Fiscal Policy and Climate Change: Recent Experiences of Finance Ministries in Latin America and the Caribbean
Peer Reviewed
Date issued
Jul 2021
Subject
Investment;
Disaster;
Climate Change;
Ministries;
Decarbonization;
Energy;
Fiscal Policy;
Public Policy
JEL code
Q01 - Sustainable Development;
H54 - Infrastructures • Other Public Investment and Capital Stock;
H53 - Government Expenditures and Welfare Programs;
Q58 - Government Policy;
Q56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth;
Q50 - Environmental Economics: General;
H30 - Fiscal Policies and Behavior of Economic Agents: General;
H60 - National Budget, Deficit, and Debt: General;
O20 - Development Planning and Policy: General;
H00 - Public Economics: General: General;
O10 - Economic Development: General;
O38 - Government Policy;
Q20 - Renewable Resources and Conservation: General;
H50 - National Government Expenditures and Related Policies: General
Category
Monographs
This publication presents recent experiences of finance ministries in the Latin American and Caribbean region in three crucial areas of intervention where climate change issues and the responsibilities of these ministries merge. In addition, it presents key elements for designing fiscal policies that contribute to sustainable growth. The three areas are: 1) Management of economic, fiscal, and financial risks associated with extreme weather events and climate change; 2) Challenges of the transition to low-carbon economies; and 3) Reorientation of public finances so they contribute to national objectives of resilience and decarbonization. Despite the risks and challenges involved in transitioning to green economies, the publication provides evidence indicating that both economic and employment opportunities can be achieved with efficient planning and implementation.
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