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Climate Goals and Debt: A Fiscal Balancing Act

IMF Podcasts

CHAPTER

Challenges and Trade-offs in Achieving Climate Goals

This chapter explores the challenges faced by countries in achieving their climate goals and the trade-offs between climate ambitions, fiscal sustainability, and political feasibility. It emphasizes the importance of considering debt and public finance, improving spending efficiency, and seeking multilateral collaborations for concessional financing. The chapter also discusses the unique challenges for fossil fuel exporting countries and provides recommendations for building fiscal buffers and promoting private sector involvement in climate financing.

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