Fiscal policies to tackle climate catastrophe in Asia Pacific

The physical risks of climate change are particularly high for Asia Pacific. The region is most susceptible to natural disasters, such as hurricanes, droughts and wildfires, which will become more frequent and severe. As the most populous and fastest growing region in recent decades, Asia Pacific has unsurprisingly become the largest emitter of greenhouse gases.

Fiscal policy plays a critical role in responding to climate change. Progress can be achieved by well-designed tax policies that raise the price of carbon, together with non-tax instruments such as emission trading systems or regulations. Climate adaption and mitigation requires an increase in government spending, accommodated under the fiscal framework of a country. Further, fiscal policy can facilitate the transition to a greener, low-carbon economy by investing in climate-smart infrastructure such as renewable power generation and supporting research and development in climate-smart technologies. 

Register here for the OMFIF-SPI symposium, 'Revolutionising finance for net zero'. 

Panellists:
Masahiro Nozaki, Deputy Division Chief, IMF Asia-Pacific Department
Ian Parry, Principal Environmental Fiscal Policy Expert, IMF
Satoru Yamadera, Advisor, Economic Research and Regional Cooperation Department, ADB
John Nasir, Head of Economics, APAC, IFC

This podcast is taken from a recording of a live event. Recorded on 18/08/21. 

Watch the event.