IMF Podcasts
Climate Goals and Debt: A Fiscal Balancing Act
Nov 28, 2023
Examining challenges faced by countries in achieving climate goals, trade-offs between climate ambitions, fiscal sustainability, and political feasibility. Significance of carbon pricing as efficient instrument, revenue generation potential, and successful examples. Role of international forums in building global consensus on carbon pricing and progress made. Mention of Rafael Lam and Christine Richmond's work in IMF's fiscal affairs department and promotion of latest fiscal monitor publication and other IMF podcasts.
20:08
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Climate action poses challenges for countries with high debt levels and strained government finances.
- Achieving climate goals is a policy trilemma that requires balancing fiscal sustainability, political feasibility, and climate targets.
Deep dives
Climate action and the cost of transition
Climate action poses significant challenges for countries, especially in emerging markets and developing nations. The cost of transitioning to sustainable practices is a major obstacle, particularly for countries with high debt levels. Governments face a policy trilemma of balancing climate goals, debt sustainability, and political feasibility. While the world came together to acknowledge the climate problem and set goals in 2015, achieving these goals strains government finances. Current efforts are insufficient, and a 13% reduction in emissions across G20 countries is projected, falling short of the required 25% to 50% reduction. The Fiscal Affairs Department of the IMF is working to assist countries in managing their limited resources.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
