Climate Risk and IMF Surveillance Policy: A Baseline Analysis

Accra, Ghana. Photo by Etornam Ahiator on Unsplash

The International Monetary Fund (IMF) has been tasked with quickly devising a climate change strat­egy that helps its members meet collective climate change and development goals while maintaining financial stability.

A new working paper by Luma Ramos, Corinne Stephenson, Irene Monasterolo and Kevin P. Gallagher uses textual analysis algorithms to perform a baseline analysis of the extent to which the IMF’s main bilateral surveillance activities — Article IV reports and Financial Sector Assessment Programs (FSAPs) — focused on climate risks between 2017 and 2021.

The authors found that IMF surveillance activity has paid little and uneven attention to climate risks in Article IV reports, and even less so in FSAPs. However, recent Article IV and FSAP assessments have piloted climate risk analyses that present an opportunity to be expanded and incorporated systematically in future IMF assessments.

In December 2021, this working paper was published as a journal article in Climate Policy.

Read the Working Paper Read the Policy Brief