial ecosystem, paving the way for innovative financial solutions that can drive economic growth.
Rwanda: 2025 Article IV Consultation and Sixth Review Under the Policy Coordination Instrument-Press Release; and Staff Report
Rwanda’s strong transformation over the past two decades has been underpinned by sustained economic growth and improved living standards. Growth has averaged 6–9 percent, driven by exports and infrastructure investment, and supported by improvements in health and education outcomes, though structural challenges and fiscal pressures from successive shocks persist amid reduced policy buffers. Close engagement with the IMF through the Policy Coordination Instrument (PCI), Resilience and Sustainability Facility (RSF), and Standby Credit Facility (SCF) has helped preserve macroeconomic stability and resilience amid natural disasters and global headwinds. As the PCI finalizes, focus now shifts to financing priorities under the Second National Strategy for Transformation, including large infrastructure projects such as the New Kigali International Airport, while safeguarding debt sustainability, strengthening domestic revenue mobilization, and advancing inclusive, climate-resilient growth.
Healthy Aging and Labor Market Participation in Korea: Republic of Korea
This paper investigate whether health improvements among Korean older workers influence their labor market outcomes, such as the decision to supply labor or to retire. The findings reveal that better health increases the probability of participating in the labor force and postponing retirement. Overall, the results suggest that healthy aging has increased the labor supply of older individuals in Korea by around 1.9 percentage points per year during the 2006-20 period. Reforms to promoting employment of elderly workers can boost labor supply and help mitigate the adverse effects of ageing on the labor market.
IMF Executive Board Completes the Fifth Reviews of the EFF/ECF Arrangements and the Fourth Review of the RSF Arrangement for Côte d’Ivoire
The Executive Board of the International Monetary Fund (IMF) completed the Fifth Reviews of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements and the Fourth Review of the Resilience and Sustainability Facility (RSF) Arrangement for Côte d’Ivoire.
IMF Executive Board Concludes the 2025 Article IV Consultation and Completes the Sixth Review Under the Policy Coordination Instrument with Rwanda
On December 4, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation with Rwanda and completed the sixth review of Rwanda’s performance under the Policy Coordination Instrument and considered and endorsed the staff appraisal without a meeting on a lapse-of-time basis. The authorities have consented to the publication of the Staff Report prepared for the consultation and the review.
IMF Executive Board Concludes 2025 Article IV Consultation with Republic of the Marshall Islands
The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for the Republic of Marshall Islands on October 29, 2025.
IMF Executive Board Concludes 2025 Article IV Consultation, Completes Sixth review Under the Stand-By Arrangement, Cancels the Stand-By Arrangement, and Approves a Stand-by Arrangement with Armenia
The Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation,1 completed the sixth review under the Stand-By Arrangement (SBA), and subsequently cancelled the SBA and approved a new 36-month SBA with Armenia amounting to SDR 128.8 million (100 percent of Armenia’s quota in the IMF or about US$ 175 million).
IMF Reaches Staff-Level Agreement on the Fourth Review under Ecuador’s Extended Fund Facility Arrangement
International Monetary Fund (IMF) staff and the Ecuadorian authorities have reached staff level agreement on a set of comprehensive policies and reforms needed to complete the Fourth Review under the Extended Fund Facility (EFF) arrangement.
IMF Executive Board Concludes 2025 Article IV Consultation Discussions with The Kingdom of the Netherlands—Aruba
The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation Discussions for the Kingdom of the Netherlands—Aruba and endorsed the staff appraisal without a meeting on a lapse-of-time basis. These consultation discussions form part of the Article IV consultation with the Kingdom of the Netherlands. The authorities have consented to the publication of the Staff Report prepared for this consultation.
Republic of Marshall Islands: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Authorities of the Republic of Marshall Islands
As a small, fragile, and remote island state, the Republic of the Marshall Islands faces several vulnerabilities and challenges, including high exposure to climate-related shocks and persistent labor emigration. Near-term growth is projected to accelerate amid expansionary fiscal policy. Growth is expected to moderate over the medium term, constrained by structural challenges and inflation to remain above its historical average. The government is pursuing an ambitious reform agenda. The recent renewal of the Compact of Free Association (Compact) with the United States offers a window of opportunity to enhance fiscal prudence and press ahead with such reforms.
Understanding Stablecoins
Stablecoins, a type of crypto asset, have seen significant growth and attention recently. This paper provides a comprehensive overview of stablecoins. It discusses market developments, use cases, potential benefits, associated risks, and the evolving international regulatory landscape. Stablecoin issuance has doubled over the past two years, driven by their use in crypto trades. The future demand for stablecoins could arise from other use cases supported by enabling legal and regulatory frameworks. Stablecoins are part of the broader interest in asset tokenization. Stablecoins offer several potential benefits. Through tokenization, they could increase efficiency in payments through increased competition. Stablecoins also carry significant risks related to macro-financial stability, operational efficiency, financial integrity, and legal certainty. Stablecoins may contribute to currency substitution, increase capital flow volatility. These risks could be more pronounced in countries experiencing high inflation, weaker institutions, or diminished confidence in the domestic monetary framework. The regulatory landscape for stablecoins is evolving. The International Monetary Fund (IMF), the Financial Stability Board (FSB) have issued comprehensive policy recommendations. Many authorities have started implementing international standards, although a fragmented landscape persists. As stablecoins operate globally, this also increases the potential for conflicts between domestic policies, making international cooperation even more essential. The IMF continues to closely monitor developments, offering analysis, guidance, and policy advice to member countries on crypto assets, including stablecoins. As stablecoins continue to integrate into the global financial system, policymakers, regulators, and industry stakeholders need to collaborate and ensure that the potential benefits of stablecoins materialize while addressing increasing risks. This collaborative approach will help create a more resilient and inclusive financial ecosystem, paving the way for innovative financial solutions that can drive economic growth.
Rwanda: 2025 Article IV Consultation and Sixth Review Under the Policy Coordination Instrument-Press Release; and Staff Report
Rwanda’s strong transformation over the past two decades has been underpinned by sustained economic growth and improved living standards. Growth has averaged 6–9 percent, driven by exports and infrastructure investment, and supported by improvements in health and education outcomes, though structural challenges and fiscal pressures from successive shocks persist amid reduced policy buffers. Close engagement with the IMF through the Policy Coordination Instrument (PCI), Resilience and Sustainability Facility (RSF), and Standby Credit Facility (SCF) has helped preserve macroeconomic stability and resilience amid natural disasters and global headwinds. As the PCI finalizes, focus now shifts to financing priorities under the Second National Strategy for Transformation, including large infrastructure projects such as the New Kigali International Airport, while safeguarding debt sustainability, strengthening domestic revenue mobilization, and advancing inclusive, climate-resilient growth.
Healthy Aging and Labor Market Participation in Korea: Republic of Korea
This paper investigate whether health improvements among Korean older workers influence their labor market outcomes, such as the decision to supply labor or to retire. The findings reveal that better health increases the probability of participating in the labor force and postponing retirement. Overall, the results suggest that healthy aging has increased the labor supply of older individuals in Korea by around 1.9 percentage points per year during the 2006-20 period. Reforms to promoting employment of elderly workers can boost labor supply and help mitigate the adverse effects of ageing on the labor market.
IMF Executive Board Completes the Fifth Reviews of the EFF/ECF Arrangements and the Fourth Review of the RSF Arrangement for Côte d’Ivoire
The Executive Board of the International Monetary Fund (IMF) completed the Fifth Reviews of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements and the Fourth Review of the Resilience and Sustainability Facility (RSF) Arrangement for Côte d’Ivoire.
IMF Executive Board Concludes the 2025 Article IV Consultation and Completes the Sixth Review Under the Policy Coordination Instrument with Rwanda
On December 4, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation with Rwanda and completed the sixth review of Rwanda’s performance under the Policy Coordination Instrument and considered and endorsed the staff appraisal without a meeting on a lapse-of-time basis. The authorities have consented to the publication of the Staff Report prepared for the consultation and the review.
IMF Executive Board Concludes 2025 Article IV Consultation with Republic of the Marshall Islands
The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for the Republic of Marshall Islands on October 29, 2025.
IMF Executive Board Concludes 2025 Article IV Consultation, Completes Sixth review Under the Stand-By Arrangement, Cancels the Stand-By Arrangement, and Approves a Stand-by Arrangement with Armenia
The Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation,1 completed the sixth review under the Stand-By Arrangement (SBA), and subsequently cancelled the SBA and approved a new 36-month SBA with Armenia amounting to SDR 128.8 million (100 percent of Armenia’s quota in the IMF or about US$ 175 million).
IMF Reaches Staff-Level Agreement on the Fourth Review under Ecuador’s Extended Fund Facility Arrangement
International Monetary Fund (IMF) staff and the Ecuadorian authorities have reached staff level agreement on a set of comprehensive policies and reforms needed to complete the Fourth Review under the Extended Fund Facility (EFF) arrangement.
IMF Executive Board Concludes 2025 Article IV Consultation Discussions with The Kingdom of the Netherlands—Aruba
The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation Discussions for the Kingdom of the Netherlands—Aruba and endorsed the staff appraisal without a meeting on a lapse-of-time basis. These consultation discussions form part of the Article IV consultation with the Kingdom of the Netherlands. The authorities have consented to the publication of the Staff Report prepared for this consultation.
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.