The fiscal case for adaptation and improved sustainability analysis

Abstract:

A contribution to the ‘Compendium of Practice from a Global Community of Ministries of Finance and Leading Organizations: Economic analysis and modeling tools to assist Ministries of Finance in driving green and resilient transitions’.  Topic: Addressing the climate policy questions facing Ministries of Finance: the economic and fiscal impacts of adaptation and resilience.

The costs of climate disruption to infrastructure assets can strain fiscal budgets and reduce productivity, with knock-on effects for growth, investment, and poverty alleviation.

There are estimated to be significant fiscal benefits of early investment in resilient infrastructure, in terms of both reduced costs and long-term macroeconomic trajectories. The public sector plays multiple critical roles in this respect: financier, regulator, catalyst, and policymaker, to name just a few.