Cover

Contents

EXECUTIVE SUMMARY

I. Introduction

II. Macroeconomic Impacts

III. Fiscal Policy for Mitigation

A. Choice of Mitigation Instruments: The Rationale for Fiscal Policies

B. Design Principles—A Closer Look

C. Experience to Date

D. International Coordination of Fiscal Policy

IV. Climate Finance

V. Adaptation

VI. The Financial Sector and Climate Change

A. Financial Sector Risks

B. Role of the Financial Sector

C. Financial Sector Policies and Regulations

VII. Role of the IMF

Tables

1. Submitted INDCs, Large Emitting Countries/Regions

2. Carbon Taxes Around the World

3. Climate Finance

Figures

1. Impact of Warming on World Output

2. Projected Regional and Sectoral Impacts of Climate Change, 2050 or Thereabouts

3. Impacts of Climate Change

4. LICs Exposure to Climate-Related Disasters

5. Domestic Environmental Benefits from Carbon Pricing 2010

6. Price Experience in the EU ETS

7. Revenue from CO2 Pricing for Domestic Environmental Benefits, 2010

8. Illustrative Cost of CO2 Tax for a Representative Large Emitter, with and without Efficient Revenue Use

9. CO2 Price Impact by Income Quintile Prior to Revenue Use, Selected Countries, 2012

10. Annual Adaptation Costs, 2010-50

11. Annual Adaptation Costs by Sector

12. Green Bond Market: Size and Compositions, 2011-2014

Boxes

1. Global Climate Change: Trends and Science

2. Climate Change, Natural Disasters, and Debt Sustainability

References