The IMF Staff Climate Note 2022/001 provides economic principles for integrating adaptation to climate change into fiscal policy. The authors suggest that adaptation measures should be prioritized in fiscal planning, and that governments should consider using fiscal instruments such as taxes and subsidies to encourage private sector investment in adaptation. The note also emphasizes the importance of considering the distributional impacts of adaptation measures, and of ensuring that vulnerable populations are not disproportionately burdened. Overall, the note highlights the need for proactive and strategic fiscal policy in addressing the challenges posed by climate change.
