Climate-Resilient Fiscal Management: Experience from Southeast Asia
DOWNLOAD (1.61 MB)
Publication Type:
Publisher:
Asian Development Bank (ADB)
Publication:
November 2024
This report considers how finance ministries can respond strategically to climate risk, highlighting good practices from the region.
Acting on climate risks and opportunities is a key priority for finance and planning ministries across Southeast Asia. Responsible for government financial functions, including budget and investment management, tax and subsidy policy, debt management and financing, monitoring of public entities, and financial system regulation, these ministries face significant and rapidly growing exposures to climate risks.
Finance ministries play a central role in a country's climate action as increasing physical risks can cause volatility in public finances. Transition risks are also expected to create significant fiscal pressures. Finance ministries also play a key role in mobilizing the investment required for broader adaptation and decarbonization programs. Estimated financing needs for clean energy alone is $150 billion per year and financing needs for adaptation are even greater at $387 billion per year, far exceeding the current level of international public finance.
This report considers how finance ministries can respond strategically to climate risk, highlighting good practices from the region and identifying crosscutting priorities.
Contents
- Introduction
- Climate-Related Fiscal Risk Assessment
- Climate-Related Fiscal Risk Management
- Climate Finance Mobilization
- Conclusions
- Appendixes
