Fostering fiscal policy for climate change in Latin America and the Caribbean

To shift financial flows it is key to also consider fiscal policy and green budgeting approaches. Finance ministries in Latin America and the Caribbean are increasing their awareness on climate change and the importance of fiscal policy in this regard but the scale of the challenge requires greater action. The fund works with these ministries to support the design, implementation, and evaluation of initiatives to increase the transparency, effectiveness, and efficiency of climate-related fiscal policies. These activities contribute to the successful design and implementation of Nationally Determined Contributions and long-term strategies. The Fund is also supporting the Regional Climate Change Platform of Finance Ministries to facilitate knowledge exchange. These activities help countries to achieve greater efficiency of climate-related spending and support fiscal policies for the transition to net zero emission and climate-resilient economies.